Liberal Thinking: It’s The Fault Of The People Helping Greece That They’re Broke
Steven Lendman over at Energy Bulletin wrote an extraordinary column about Greece’s debt woes. It’s extraordinary because of the childlike way it completely disconnects Greece’s problems from anything done by well, Greece…
Predatory bankers make serial killers look good by comparison. Their business model creates crises to facilitate grand theft, financial terrorism, and debt entrapment.
They steal all material wealth and then some. They systematically rob investors and strip mine economies for self-enrichment.
They demand they get paid first. They hold nations hostage to assure it. They turn crises into catastrophes.
They leave mass impoverishment, high unemployment, neo-serfdom, and human wreckage in their wake.
Their Federal Reserve/ECB/IMF/World Bank/political class lackeys do their bidding.
They’re more dangerous than standing armies. They wage war by other means. They cause “demographic shrinkage, shortened life spans, emigration and capital flight,” explains Michael Hudson.
They’re a malignancy ravaging societies and humanity. Greece is the epicenter of what’s metastasizing globally. The latest bailout deal highlights out-of-control pillage.
Wow, that’s some thank-you these people are getting for HELPING Greece get out of its self-created problem. Greece spent itself into oblivion and now it’s walking around Europe with its hat in its hand asking people to forgive its debts and give them money they’ll never pay back. They’re doing this because it beats the hell out of defaulting.
On Tuesday morning, Luxembourg president/Euro Group head Jean-Claude Juncker announced:
“We have reached a far-reaching agreement on Greece’s new program and private-sector involvement. The new program provides a comprehensive blueprint for putting the public finances and the economy of Greece back on a sustainable footing.”
In fact, it assures human misery and economic destruction, not restoration. It’s a deal only bankers can love. It demands Greece reduce its debt from 160% to about 120% of GDP by 2020, but how incurring more debt achieves it wasn’t explained.
It also demands sacking 150,000 public workers by 2015, slashing private sector wages 20%, lowering monthly minimum wages from 750 to 600 euros, cutting unemployment benefits from 460 to 360 euros, and reducing pensions 15% en route to eliminating them altogether.
Media reports said bondholders agreed to a 53.5% face value haircut – the equivalent of losing 75% overall. In fact, only 30% of toxic assets are involved. Most held aren’t touched. Greece must make good on them, no matter the impossible burden.
Private lenders will swap current holdings for new lower face value/lower interest rate bonds. Representing bondholders, Institute of International Finance’s Charles Dallara and BNP Pariba’s Jean Lemierre called the deal “solid….for investors, a fair deal for all parties involved.”
In other words, raping Greece for bankers is “solid” and “fair.” Its citizens had no say. Without rights, what’s best for them wasn’t discussed.
Beggars — and that’s what the Greeks are — can’t be choosers. When you’re sitting on the sidewalk holding a sign that says, “Broke! Please help,” you can’t complain because someone gives you a hot dog and a fiver when you’d have preferred a $50 bill. Get your own job, pay your own way, and you won’t have to worry about it.
The deal escrows $170 billion to assure bankers get paid. Investment advisor Patrick Young got it right telling Russia Today that dealmakers don’t trust Greece living up to terms because its track record is so bad.
“So we now have a situation,” said Young, “where Greece said we’ll do anything you want, but the problem is” too great a burden to bear. “It’s a catastrophe pushing people to the brink of starvation.”
No matter. Finance ministers will give Greece some money on dreadful terms “where like a nine year old child, every Friday it has to go to daddy, say it’s done its homework, say it’s been a good boy, can it please have next week’s pocket money to pay its civil servants. (It’s) a horrible loss of sovereignty.”
Troika power runs Greece – the IMF, ECB and EU. They’re predators saying pay up or else.
Banks aren’t charities. If they know they’re not getting paid back, they’re not loaning any money. If you’re talking about the IMF, ECB and EU, why would they give Greece any money at all if Greece is just going to spend it and be in the same place in six months? What’s the point of throwing good money after bad? The world does not owe the Greeks a living.
Greece’s debt deal provides a model for future European sovereign restructurings. It’s one of six or more troubled countries. Portugal looks like the next domino to fall, but Spain, Italy, Ireland, and others may follow.
Moreover, implementing Greece’s deal entails problems. Reality may prevent fulfilling promises. If April elections are held, new MPs may balk. Declaring a debt moratorium, defaulting and leaving the Eurozone are options.
Moreover, private lenders may object. Legal challenges may follow. A sweetheart banker deal may unravel. Pressuring China and Japan to help isn’t working. China Investment Corporation, the nation’s sovereign wealth fund, and Chinese central bankers aren’t willing to buy troubled European sovereign debt. According to one official, “(w)e aren’t stupid.”
How it all plays out isn’t known. Technocrats run Greece. They may cancel April elections and stay in power. Public sentiment remains the wild card. Impossible to bear pain may become uncontainable rage. More than buildings may burn.
If political Greece doesn’t care, people must act on their own. Revolutionary seeds are planted. They can erupt any time. Change only comes bottom up. It’s long past time to get started.
My sincerest hope is that Steven Lendman gets his wish, Greece doesn’t stick to the deal, and it defaults. That would bring extraordinary suffering to the people of Greece, but it would also be extremely helpful to the rest of the world by showing them the end result of the path Greece is going down. By stepping in and protecting Greece from the natural consequences of its irresponsibility, it’s giving the rest of the world the idea that it’s not so bad to go broke. Let Greece sow what it’s reaping and let the world learn from its example.