European finance officials have reportedly discussed limiting the size of
withdrawals from ATM machines, imposing border checks and introducing eurozone
capital controls as a worst-case scenario should Athens decide to leave the
euro. EU officials told Reuters that the ideas were part of a range of
contingency plans. They emphasized that the discussions were merely about being
prepared for any eventuality rather than planning for something they expect to
happen – no one the agency spoke to expected Greece to leave the single currency
area.
"Contingency planning is under way for a scenario under which Greece
leaves," one of the sources, who has been involved in the conference calls,
said. "Limited cash withdrawals from ATMs and limited movement of capital have
been considered and analyzed."...Another source confirmed the discussions.
"These are not political discussions, these are discussions among finance
experts who need to be prepared for any eventuality," the second source said.
"It is sensible planning, that is all, planning for the worst-case scenario."
It is not known whether any restrictions would apply to British bank accounts or
just those held in countries at risk of capital flight.....that guy with cash
in the mattress is probably more lucid than most central planners at this point
, 'tis frightening how the lawmakers and bankers have brought us to the
abyss!!!!!
5 comments:
The European Central Bank has said the Spanish bailout would stabilise the country - although the markets don't seem to be sure of that - but put the onus on EU governments to solve the current crisis.
In its latest financial stability review it said eurozone tensions had risen since April but were lower than at the end of last year. It saw three key risks: falling bank profits; excessive deleveraging by banks; and a potential aggravation of the debt crisis. Its conclusion:
All in all, developments in the last few weeks have continued to illustrate the persistent negative interplay of key risks, and underscore the need for concerted and comprehensive decisions of Member States to put an end to the turbulence that has been affecting the euro area for over two years.
So now tell the Member States to stop arguing and come up with a comprehensive solution....(and there goes a flying pig).
The European Commission recommended a European banking union, with a single regulator to oversee banks across all 27 EU states; but disagreements over the proposals highlighted the problems of finding a solution to the crisis
Greece raised about 1.62bn euros in a sale of six-month treasury bills, but had to pay an interest rate of 4.73%, up from 4.69% at a previous sale on 8 May
Signs emerged of the eurozone crisis having a deeper impact on the airline industry, with BA owner IAG saying the region's economic woes have hit its expansion plans, and UK airport operator BAA reporting a big fall in passengers flying to countries such as Greece
The head of the IMF, Christine Lagarde, urged European leaders to take "decisive steps" to break free of the crisis; in a speech at the Center for Global Development in Washington she said economic and financial stability was critical to addressing global environmental challenges
Quite a few reports in the German media the last couple of days on Monti's inability to truly reform his country and becoming increasingly unpopular.
Monti is another Goldman Sachs operative. He is working for the International banking cartel. He's not interested in the Italian people or their standard of living. Interesting too is news (haven't seen it in the MSM) that an Italian investigative magistrate has filed papers against Standard and Poor after a thorough investigation into their downgrade of Italian banks. At least someone is fighting back against this totally
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