Firstly, there is no meaning in the arguments of the author, in the case of Greeks sending their money abroad and buying foreign assets. Such purchases increase the GDP of the countries that face the TARGET system claims, which is exactly the reason for the TARGET system.



Secondly, regarding deposits withdrawn from Greek banks and deposited in foreign banks, this is the result of free capital markets. The destination countries can place capital controls, if they want; proposing extortion of the Greek government to raise capital controls or not serve its interests in negotiations is just fascist ideology, by Mr Sinn.



Thirdly, regarding deposits withdrawn and hoarded, this is the result of a no-reserves system, susceptible to bank runs. This is a problem for the ECB and the euro, since it implies that, on exit, Greeks will have their money in euros. But this is just fair for the Greeks and it is not their fault that the monetary system is flawed. Suggesting that EZ governments should force a bail-in, in advance of Grexit, is as ill conceived as bail-ins themselves. It is not the depositors' fault that private banks create money out of thin air and have absolutely no reserves to back them. When the private economy of bankers fails, it is not the depositors' who should take the kit, or else the ECB is useless. Depriving, as Germany supports, The ECB of the ability to be a lender of last resort, is voted down by the ESCB council. Mr Sinn and Germany should learn its place in EZ. Taking the reverse path, would possibly lead to a EZ-wide bank run and hurt the economy, in most EZ countries, to the benefit of Germany's banking system; what would happen next, nobody can tell.



Overall, Mr Sinn's argument is that "blackmail is in order," so that creditors can force their will on negotiations. It would be the behaviour of a scared child, on behalf of the creditors. Current governments would never survive the moral damage to the European population's sense of dignity, unless everything went very smoothly for the creditors.



There is no chance of that, because Greece, literally, has no alternative but to negotiate toughly as it can. And that is without taking into account the possible coiling of the Greek population behind the letter of SYRIZA's negotiating tactics...