On Sunday night the ECB for the first time passed the Rubicon and decided to maintain the liquidity limit of Greek banking system on the limits that were set on Friday, although the current financial assistance program ended two days later. The Board of the Central Bank made policy and this is something that is not common.

High government official told me yesterday that Mario Draghi was the only dissenting in the teleconference of Eurozone’s central bankers, this sounds convincing and if we take in mind the attitude of European finance ministers at the meeting of the Eurogroup on Sunday who made the unthinkable: adopted NON-joint communiqué.

The economist Jeffrey D. Sachs wrote in ThePressProject last week that Europe's leaders pretend to worry about the repercussions of a relaxation of Europe shutting their eyes in an undeniable truth: that if you throw Greece out of the Eurozone no one will hereafter entrust the longevity of the Euro.
In an earlier analysis of Krougman, he wrote that the greatest problem in the Eurozone is the lack of political arm but in recent days it seems that the Continent suffers from the opposite illness: the use of monetary association to implement harsh neoliberal policies.

But political analysts also deal with developments with a short term view: they talk about the upcoming elections in Spain, Germany and France believing that the political leaders react to everyday life with introspection and looking on their immediate political future.

The common denominator of the developments is one: The redistribution of income from the poor to the rich and thereby the redistribution of wealth from the periphery to the center. This was also served by ELA in the past few weeks when accepting Greek bonds and guarantees of the Greek Government to increase the level of liquidity of systemic banks: The transfer of wealth from Greek banks in German.

Last Saturday a government official said that about 1.4 billion were taken from the Greek banking system. These are money that were withdrawn in 600-600 euros from the ATM since the banks were not open and had made sure that their electronic systems were not operating because of “upgrading”. These sums did not moved to Germany but to the mattresses of housekeepers.

An estimated 45 billion euros have been withdrawn – during the crisis – from the banking system without been relocated elsewhere. This is the result of fear in which all governments have “invested” so far to pass without reaction the neoliberal program of internal devaluation.

Europe “of the people” decided to freeze payments to its citizens instead of the creditors. Europe transferred through “support” programs the toxic bonds from private banks and gave the bill to Europe's citizens, and when someone decided to lift his head it was made sure to turn financial “weapons” against him.
In the case of Cyprus the ThePressProject revealed months earlier, that already before the outbreak of the crisis, the ECB on a technical level was preparing not only for the first Bailin (haircut deposits) in its history but also for the sale with non-transparent procedures of Greek networks of the Cypriot banks to Greek banker Salla. Until June 28th, 2015 however the ECB was behind the political mandates of Europeans.

Now, a few hours before the expiry of the deadline for the payment of the IMF, the problem for Athens is again the European Central Bank. Already it has been discounted that the International Monetary Fund will declare overdue debt and will begin the planned procedure which gives 30 days in Greece to reach an agreement before officially declared in default.

On the contrary, no one has understood what ESM intends to do, who although doesn’t have yet an overdue debt, seems possible to request all the debts to be paid immediately, even those scheduled for the coming years. This amount is over 140 billion euros.

Since the mechanism of emergency liquidity ELA (also body of the ECB) accepts the Greek bonds as collateral for liquidity, a declaration of bankruptcy on the ESM would create a domino of developments in the Greek banking system, something that was also stated by the agency Fitch last night.

The Europeans will now try to enhance the climate of terror, leading to bankruptcy the Greek banks. Within the government there are different estimates. Over the past two days I heard more than three versions.

Unfortunately, I fear that the Europeans “of the people” fear referendums and although leaders often invoke the words “solidarity” and “democracy” in reality they are determined not to suffer again as they did with Ireland, when a referendum forced them to alleviate the largely imposed Memorandum.
The ECB will probably invest again in fear. All that remains to be seen is whether we are going to be frightened or not.