Friday, 17 February 2012

GREEK BAILOUT HERALDS BETRAYAL OF SOVEREIGNTY

Everyone keeps talking about making sure no EU nation defaults. But Greece is already in default. That’s what all this credit bailout and debt forgiveness is all about. How is forcing investors and banks to take a huge haircut not a default? Just because arms are twisted and agreements legalizing losses are made, that doesn’t mean they are voluntary. It’s like the bankruptcy attorneys in the US calling up creditors and threatening that they will take their client into bankruptcy if the creditor doesn’t forgive half the debt. Some choice.

The UK guardian reports “Greece crisis reaches boiling point as Athens asks if it can stay in the euro... Riot police clashed with protesters on the streets of Athens, and five ministers resigned in protest at the scale of the spending cuts demanded in return for a new €130bn bailout.”

A lot of Greeks want out of the restrictions and austerity measures demanded by the European Community. I’m in favor of austerity, no matter how much it hurts. Austerity is the only solution to too much socialism that always bankrupts a country eventually. But the violence in Greece proves my long-held position that once a majority of voters becomes corrupted by benefits, they will never relinquish them with a vote.

“In Germany, Angela Merkel [ever the globalist] was reported to have warned her centre-right MPs [members of the Greek parliament] of ‘uncontrollable consequences’ [the sky is falling] for the 17 countries of the single currency should Greece become the first euro nation to declare sovereign default on its soaring debt. Her finance minister, Wolfgang Schäuble, told the same MPs, according to reports in Berlin, that Athens' latest pledges over spending cuts fell well short of what was needed.” Incredibly, Greece was expected to sign away its sovereignty in the accord: “EU ministers demanded that the three party leaders of the caretaker coalition under Papademos deliver signed pledges on the program, making them binding and irreversible regardless of who wins an early general election expected in April.”

Obviously, the EU PTB are anticipating that the current temporary Greek government will get ousted in April. While the Greek Parliament finally agreed to all the austerity measures the people are determined to have the final say. Mish Shedlock comments: “The latest Greek deal is unraveling in multiple places already. The EMU wants to hold it together but can't. Cracks are wide, deep, and widening. Sunday’s explosion of street violence in Athens underlines the danger that political disorder may undercut Greece’s attempt to implement the economic reforms required to avert a debt default, according to Greek politicians and economists.

“Although parliament passed the measures, the rebellion and the urban violence raise the prospect that the next Greek government, which will take office after elections set for April, will lack the authority and determination to hold firm to the austerity course."

According to opinion polls, the election’s most likely outcome is a victory for the centre-right New Democracy, but without an overall majority [the PTB control the opposition too]. Antonis Samaras, leader of New Democracy and the likely next prime minister, and Evangelos Venizelos, finance minister and one of Pasok’s senior figures, are both pledged to the austerity plan dictated by Greece’s European and International Monetary Fund creditors.

Unless and until all political parties agree to the terms Germany will not OK the plan. Yet, how can anyone agree to what they cannot control? Election outcomes are not cast in stone.”

Meanwhile the noose tightens: “Moody’s Investors Service cut the debt ratings of six European countries including Italy, Spain and Portugal and revised its outlook on the U.K.’s and France’s top Aaa ratings to ‘negative,’ citing Europe’s debt crisis,” said Bloomberg.

1 comments:

George Kender Comney said...

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