In the modern global banking system, all banks need a credit line with the central bank in order to be part of the payments system. Choking off that credit line was a form of blackmail the Greek government couldn’t refuse.
After the financial troika triumphed over the Greek government in debt negotiations last week, Germany's veteran minister “indulged himself with some patronizing comments,” observed economics correspondent Phillip Inman at The Guardian.
“The rightwing orthodoxy that dominates thinking in Brussels has asserted itself over the hapless Greeks,” writes economics correspondent Phillip Inman at The Guardian.
Alexis Tsipras, the leader of Syriza, would like to pretend that austerity and the euro are two different things. Apparently, he's blissfully ignorant of the history of the euro. The horror of austerity is not the consequence of Greek profligacy: It was designed into the euro’s plan from the beginning.