by system
failure
The Greek
drama is close to end. Yesterday, we had another proof that the
lenders do not care really about the Greek recovery, but only to
punish Greeks very hard, in order to send a signal to the rest of the
eurozone members: Don't even think to abandon catastrophic austerity.
Greece's
lenders propagate, through their mechanisms, the misleading
perception that they don't care about what measures Greece should
take as long as the country could meet fiscal targets that have been
set. After the breakdown of yesterday's talks, the Deputy Prime
Minister of Greece, Yannis Dragasakis, made an announcement that
exposes one more time lenders' sadistic obsessions.
As
Dragasakis noted: “The proposals by the Greek government
completely cover the fiscal gap as specified by the representatives
of institutions. However, they persist that the gap coverage should
be exclusively done through pension cuts by 1% of GDP and through the
VAT increase also by 1% of GDP.”
(fa.ev/eurocrats-play-with-fire)
Sooner or
later, the truth will come out. Various sources, even among the
biggest media, admit what is already obvious. As Wolfgang Münchau
points through his article in FT: “... accept the creditors’
final offer or leave the eurozone. By accepting the offer, he
[Tsipras] would have to agree to a fiscal adjustment of 1.7 per cent
of gross domestic product within six months. My colleague Martin
Sandbu calculated how an adjustment of such scale would affect the
Greek growth rate. I have now extended that calculation to
incorporate the entire four-year fiscal adjustment programme, as
demanded by the creditors. Based on the same assumptions he makes
about how fiscal policy and GDP interact, a two-way process, I come
to a figure of a cumulative hit on the level of GDP of 12.6 per cent
over four years. The Greek debt-to-GDP ratio would start approaching
200 per cent. My conclusion is that the acceptance of the troika’s
programme would constitute a dual suicide — for the Greek economy,
and for the political career of the Greek prime minister.”
(http://www.ft.com/cms/s/0/5e38f1be-1116-11e5-9bf8-00144feabdc0.html#axzz3d3ir6Odb)
Obviously,
the European neoliberal sadists seek to deepen recession in Greece,
completely destroy the economy and lead the country to a default
inside euro, in order to grab public property and complete the Greek
experiment as they planned. Then, they could proceed in a European
"Treuhand".
And
obviously, they didn't expect such a resistance from the new Greek
government, as the leader of the French Left, Jean-Luc Mélenchon,
recently revealed: “... when the Greeks came, they said: 'They
will do what the others did'. When they saw a young and polite Greek
(Tsipras) with a nice smile, they said that we will 'swallow' him at
once. But they messed things up. Months later, we are on the same
spot. The polite Greek refuses to back down.”
(fa.ev/melenchon-schauble-wanted-to-humiliate)
Now, they
seem to sink inside the trap that they have set. And as the time
passes, they will be running out of options. Indeed, if they retreat,
it would be a clear defeat of their policies and their plans. If they
insist on the catastrophic policies to crush Greek resistance they
are risking unprecedented consequences because no one in reality can
predict what will happen in case of Grexit.
Everything
points to what has been mentioned already by this blog: “All
these developments certainly bring further panic to the Western
economic oligarchy which sees that the balance could change rapidly
in the European battlefield. With these puppets in power, Europe has
no chance to compromise with Greece, find a real solution and change
course for the benefit of the people. The only perspective for the
moment is a big 'collision' after the end of the truce
period, or, maybe earlier. The battle outcome always depends on how
the European people will react ...”
(fa.ev/increasing-probability-for-big-european)
Related:
Alexis, you can't trust the euro-hyenas!
Related:
Alexis, you can't trust the euro-hyenas!
Yes, this is their Thermopylae, and they know it...the banks know it. It could be the resistance heard round the world against confiscation of resources by corporations. Friendship and cooperation would have achieved so much...but no. The Empire wants its way. What's next on the plan.. Yankee Doodle.invasion?
ReplyDeleteThis yet another case of a socialist regime running out of "other peoples money", take responsibility for your debts or collapse & become a third world country.
ReplyDeletethose 'other people' created out of thin air their debt-based so-called 'money' to loan, knowing full well it could never, would never, be paid back in like kind; which means they had something else in mind right from the start... are you learning yet?
Deletea system that only pushes debt on countries (dont forget most of the debt was private but the sell-out socialist party nationalized it like everyother gov including usa.
ReplyDeleteIt's the same old banker trick, tried and true down the milennia. Lend more than your creditor can bear. When he can't pay, seize the collateral. Rinse and repeat.
ReplyDeleteAnd whatever happened to "underwriting"? You know, that practice where a bank does not lend in excess of what someone can pay?