"Odious Debt" Has Finally Arrived: Greece To Write Off "Illegal" Debt

Tyler Durden's picture

It was back in June 2011 when we first hinted that the time of Odious Debt is rapidly approaching.

As a reminder, this is what Odious Debt is: In international law, odious debt is a legal theory which 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.

Today, nearly four years later, Odious Debt is now a reality in Greece, where Zoi Konstantopoulou, the head of the Greek parliament and a SYRIZA member, released two videos which have promptly gone viral, designed to promote the investigative parliamentary committee to look into the circumstances surrounding the signing of the country’s two bailout agreements that led Greece to implement its austerity measures.

The short video spots, shown below, end with the message “Check it, Erase it” referring to the country’s 320 billion-euro debt.

 

That this concept emerges now is perhaps confusing: it was just a few days ago when the Greek FinMin promised to the IMF that Greece would honor all of its debt commitments. Should Greece decide that some (or all) of its debt was illegal and unenforceable, this will clearly not happen. Then again, this is the same political party that made pre-election promises whose execution would require about €30 billion according to German calculation, so the relentless flipflopping is not very surprising.

On the other hand, while perhaps Greece was hoping for a more favorable outcome from Tsipras' meeting with Putin today, the resultant outcome which led to virtually nothing (that was revealed at least) may embolden the Greek nation to push on with this track which is certain to infuriate the Troika.

According to Greek Reporter, Konstantopoulou has said that the newly established “Debt Truth Committee,” will investigate how much of the debt is “illegal” with a view to writing it off.

Proving that this is more than just a populist stunt, during a vote that took place early yesterday, out of the 300 Greek MPs, 156 voted in favor of establishing the public debt auditing committee.

“The committee will examine how Greece entered into the bailout agreements with its international lenders, as well as any other matter related to the memoranda’ implementation,” SYRIZA Parliamentary Secretary Christos Mantas had explained earlier.

“We are fulfilling our commitment and the social demand to explore the causes and responsibilities of an unprecedented crisis that devastated the vast majority of society,” Mantas added.

If the Greek "Debt Truth Committee" indeed persists with determining how much of its debt is legal and enforceable, and ultimately decides to rescind some (or all) of it, the only question is how long until other countries around the world, all of which are burdened with massive, untenable debt loads across the government, financial and household sectors, decide it is time to do the same and declare a fresh start.

Because as the end of the day, the winners will be 99% of the population - or all those who have been trampled upon by the central banking regime and their crony capitalist, private bank and oligarch backers. The only losers will be that 0.01% of the population which benefited during the past 8 years of what is now obvious to all has been nothing more than a farcical global "recovery."

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NotApplicable's picture

About time!

All sovereign debt is odious.

Now, will they dare bring charges against GS?

1000yrdstare's picture

Can I use that excuse to NOT pay my mortgage?

p00k1e's picture

American Express ripped me off!  

y3maxx's picture

All American States to declare tomorrow, they do not owe any of the Federal Reserve's debts.

TruthInSunshine's picture

In my country there is problem
And that problem is the Jew
They take everybody money
And they never give it back

Throw the jew down the well (repeat line)
So my country can be free (repeat line)
You must grab him by his horns (repeat line)
Then we have a big party (repeat line)

If you see the Jew coming
You must be carefull of his teeth
You must grab him by his money
And tie his greedy hands & gag his mouth

BaBaBouy's picture

Between This DEBT Write-Off And German War Reparations, Greece Will Have ZERO Debt And Cash To Boot...

Geniouses, GENIOUSES I SAY!!!

cnmcdee's picture

Odious debt? Seriously?!! In the last 50 years has ANYONE EVER EVER in ANY COUNTRY?!! been asked if they approve or disapprove of ANY federal deficit or debt? 

I have been old enough to vote for 30 years and I have *never* had the opportunity to veto ANY DEFICIT!!

If it was up to the citizens they would veto 80% of the bills that are introduced.

The democrats and the republicans have never ONCE vetoed a deficit in their histoy since they have had deficits.

So now - in a few years time when the dollar is crushed, the economy is collapsed, and people's kids are going hungry and people are living in the street only the epiphany of brainwashing would anyone dare say it is the fault of the citizens.

It must become illegal in all nations for anyone to lend any government money - ever!!  If you do not think this is serious wait until this collapse gets real.,  All governments have a duty to their citizens to completely and totally default on their debts, firstly to remove the burden on them, and secondly to teach people not to lend the governments money.

unicorn's picture

greece could really set new standarts, but im shure they wont let them.

but interesting.

Anusocracy's picture

Greece should just claim a negative interest rate on the debt.

Thirst Mutilator's picture

@TIS <above>

 

But wait... The following is 'reportedly' the worldwide Jewish population: 13.3 million

 

http://www.simpletoremember.com/vitals/world-jewish-population.htm

 

- The same site reports that 46% of jews live in the Americas... [for shits & grins, let's call it half ~ which would make somewhere slightly north of 6.6 million in 'The Americas']...

- This would jive with other WORLD JEW POPULATION info sites which proclaim jewish numbers to be 2% of population [whereby if you applied the numbers to the US census figures, you're talking the same numbers, 6.5 million to 7.5 million]

 

You could click on the link, or just read it here...

 

Approximately 37% of worldwide Jewry lives in Israel. Israel's Jewish population rose by 1.6% the past year, while the Diaspora population dropped by 0.5%.

      Europe, including the Asian territories of the Russian Republic and Turkey, accounts for about 12 percent of the total. Fewer than 2 percent of the world’s Jews live in Africa and Oceania. 

      Metropolitan Tel Aviv, with 2.5 million Jews, is the world's largest Jewish city. It is followed by New York, with 1.9 million, Haifa 655,000, Los Angeles 621,000, Jerusalem 570,000, and southeast Florida 514,000.

 

Which, basically means that there are more jews around Hollywood, than Jerusalem...

 

- The same site also approximates that the jewish population growth is 0.3%


Another site, more or less confirms the numbers put forth in the previous link...

 

https://www.jewishvirtuallibrary.org/jsource/Judaism/jewpop.html

 

I think the question to ask is:

 

How is it possible that such a mathematically INFERIOR minority be able to get a stranglehold of worldwide:

 

- Banking

- Political Activism

- MSM

- Jurisprudence

 

In a timespan of only 70 years? [One might also consider the 'other' events that have happened during that same 70 years timeframe]

 

- Balfour Agreement being realized & nation state of ISRAEL ratified

- Bretton Wood Agreement abandoned

- a 1 in 325 million chance of pattern & placement of 'jews' being FED Chairs during post Bretton Woods

- jew CREEP into all bodies of US government, spy agencies, & MIC, & all of the above contracting services

- increasing use of 'TERROR' as a sound byte [I never remember hearing the word 'TERROR' before the 1972 Munich Olympics]...

 

Was it all by chance?... Because simple mathematics/statistics would tell you that that would be an IMPOSSIBLE 'multi sigma' event...

 

So

 

The next question you have to ask yourself is... HAS THIS IMPOSSIBLE PHENOMENON BEEN 'BENEVOLENT' TO MANKIND?...

 

I don't know about anyone else, but the dozens of threads that appear on ZH day after day seem to point to the fact that it is NOT benevolent... That, instead, MANY suffer at the hands of a few...

 

I'll leave it to geniuses like CH1 & SMG to explain to me how my observations are that of a lunatic...

 

Is there anyone around here who is capable of putting together numbers & thinking for themselves?

 


 

 

 

TheReplacement's picture

Jews or zionists?  There is a huge difference.  Jews tend to run delis and other honest businesses.  Zionists seem to strive for political and financial jobs that help with global domination.

 

Also, you are leaving out a huge part of the equation.  The zionists didn't put themselves in all these places and change all the rules.  They had help.  Name names and get ALL the information out there.

Azannoth's picture

"Jews tend to run delis and other honest businesses." - you made me laugh there :)

acetinker's picture

It's got electrolytes!:

I'll bet you know the answer to your main question and don't realize it- or are trying to induce critical thought amongst us hoi-polloi.

Think about it;

If you or I were authorized to conjure any given jurisdiction's medium of exchange, for ourselves, at will, at virtually zero cost, we could control, well... everything.

I forget who said it, but our system of money and credit is at once so simple, and so utterly fraudulent- that the mind is repelled.

"The modern banking system manufactures money out of nothing. The process is perhaps the most astounding piece of sleight of hand that was ever invented. Banking was conceived in inequity and born in sin . . . . Bankers own the earth. Take it away from them but leave them the power to create money, and, with a flick of a pen, they will create enough money to buy it back again. . . . Take this great power away from them and all great fortunes like mine will disappear, for then this would be a better and happier world to live in. . . . But, if you want to continue to be the slaves of bankers and pay the cost of your own slavery, then let bankers continue to create money and control credit."

-Sir Josiah Stamp

President, Bank of England

1927

Truly, I have never investigated whether our esteemed Sir Stamp was Jewish, but I kinda doubt it.  That a preponderance of those who claim to be Jews are drawn toward the banking sector is therefore not their own agenda, in my mind.

That they gravitate to the banker-controlled, money-for-nothing scam is not an indication that they are nefarious.  Maybe they're just opportunistic, and therefore, handy scapegoats?

It's a long game, Thirst Mutilator.  Think bigger.

acetinker's picture

Am I allowed to give hints?  As you said, Brawndo, Jews are a disproportianally small segment of the world's population, but seem to control nearly everything.  Fuck hints.

The fucking Pope of Rome claims ownership of this entire earth.  Via the banking centers in London and New York, the world's "money" is managed- to take the onus off of Rome.

The Jews are the Pope's scapegoats.

Trouble is, the Muslims are taking more and more market share- and the Pope, via "the Crown" and the US puppets want to blame all of it on the Middle East and Russia.

If it wasn't such a deadly game, it'd be comical.

acetinker's picture

So half of you think I'm right while half of you think I'm wrong.  The American Revolutuion was started by less.

Nowadays, we have people in foreign countries speaking up.

The next revolution will be worldwide , and understood by almost nobody.

Nobody For President's picture

You do not fucking get  it cdee - the US has had only ONE regime, the so-called two party system.

Odious debt refers to debt taken on by a previous regime illeagally - they sold out or were under duress or whatever the fuck.

In the USSA case, both the Demopubs and the Republicats piled on the dept.

It would take a big-time revolution to overthrow the whole fucking blue-red system to declare our 18 trillion as "Odius".

Actually, that may not be a bad idea...

Hail Spode's picture

So once Americans kick the Republicrats out they become the prior regime and THEY are the ones who doubled our national debt since 2008 to provide bailouts to global banks even though citizens were against it about 50-1. All federal debt since 08 is odious, we just have to find a way to kick them out.

cnmcdee's picture

Odious debt? Seriously?!! In the last 50 years has ANYONE EVER EVER in ANY COUNTRY?!! been asked if they approve or disapprove of ANY federal deficit or debt? 

I have been old enough to vote for 30 years and I have *never* had the opportunity to veto ANY DEFICIT!!

If it was up to the citizens they would veto 80% of the bills that are introduced.

The democrats and the republicans have never ONCE vetoed a deficit in their histoy since they have had deficits.

So now - in a few years time when the dollar is crushed, the economy is collapsed, and people's kids are going hungry and people are living in the street only the epiphany of brainwashing would anyone dare say it is the fault of the citizens.

It must become illegal in all nations for anyone to lend any government money - ever!!  If you do not think this is serious wait until this collapse gets real.,  All governments have a duty to their citizens to completely and totally default on their debts, firstly to remove the burden on them, and secondly to teach people not to lend the governments money.

cnmcdee's picture

Odious debt? Seriously?!! In the last 50 years has ANYONE EVER EVER in ANY COUNTRY?!! been asked if they approve or disapprove of ANY federal deficit or debt? 

I have been old enough to vote for 30 years and I have *never* had the opportunity to veto ANY DEFICIT!!

If it was up to the citizens they would veto 80% of the bills that are introduced.

The democrats and the republicans have never ONCE vetoed a deficit in their histoy since they have had deficits.

So now - in a few years time when the dollar is crushed, the economy is collapsed, and people's kids are going hungry and people are living in the street only the epiphany of brainwashing would anyone dare say it is the fault of the citizens.

It must become illegal in all nations for anyone to lend any government money - ever!!  If you do not think this is serious wait until this collapse gets real.,  All governments have a duty to their citizens to completely and totally default on their debts, firstly to remove the burden on them, and secondly to teach people not to lend the governments money.

ACP's picture

Third time's the charm...

rbg81's picture

Funny how they never think it's "illegal" when they take the $$, eh?

Anusocracy's picture

The banking hunter-gatherers.

Fod's picture

You DO know that this is the first time in like 50 years that Greece had a government that wasn't PASOK or ND right?

SMG's picture

F-You disinfo agent.  The creators of Odious Debt, the Luciferian Globalist Bankster are the ones that are the cause of this.  And you their sock puupet spread lies as you are told.   In the end we will all be judged, even you.   You can turn away from this now if you want, you have free will.  Will you choose good?

Stuck on Zero's picture

Greece should write off all debt arranged by and through Goldman Sachs.

Omen IV's picture

SUE Goldman Sachs for - Fraud in the Inducement - for aiding and abetting criminal politicians in the EU and Greece for false statements within the ADVISORY CONTRACT FOR analysis they knew was false

 

fuck them hard fuck them deep!!!!!

steelhead23's picture

Very funny.  Your indictment is absolutely true - but think of the outcome.  If GS were made to pony up 300 billion euros, the Fed would cut the check.  Remember this, nation states may come and go, but from the Fed's perspective, the global financial system is sacrosanct - to be saved at all costs.  Those costs are you and me brother.

TheReplacement's picture

Sure but Greece repudiating the debt would set a precedent that would be easy to follow since the Feral Reserve is not elected so does NOT represent the US.  Heck, the elected part really wouldn't even matter since Greece's governments were elected too.

 

TruthInSunshine's picture

"Sue Goldman Sachs?"

Greece's & other nations' patriots (if there are any) should put price tags on bankers' heads and put those contracts out for bid.

There are a lot of skilled operators looking for well paid work who'd consider those jobs as a double good deed.

They could even do a secret gofundme type deal.

turnoffthewater's picture

Sue, that's a girls name. don't sue. The court would probably convene in NY. You're going to get justice in NY, right...Go to Lord 'doing gods work' Blankfind in the night cut his balls off and watch him eat them. That's just us

BaBaBouy's picture

Greeks Are Geniouses!!!

Augustus's picture

Greece gave the private investors a 100 Billion haircut in 2012.  It will only take a few more years to clip it all with the Greek shears.

TeraByte's picture

No sympathy for the private investors. They were more than aware the country was not creditworthy, but believed their political liaisons being able to protect their speculative investments from consequences.

Paveway IV's picture

The Greeks gave the EU and IMF plenty of time to cough up a realistic repayment plan. Germany said the only repayment plan was more austerity.

The EU and Germany just fucked themselves royally and lost all control of the process. How much time and effort does anyone think Spain is going to endure when they know the only solution is to not pay.

The message from the EU is loud and clear: "...We tricked your stupid government fare and square into unsustainable debt. Pay it back even if you can't. It's pointless to negotiate..." 

Greece isn't going to pay and is staging a little theatre about 'justification' for PR purposes. They know they owe it and they know they're not going to pay - it's as simple as that. Anyone trying to micro-analyze the situation based on hot air from the various politicians is wasting time. Greeks are privately snickering at the thought of any clownish 'legal debt'  calculations.

Every Greek know the reality is: Molon Labe - If you want your money so bad, then come and take it. Shrieking EU politicians are pussies and will absolutely make more desperate demands, but they will never back them up. What's the biggest threat they have? "We won't loan you any more money!" The Greeks will laugh about that 'threat' for decades.

You can slice and dice the banker arguments of responsibility and morality all you want. Their entire IMF scam relies on debtor nations on their knees, obedient to the bankers until the end. 

While I can't morally justify the Greeks position, I'm secretly delighted with their attitude: "Fuck you banksters - you'll never see a dime you greedy bastards"  I have every ounce of faith in the Spainiards - I trust they're emboldened to do the exact same thing. Time to step up to the plate, Spain. I'm rootin' for all of you!

zenon's picture

What's the biggest threat they have?

The biggest threat is cutting of ELA to the Greek banks which will lead to capital controls and a dysfunctioning banking system for some time. Pushed further, Greek banks will be technically bankrupt and incapable of facilitating simple functions like LC's for imports and exports. The economy will take a bigger dive (than it already has). The government will be forced to institute a parallel currency which will trade at a discount to the euro. Do the Greeks have the stomach for it? Time will telll, however, it seems clear that this is the showdown we are now facing.

Paveway IV's picture

I agree, Zenon.

"...The biggest threat is cutting of ELA to the Greek banks which will lead to capital controls and a dysfunctioning banking system for some time..."

The Greek oligarchs need the banking system, the 'little people' Greeks could care less at this point. The Greek government employees and pensioners are completely fucked any way you look at it - the banks are not going to help them one bit. 

"...Do the Greeks have the stomach for it?..."

The Greeks are realists if nothing else. The average Greek knows they have no choice in the matter. The whole Ponzi is crashing down. The only choice 'little people' Greeks have is if they want to watch the remainder of the collapse on their knees or not. 

unicorn's picture

for most of the greeks the system IS allready broken.

disabledvet's picture

Well, one look at Argentina says this is a bad idea.

 

And of course Argentina is a lot more valuable than Greece.

 

"Stop feeding the Beast or else the Beast will eat you too."

11b40's picture

How are you calculating "value"?

Certainly not from a strtegic stand point.

Fod's picture

As mentioned, strategically, Greece is FAR more important than Argentina.

going to guns's picture

What happens if Greece,failing to pay triggers a derivative crisis and the whole Western world goes to shit in a week?

TheReplacement's picture

If the Greeks were realists this discussion wouldn't be taking place.  The thing that matters is how angry are the Greeks.

Greece should buy some of every top shelf weapons system on credit at zirp/nirp, including aircraft carriers, and then offer to lease them all to Russia/China for payments that are enough to cover their "obligations".  One bets the west would either go to war or make a generous counter offer to buy back.

Paveway IV's picture

"...Greece should buy some of every top shelf weapons system on credit at zirp/nirp, including aircraft carriers, and then offer to lease them all to Russia/China for payments that are enough to cover their "obligations"..."

Too complicated. Greece can offer a deepwater port to either China or Russia for a naval base in exchange for a loan.

After Greece announces a crazy-ass 98% haircut on their debt to the EU, they'll have some cash to pay back a new Chinese or Russian loan. Of course the EU will reject any Greek-announced haircut for ANY reason. It doesn't matter - they're not getting repaid, EVER. Greece does not care about its credit rating with the EU anymore. It will be the EU's problem from this point on, not Greece's. That's going to set off a financial meltdown that will probably bust the U.S. financial system as well. If the Greek default doesn't do it, Spain's default will. The U.S. isn't that insulated from the EU's problems - all the debt Ponzis are going down together. It's only a matter of time.

Augustus's picture

The only "repayment plan" that Greece would agree involved some country sending them more to spend and increase the debt.  Greeks would agree to anything, as long as they get the cash.

N3mo's picture

All 350 million of us States.

Good for Greece. If the "debt" was not valid (i.e. money existed PRIOR to being "loaned) then it's not a debt.

disabledvet's picture

They don't pay their taxes and threw Cyprus under the bus with the EU's aid.

 

Sorry, Greece!

COSMOS's picture

They stole their pension funds now they are getting around to writting off the debts lol.

TeethVillage88s's picture

No joke the Germans made them feel desperate and they gave up their most valuable assets.

Damn. That is like a Generational Hit to Greece. Consumption down, lower wealth to kids, lower education for kids... what else but panic?

Asian people would not be so dumb I don't think. Americans in the USA will do the same as Greece. US People are not logical they are under mind control.

What? Say 10 years more or less for US to give up Retirement accounts??