Latests:

Nov 1, 2011

Greeks: the ECB and whose army are going to keep them in the euro?

Greeks dmYou've all seen the headlines on the decision by the Greek prime minister to call a referendum on the EU/IMF bailout. And I suspect some of you might have already spotted the threat that will be made by Brussels: that if the Greeks vote No, take back control of their own budgets and spending and go for default, they will be forced to leave the euro.
'Threat?' Sounds to me more like an inducement to vote No, but plenty of EU-loving Greek commentators are already calling it a threat.

But here is one point the economic bullies from Brussels and their acolytes among the Brussels commentariat won't be in a hurry to point out to the Greek voters they are trying to frighten: according to official eurozone policy, it is a legal impossibility for a member of the single currency either to quit or to be forced out.

I have on my desk right now one of a series of legal working papers published by the European Central Bank, called 'Withdrawal and expulsion from the EU and EMU [economic and monetary union]' published in December. It was written by -- how perfect -- Phoebus Athanassiou, a Greek billed as 'legal counsel, ECB.'
His conclusion is that it is impossible for a member to leave the currency. Here is just some of his legal argument -- dry stuff, but this is the official thinking:

'Unlike the Charter of the United Nations, Article 6 of which expressly provides for the possibility of a UN member being expelled for persistently infringing the principles of the Charter, there is no treaty provision at present for a Member State to be expelled from the EU or EMU.  [at which point Athanassiou adds a footnote: 'This is hardly surprising, considering that the creation of the acquis' -- the body of EU law -- 'has been cumulative, with the institutional "ratchet effect" denying the possibility of reversals of course (and, implicitly, of withdrawals.)]'

'The closest that Community law comes to recognising a right of expulsion is Article 7(2) and (3) TEU [note from me: look, chaps, I read this stuff so you don't have to], allowing the Council to temporarily suspend some of a Member State's rights (including voting rights in the Council) for a "serious and persistent breach by a Member State of the principles mentioned in Article 6(1) of the Treaty...'

'If a right to expel Member States from the EU or EMU does not exist, could such a right be asserted or should it be introduced? Several considerations are relevant here, all of which militate against the assertion, by way of interpretation, or otherwise, of a collective right of expulsion from the EU or EMU.'
What this means is that the EU, in trying to construct treaties that would bind future parliaments and governments in member states from ever trying to escape from the euro, have in fact constructed treaties that do no allow the eurozone powers to expel an unwanted member.

Of course, the Greeks can leave the euro if they want to. All they have to do is say 'We're out of here,' sandbag their windows and just do it. Because the ECB and whose army, exactly, are going to stop them?

Labels

"backyard" "bank holiday" "Change" "Jewish Achievements" 1984 1st Amendment 2nd amendment 4GW 4th Reich 7/7 9/11 abiotic oil abuses of power ACTA Afghanistan AfPak Africa AFRICOM agenda 21 al-CIAduh alternative currencies American revolution anarchy apocalypse Argentina ARTICHOKE Asia Asian Energy Security Grid assassinations asteroids austerity AWOL ballistic missiles B/S backfire bad cops bailout bailout scam bank nazionalization banksters big oil big pharma Bilderberg Bin Laden biofuels biological warfare biological weapons biological weapons research bioterrorism bird flu bitcoins black ops Blackwater Brazil BRICs Brzezinski bubbles cap and trade capitalism carbon credits carbon tax carbon trade cash nexus cass sunstein casus belli CDS Central Asia central banks CFR Cheney China CIA CIA assets civil wars class conflicts class structure class warfare climategate COINTELPRO collapse Color revolutions COMEX default communism community currencies Congo conspiracies conspiracy theories Constitution Copyright corporate "personhood" corporate law corporatocracy corruption countercoup counterinsurgency Coup D'etat covert agents covert operations covert ops covert war covert warfare coverup crazy lone gunmen crimes against humanity currencies currency war dancing israelis David Kelly dead microbiologists death squads debt debt bondage debt bubble debt monetization debtors' prisons deep politics default deficit deflation deglobalization deindustralization deja vu delocalization democracy depleted uranium depopulation depression deregulation derivatives detentions Detroit devaluation devolution dictatorship Dimitri Khalezov dirty tricks dirty wars disaster capitalism disaster management discovery disinformation dissent diy diy currencies DMCA drones drugs trade DU dystopias eastern europe ECB eco-fascism economic cycle economic hitmen economic warfare Egypt electromagnetic weapons electronic surveillance elite consensus elitist propaganda Ellen Brown emerging markets end game energy engineered clusterfuck Ethiopia EU EU666 eugenics euro eurocracy eurocrats europe fake bonds fake democracy fake gold fake revolutions fake terrorism false flags fascism fascism 2.0 FED FEMA FEMA death camps fiat money Finance Capitalism forecasts ForeclosureGate foreclosures FOREIGN TRADE ZONES Fort Detrick fractional reserve banking France fraudclosures fraudonomics frauds Free books free money free speech freedom Fukushima funny money G20 gatekeepers Gaza genocides geoengineering Geopolitics Germany Ghana ghost towns Gladio global currency Global warming hoax globalization GMO gold gold manipulation gold standard Goldman Sachs golpe google Grand Chessboard great depression 2.0 great game Greece Green shoots greenbackers Guantanamo Gulf of Tonkin gun ban gun control Guns H.R. 45 HAARP habeas corpus hackers Haiti Halliburton happiness health health care bill health care reform hemp heroin high frequency trading historical cycles history hitler hoaxes Honduras House Bill 1796 how-to human organs trafficking human rights Hungary hunger hyperinflation ICC Iceland Illuminati IMF imf riots immigration imperialism incoherence income distribution income tax India inequalities infiltration inflation inflationary depression information war insider trading insolvency instability insurgency intelligence International Criminal Court international political economy internet censorship internet warfare ior IP IPCC Iran Iraq Ireland IRS Israel israeli assets Israeli firsters Israeli killers israeli lobby Israeli Organ Harvesting israeli terrorism italy Ivory Coast jesuits jews JFK Jim Willie JPM k-waves Kazakhstan Keynesianism Kissinger kleptocracy Kosovo Krugman KUBARK Kurt Sonnenfeld Kyrgyzstan Land Grab Large Hadron Collider Larry Summers Latin America LBMA Lee Harvey Oswald legitimacy crisis legitimation lesser evilism Libya lies Limited Hang Out Lincoln Lisbon Treaty lobbying local currencies Lockerbie Logan Act lol looting lsd mafia Mali Manchurian candidates Mandatory vaccinations maquiladoras market manipulations martial law Martin Armstrong Medicare meltdown MENA Mend mercenaries Mexico MI5 Michael Chertoff Michael Hudson Middle East migrations Military Industrial Complex military research military spending military tribunals militias mind control mind tricks Minerva Research Initiative Minot missing nukes missile defense missing pathogens MKDELTA MKNAOMI MKSEARCH MKULTRA money money as debt money laundering money supply Mongolia monsanto Montenegro morgellons mossad msm Mumbai narco-states narcodollars narcotics national debt National Emergencies Act national emergency native Americans NATO NDAA neo-Malthusians neocolonialism neocons neofeudalism neuroscience NGOs Nigeria NLP Non-lethal Weapons Noriega North Korea Norway NSA NSPD-51 nuclear demolition nukes NWO odious debt Oil OKLAHOMA CITY bombing oligarchy OOTW Operation Ajax operation CONDOR Operation Fast and Furious operation Mockingbird Operation Northwoods operation paperclip Operation Strange Man opium Orwell outrages p2p currencies Pakistan Palestine Panama Panarin pandemics paper money Paraguay paranoia paranoia pimping patents Patriot Act patsies pauperization peak oil pearl harbor Pennsylvania pensions Pentagon persuasion Peru pervs philippines Phoenix program piigs pimping Pipelinestan piracy Pirates plagues planned disasters Plum Island plutocracy PMCs PNAC poison pills Poland police state political economy political fakeries polls ponzi schemes pork Posse Comitatus Act pot poverty poverty business power elite pr0n predictive programming prepping primitive accumulation prison industrial complex prison population private debt privatizations problem-solution prohibitionism Project Artichoke Project Bluebird Project Censored Project MK/NAOMI Project Mockingbird project monarch Prompt Corrective Action Law propaganda prostitution protests provocateurs psy-ops psycho-police psychotronic warfare Ptech public policies qe qe2 R2P rabbis crackdown real wages regime change regulations relative disadvantage religion renditions renewable energy reserve currency resistance revolution revolution (how to) revolutions riots robots Rockfeller Roman Empire Rothschilds Rumsfeld Rupert Murdoch Russia Rwanda s510 sabbateans Salvador Option samson option saudi arabia sayanim SCADs scams scandals scares schemes SCO SDR secrecy secret algorithms Secret services sedition self-employment self-reliance serial killers sex scandals sheeple shock capitalism SHTF silver sixties slavery slums social conflicts social currencies social movements social research Social Security social spending socialization of costs somalia Soros sound money South Africa South Caucasus South Korea Southern Poverty Law Center Sovereignty Sovereignty Resolutions spain special economic zones spin spyware stagflation state of exception state secrets state terrorism statistics stimulus stuxnet submarines subprime Sudan suicides superbugs superimperialism suppressed technologies supremacist racist genocidal apocalyptic cults surveillance Survivalism SVADs sweden Swine Flu syria Taliban Tamiflu TAPI taxes tea party technocracy Tennessee TEOTWAWKI terrorism Thailand The Fourth Turning the left The Mogambo Guru Thirdworldization TIPS torture totalitarism toxic assets toxic waste trade deficit trade war treason Treasuries Bubble Tri-Border Area Trickle down trolls tsa tunisia Turkey tyranny uganda UK Ukraine UN underclass upper class US $ US army US bonds seized US debt US elections US gulags US hunger US secessionists US Treasuries US666 useful idiots vaccines VAT vatican Venezuela vets vietghanistan Vietnam violent conflicts virii Voodoo war war crimes WAR CRIMINALS war on drugs war party war pimps war propaganda warfare warfare state wars water WB wealth distribution web bot weed Weimar weird welfare white collar criminals White phosphorous WHO who rules Wikileaks wikipedia witch hunt WMD working poors world bank world economy world hegemony world reserve currency world trade WTF WTO WW3 xe Xinjiang Yemen Yuan Yugoslavia Zimbabwe zionism zionist trolls zious
Protect Your ASSets: Buy Gold or Silver NOW - If you wait you will be late.
(He who panics first, just may salvage something.