Skip to main content

The Troika’s Policy in Greece: Rob the Greek people and give the money to private banks, the ECB, the IMF and the dominant States of the Eurozone

On 20 August 2018, the Greek government of Alexis Tsipras, the IMF and the European leaders celebrated the end of the Third Memorandum.

On this occasion, the major media and those in power spread the following message: Greece has regained its freedom, its economy is improving, unemployment is on the decline, Europe has lent Greece 300 billion and the Greeks will have to start repaying that debt in 2022 or in 2032.

The main claims are completely unfounded as Greece remains under the control of its creditors. In compliance with the accords that the Alexis Tsipras government signed, the country must imperatively achieve a primary budgetary surplus of 3.5% which will force it to continue brutal policies of reduction of public spending in the social sector and in investment. Contrary to the dominant message that Greece will not begin to repay its debt until some time in the future, it should be clearly understood that Greece has been repaying considerable amounts constantly all along to the ECB, the IMF and to private creditors, and this prevents it from responding to the needs of its population.

by Eric Toussaint

Part 1 - 2005-2008: A very high increase in foreign bank credit in the Greek private sector

The complicit silence that conceals the situation of the majority of Greek people is scandalous: very serious studies indicate a sharp rise in the child mortality rate since 2010, and also in the mortality rate for the elderly (see https://dental.washington.edu/study-shows-how-austerity-devastated-greeces-health/. See also, in French, “Grèce : Le démantèlement méthodique et tragique des institutions de santé publique” (Greece: the systematic and tragic dismembering of the public health institutions), http://www.cadtm.org/Greeke-Le-demantelement-methodique). There are three times as many suicides as before.

In reality, the results have been utterly devastating for the Greek people in terms of the degradation of their living conditions and violation of their civic and political rights. If you look at it from the point of view of Greece as a State, there is no escaping that the successive governments since 2010 have abandoned the country’s political leadership to its creditors. Greece has become a protectorate of the dominant powers of the Eurozone, which behave as though in conquered territory.

It is also a flagrant economic fiasco, if you consider the official objectives of the three Memoranda imposed on the Greek people since 2010.

And lastly, it is also a failure for a large part of the international left who had placed all their hopes on the possibility that a left-wing government might succeed in bringing its country out of austerity and freeing it from subjection to the laws of Capital.

The present article will review some of the key moments of the Memoranda period and the one that preceded it.

From 2005, French, German, Dutch, Belgian, Italian, Austrian and British banks, (henceforth referred to in this text as banks of the Centre – as opposed to the Periphery, which consists of Greece, Portugal, Ireland, Cyprus, Spain, Slovenia and other countries of Central Europe and the Balkans), have greatly increased their credit to the Greek private sector. Between March 2005 and September 2009, loans from foreign banks to the Greek private sector were multiplied by about four. Between 2002 and 2009, Greek bank borrowings from foreign banks multiplied by 6.5. At the same time, foreign bank loans to the Greek government remained stable.

Which Western European banks lend so massively to the Greek private sector? They are mainly Hypo Real Estate (Ger.), BNP Paribas (Fr.), Société Générale (Fr.), the Crédit Agricole (Fr.), BPCE (Fr.), Commerzbank (Ger.), Deutsche Bank (Ger.), Royal Bank of Scotland (UK), ING (NL), RaboBank (NL), Intesa SanPaolo (Italy), Unicredit (Italy), Dexia (Belg.), KBC (Belg.), KA Finanz (Austria) and Erste Bank (Austria).

In a book published in 2016, Yanis Varoufakis, former Minister of Finance in the Tsipras government, describes the motivations of French, German (etc.) banks that lend massively within the Eurozone to countries of the European Periphery with their governments’ support. There follows an excerpt:

Once markets had come to believe that no one would ever leave the Eurozone, German and French bankers began to look at an Irish or a Greek banker as equivalent to a German customer of the same creditworthiness. It made sense. If the Portuguese, Austrian and Maltese borrowers all made their income in euros, why should they be treated differently? And if the risk involved in lending to particular individuals, firms or governments did not matter, as the loans would be dispersed throughout the known universe immediately after being granted, why treat differently prospective debtors across the Eurozone?

Now that the Greeks and the Italians earned money that could never be devalued again vis-à-vis German money, lending to them appeared to the German and to the French banks as equivalent to lending to a Dutch or German entity. Indeed, once the euro was invented, it was more lucrative to lend to persons, companies and banks of deficit member-states than to German or Austrian customers.

This is because in places like Greece, Spain and southern Italy, private indebtedness was extremely low. People were of course poorer than Northern Europeans, lived in humbler homes, drove older cars and so on, but nevertheless they owned their homes outright, had no car loan and, generally, displayed the deep-seated aversion to debt that recent memories of poverty engender. Bankers love customers with a low level of indebtedness and some collateral, in the form of a farmhouse or an apartment in Napoli, Athens or Andalusia.

Source, links, references:


Related:


Comments

Popular posts from this blog

Ο Κούλης επιβεβαιώνει πλήρως ότι θα εφαρμόσει νέο, σκληρό μνημόνιο!

globinfo freexchange
Όπως είχαμε αναφέρει ήδη από το 2016 και αμέσως μετά την εκλογή Μητσοτάκη στην ηγεσία της ΝΔ, το αποτέλεσμα των εσωτερικών εκλογών στη γαλάζια παράταξη έλυνε τα χέρια του άξονα Βρυξελλών-Βερολίνου. Οι γραφειοφασίστες των Βρυξελλών και το διευθυντήριο του Βερολίνου απέκτησαν μια πρώτης τάξεως εφεδρεία σε περίπτωση που τα πράγματα "στράβωναν" με την κυβέρνηση Τσίπρα.  
Έτσι, ο νέος [τότε] αρχηγός της ΝΔ, Κυριάκος Μητσοτάκης, αποτελεί την καλύτερη λύση προκειμένου να εφαρμόσει πιστά τις πιο σκληρές νεοφιλελεύθερες πολιτικές προκειμένου να ολοκληρωθεί το πείραμα με κάθε λεπτομέρεια.
Ήρθε η ώρα να μας επαληθεύσει πλήρως ο ίδιος ο Μητσοτάκης. Όπως αναφέρει ρεπορτάζ του tvxs.gr:
Μνημόνια με τη μορφή κυβερνητικής πολιτικής είναι το οικονομικό σχέδιο του Κυριάκου Μητσοτάκη, όπως προκύπτει από τη συνέντευξή του στους Financial Times, με αφορμή τη σύνοδο κορυφής της ΕΕ στις 17-18 Ιουλίου. Ο πρωθυπουργός μάλιστα θεωρεί ότι η πανδημία μπορεί να αποτελέσει…

Evidence that Biden will start an AI-conducted war with Iran on behalf of the new Military-HighTech complex

globinfo freexchange

About two months ago, we mentioned Joe Biden's terrible response on whether he would lift sanctions on Iran due the COVID-19 pandemic crisis.
As we wrote back then, Biden didn't even bother to defend one of the very few positive achievements that the Obama administration - during which he served as vice-president - left behind: the Iran nuclear deal.

Instead, he dropped all the assets he had in his arsenal that would help him attack Trump from the Left. And he did it, just only to make sure that he would not disturb the deep state apparatus with his response because the question was meant to test Biden's loyalty on the deep state agenda.

Connecting the dots, we found something even more terrifying. New evidence shows that key people around Biden and his potential cabinet in case he wins November's election, are deeply connected with the Military-HighTech complex. And that they will not hesitate to make Iran a test field for the first AI war i…

Ο ρόλος της Τουρκίας και του Ερντογάν στην κούρσα των Δυτικών αποικιοκρατών για τον ορυκτό πλούτο της Λιβύης

του system failure
Κλιμακώνεται επικίνδυνα η ένταση στην Ανατολική Μεσόγειο, λόγω κυρίως της επεκτατικής πολιτικής της Τουρκίας και της ενεργού ανάμιξής της στο Λιβυκό χάος.
Αλλά παρόλο που η κατάσταση παραμένει πράγματι χαοτική στη Λιβύη, λόγω κυρίως των επεμβάσεων των αποικιοκρατών της Δύσης, οι οποίοι πρώτοι άνοιξαν τον ασκό του Αιόλου (και από αυτούς πρώτοι οι Γάλλοι), φαίνεται ότι το γεωπολιτικό τοπίο αρχίζει, σιγά-σιγά, να ξεκαθαρίζει. 
Όπως είχαμε αποκαλύψει ήδη από το 2016, μια επιστολή από το αρχείο της ηλεκτρονικής αλληλογραφίας της Χίλαρι Κλίντον, που δημοσίευσαν τα WikiLeaks, αποδείκνυε ότι είχε ξεκινήσει μια σκληρή κούρσα ανταγωνισμού μεταξύ των Δυτικών αποικιοκρατικών δυνάμεων πάνω από την Λιβύη. 
Όπως είχαμε αναφέρει, ο τίτλος και οι λεπτομέρειες των πληροφοριών που περιέχονται στην επιστολή, προδίδουν μια έντονη δυσαρέσκεια από πλευράς Αμερικανών για το γεγονός ότι οι Γαλλικές εταιρίες έκοψαν πρώτες το νήμα στην κούρσα για το Λιβυκό πτώμα.
Υπενθυμίζεται ότι, στη συγκεκ…

Trump tells Florida crowd “something will happen in Venezuela” soon

“Something will happen with Venezuela. That’s all I can tell you,” Trump said, before not-so-cryptically  adding that Washington would be “very much involved.”
by Alan Macleod
On a trip to COVID-19 riddled Florida this weekend, President Donald Trump not-so-cryptically revealed that he had something big planned for Venezuela during a meeting with leaders of the U.S. military’s Southern Command. “Something will happen with Venezuela. That’s all I can tell you,” he said, before adding that Washington would be “very much involved” in what he was referencing.
On Trump’s orders, Southern Command moved large numbers of forces to the region, ostensibly to conduct a counter-narcotics operation against Venezuela, which the U.S. has described as a “narco state,” with the DEA offering a $15 million bounty for President Maduro’s head. This, despite the fact the U.S. government’s own reports on drug smuggling barely even mention Venezuela and official summaries show that U.S.-allies Colombia and Ec…

Powerful signs that Biden will have a tough time to control progressives and their growing influence inside the Democratic party

globinfo freexchange
We wrote recently that, even if Biden wins easily in November, things will never be the same inside his party. It seems that the progressive wave is getting stronger, especially after some big victories of progressive candidates in the recent Democratic Primary. The most impressive of them, is AOC's new victory against a Wall Street puppet. Alexandria Ocasio-Cortez achieved an astonishing victory through an unreal percentage (72.6%).
Therefore, Bernie's political revolution is far from over. The progressive army is growing stronger and Biden will have a tough time to deal with the Leftist pressure inside the Democratic party. Maintaining the neoliberal agenda won't be a walk in the park on a sunny day.

We already have strong indications towards that case. As Joe Garofoli reported recently for the San Francisco Chronicle [emphasis added]:
California progressives are not letting up on Joe Biden after he released a clean-energy plan last week that is…

Νέες αποκαλύψεις-σοκ: οι τραπεζίτες άρχισαν να "ροκανίζουν" τα δισεκατομμύρια του "μαξιλαριού"!

globinfo freexchange
Σε μια νέα, απίστευτη καταγγελία προχώρησε ο Γιάνης Βαρουφάκης, στις 13/7 στο τοπικό κανάλι της Κέρκυρας Start TV.  Όπως ανέφερε:
                         Η Eurobank ίδρυσε μια εταιρία "σφραγίδα" - τώρα, αυτή τη βδομάδα -  στην οποία περνάει κόκκινα δάνειά της. [...] Την εισάγουν στο χρηματιστήριο - τώρα, οσονούπω - και τις μετοχές θα τις δώσουν ως μέρισμα στους μετόχους της Eurobank. Θα μου πείτε: τι αξία θα έχει αυτή η μετοχή; Ναι, αλλά εδώ έρχονται τα 12 δισεκατομμύρια, τις εγγυήσεις που θα δώσουν τα παιδιά σας και τα εγγόνια σας, γιατί εκείνοι θα επωμιστούν αυτά τα 12 δισ. από τον ESM, για να έχουν κέρδη οι μέτοχοι της Eurobank που δημιούργησαν μια εταιρία "σφραγίδα"! Αυτά τα πράγματα ούτε οι εγκληματίες της Lehman Brothers δεν τα κάνανε, το 2007!

Όπως είχαμε γράψει ήδη από τον Απρίλιο,  τον Δεκέμβριο του 2019, η κυβέρνηση Μητσοτάκη πέρασε ένα σχέδιο νόμου με την κωδική ονομασία "Ηρακλής", με στόχο να μειώσει το άνοιγμα των τραπεζ…

How a US and Qatari regime change deception produced ‘Caesar’ sanctions driving Syria towards famine

Like the mysterious figure it is named for, the Caesar sanctions bill is the product of an elaborate deception by shadowy US- and Gulf-backed operatives. Instead of protecting Syrian civilians, the unilateral measures are driving them towards hunger and death.
by Max Blumenthal
Part 7 - 46% of the Caesar file reveals mass killings – by a brutal armed opposition
Though the full contents of the supposed Caesar file has never been made public, Human Rights Watch (HRW) was able to view the documents in full in 2015. In a lengthy report hyping the photos and attempting to reinforce the push for regime change, HRW inadvertently demolished Washington’s narrative.

In a virtual footnote in its lengthy report on the Caesar file, HRW acknowledged that nearly half of the entire file – some 24,568 photos – depicted the bodies of government soldiers who had been killed by the armed opposition, “including [by] incidents of terrorism, fires, explosions and car bombs).

As Rick Sterling noted, “nearly …

Firm linked to HHS’ Robert Kadlec poised to become exclusive manufacture of COVID-19 vaccines

A pharmaceutical firm with a dark history and questionable ties to serving ASPR Robert Kadlec is poised to become the exclusive manufacturer of the COVID-19 vaccines now being funded through Trump’s Operation Warp Speed.
by Raul Diego 
Part 1
Trump’s much-ballyhooed “Operation Warp Speed” unveiled in May of this year to produce and deploy a COVID-19 vaccine in the U.S. is shaping up to be yet another scheme to funnel millions of dollars into a singularly corrupt pharmaceutical entity with deep ties to Robert Kadlec, the serving Assistant Secretary for Preparedness and Response (ASPR), who is in charge of the Strategic National Stockpile and is the architect of the legislative edifice which currently governs the nation’s public-private partnership (PPP) approach to health emergencies.
The task force’s latest and largest grant was awarded to Maryland-based Novavax, Inc. to cover late-stage testing and manufacturing of their COVID-19 vaccine candidate. Only the sixth company to receive fed…

Establishment's attempt to promote the hardcore neoliberal Kamala Harris up to the presidency through the back door

globinfo freexchange
Rumours spread around the mainstream quickly on July, 28, whenPolitico "accidentally[?] published a report that Biden picked Harris as his running mate. The outlet quickly deleted the report, and said it was published by mistake. "For a brief period yesterday afternoon, placeholder text was mistakenly published to the site," Brad Dayspring, Politico's vice president of marketing and communications, told The Hill."
Huh?

Politico labeled Sen. Kamala Harris as Biden's running mate... that he chose on August 1 (4 days from now).https://t.co/M3dhmIwZ7opic.twitter.com/99GDHzWPnL — Mark Bednar (@MarkBednar) July 28, 2020
How did that happen? 
Was that indeed a big blunder by the establishment machine? Or, was a deliberate "leak" by the machine to test reactions?

The next day, Kamala Harris wrote a quite "presidential" tweet, reflecting perfectly her presidential ambitions. As she stated: "We can't have millions of…

Firm linked to HHS’ Robert Kadlec poised to become exclusive manufacture of COVID-19 vaccines

A pharmaceutical firm with a dark history and questionable ties to serving ASPR Robert Kadlec is poised to become the exclusive manufacturer of the COVID-19 vaccines now being funded through Trump’s Operation Warp Speed.
by Raul Diego 
Part 3 - The Money Trail
As usual, following the money usually takes us to the center of the real action. In the case of the COVID-19 vaccine, Emergent’s “go-to” status is borne out by this tried and true method, and when we survey the agreements already in place with the companies most likely to develop a vaccine for the novel coronavirus. The value of Johnson & Johnson’s contract with Emergent Biosolutions, for instance, matches up almost exactly with the $456 million grant it received from the Trump administration; Emergent’s five-year manufacturing agreement with the American multinational is worth approximately $480 million.
AstraZeneca’s vaccine candidate, which also received considerable funding from Operation Warp Speed, likewise reached an $8…