THE EU AND THE ECB WANT US UNDER BLACKMAIL: Excellent piece by Liturri on Startmag
If it were not for Giuseppe Liturri to reveal the antidemocratic traps and wizardry of the Union and the ECB, it would have to be created. The problem is simple: with the PEPP program all countries, even the dirty, ugly and bad ones in the Mediterranean, have been able to obtain large-scale financial resources from the ECB without the “Conditionality” of the Soviet five-year plan set by the EU. this has significantly weakened the tools of domination and blackmail called MES and Recovery Fund loans, linked to the application of austerity policies or to the implementation of investments with low-to-no profitability and productivity. In practice, the ECB has allowed states to return to act and invest for the good of their citizens, excluding Italy, where the PD continues with its repression. This freedom could not continue, so the ECB intends to put the use of EU loans as a precondition; MES and Recovery Fund, for access to APP and PEPP programs. Let's take Liturri's words from Startmag :
This time it was the turn of the Reuters journalists to speak out for a message that was not even vaguely threatening, but rather explicit: the ECB let the Eurozone countries know – that they are issuing public bonds freely, in the relative safety that, once on the market , these bonds will be bought out by the ECB – it would be "advisable" to avoid snubbing the loans offered so generously by the EU. To be definitively convincing, the ECB could change the allocation criteria for its purchases, hitherto generously biased towards Italian and Spanish bonds (but not only), thus discouraging the convenience of issuing government bonds and forcing member states to turn to instead to the loans that the Commission will disburse next year under the Recovery Fund or, more properly, Next Generation EU.
Reuters cites as many as four sources within the ECB, according to which a discussion is underway on the strengthening of the APP program (conducted according to a rigid distribution key between the states) or the more recent PEPP program (characterized by wide flexibility).
With the second program, Italy was able to benefit from purchases up to 30/9 for 95 billion out of a total of 512 billion (18.6%, which becomes 20% excluding securities issued by supranational institutions) which, together with purchases of the APP program (specifically PSPP) have fully absorbed the net issues of the Treasury in the period March-September. Too comfortable like this, they must have thought between Brussels and Frankfurt.
The purchases by the ECB have in fact led to a generalized lowering of the yields of government bonds along all maturities, to the point of making it much more attractive to borrow on the markets by issuing bonds that are not subject to any conditions, rather than receiving conditional loans from the EU. use for specific purposes (environmental, digital transition, etc.), as well as compliance with the stringent macroeconomic conditions contained in the " Country Recommendations ".
Lagarde therefore yielded to the will of the EU to dominate and to its desire to bend national policies to obscure and inefficient purposes, forcing states to use the borrowed funds, figures that must be repaid, which, given the poor efficiency of related investments, will convert into new debt anyway, but at that point more onerous.
In this case, the lack of Spanish and Portuguese interest in the Recovery Fund's borrowed funds was probably the element that prompted the ECB to make these claims: who are these statues to rebel against the power of the EU? The sense of omnipotence of the non-elected officials of the EU is enormous and absolute, and they will not mind crushing the nation states. Of course, to the extent that we allow it.
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The article THE EU AND THE ECB WANT US UNDER BLACKMAIL: Excellent piece by Liturri on Startmag comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/la-ue-e-la-bce-ci-vogliono-sotto-ricatto-ottimo-pezzo-di-liturri-su-startmag/ on Wed, 04 Nov 2020 08:45:52 +0000.