For Greece, the membeship of the Euro zone seems to be drawing to and end. If it does after the referendum on Sunday it would be a gain for Greece who would suddenly have the mechanisms to regulate its currency: 1) Interest rate increase and 2) devaluation. A big NO to the Euro is expected.
This will mean poverty – but what is going on so far is a cure that is worsening the disease: With every bail-out the country sinks deeper into the debt quagmire, and new austerity measures are placed upon a people already on the verge of revolution.
Oddly, it is impossible for me to find a list of Greece´s private creditors and their outstanding credits.
And who has benefited from the bail-outs? Rothschild´s banks – not least his Goldman Sachs – the scourge of the world.
Although being very similar to the black rider of the Apocalypse, Goldman Sachs CEO Blankfein (left) says: “I´m doing God´s work”, his God being Mammon/Rothschild. (Heinrich Heine: The god of our time is Mammon. And Rothschild is his prophet)
The Guardian 29 June 2015: Only 10% of the €240bn total bailout money Greece received in 2010 and 2012 found its way into the government’s coffers to soften the blow of the 2008 financial crash and fund reform programmes. Most of the money went to the banks that lent Greece funds before the crash.
Athens was forced to dramatically reduce its deficit by squeezing pensions and cutting the minimum wage.
The troika of lenders first stepped in during the spring of 2010 after Athens could no longer afford to finance €310bn borrowed from a wide range of major European banks.
Two years later, the International Monetary Fund (IMF), European commission and European Central Bank (ECB) came up with a second bailout that centred on a €100bn debt write-off by private sector lenders.
Private bondholders saw the value of their bonds drop by 53% and took a further loss by exchanging the debt for securities with a lower interest rate.
This eliminated about €100bn of debt, but €34bn was used to pay for various “sweeteners” to get the the deal accepted. That €34bn was added to the Greek debt. Greek pension funds also suffered terrible losses.
Below Greek debt from Forex 12 Oct. 2011 relative to other expenditures. Already then staggering.
Then €48.2bn was used to bail out Greek banks which had been forced to take losses, weakening their ability to protect themselves and depositors.
Lastly, €140bn has been spent on paying the original debts and interest.
Greek government debt is still about €320bn, 78% of it owed to the troika (Rothschild´s ECB, his IMF and his Masonic EU Commission with Jesuit Juncker as President). As the Jubilee Debt Campaign says: “The bailouts have been for the European financial sector, while passing the debt from being owed to the private sector to the public.
How did Greece manage to fare this badly?
Like the Devil, Goldman Sachs CEO Lloyd Blankfein sneaked to the Greek government at the time it badly wanted to join the Euro and let the Euro zone pay for its extravagances.
The New York Times 13 febr. 2010: Countries like Italy and Greece entered the monetary union with bigger deficits than the ones permitted under the treaty that created the currency. Rather than raise taxes or reduce spending, however, these governments artificially reduced their deficits with derivatives – Italy with JP Morgan.
As part of the deal, Greece got cash upfront in return for pledging future landing fees at the country’s airports and the revenue that the government collected from its national lottery. (This means, the government has lost revenues to pay interest with. It staked on Euro zone bail-outs).
Bloomberg 6 March 2015: Goldman Sachs cheated Greece who did not understand the complicated loan.
On the day the 2001 deal was struck, the government owed the bank about 600 million euros more than the 2.8 billion euros it borrowed.
said Spyros Papanicolaou, who took over the country’s debt-management agency in 2005. By then, the loan had almost doubled to 5.1 billion euros, he said.
Goldman is ruthless about ensuring that its interests aren’t compromised — it’s part of the DNA of that organization.” The Goldman Sachs transaction swapped debt issued by Greece in dollars and yen for euros using an historical exchange rate to make about 2 percent of Greece’s debt disappear from its national accounts. It also used an off-market interest-rate swap to repay the loan.
The trading fees on the swap rose because the deal had a notional value of more than 15 billion euros, more than the amount of the loan itself.
Sardelis was forbidden by Goldman Sachs to check the market price of loans,” said Papanicolaou, who retired in 2010. Goldman said that if he did that, the deal is off.”
Greece would have to pay Goldman Sachs 400 million euros a year, he said.
“The wages of sin are death”. Greece has deceived the EU – or did the land-greedy EU know all along?
If Greece gets along well outside the Euro it may soon be followed by Italy and Spain. This would pave the road for unravelling the economically impossible political Euro, making the vision of the Euro´s father, Robert Mundell, who just saw the Euro as a temporary transition to a one-world currency, come true. No wonder: He was the first Rockefeller Research Professor of International Economics at Rothschild´s Brookings Institution in 1964-65.