Greece: The Epicenter of Global Pillage
- The Rot Beneath The Surface
22 Feb 2012By Stephen
Lendman
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.
On February 20, New York Times writer Stephen Castle
headlined, "Europe Agrees on New Bailout to Help
Greece Avoid Default," saying:
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.
They're left with huge wage and benefit cuts combined
with mass layoffs. Greece faces less tax revenue to
cover domestic priorities. In late 2011 alone, its
economy shrank 7%. January revenues fell 7%
year-over-year. Value-added tax receipts decreased
18.7% from last year. Death spiral financial
deterioration continues monthly.
Moreover, the nation's $650 billion debt burden is
double the reported amount. The more it increases, the
harder it is to service and repay, the more future
aid's needed, and deeper the country's economic
catastrophe heads for total collapse.
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.
Reports say its government will change its
constitution to prioritize repaying debt ahead of
vital domestic obligations.
Other terms involve lenders cutting interest rates on
bailout loans by 0.5% over the next five years, and
1.5% thereafter. An estimated 1.4 billion euros would
be saved by 2020.
The ECB will compensate by distributing profits on its
40 billion Greek debt holdings. In addition, Eurozone
countries will contribute their Greek bond income
through the end of the decade.
Still to be decided is EU/IMF burden sharing. Both
agreed to contribute. Not discussed or considered is
leaving 11 million Greeks on their own out of luck.
They have three choices - starve, leave, or rebel.
The Rot Beneath the Surface
On February 21, Financial Times contributor Peter
Spiegel headlined, "Greek debt nightmare laid bare,"
saying:
"A 'strictly confidential' report on Greece's debt
projections prepared for eurozone finance ministers
reveals Athens' rescue programme is way off track and
suggests the Greek government may need another
bail-out" soon after the latest one.
Even under the most optimistic scenario, imposed
austerity's punishing Greece so severely, its burden's
impossible to bear.
Agreed on terms are "self-defeating." Forced austerity
elevates debt levels, weakens the economy, and
prevents Greece "from ever returning to the financial
markets by scaring off future private investors."
As a result, continued financial infusions are needed.
Double or more the agreed amount's required. Current
problems increase exponentially toward total collapse,
default and bankruptcy.
The report explained Greece's impossible burden. It
also "paints a troubling outlook for the debt
restructuring, expected to begin this week." Bond
swapping creates "a class of privileged investors who
will chase off" others when Greece tries selling fixed
income securities at market. Germany, the Netherlands
and Finland opposed a deal doomed to fail.
The report warned "Greek authorities may not be able
to deliver structural reforms and policy adjustments
at the (envisioned) pace." Perhaps never with
shrinking revenues unable to cover liabilities.
It's "now uncertain whether market access can be
restored in the immediate post-programme years." Left
unsaid was restoring it's impossible ever. Greece
faces protracted deep depression. Its life force is
ebbing. Only its obituary remains to be written.
A Final Comment
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.
Stephen Lendman lives in Chicago and can be
reached at lendmanstephen@sbcglobal.net. Also visit
his blog site at sjlendman.blogspot.com and listen to
cutting-edge discussions with distinguished guests on
the Progressive Radio News Hour on the Progressive
Radio Network Thursdays at 10AM US Central time and
Saturdays and Sundays at noon. All programs are
archived for easy listening.
http://www.progressiveradionetwork.com/the-progressive-news-hour/.
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