The Irish central bank has begun printing Euro notes to support its banks, and according to the ECB, this is okay! This is an amazing step by the Irish, and will surely come as a shock to most Europeans and begs the question which other countries are doing the same?
According to the Irish Independent:The Irish Independent learnt last night that the Central Bank of Ireland is financing €51bn of an emergency loan programme by printing its own money.
The figures also provide the latest evidence that responsibility for funding Ireland's broken banks is being pushed increasingly back on to Irish taxpayers. The loans are recorded by the Irish Central Bank under the heading "other assets".
A spokesman for the ECB said the Irish Central Bank is itself creating the money it is lending to banks, not borrowing cash from the ECB to fund the payments. The ECB spokesman said the Irish Central Bank can create its own funds if it deems it appropriate, as long as the ECB is notified.
Are you kidding me? It is okay to produce notes without ANY backing?
I have not read the Euro treaties, but I can guarantee you that breaks every single rule. In my book these notes are fake and that is counterfeiting. Regardless of what the ECB may say printing money without the backing of bonds is the beginning of the end.
And by the way, E51 Billion, is about 25% of Irish GDP, not an insignificant sum to be faking.
