Re: Spain Pours Billions into Bank
The central bank of Spain accepts Spanish debt and uses that debt as collateral at the European Central Bank for euro loans. So, all seventeen countries of the European Monetary Union have a back-door method for monetizing government debt. This is the structural flaw in the European System of Central Banks–there is no real, enforceable prohibition to massive printing of euros, as we see here. The other sixteen members of the EMU had no say in the matter. Each member can counterfeit euros ’til the cows come home. There is talk of a one trillion euro bailout of European banks.