Sovereign nations have the money power, but this power was unwittingly ceded to the private commercial banks, and the sovereigns borrow their ‘money’ which it is not (see Michael Schemmann. 2012. “Accounting Perversion in Bank Financial Statements — Root Cause of the Ongoing Global Financial Crisis.” IICPA.com Publications). The ill-conceived process is reversible in a way that is inflation-sterile.
Under the plan that I have proposed for many years (since 1991 in my booklet “Money in Crisis” – 2nd ed. 2009) a central bank, here the European Central Bank, can take over Greece’s debt from the private commercial banks, as a switch in asset holders that does not create additional inflationary money supply, while Germany opposes such a move, but only for the wrong reasons, namely the false fear of increasing the money supply causing price inflation. As demonstrated in this booklet (“A Plan for Eurozone National Debt Redemption”) they should think again. The privately held national debts (not held by commercial banks) must follow a different procedure that keeps the national debt redemption certificates out of the money supply.