In the same category

No Reprieve for Greece from Debtor’s Prison

IMG Auteur
Published : February 28th, 2012
703 words - Reading time : 1 - 2 minutes
( 4 votes, 5/5 )
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
0
comment
Our Newsletter...
Category : Editorials

 

 

 

 

Greece remains in debtor’s prison. That horrible fate was confirmed this past week with the ‘group-sentencing’ handed down by Brussels’ eurocrats, Merkel, Sarkozy, the ECB and IMF, and most shameful of all, the Greek politicians who accepted the brazen ultimatum delivered to them.


One can only wonder what these politicians were thinking, and whose interests they were really serving. The €130 billion that is supposed to ‘help’ Greece barely does anything at all to revive the economic prospects for that beleaguered country. Other than some money that will trickle-down into economic activity by ensuring the ongoing payment of the €8,594 per month salary (plus additional perquisites) going to the members of the Greek parliament as well as some other odds-and-ends, the rest simply passes through Greek books into the hands of the reckless lenders who foolishly made too many loans in the first place. Once again, the bad loans made by irresponsible, reckless lenders are socialized.


If Greek politicians were really acting in the best interests of the Greek people, they would have taken the same path chosen by Iceland’s leaders – default.


A financial crisis engulfed both Iceland and Greece about the same time, but their progress since then has been completely different. While Greece wallows in a depression that worsens each year and carries an unmanageable debt burden too large to service even if its economy was growing, the BBC reports: “Iceland is safe to invest in again, according to Fitch, which has upgraded its credit rating three years after its economy spectacularly collapsed.”


There are of course notable differences between these two countries. Private companies and banks incurred much of the Icelandic debt, while the more troublesome burden in Greece is its sovereign debt. The most notable difference though is that Greece is part of the euro-zone, and therefore uses the euro. Thus, Iceland was in a better position to control its own destiny.


Iceland never joined the EU, nor ceded control of its currency or its economy to Brussels, Frankfurt and Washington, DC, the homes of the meddlesome autocrats that seek to impose their will on Greece. Nor did Iceland cede control of its government to its creditors or abandon democracy, which apparently is the outcome the German finance minister would like to impose on Greece, like already has happened in Italy. The government of unelected ‘technocrat’, Mario Monti, “doesn't include a single elected politician in its ranks.” So we should not be surprised by the desire to wrangle control of Greece away from the Greek people. If it already happened in Italy, why can’t it happen in Greece too?


We saw, for example, the indignant reactions of EU politicians when former Prime Minister Papandreou decided to hold a referendum to let the Greek people decide their future, as the Icelandic people did. President Sarkozy said that he was “dismayed” by Papandreou's decision to hold a referendum, while Luxembourg Prime Minister Juncker said that a referendum by the Greek people was something that he “could have done without”.


It was inevitable that the proposed referendum would never happen because the Greeks were not then and are not now in control of their country’s destiny. So the outcome now unfolding was pre-ordained. Here is what I wrote a year ago:


Personally, I am not optimistic that governments will do the right thing. The reason is captured in a quote in The Telegraph by Germany’s chancellor, Angela Merkel. I am not picking on her, but am highlighting her quote because I think it accurately captures what all politicians are thinking today. Commenting that the eurozone was “facing an exceptionally serious situation”, she went on to say “the primacy of politics over markets must be enforced.”


What must be enforced of course is the rule of law, but that time-honoured principle is rarely if ever mentioned in the rancorous debates both inside and outside of Greece. When politics are put ahead of markets, the vested interests that politicians serve trample time and again over the people’s best interests.


There is no hope for Greece to repay its debts by meeting the draconian burden imposed on it. But the banks want their money back, even if it means keeping Greece in debtor’s prison.

 

 



Data and Statistics for these countries : Greece | Italy | Luxembourg | All
Gold and Silver Prices for these countries : Greece | Italy | Luxembourg | All
<< Previous article
Rate : Average note :5 (4 votes)
>> Next article
James Turk is the founder of the Free Gold Money Report and of GoldMoney.com. He is also the co-author of The Coming Collapse of the Dollar (www.dollarcollapse.com).
WebsiteSubscribe to his services
Comments closed
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
Latest Comments
Predicting The Next Crisis, Programming Behavior: “The Ability To T...
18 JanS W.
Excellent article with a small touch of healthy paranoia. Good idea, 'leave the phone at home sometimes' Go smell the roses !
Racism-O-Rama
18 JanS W.
Fancy specialising in race and gender studies ! And then do exactly what? I suspect, write papers ad infinitum that hardly anyone would read.
Who Moved My Xanax?
17 JanThemis0
I actually agree with a lot of what Trump says while deploring the tone and his lack of judgment in making such remarks publically while in office.
Socialist Dystopia: Starving Venezuelans Loot As Runaway Inflation ...
17 JanThemis
There is a 19th century English word that is particularly appropriate in this instance - "kakistocracy", i.e. government by the worst or least qual...
Who Moved My Xanax?
15 JanMr. Gnawbone1
It is an exploitation of the ignorant and uninformed population, but that is what happens when they pay attention to meaningless information and ...
Racism-O-Rama
15 JanMr. Gnawbone1
It sounds racist, so it has to be. Overton Bubble at work, the faculty were programed to respond as if to a Pavlovian Bell. There is no way to ch...
Racism-O-Rama
16 Jandennyc3
Ah, yes, black welfare recipients receiving our hard earned and easily spent tax dollars and providing us nothing save their lives for our investme...
Racism-O-Rama
15 JanDoom2
It's not just the English that is considered RACIST, it's also mathematics, and a wide range of other things: http://professorconfess.blogspot...
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS
Take advantage of rising gold stocks
  • Subscribe to our weekly mining market briefing.
  • Receive our research reports on junior mining companies
    with the strongest potential
  • Free service, your email is safe
  • Limited offer, register now !
Go to website.