There is a piece that the Guardian gave us less than 12 hours ago. The title ‘Greece ‘turning a page’ as Eurozone agrees deal to end financial crisis‘ should worry you. You are getting played! The article (at https://www.theguardian.com/world/2018/jun/22/eurozone-greece-financial-crisis-deal) is giving a dangerous situation as it is downplayed on nearly every level. Now, to set the stage, we need to understand that government budgets are complex. No one is denying it. Yet, what is complex about: “Eurozone member states reached an agreement on the final elements of a plan to make its massive debt pile more manageable, ending an eight-year bailout programme“, can you tell me that? You see in the heart of this is ‘its massive debt pile more manageable‘, we all see that. Yet do we understand it? €328 billion, the interest on that small sucker is well over €500 a second! The debt is around 180% of GDP, it was 178% last year. These are issues that matter, because it gives Greece no options. Then the Guardian gives us the bit that matters a lot more. You see, in part one we consider “The plan allows Greece to extend and defer repayments on part of its debt for another 10 years and gives Athens another €15bn (£13.2bn) in new credit. Tsakalotos said it marked “the end of the Greek crisis … I think Greece is turning a page.”“, so an option to get even MORE DEBT. When was that a good idea? Now consider that the interest on the current loan is €640 million a year, so how does raising the debt by 5% help? You see, we see the game played, because the next elections are 20 October 2019. This is the beginning of an election stunt and the Eurozone is happy to help only if the current government does what the Eurozone tells them to. How is that for an option?
The next pack of non-truths is given by PM Alexis Tsipras with “The prime minister, Alexis Tsipras, told a meeting of MPs: “Greece is once again becoming a normal country, regaining its political and financial independence.”” I hope you understand that financial independence will not happen until 2045. The debt is that severe. The banks are not willing to be soft any longer, when the access to the markets are given it will merely take one screw up, one act of short sighted stupidity and people all over Europe will rally to demand the barring of Greece from the markets for decades. So when we are presented within: “The plan allows Greece to extend and defer repayments on part of its debt for another 10 years and gives Athens another €15bn (£13.2bn) in new credit“, you see this is what the beginning of slave labour looks like, a debt that cannot be repaid, a setting where €15 billion is merely a smoke screen and the coming years when you think your life is getting better, the truth is merely that your options are taken away. That is how you enter into slave labour. And the Eurozone will be nice and humane about it, they will not call it slave labour, they will call it new zero hour contracts and with the definition “Any individual on a zero hours contract who is a ‘worker’ will be entitled to at least the National Minimum Wage, paid annual leave, rest breaks and protection from discrimination” and the Greeks will realise too late that this government AFTER its election will set the stage where because of the high debts the National Minimum Wage would optionally have to be lowered by 20%, until the debts are better dealt with. So there you are sitting on a terrace having your last pita gyros with an Ouzo realising that you can no longer afford to do that, your income got cut by 20%. The opposing party reacted to the credit buffer with ‘Kostis Hatzidakis said it reflected the lack of faith international creditors had in Athens’ ability to successfully return to capital markets.‘ And in this Kostis is right, the international markets have zero faith in their return, they rely on a small thing called mathematics and the clarity there is that the scales are not in the favour of the Greeks. The financial market is hailing the success, especially those making money of every trade, and until the money is gone, some parties on Wall Street will love the Greek, give parties in their honour. The parties behind this were shown in the NY Times last week (at https://www.nytimes.com/2018/06/19/business/economy/greece-europe-bailout.html). Here we see “To play it safe, Greece won’t start selling bonds until well after it exits the bailout. Instead, the government, which is being advised by Paris-based Rothschild & Company, will pick a moment in the next two years when market conditions seem favourable. A cash buffer of up to €18 billion, funded by creditors, may help Greece secure the liquidity it needs in the meantime“, so now the credit makes a lot more sense, does it not? A credit to pay the bills until there is one more fish to cook for Wall Street ending the existence of Greece. Well, actually the Greek elected officials will do that all by themselves. Because it will be there choice (through whispers) that benefits could be gained through 10 year bonds giving 10 more years of relief. Yet those billions come at a cost, a 2% cost which goes to the traders, they will cash in millions at the expense of a few parties costing them mere thousands, after which they switch off their phones, walk away and it is no longer their problem. For them it was merely good business, the direct application of a mere fool and his money getting parted.
Yet, this is not the only part. In what I would regard to be a direct outright lie, we see the actions from Pierre Moscovici as we are treated to: “Greece had received €275bn in financial support from its international creditors over the past eight years and twice came perilously close to being kicked out of the Eurozone group, the EU commissioner, Pierre Moscovici, said, adding: “There have been enormous sacrifices. But at last Greece will be capable of moving on its own two feet.”“. This is what I personally see an outright lie! Let me explain why I think that this is as bad as such. The documentation gave us (I already published it before). It is a paper from 2009 from the ECB and I gave light to it in my article on July 1st 2015, yes, almost 3 years ago. The article was ‘Dress rehearsal (part 1)‘ (at https://lawlordtobe.com/2015/07/01/dress-rehearsal-part-1/), the original paper is there at the end. It is called ‘Withdrawal and expulsion from the EU and EMU some reflections‘, a paper written by Phoebus Athanassiou. Here we see “The idea that the treaties should explicitly provide for a possibility of expulsion was discussed in the 2001-2003 Intergovernmental Conference responsible for drafting the ill-fated Constitutional Treaty, but was abandoned“, on page 32 it gives the premise that greed driven politicians did not consider that expulsion should be an option. In addition, the EU observer gives us in 2011 ““Neither exit nor expulsion from the euro area is possible, according to the Lisbon treaty under which participation in the euro area is irrevocable,” he added, referring to the European Union’s rule-book.” and there is May 2012, where we get “The Mechanics of Eurozone Withdrawal, It has frequently been stated that the EU Treaties contain no legal framework for a withdrawal from the Eurozone. This is true and, indeed, the Treaties make it clear that the process of monetary union was intended to be “irreversible” and “irrevocable”“. The last we got from Locke Lord LLP, a Texas Lawfirm. So I now need to revert to my original Dutch Diplomatic self stating: ‘Moscovici, you stupid fuck! There is 9 years of documentation from people better educated than me stating that kicking out of the Eurozone was not an option in any way. So get a fucking grip on your stupidity and amend it or resign your post, your choice!‘ (Sorry, I needed to get that off my chest, I feel a little better now).
The final straw for my ego is found in the Guardian quote “But it means the left-led government in Athens will have to stick to austerity measures and reforms, including high budget surpluses, for more than 40 years. Adherence will be monitored quarterly“, when we consider that my setting was without the ‘discount’, the proven setting that the debt will be a 3G debt, it will push hardship on three generations. A setting I was able to prove with an abacus is now finally recognised by those less fortunate as they were not able to get basic calculus done. I am happy for me being correct, but not for the hardship that the next generation of Greeks face, they never had any choice in the matter, merely have to clean up after grandpa’s bad political choices, to them it is massively unfair.
The final part if given with: “At almost 180% of GDP, Greece is burdened with the highest debt load in Europe. The €320bn debt mountain is widely recognised as the single biggest obstacle to economic recovery. The International Monetary Fund had resolutely refused to sign up to the country’s latest bailout unless Eurozone creditors agreed to a restructuring that would ultimately make the debt sustainable“, most will not recognise the miswording that is used here. With ‘widely recognised as the single biggest obstacle to economic recovery‘, which is actually ‘Greece has no options to recover from a debt that high, not ever‘. Which leads to ‘International Monetary Fund had resolutely refused to sign up to the country’s latest bailout‘ and ‘make the debt sustainable‘, which needs to be read as: ‘the IMF cannot allow the support of a debt that cannot be paid off, lower it!‘, yet when is the setting for sustainable made? Making it longer by setting the €328 billion in three stages of 26 years each? Who will sign up for that? How many forward pushing bond programs will it require and we understand that among the banks (read: financial institutions), they are willing to do that as long as it is set in 25% profit stages, giving light to the fact that the additional pressure beyond the debt is the Greek population paying an additional €78 billion in sustainable bonus. If you’re Greek, would you want your child to inherit a €75 billion invoice at birth? That was what I predicted three years ago and I have been proven correctly and I have been conservative, when you consider the cost of the bonds, the interest paid to the people buying the bonds as well as the impact of devaluation of a nation that cannot fund its infrastructure. It is a mess and when you consider Forbes on 28th Jan 2017, where we see: “The IMF projects Greek debt will reach 170 percent of GDP by 2020 and 164 percent of GDP by 2022 but will rise thereafter, reaching around 275 percent of GDP by 2060” (at https://www.forbes.com/sites/timworstall/2017/01/28/amazingly-yes-the-imf-is-still-saying-that-the-greek-debt-problem-is-not-yet-solved), we see that they were off last year by close to 10%, so the prospect for Greece is even worse than the IMF predicted (I admit a slight overbearing assumption at present).
To illustrate that, I will revert to a source that I cannot vouch for, yet they give (at https://www.thenation.com/article/goldmans-greek-gambit/) “As a result, about 2 percent of Greece’s debt magically disappeared from its national accounts. Christoforos Sardelis, then head of Greece’s Public Debt Management Agency, later described the deal to Bloomberg Business as “a very sexy story between two sinners.” For its services, Goldman received a whopping 600 million euros ($793 million), according to Spyros Papanicolaou, who took over from Sardelis in 2005“, a fee closing that surpassed half a billion euros.
So in the end, the news, the papers the quotes, it will be up to you to decide how Greece is given a fair go, yet they themselves have mostly only themselves to blame. You see, in all this, how many Greek politicians went to prison? How many got their assets taken from them? Or are we all agreeing that there was no legal option? Now wonder if the legal options exist at present, if not. Then this is the bed of hardship that the Greeks made for Greece.
So, are the Greeks still being lied to? If that is so who exactly is presenting their version of the ‘facts’ to the Greeks?