So, theoretically (yes, not currently legally, but theoretically), the ECB could lend money to member states for cheap and we wouldn't be worried that high interest rates would increase the likelihood of default. Because they would be getting cheap money at rates set by the bank. That wouldn't be any fun, and more importantly it wouldn't involve handing over giant amounts of free money to the banksters, so what would be more fun is lending money for free to the rich banks and lettting them pocket the massive risk premium by lending the money to the countries at high rates. Of course the massive risk premium is there because... well, who knows, because we've all agreed not to
let them default.
That's because the European Central Bank may have already introduced roundabout measures that will solve some of Europe's big problems—it's making investing in peripheral sovereign debt a huge profit opportunity for banks.
Theoretically, financial institutions will be able coin money by borrowing ultra-cheap from the ECB and buying higher yielding sovereign debt.
As usual, everything's coming up bankster. Poor people and middle class people will suffer with more austerity, while the banksters get subsidized profits. Huzzah!
