The Watchdog

Keeping citizens in the loop



*Greece at historical crossroads; make or break week for country, faces economic and political obliteration

*500,000 people attend protests in Athens over new EU, IMF and ECB austerity measures; these will destroy what remains of Greece’s economic base and plunge millions of Greeks into life-threatening poverty; national debt will increase under new plans; EU and IMF officials set to take over fire sale of state assets; country to be reduced to status of EU and IMF protectorate

*Head on confrontation between the Greek people and government turning into a revolution

*EU anti fraud expert indicates it is the people who must act; no valid economic reason for Greece not to be prosperous; current depression only due to the corruption and mismanagement of elite

*Calls for fresh elections and debate about adopting the Drachma growing

*Drachma will allow for devaluation and boost exports and jobs, and bring more tourists; Greek central bank can supply liquidity to economy to return country to prosperity

*Greek, Irish and Portuguese debt crisis could result in Germany being administered by the IMF and EU; tsunami of debt rolling towards Germany; country faces same fate as Greece in near future

Greek Prime Minister George Papandreou’s plans to impose years of austerity on a Greece are meeting increasing resistance with 500,000 people demonstrating in Athens yesterday.

The new austerity measures being planned will accelerate the total destruction of the financial basis of the lives of millions of Greek people and will increase the country’s overall national debt. In addition, new plans foreseee EU and IMF with officials organising the sale of state assets, making Greece a de facto economic protectorate .

„We didn’t run up any debts and we’re not paying,“ say protestors who have poured onto the central square of Athens.

Falsely labelled as a ”rescue package” by the corporate-controlled mainstream media, the new austerity plans will, in fact, put the final nail in the coffin for the Greek economy, which has already contracted significantly due to fiscal measures mandated by the IMF and EU as part of penal bailout in May 2010.

The additional austerity measures will drain away from the economy whatever little liquidity is left and so help push the remaining businesses into bankruptcy. Unemployment will soar even higher. Tax receipts will plummet even further. Greece’s overall debt will increase as the country is forced to borrow more money to meet the gigantic interest payments due to banks in the coming years.

The sale of key state assets including historical ports at rock bottom prices will deprive the government of sources of revenue.

If the Greek government has no more revenue because the country’s economic base has been destroyed and because those state assets that generate a  revenue have been sold off, then there will be no money to pay the benefits of the soaring numbers of unemployed people, leaving millions of people in Greece with no option but to launch a revolution against the corrupt financial and political elite or endure life-threatening poverty.

To argue as Lorenzo Bin Smaghi is doing that the fact that the Greek government still has property to sell means it is solvent is absurd. Even if Greece sold all ist assets  – to which Smaghi assigns the totally unreaslistic value of 300 billion –, it would not be enough to pay off ist debt of 330 billion euros. Greece is insolvent. A default is inevitable.

The ECB is behaving like a bailiff asking a person to hand over all their income, sell their house and even their clothes until they have nothing left at all to pay for a fraudulently engineered debt.

The ECB appears to have actively helped engineer this gigantic debt of Greece by funding a trade deficit and by dealings with CDS. Its 2010 bailout package involving austerity measures and penal interest rates on a compulsory loan to pay private banks have sent Greek national debt soaring.

German economist Hans Werner Sinn argues that the best option for Greece is to reintroduce the Drachma and he is certainly right.

The ECB, IMF, EU are resisting a default by Greece and the Drachma only out of self interest. On a default, the the scale of the losses that tax payer’s — especially in Germany — have to bear as a result of an intricate Ponzi scheme that the ECB is running — analysed by former Argentinian central banker Mario Blejer – will become apparent.

Research by Germany’s Der Spiegel revealed that banks are involved in complex accountancy manoeuvres with the ECB, eurozone central banks and government-owned banks such as the German Landesbanken to shuffle the costs of Greek, Irish and Portuguese bonds onto tax payers just as the revenue stream from the bonds in the form of interest payments is drying up as Greece goes bankrupt, leaving German tax payers, especially, sitting on debts of hundreds of billions of euros of debt.

The extent to which the Merkel government is now acting as the long arm of the corporations was underlined by the appointment of Lars-Hendrik Röller as the new chief economic advisor. Röller’s business school is funded by Deutsche Bank and Allianz, Daimler and BMW, and Eon and RWE, according to the FT. Surely, this is a clear cut case of a conflict of interest?

Hans Werner Sinn has warned that a tsunami of debt is rolling onto German taxpayers from deeply indebted Greece, Ireland and Portugal and on scale that could well see Germany itself placed under an IMF and EU administration in the near future.

After all, Germany has a per capita national debt which is only a little lower than Greece’s and yet Germany will be expected to foot the bill for hundreds of billions of euros of debts run up by the ECB and by the EU and IMF funds as part of the Greek, Irish and Portuguese „bailouts“. It only requires rating agencies to start downgrading Germany and it will sink into the same debt death spiral as Greece.

Will the EU and IMF be sending in officials to help with the “technical process” of stripping the country of state assets in the near future?

Hans Werner Sinn has presented figures in connection with illegal activities of the ECB that suggest that the financial architecture of the eurozone is set to collapse very soon anyway.

If Greece does not exit the eurozone now, it will face more turmoil down the road. The arguments for introducing the Drachma are clear.

The Drachma will also allow for new rules at the central bank to ensure that the Greek economy flourishes in the long-term. Greece can turn this crisis into an opportunity if it addresses the issue of central bank liquidity properly.

The Greek central bank should be allowed to supply liquidity to governments and also businesses and enterprises directly and without booking a debt on its balance sheet or charging interest to avoid a repeat of the instability that results from the interest-based fractional reserve banking system, which is being so ruthlessly exploited by banks right now for their enrichment.

As long as the liquidity is used to produce tangible goods and services (and does not flow into property or other bubbles), then there will be little danger from inflation.

Inflation arises only when money is printed or the money supply is increased but there is no corresponding increase in goods or services. This is the reason why a central bank which prints money to service the interest on a national debt creates inflation and hyperinflation. Nothing is being produced.

Inflation targets can be set as in China, which is booming due to the fact the government prints money without creating debt as Vienna economics professor Franz Hörmann explained.

A devaluation due to the reintroduction of Drachma will also give a boost to exports and jobs.

Although a devaluation will make imports more expensive, many of these imports can be substituted by local products.

Greece will also become a more attractive tourism destination with the competitive Drachma, allowing the Greek government to earn foreign currency to pay for oil imports and other vital goods.

Perhaps the Queen of England or other members of the royal family could be persuaded to pay a state visit. The Queen’s visit to Ireland certainly provided a huge boost to the country’s tourism industry and general image.

Greece can take heart from the example of Iceland, which is forging ahead. Iceland is now on the road to economic recovery after defaulting on the private bank debt and after devaluing its currency. There is a lot of scare mongering about such a move in the controlled media, and no doubt there will be turmoil, but the long term prosperity of Greece will be secured.

Millions of Greeks now have access to independent sources of information and they understand that the mainstream media has being given false information and that the so called austerity measures are nothing more than a mechanism for looting them.

So far, the Greek parliamentarians appear to have failed to grasp the economic fact that the Greek people are being looted, and to comprehending that the people have grasped this fact, creating the potential for a head on confrontation and revolution in the next few weeks in Greece.

A revolution is bound to lead to the overthrow of the tiny minority who are profitting from the looting of the vast majority.

„The development of the spirit without a parallel development of institutions so that one comes into a conflict with the other is the source not only of discontent but of a revolution,“ said the German philosopher Georg Friederich Hegel.

Either the Greek – and German — parliaments take sensible  measures to stop the looting of the eurozone by banks and complicit politicians or there will surely be a revolution not just in Greece but across Europe.

Fresh elections in Greece are needed as soon as possible to give people the chance to debate the alternatives to destitution and the extinction of Greece as state such as reintroducing the Drachma.

The Greek central bank can at any time reintroduce the Drachma and start to supply liquidity to the economy as it did for 2,500 years. The current disastrous state of the Greek economy is due to the fact that it relinquished ist currency to join the euro zone and that eurozone is in the grip of a financial mafia as OLAF anti corruption expert Wolfgang Hetzer says.

The time has come for people in other parts of Europe to show solidarity with the Greeks. Greece is all our futures if we do not act now.

Even Hetzer suggests that a peaceful revolution is needed to restore competent and democratic government because the corruption is now so deep.

A revolution is not just a necessity given the illegal looting by political institutions such as the EU and IMF, it is a right as Hegel argued.

Every single person has a right to life and a society must be so organised that people enjoy the right to life, says Hegel. He interpreted the right to life in the wider sense of a right to fulfilment, adequate work and freedom.

„What is reasonable must become reality,“ Hegel said in his essay.

It is reasonable for people to expect that the government they elect will run the economy with a mininum of competence and honesty, and the people will make such a government a reality.

The EU, IMF and ECB had an opportunity last week to be reasonable ie follow facts and reason and begin to put Greece into managed insolvency as is required by an objective and impartial analysis but they failed to do so. They produced a report instead which was conspicuous for the absence of any truth or facts and which was virtually incomprehensible from the financial point of view in order to have an excuse to continue to suck the last cent from tax payers of Greece and Europe and expropriate their assets.

The entire eurozone is impacted by this financial meltdown. The debts saddled on tax payers by politicians complicit with banks are so immense that they can never be repaid. The interest payments cannot be met even if the entire tax revenues of the eurozone are confiscated just for this purpose

This is a Ponzi scheme that is designed to end in a huge implosion and in a take over by EU and IMF of the entire eurozone.

It is better for Greece and Ireland to adopt another currency as soon as possible to insulate themselves from the impact of this collapse and beat a path for the other countries.

In the future, European nations may decide to join in a monetary union but if they do, it has to be on a sound basis and with a competent and honest central bank.

The ECB is incompetent or criminal. The euro is being run into the ground for the profit of the banks.


June 6, 2011 - Posted by | Internationally significant information, Jane Burgermeister Report

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