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Greece Says ‘No’ To Fake Bail-Outs
Orignally posted Febuary 4th 2015
With a sane (and apparently honest/legitimate) government achieving election in Greece, the past six years of European “bail-out” fraud is about to be fully exposed. Indeed, the recent history of Greece, alone, is little more than a road-map of fraud, conclusively illustrated by a concise summation of events.
a) In 2009 and early 2010, the ECB “bailed-out” Greece on several occasions – and then it immediately went bankrupt, defaulting on 75% of its national debt.
b) Since that bankruptcy, it has been “bailed-out” several more times – and now it is once again teetering on bankruptcy.
Does this make any sense? Is it even possible? Of course not, because it never happened. The bankruptcies (past and pending) are real enough, it’s the so-called “bail-outs” which are/were nothing but lies and fraud. To illustrate this requires nothing more than enunciating a principle of logic/arithmetic which is tautological in its simplicity.
The only way to “bail-out” a distressed debtor is by reducing its debt. Or, at the very least, give the distressed debtor funds, which then can be used to make payments on its debt. This is not what the ECB has been doing with (to) Greece – and other Euro debtors – for the past six years. In fact, the ECB has never done this with any of Europe’s deadbeat debtors.
What has the ECB actually been doing all this time? It has been lending huge sums of its funny-money to these distressed debtors – i.e. it has been dramatically increasing their debts. We have a well-known analogy we use to describe such insanity: ‘putting out the fire with gasoline.’
When someone attempts to put out a fire with gasoline once, most likely we will simply dismiss that person as an incompetent boob. However, when the same individual (supposedly) attempts to put out a fire with gasoline again and again and again and again and again, we formulate a different opinion.
At that point we realize we are no longer dealing with a “firefighter”, we are dealing with a fire-starter – i.e. an arsonist. Why has the ECB (and all the puppet governments which comprise it) “failed” completely, in its attempts to “bail-out” the debtors of Europe? Because it was never trying to help these debtors, rather it was cynically/evilly intent on nothing other than burying them even deeper in debt.
We see the fraud and malice of these Puppets demonstrated in unequivocal terms in an article from (where else?) Bloomberg. It includes a declaration of sanity from Greece’s finance minister, Yanis Varoufakis, the first sanity we have heard from the mouth of any European (or Western) official in six years:
“The Greek state has a future, but what we won’t accept as a future is the self-perpetuating crisis of deflation and unsustainable debt.”
With that statement, Varoufakis implicitly acknowledges the “fraud” explained previously. Continuing to lend more and more ECB funny-money to Greece is not “bailing-out” that nation, rather it is a cynical policy intended to produce a “self-perpetuating crisis” – i.e. putting out a fire with gasoline.
What was the response of the corrupt puppets of the ECB, after Varoufakis “called out” these governments on their bail-out fraud?
While Varoufakis said he intends to balance the budget, that proposal hinges on the euro area and the European Central Bank agreeing to write down Greece’s public debt, a suggestion that has been met with skepticism by officials across the rest of Europe. [emphasis mine]
Let’s reiterate the irrefutable principle of logic/arithmetic which was articulated earlier: the only way to help a distressed debtor is by reducing its debt. But what is the one thing that Europe’s corrupt, puppet governments are not willing to consider with Greece? Reducing its debt.
What newer readers need to realize is that the ECB’s fake “bail-outs” are merely one dimension of the economic terrorism which has been directed at Europe (in general), and Greece (in particular) over the past six years. What plunged Greece into “economic crisis” in the first place was the economic terrorism of the puppet-master of all these corrupt regimes, the One Bank.
The chart above shows the One Bank destroying Greece’s economy, as it criminally manipulated its interest rates to an ultra-extreme and obviously fraudulent level (through means detailed in previous commentaries). Going into the Crash of ’08, the fundamentals of Greece’s economy and the U.S. economy were very similar – except obviously in dramatically different scale.
Yet at the same time that Greece’s (near-bankrupt) economy was paying interest in excess of 30% on its bond debts, the (near-bankrupt) United States government was (and still is) paying near-zero interest on its own bond debts, the only way it has been able to delay its own bankruptcy. Put another way, had the U.S. been forced to pay a similar rate of interest, it would have had to shut-down the entire government (including the entire military) and double all taxes – just to pay interest on its debt.
Reinforcing that the original spike in Greek interest rates was entirely the product of fraud (and malice), we see Greece’s interest rates plunge back toward normal (in the same, ultra-extreme fashion), immediately after its former government knuckled-under to the terrorists. This is despite the fact that – as previously noted – nothing has changed within Greece’s economy.
Its economy is still in complete ruin. Unemployment is still approaching 50%. There is still no economic growth. It’s still teetering on bankruptcy. Greece’s current interest rates prove that its previous interest rates were yet more economic terrorism. Which brings us to the present.
What now? Clearly Greece’s sane/honest government and the traitor regimes of the EU are on a collision-course. We’re already seen what that means, since it was the original reluctance of Greece’s (former) government to participate in this Euro “bail-out” fraud which prompted the One Bank to launch its economic terrorism at that nation, and totally destroy its economy.
In fact, this is what we see the One Bank do with every government which endeavours to stand-up to the crimes against humanity being perpetrated by this crime syndicate, with the latest (and most-obvious) victim being Russia. Thus, inevitably, we will see the One Bank endeavour to either overthrow Greece’s new government (as it did in Ukraine and Libya), or ‘merely’ destabilize and sabotage it in any/every way possible (as with victims like Iran and Venezuela).
As the One Bank’s economic terrorism against Russia reached maximum intensity, a previous commentary declared “we are all Russians”. Now Greece’s new, courageous government seeks to represent the people of Greece (a concept entirely alien to the rest of the West’s traitor regimes) and stand up to the One Bank. Today, we are all Greeks.
United we stand. Divided we fall.
Orignally posted Febuary 4th 2015
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anyone remember the way greece was admitted to the euro? Goldman Sucks helped to cook the books so they would be able to join! This was FRAUD and a criminal act! plane and simple! Today who is on the primarydealer list for Greece? Goldman Sucks! Now tell me who is responsible and should go to jail! Let me help you: the banksters!
Is it just me or do the 3 dudes to the right of the PM have extremely over-sized heads?
Lets get a breakdown of the debt ownership and respective rates. Lets say the rates are 8%, they can easily take a haircut and still be profitable. Who are we bailing out exactly anyways?
Question:
If Greece does simply stop payment on it's "debt", will it have enought to run its government at current levels from taxation alone? 'Cause presumably no one will lend to them at that point.
Or are they going to run the New Drachma into the ground?
Good for Greece! Standing up to the Troika's tyranny and regaining national sovereignty from a bunch of unelected Belgian bureaucrats is a great thing to see. At least I hope that's where this is going.
It's Bush's fault, he's an oilman
The Coudenhove-Kalergi plan anyone.
"With a sane (and apparently honest/legitimate) government achieving election in Greece,"
Is it really April the first?
I just wonder what Greek Island(s) the Russians will require as down payment when they bail out the greeks in a few weeks
Better then fucking IraHell.
the land and shoreline in Greece is very valuable ... hang on to it .. don't let banks take it...
I sense a feeling of disquiet towards the banksters in this thread.
Yes, that is because they are criminals perpetuating a scam for which they will be held accountable.
http://tinyurl.com/mmkhrss
http://www.justice4humanity.org
excuse me ... but, didn;t this whole shit storm begin because greek government lied about their balance-sheet? because greek people refuse pay tax? why should germans and others pay for the sins of greeks? fuck greeks, they got exactly what they deserved ...
Then no bank should have lent them money. And if they couldn't figure out the games the Greeks were playing, then they need to be removed from power and given jobs where they can no longer do damage to anyone else.
Totally agree.
1. rule if you cant pay the existing debt then no more should be lent, free gift it if you want.
Germanys gain was to watch other nations take on unsustainable debt that was profitable for them and now bellyache because their economy was BUILT WHOLLY ON THE UNSUSTAINABLE DEBT OF OTHER NATIONS.
Now look at the rest of the world, exactly the same and the USA only gets looked on favourably because it is the global reserve currency.
Amusingly if unsustainable debt had not been allowed since the 70's most western nations would have fallen into stagnation or deflation the unsustainable debt was the maintaining the entitled lifestyle of elites now they bitch and moan because it is falling apart.
Greece because it CAN NEVER EVER PAY THE DEBT needs to default, leave the EU run with Russia / China. That crystallises the debt within the ECB on top of the QE effectively cancelling that action.
IF THE EU/EZ IS A SUSTAINABLE BODY THEN IT WILL SURVIVE BUT AS MANY ARE STARTING TO REALISE IT IS NOT AND NEVER WAS. UNDER TRUE CAPITALISM THEN IT SHOULD PERISH AND THE TEST IS ACTUALLY THE GREXIT.
Try to figure this out... Banks lended real* money to Greece in the past. Then Greece gets bailed out with funny-monney, printed out of thin air. With that money all the banks (innitial lenders) got paid back. Now nobody lended no really money to anyone, only Greeks owe 300 billion euros of funny money to some bizzare institution... So ECB gets to lend fake money, but Greeks need to pay back the real money, earned on markets... It is true they spent this funny money on real markets also, but isn' t that actually the problem's Ground Zero?
Edit:
*Most of the "real" money was actually also funny-money.
Why is everybody against gold, I wonder...
Why are they posting a picture of the mafia getting together outside the library? I thought this story was about Greece.
I only know 2 things about Greece.
It's the cradle of Democracy.
The women have hairy asses.
They call it a cradle because it's a government for babies. A strong government is best when dealing with children...China maybe.
And by the way, stop trying to fix blame on some country or financial entity. AS Clint would say. " Deserves" got nothing to do with it.
Got Drachmas?
They are going to have to work on the language here. I see several problems...
1- The term "bail out" is rather loaded. Unless it is made crystal clear that the 'bail out' is actually of the BANKS, and not Greece. Unless what you're doing is 'bailing out' the Greeks PAYMENTS to those banks, which is bailing out the banks...
2-Greeks should make it clear that they are rejecting LOANS, not a bailout, because it is too easy to spin this to the public to make it appear Greece is spitting in the extended hand of the German taxpayer...
3-Greece needs to continue their 'Tour of Europe' beyond these immediate talks. They have an opportunity to educate the public about what is actually going on here, and to correct the misunderstandings that have arisen over clever language designed to mislead.
4-All of the pre-entry book-cooking, and GS involvement, needs to be shared with the public. They must be made to see that it wasn't "the Greeks" who lied, it was a conspiracy between the banks and their own politicians to corral Greece into the EU regardless of whether it was a good idea or not.
5-And again, they MUST be made to understand that they are not helping Greece, that money is actually being used to bail out bad banks. Greece is only being used as a shield to disguise the transfer, and THIS is what the Greeks are so upset about. This is a stupid game with real human costs, and enough is enough.
I am glad to hear this, it gives me hope that the People might get their wish.
This is mostly Bullshit, the ever proud/greedy/corrupt Greek Gov't and its citizens are to blame. They are the dipshits who for decades have spent more than they brought in, now the people want to blame the Banks that have loaned addittional monies to keep the this sinking ship more time to sink. Greece, a country that's tax payers never do actually pay taxes and now will suffer these deferred consequences.
I am sure many say the same about Americans, decadent and lazy tv watchers. There are many who fit that description but those of us who work have no control on what is being done. Do the Greek people or are many just victims too?
Many DO say the same about Americans, including a lot of Americans.
We've gone from a nation of creative, hard-working people who actually MADE stuff, to one where labor is despised, and the only honorable way to prosper is to fasten one's sucking mouth parts onto a productive area of the economy and drain it dry.
You need to read the articles, and get some facts. Some recent articles in ZH have show very easy to understand pie charts to show what happens with the "loans" or "bail-outs" to Greece (however you wish to characterize them).
92% went directly to banks (Greece creditors).
6% went directly to Greece government.
2% or less got to Greek people.
100% to be paid back by Greek people.
-----
Now, it may be true that "Germans work longer and harder and save more of their earnings". That may very well be. But look at the above. Not even complete drooling morons would agree to pay back 50 times as much as they receive in loans... and that assumes a zero interest rate, which is not true.
Which means, the Greek people have been overtly and purposely scammed.
That is an inescapable fact.
Factor that in.
I nominate Annie for benevolent dictator.
That is the point, well said.
Odious Debt.
In international law, odious debt, also known as illegitimate debt, is a legal theory that holds that the national debt incurred by a regime for purposes that do not serve the best interests of the nation, should not be enforceable. Such debts are, thus, considered by this doctrine to be personal debts of the regime that incurred them and not debts of the state. In some respects, the concept is analogous to the invalidity of contracts signed under coercion.
Well thought out Spectre...........pmsl. THAT'S so funny :-)
Well, then if you KNEW that, why'd you loan them money in the first place?...THAT would be my first question.
Having gone ahead and loaned it anyway, they now fully deserve to eat it. All of it. Themselves.
Why are bankers immune to the consequences of their actions? And why, having allowed the banks so much power, do folks like YOU turn around and blame their victims when they fuck up?
People like you deserve to lose your shirts along with the banks. Anyone who "invested" in Greece over the past 6 years did so KNOWING they were rolling the dice. They were hoping to cash in, and lost. Gamblers have no moral claim to anything, including repayment. And scavengers who feast on the kills of others rather than work for a living deserve to choke on the rotten meat they occasionally run across.
Greece may have been ridiculously irresponsible, but it is the sole fault of the bankers that the irresponsibility was funded. Without that funding they could never have acted on their 'wishes'. The banks lost the moral high ground the minute they cut the checks.
There is no moral force in the Universe that weeps for their losses now.
Well said bemused observer!
The money/credit Greece were given was fraudulent.
It cost absolutely NOTHING to make. It was created out of thin air and has no Gold (or other) standard attached to it, so why on earth should anyone pay interest on it?
Just because someone thought of inventing 'money' first, does not give him the authority to sucker every Nation forever more!
Nowadays Credit is made simply by punching a few numbers into a computer.
Why do you think these wealthy families (and the Vatican) have gone to great lengths to keep the creation of money secret from the masses? The same way they keep the secrets of justice!
So Greece was a bad credit risk, based on lots of history? And yet loans were made, and effective collateral was not required?
WTF should ANYONE be subsidizing bad business decisions?
Banksters knew that Greece was a bad credit risk and they PUMPED huge amounts into a bad credit risk and now are surprized when the credit risk wants to default?
Screw the Banksters for making bad decisions.
See what the market says about it.
Bad credit risks yield high rates of interest, until they don't; so as long as you're confident you'll get bailed out when they default, throw as much "money" at them as you can! (especially if you can create that "money" out of thin air)
Financial leverage. Debt manipulation shalt be the whole of the law.
And why shouldn't the banks who lent out all the loans to a "corrupt Greek gov't and its citizens" should not suffer those "deferred consequences"? You lend out money to someone with a bad rep then you should burn, period.
Exactly. The loans were made BECAUSE the banks knew they would be bailed out. You repay, bank wins. You default, you lose.
Neither a lender nor a borrower be. Shakespeare. They are both guilty and both should endure austerity. You play the game you suffer the consequences.
There are more layers of guilty party here that the over spending politicians and the private banks. there are the insurance and investment banks that offer collateral default swaps to the banks to backstop their losses. there are the reinsurers that offer loss insurance to the insurance companies, and there is the central bank itself making zero interest loans to the banks, investment banks, and insurance comapnies that issued the paper. And try not to forget the other governments that are socializing the losses to the taxpayers, or providing guarantees to the insurance companies if they experience losses.
We should forbid banks from buying government debt. We should forbid insurance companies from offering CDS on government debt. We should reinstitute the wall between investment banking and savings and loan so the contigen will be better contained. Most importantly we should forbid any politician from ever running for any second office. This is the root of the debt bomb.
As I see it, the rich bankers of the North take money from their middle class to loan to the rich bankers of the South who put the debt burden on the shoulders of their middle class.
Or we should just require the issuance of real money and all the rest will take care of itself.
We are Groot.
Can't wait till the big FU at 2:pm!
The Communists that runt he EU want exactly that. They want the crisis to unfold and for the threats to be immense and for the repurcussions to affect the man on the street and for everyone to point at the banksters!
Where this leads is to a federalized european government stacked with who you might ask?
The communists.
Oh, they'll talk a good game at first but in the end they the same totaliatarians as always.
Europe conquered without ever firing a shot! It's almost like they told us thos is whow t would go down...... Oh wait, they did.
Not different from what our own overlords are doing here. They spend tax money and print to finance their whims. It is our debt though and we will be enslaved to them forever. The only way is to crach the system and take back control from the tyrants.