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So if they have about 300B at 5 or 6 % then they are reaping about 15B or so from this Greek govt debt... which without (to them) they would be bankrupt as the other nations yield near zero...
So the ESCB has to hold a portfolio of positive yielding govt bonds (from somewhere) in order to pay the electric bills... where are they going to get it if not Greece? Isnt everyone else at about zero?
So imo they will not give up this positive revenue stream currently made from Greece govt bonds... as then they would have to go to their respective govts for appropriations.... NOT going to happen imo....
3 comments:
The problem with these various proposals on how to reform the EU is that the EU is working exactly the way the powers-that-be intended for it to work.
Exactly, this what the left has to get in their thick heads (including Syriza et al.).
Otherwise they risk handling governments to the far right in the future ala 1930's
What rate would the bonds yield?
Jure brought up the point that most of the Greek govt bonds were already held by the ESCB this looks like it is correct:
http://blogs.wsj.com/economics/2015/01/22/who-owns-the-government-bonds-the-ecb-will-buy/
Most as official foreign reserves....
So if they have about 300B at 5 or 6 % then they are reaping about 15B or so from this Greek govt debt... which without (to them) they would be bankrupt as the other nations yield near zero...
So the ESCB has to hold a portfolio of positive yielding govt bonds (from somewhere) in order to pay the electric bills... where are they going to get it if not Greece? Isnt everyone else at about zero?
So imo they will not give up this positive revenue stream currently made from Greece govt bonds... as then they would have to go to their respective govts for appropriations.... NOT going to happen imo....
rsp,
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