Skip to main content

When Monti bowed to banksters

Α short story of how a country can be loaded with 40 billion euros additional debt in just one day

In February 2012, the new Italian president, Mario Monti, meets with the president of one of the largest Italian banks in his office. The banker said to Monti, directly, that his bank issued private bonds of 40 billion euros total value.

"Certainly Mr. President, as everyone knows our bank's difficult position, no one will buy them unless you give us Italian state surety". "You say that the Italian taxpayers must guarantee for your new huge debts?", said Monti with surprise for the audacity of the banker. "That's exactly what I'm saying, Mr. Monti", said the banker, confirming his audacity. "Through the state surety I will be able, even today, to deposit these bonds at the ECB and get fresh money. Otherwise, the bank will not open tomorrow, the country will fall in chaos and you government will collapse".

This is roughly the way that the technocrat president was put in a dilemma: should he give state surety to the cheeky banker, increasing public debt by 40 billion euros in just one day? He asked his visitor to wait outside his office and made a phone call to the Minister of Finance and to the president of the ECB, Mario Draghi. They both told him not to even think about let the bank collapse.

A desolate Monti asked from his secretary to bring the banker back and signed the papers of state surety for the new private debt. "Instead of lending some money given by Draghi, the banks come to the state, which is about to default, and ask for guarantees!", Monti thought.

A few days later, a message came from Brussels for their "selected" Monti, as they observed an "abrupt" rise of the Italian public debt which was in contrast with Monti's "mission" to reduce debt. "With these new data, European Commission expects from you to introduce new measures for the restriction of the fiscal deficit of Italy", was the ending of this message.

Three weeks later, an overwhelmed Mario Monti announced new measures in the Italian parliament, which forced Italy in a new recession, as proved little later.


Key information from the article “Don't they know what they do?”, by Yanis Varoufakis, from the HotDoc magazine, Issue 41, Dec. 2013.
(translated by SCH)
  
Related stories:

Comments

Popular posts from this blog

US-backed counter-revolution coup against Cuba blatantly fails

globinfo freexchange   Since at least early 2018, the US imperialists were setting the stage for another coup against Cuba in the form of a "color revolution".  As reported back then:   The US State Department announced a new program called 'The Cuba Internet Task Force'. The Task Force will consist of the US government and non-governmental representatives to "promote the free and unregulated flow of information in Cuba". It is part of the National Security Presidential Memorandum of "strengthening the policy of the United States toward Cuba", that was issued by President Trump in June 2017.   This policy seeks "advancing Cuban human rights; encouraging the growth of a Cuban private sector independent of government control; enforcing final orders of removal against Cuban nationals in the United States". The US has sought to overthrow the Cuban government ever since the 1959 revolution. This is not the first time the US has attempted to

Chris Hedges on Assange, Donziger, & the US prison state

Redacted Tonight   Chris Hedges joins Lee Camp for a conversation around his latest book about teaching in American prisons. They also discuss corruption in the media and the U.S. System of Justice. The persecution of Julian Assange and Steven Donziger have garnered attention over the last few weeks for their egregious displays of judicial corruption in service of the world’s most powerful people. Hedges provides context for your outrage in their cases. He then reveals his experiences teaching prisoners in maximum security facilities and expresses support for incarcerated people who have chosen to protest their living conditions.

Alert: US imperialists prepare counter-revolution coup on November 15th to take over Cuba!

globinfo freexchange   On November 1st, Lee Camp appeared astonished by the fact that the State Department essentially announced a US-backed coup against Cuba in advance!  And not only that. The US imperialists revealed the specific method and the exact date of the counter-revolution coup! The method is the typical one that we've seen in various cases the last decade or so, which involves a type of "color revolution". The date: November 15th. On November 2nd, cadenagramonte.cu website gave the details and the key players of the operation.   On November 3rd, TeleSUR reported that:                                A Cuban government representative said that Cuba has probably been facing up the largest and most complex cultural warfare operation orchestrated by the Central Intelligence Agency (CIA), promoting a new type of counterrevolution. On Twitter, Cuba's Deputy Foreign Minister Anayansi Rodríguez posted a U.S. plan to bring Cuba's political system down, whic

Οι ολιγάρχες ετοιμάζουν το Plan B που είχαν στο συρτάρι: Συγκυβέρνηση ΝΔ-ΚΙΝΑΛ και επιστροφή της γαλαζοπράσινης λαίλαπας

globinfo freexchange   Το άκρως φιλοκυβερνητικό Βήμα , κομμάτι της συστημικής προπαγάνδας της εγχώριας ολιγαρχίας, έδωσε χθες το σύνθημα για το Plan B των ολιγαρχών που είχαν στο συρτάρι ως εναλλακτική, καθώς δεν χρειάστηκε να το θέσουν σε εφαρμογή, λόγω της αυτοδυναμίας που πέτυχε η Μητσοτακική δεξιά στις εκλογές του Ιουλίου του 2019.    Πρόκειται το σενάριο συγκυβέρνησης ΝΔ-ΚΙΝΑΛ.  Όπως είχαμε γράψει τον Ιούνιο του 19, η ΝΔ (με ή χωρίς δεκανίκια), έχει ως μοναδική αποστολή να συνεχίσει το "λαμπρό" της έργο από εκεί που το άφησε. Βέβαια, η "Αριστερή παρένθεση", που η Τρόικα εσωτερικού και εξωτερικού φρόντισε έτσι και αλλιώς να κουρελιάσει, κράτησε λίγο παραπάνω απ'ότι υπολόγισαν τα "μεγάλα αφεντικά". Τώρα, ήρθε η ώρα να ξεκουμπιστεί, διότι υπάρχει κίνδυνος να θυμηθεί τις Αριστερές της καταβολές και να καταστρέψει το "θεάρεστο" σχέδιο του νεοφιλελεύθερου ιερατείου. Απ'ότι φαίνεται, υπάρχουν πρόθυμα δεκανίκια, για παν ενδεχόμενο. Από τότ

Free Julian Assange: Snowden, Varoufakis, Corbyn & Tariq Ali speak out ahead of extradition hearing

Democracy Now!   As jailed WikiLeaks founder Julian Assange faces an extradition hearing Wednesday in London, supporters gathered Friday for the Belmarsh Tribunal, named for the Belmarsh maximum security prison where Assange is being held. The mock trial highlighted major WikiLeaks revelations of U.S. war crimes and demanded Assange’s freedom.    Assange faces up to 175 years in prison in the U.S. under the Espionage Act for publishing classified documents exposing U.S. war crimes. Though a British judge blocked his extradition in January, the U.S. appealed the decision.    Speakers from the tribunal include writer Tariq Ali, Afghan political activist Selay Ghaffar, NSA whistleblower Edward Snowden, former Greek Finance Minister Yanis Varoufakis and former Labour Party Leader Jeremy Corbyn.    “ Julian, far from being indicted, should actually be a hero, ” said Ali. “ He should never have been kept in prison for bail. He should not be in prison now awaiting a trial for extradition. He

The most important battle for Press Freedom in our time

If he is extradited and found guilty of publishing classified material it will set a legal precedent that will effectively end national security reporting.   by Chris Hedges  Part 1 For the past two days, I have been watching the extradition hearing for Julian Assange via video link from London. The United States is appealing a lower court ruling that denied the US request to extradite Assange not, unfortunately, because in the eyes of the court he is innocent of a crime, but because, as Judge Vanessa Baraitser in January concluded, Assange’s precarious psychological state would deteriorate given the “ harsh conditions ” of the inhumane US prison system, “ causing him to commit suicide .” The United States has charged Assange with 17 counts under the Espionage Act and one count of trying to hack into a government computer, charges that could see him imprisoned for 175 years. Assange, with long white hair, appeared on screen the first day from the video conference room in HM Prison Belm

Top 1% of US earners now hold more wealth than all of the middle class

by Alexandre Tanzi and Mike Dorning  After years of declines, America’s middle class now holds a smaller share of U.S. wealth than the top 1%. The middle 60% of U.S. households by income -- a measure economists often use as a definition of the middle class -- saw their combined assets drop to 26.6% of national wealth as of June, the lowest in Federal Reserve data going back three decades. For the first time, the super rich had a bigger share, at 27%. The data offer a window into the slow-motion erosion in the financial security of mid-tier earners that has fueled voters’ discontent in recent years. That continued through the Covid-19 pandemic, despite trillions of dollars in government relief .   Rise of the Super Rich   Middle-class Americans now hold less wealth than the top 1% by income.   While “middle class” has different meanings to different people, many economists use income to define the group. The 77.5 million families in the middle 60% make about $27,000 to $141,000 annually

Top media company demands reporters write pro-US/EU/Israel propaganda

The Grayzone   The major media company Axel Springer SE, which owns Politico, Business Insider , and top German newspapers, was exposed for forcing its employees to write pro-US/EU/Israel propaganda. It has also been accused of being funded by the CIA. 

Visionary realism: A green future beyond capitalism - Yanis Varoufakis, Ann Pettifor & Noam Chomsky

DiEM25   "There is no alternative", "it's the end of history" in the shadow of the 2008 crash, the environmental crisis and ongoing COVID19 pandemic, never has the hubris of these words been more striking. Nevertheless if we are in fact at the end of an era, what comes next? Join us in uncovering the exciting possibilities that the future can hold with public intellectual Noam Chomsky and economists Ann Pettifor and Yanis Varoufakis. 

Assange appeal day 2: Extradition decision update

acTVism Munich   A report on the second day of the appeal hearing in the extradition proceedings of WikiLeaks founder Julian Assange. The defense rebutted claims by the US government arguing that the assurances provided can be revoked at any time and are thus unreliable. Additionally, the court heard evidence that US intelligence plotted to assassinate Assange. A decision on extradition will be delivered in the coming weeks.