Evans-Pritchard: Remember Pyrrhus

July 3, 2015

City of London mouthpiece Ambrose Evans-Pritchard compares the attempt of the EU creditors to crush Greece, to Pyrrhus' victory after Asculum, writing "If Europe's creditor powers have succeeded in bringing Greece to its knees, they have paid a fearful price themselves. As Pyrrhus said after the battle of Asculum: 'Another such victory, and we will be utterly ruined.'"

Evans-Pritchard makes clear that it is the Eurozone that defaulted on the IMF, not Greece.

"We can already see that the EU itself has suffered a reputational catastrophe on several fronts.... It has brought about a state of affairs where a member of its own Eurozone family has become the first developed country in history to default to the IMF.

"Let us be clear what this means. The currency union itself is delinquent. The rich countries of northern Europe are refusing to pay African, Asian and Latin American states. Blaming it on Greece alone does not wash."

"...citizens across Europe can see with their own eyes that the ECB has been rationing emergency liquidity (ELA) for a prostrate country as a tool of political pressure, and that it forced [Greece's ruling party] Syriza to take the drastic step of shutting the banks by freezing ELA at EU89 billion.

"It is an odd spectacle to watch a central bank with a treaty duty to uphold financial stability, take the deliberate decision to precipitate the collapse of banks that it regulates...."