I have resurrected this thread because it discussed I some detail exactly the same subject as this article is suggesting for the resolution of the European Banking crisis, developing in Italy.
That is Central Banks creating money out of nothing to write off the NPL’s on Commercial Banks books. Contrary to the comments made by a certain members this does not create debt nor does it increase inflation.
So we were ahead of the game 3/6/16 …… and all based on the basic knowledge of ‘
money creation’ which I believe the member referred to in his ignorance of the system and its application, as a ‘
conspiracy theory’.
It is also interesting to note that although the IMF/ECB made an example of Cyprus by imposing the bail-in, which they then introduced as the '
norm' for the resolution of bank failures for any EU member, they have now decided to ignore that ...... because it would be the death knell of the European Union.
Like Christine Lagarde can act irresponsibly with €400m of French taxpayers money ..... and although found guilty by thee Court, she gets away without any punishment. She even keeps her job with the IMF. One law for '
them' and another for the rest!