Published 07-27-15
33 Minute Video
John Rubino and Gordon T Long discuss the current puzzling developments in
Greece and the seemingly impossible choices facing the Greek people and their
government.
The Accounting Charade
To better understand how Greece and the EU found itself in this perplexing
problem, John Rubino traces the history of Greece prior to joining the EU.
John doesn't hold back in describing the manipulation of economic numbers carried
out by Greece, abetted by Goldman Sachs to gain entry into the EU. Greece never
met the Maastricht Treaty bar but nevertheless was granted entry. Goldman Sachs
and the International Bankers were the big winners. In the short term so were
the Greek people.
Unlimited Spending
John further goes on to detail how cheap money suddenly became available to
Greece and the other poor peripheral countries. The exploding growth in debt
to them was perceived and treated to be debt backed by the EU. John describes
it as:
"It was like giving a teenager an unlimited credit card with no supervision.
You should have expected nothing less!"
The situation in the EU with its peripherals was actually not to dis-similar
to the bankers' "game plan" regarding US Agency debt (Fannie Mae and Freddie
Mac) which were also perceived to be backed by the US government.
When these agencies got into serious financial trouble during the Financial
Crisis the US government accepted the liabilities for these agencies and placed
them in "conservatorship" thereby burdening US tax payers with the negligent
lending practices they had callously incurred. EU tax payers are likewise being
handed the bill for what can only be described as a wonderful party of staggering
pension benefits and limited taxation for the Greek people and a lending bonanza
for the bankers.
Party is Over and The Hangover Begins
The financing of the debt incurred cannot possibly be financed by Greece's
economy nor absorbed by the EU, for fear that the other delinquent debtor nations
will demand the same easy way out.
Of course what is happening here is the banks have made enormous profits on
loans that should have never been made and are now sliding the responsibility
to EU taxpayers.
Many Greeks see no real solution and therefore cash runs on the banks will
continue to leave Greek banks insolvent as more money is fruitlessly pumped
into them by desperate and naive EU officials.
... there is much, much more in this 33 minute video discussion.
