Central Banks, like the Federal Reserve in US and the Bank of England in the UK are there to come to the assistance of our private banks when they have a cash flow problem. They do this as an essential part of maintaining the trust of the public in our global banking system. We allow our money to flow unhindered across the planet because we trust the system.
Then the European Central Bank (ECB) came into being and it appears the ball game has now changed. The ECB came about to facilitate ‘European Monetary Union’ and implement monetary policy in the Eurozone.
This includes many of the tasks that were previously carried out by our national banks, as well as running the euro currency system. Its owners and shareholders are the central banks of the member states and its president is a former managing director of Goldman Sachs.
So at the heart of the European Union there is a private company controlling the financial requirements of the member states, as well as many aspects of their banks. As a private company it is only accountable to its shareholders and is run by unelected technocrats.
When things get difficult, as I mentioned earlier, the ECB should be there to offer aid and assistance to a troubled bank in preserving trust. In the case of Greece however something very sinister has occurred, resulting in not so much an example of monetary union but the emergence of a sinister controlling device.
When the democratic Greek elections produced a left wing government the ECB turned nasty. The fact that the government was seeking to ease the lot of the Greek people, in their negotiations with their creditors, was irrelevant. The ECB sought to stop the financial support that is always available for the stability of the banking system and thereby close down the Greek banks.
It was the tool by which the Troika finally brought Alex Tsipras to his knees and caused his now infamous U-turn. Trust in this traditional and essential global banking function was broken with the threatened withdrawal of this support and he had no option but to capitulate to the ferocious demands of creditors.
It is also now reported that the Troika have taken control of the country’s tax collection mechanism, although vigorously denied by Brussels . . . Would they actually admit to it I ask myself? This ensures that payments of interest get priority over the normal use of taxpayer money to run the country. Such flagrant autocratic action has reduced the power of the democratically elected government to nil!
What is truly worrying is that the ECB have been guilty of this brutal breach of trust before in the case of Cyprus in 2013, when they forced the government to accept a controversial bailout programme and before that, a similar enforcement in Ireland in 2010. And it was only set up in 1998!
What we have is unelected technocrats exerting their will over that of democratically elected governments. Indeed our own chancellor in the UK, having been told to implement ‘austerity’ measures by the IMF, was then told to ease up because they knew they had got it wrong!
This is raw unelected power being exercised in a manner that is causing human tragedy on a growing scale. In Greece these ‘Austerity’ measures (that the IMF admit don’t work) have caused a suicide every day since 2010. It gets worse as the situation deteriorates, seeing a 35% escalation in suicide rates over the last 2 years, with a particular emphasis upon the unemployed. Source: George Rachiotis MD PhD at the University of Thessaly in Greece.
As I survey the debris from the financial violence taking place in Greece I find myself asking where Brussels is in all of this. There is a deathly hush in the corridors of (power?) where our distant and unaccountable MEP’s are supposed to function. They too are our democratically elected representatives, charged with running the EU for the benefit of the people, by managing our resources for the common good . . . but their silence now is deafening.
This silence and their secrecy over the now infamous TTIP and TPP trade agreements has become untenable to my mind and the antithesis of what trust is all about. I can see no purpose to the EU in what was originally sold to us as a political ‘union’. It is becoming increasingly obvious that it is nothing more than a ‘multi country control mechanism’ that needs to be dismantled at the first opportunity . . . Let’s have a European Referendum Season!!!
Once again I find myself offering a huge debt of gratitude to the Greek government and Greek people for lifting the veils upon the sinister forces that rule our lives. The price they are currently paying can only be justified if we understand and learn from their horrendous experience and vow to rid ourselves of this toxic cancer of growing abuse.
Until the next time
Thinking from his Book: Global Magna Carta. Returning Power to the 99% . . . If They Want It! By J T Coombes