THE RECKONING: Euro plummets as the markets open

Nervous traders wait to see what the eurobank withdrawals will be

Lots of people didn’t notice, but the Bank of Greece last week announced its intention to sell off lots of Greek loans gone bad to distressed asset management outfits. This is polite finance-speak for selling the children into slavery: instead of an understanding attitude and the cutting of slack, what we will have here is psychopaths saying “Pay us now or your children go up chimneys”.

I was going to post about this when the Cyprus surrealism hit. I’m returning to it now in order to point out the direction in which things are going. There is a very clear link between the two events.

These developments teach us something very simple, about which I’ve posted before: when the chips are down, the self-styled élites will throw us to the wolves. “There is a debt that has been run up,” goes the spiel, “and so – although over 95% of it is down to our stupidity – we are sure that your fortitude will see us through”. Or, put another way, ‘You’re on your own kiddo – me Pontius Pilate washing hands, you ordinary citizen shovelling sh*t’.

Be under no illusions: Cyprus is a watershed. Previously on Euroblown, taxpayer funds were used in a roundabout way in the hope that you wouldn’t notice. Then bondholders were subordinated. Now we simply go into your bank account at the dead of night on the weekend, and steal from you. Then we close the banks for an extra day…..because we can.

But here is the stark reality. The common currency is, at 2.15 am GMT, changing hands at $1.2901, down 1.3 percent from Friday’s level after falling as low as $1.2888 on the EBS trading platform, its lowest since December 10. In the very latest data, the £ stands at 1.17 to the euro…1.5 pts up in just a few hours of trading. This is the market saying, “Restore trust…or else”.

In German, the bill at the end of the meal is called Die Rechnung. Schäuble has dined well: now we must see if he has the capacity to pay the bill for three courses of lean hubris.

Earlier at The Slog: Nazi nannies at the DWP