The ECB is the true ruler of Greece

After reading this bloomberg article it becomes more apparent that the European Central Bank (ECB) is the true government of Greece.

The article relates how the ECB believes it should not have to take a haircut on the its holdings of Greek debt. Recent news has detailed that most Greek bond holders have been expecting at least a 50% haircut on their Greek bonds since Greece doesn't have the money to pay back all the money they have borrowed. The ECB, however, believes it should be exempt from incurring any losses on its Greek debt. Why? Because the ECB believes if it started to accrue losses on its balance sheet then confidence may be lost in the ECB. So that's why people would lose confidence in the ECB? Really? It wouldn't be because of the continuous money printing to bail out insolvent governments?

Thus, the Greek government can stiff all its bondholders except the ECB. If the Greek government agrees to this then it becomes apparent that the Greek government is no longer calling the shots - the ECB is.

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