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It's so simple:
and voila you created one bazillion of new euros you can use to buy worthless fancy pieces of paper (also known as bonds in some circles) from Greek/Spanish/Portuguese/etc government at whatever ridiculous interest rate so said gov can keep corrupting its electorate and keep the illusion running.
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I don't really get what you're trying to say here. First off, buying worthless pieces of paper is exactly what the banks don't want to do. Creating demand for these bands will drive up their value. In essence they are pursuing a policy to ensure that these bonds don't become valueless. And it's hardly appropriate to say that governments can keep on their current practices. Have you read a single article about Greece lately and their strict austerity measures to qualify for these loans? Kind of weird selective reasoning.
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Pretty clever scheme to save billions of euro that private French/Swiss/German/Dutch banks loaned to Greece. These banks are recovering their losses and the last couple of morons with savings will foot the bill as their savings will be diluted by inflation in the name of "liquidity."
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Well this is also somewhat disingenuous. These private banks have been pressured by public office to buy euro debt. Many banks would not be nearly as exposed if it weren't for public policy to support inter-government lending to prop up the Euro. Say what you will of that policy but this isn't really a bailout of private banks. Private banks will suffer alot of pain but you know who will suffer more? Regular European people like you and me if contagion caught. That's the reason for this loan program. And you know what, in the U.S. this policy has so-far worked!
http://www.newyorker.com/reporting/2...a_fact_cassidy