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 14 - The IMF’s intolerable interference in Greece from 2010

In January 2017, the CADTM drew attention to two documents kept secret by the IMF, a passage from which about the situation of Greek banks is quoted above. These authentic documents were placed at the disposal of the Truth Committee on Greek Public Debt by Zoe Konstantopoulou, the President of the Hellenic Parliament in office from 6 February to 3 October 2015.

The contents of these documents dated March and May 2010 respectively is damning for the IMF. They clearly show that a large number of its Executive Board members expressed severe criticism of the programme the institution was preparing to implement. Some of them denounced the fact that the programme was aimed at rescuing the private European banks – mainly certain major French and German banks – who were holders of Greek debt, both public and private. Several of them denounced the selfsame policies that had led to the Asian crisis of 1996-1997 and the Argentine crisis in 2001.

Several executives denounced the fact that the principal executive officers (mainly the Managing Director, Dominique Strauss-Kahn and the Deputy Director, John Lipsky) had, unbeknownst to the other members of the Board, modified one of the fundamental rules that condition credits allocated by the IMF to its members.

Indeed, for a loan to be granted by the IMF, it must be shown that this loan and the accompanying programme will render debt repayment sustainable. This condition could not be satisfied in the case of Greece, since the IMF directorate and the European authorities refused to reduce the Greek debt or to make private banks contribute. Therefore the above-mentioned condition was deleted on the sly, and replaced by a new criterion: the need to avoid a high risk of international systemic financial destabilization.

The IMF’s Management invoked urgency to justify this totally irregular change of the rules. To persuade the IMF executives who were the most reticent, the French, German and Dutch directors lied, each promising that their country’s banks would not disengage from Greek bonds. They claimed that the French, German and Dutch banks would hold onto their Greek bonds to enable the newly-starting programme to succeed.

Since then it has been proven that the French, German and Dutch banks massively sold off the bonds they held on the secondary market, thus aggravating the Greek crisis and transferring to European tax-payers, especially Greek tax-payers, the burden of the risks they had taken and of the crisis which was largely their fault.

Again, to calm the reticence of certain executive directors, the IMF directors handling relations with Greece declared that social measures would be taken to protect people with low salaries and small pensions from the austerity measures. They lied.

Furthermore, to get the agreement of the executive members of the IMF, they claimed that Greek banks were sound and that their problems were entirely due to risks engendered by far too much public debt and a colossal public deficit. This was untrue: Greek banks were in a disastrous situation. Another lie invented to convince the doubters was that the plan would be submitted to the Hellenic Parliament for approval.

To the executive directors of the IMF who wanted the banks to contribute “collectively” to the solution by agreeing to debt reduction, those handling the Greek dossier claimed that the Greek authorities would not hear of public debt reduction. The Greek representative, Panagiotis Roumeliotis, confirmed this fabrication.

Later, this same representative claimed that it was under pressure from the European Central Bank (ECB) that Greece had declared that it did not want a debt reduction. According to Roumeliotis, Jean-Claude Trichet threatened to withdraw Greek banks’ access to ECB liquidities. Certainly, Jean-Claude Trichet did use this threat during the months of negotiation of the Memorandum. It turns out that he used the same threat against Ireland, too, a few months later during the fine-tuning of the Memorandum concerning that country.

It is also known that Greek bankers, like the French, German and Dutch bankers, were not interested in reducing Greece’s debt as they refused to contribute to their own rescue package. The Greek bankers managed to get two years’ respite which enabled them to disengage and obtain significant compensation.

The IMF contended that as Greece belonged to the Eurozone, devaluing its currency to regain competitiveness was impossible, so it would have to devalue wages and social benefits. This is what is known as internal devaluation, and it is wreaking havoc in Greece and other peripheral countries within the Eurozone.

Source, links, references:


[1] [2] [3] [4] [5] [6] [7] [8] [9] [10] [11] [12] [13] [15] [16] [17] [18] [19] [20] [21]

Related:


Comments

Popular posts from this blog

Trump's "brigades" are ready to start a civil war in case he loses November's election

globinfo freexchange
Signs show an extremely explosive situation now in the America of Donald Trump. 
Starting with the murder of George Floyd, we witness almost in daily basis some very disturbing incidents, which unveil a deeply divided society that was hiding for decades behind the "American dream" facade. As the facade now rapidly collapses, due to a major financial crisis and a pandemic, in less than fifteen years, the reality looks terrifying.
In a latest incident, Common Dreamsreported that members of a far right militia group were arrested Monday evening in Albuquerque after a standoff at a statue of a notoriously brutal conquistador in the New Mexico city turned violent with a demonstrator advocating for the removal of the monument shot and sent to the hospital.
As dusk fell, demonstrators began attempting to pull the monument down from its pedestal on the Albuquerque Museum grounds. At that point, members of the New Mexico Civil Guard militia group moved in, attack…

Αντίο δημόσια, δωρεάν παιδεία ...

globinfo freexchange
Μετά τα σχέδια για ιδιωτικοποίηση του νερού, το Μητσοτακικό καθεστώς ετοιμάζεται να ισοπεδώσει με το νεοφιλελεύθερο "οδοστρωτήρα" και τη δημόσια παιδεία.
Από τη χθεσινή ομιλία Κεραμέως στη βουλή, το μόνο που χρειάζεται να κρατήσετε είναι η εξής φράση:
                        Εμείς, λοιπόν, κάνουμε πράξη τη δέσμευσή μας, για πανεπιστήμια πιο ελεύθερα και αυτόνομα. Για πανεπιστήμια, τα οποία μπορούν να ρυθμίζουν τα του οίκου τους.

Όταν ακούτε έννοιες όπως "ελευθερία", "αυτονομία" και "αυτορρύθμιση", να βγαίνουν από στόματα φανατικών νεοφιλελεύθερων, όπως των στελεχών της κυβέρνησης Μητσοτάκη, να ετοιμάζεστε για ιδιωτικοποιήσεις, ξεπουλήματα και όλες τις επακόλουθες συμφορές. 
Πίσω από τα ωραία λόγια της Κεραμέως, κρύβονται οι αληθινές προθέσεις του καθεστώτος και για τον τομέα της παιδείας. Δηλαδή, σταδιακή ιδιωτικοποίηση των δημόσιων πανεπιστημίων και τελειωτικό χτύπημα στη δημόσια, δωρεάν παιδεία.
Απ'ότι φαίνεται και μ…

Meet the far-right oligarchs working to topple Mexico’s progressive President AMLO

A Trump-like Mexican oligarch, Gilberto Lozano, is leading a coalition of corporate leaders and far-right fanatics called FRENA to try to overthrow President Andrés Manuel López Obrador.
by José Guadalupe Argüello III and Ben Norton
Part 2 - The extremist National Anti-AMLO Front (FRENA) proposes a color revolution
On May 30 and throughout the weekend of June 13 and 14, traffic across Mexico was disrupted with motorcades of honking cars displaying signs of opposition to President López Obrador. In the days leading up to the event, opposition supporters in the country, and in parts of the United States, had been called to protest in vehicle caravans under the slogan “Andrés López, we don’t want you.”
The group that organized these protests calls itself the National Anti-AMLO Front (Frente Nacional Anti-AMLO in Spanish), and uses the acronym FRENAAA, typically simplified to FRENA. This far-right Mexican group modeled its demonstrations against AMLO after similar protests organized by the …

Leaked documents reveal right-wing oligarch plot to overthrow Mexico’s AMLO

Mexico’s oligarchs and establishment political parties have united in a secret alliance to try to remove left-wing President López Obrador from power, with help from the media, Washington, and Wall Street. Leaked documents lay out their devious strategy.
by Ben Norton 
Part 3 - Mexico’s establishment political parties and former presidents unite to oust AMLO
With backing from the US government and utter dominance of media narratives, the Broad Opposition Bloc plan is to unite all of Mexico’s establishment political parties.
Together, these parties could potentially run candidates under the BOA umbrella, according to the document. Their goal would be, in the 2021 legislative elections, to end the majority that AMLO’s left-wing party Morena won in Mexico’s Chamber of Deputies. 
After that, BOA states clearly that it plans to block reforms in the Mexican legislature, and ultimately impeach President López Obrador by 2022 — at least two years before his term ends.
Quite revealing is that th…

New court files expose Sheldon Adelson’s security team in US spy operation against Julian Assange

An exclusive investigation by The Grayzone reveals new details on the critical role Sheldon Adelson’s Las Vegas Sands played in an apparent CIA spying operation targeting Julian Assange, and exposes the Sands security staff who helped coordinate the malicious campaign.
by Max Blumenthal
I was the CIA director. We lied, we cheated, we stole.

–Mike Pompeo, College Station, TX, April 15, 2019
Part 9 - Spying, stealing diapers, and burglary plans
Stefania Maurizi, an Italian journalist who visited Assange regularly at the embassy in London, remembered relaxed encounters with minimal security and friendly interactions with embassy staff for the first five years of the Wikileaks founder’s stay. It was in December 2017 that everything changed.
During a visit to interview Assange that month, the Spanish security guards from UC Global demanded Maurizi hand over her backpack and all belongings inside for the first time. She protested the new and seemingly arbitrary procedure, but to no avail. 

The US imperialist machine calls for a G-7 expansion to tackle China's 5G penetration in its Western sphere of influence

globinfo freexchange

The US imperialist machine openly calls Western allies (and particularly the UK), to sabotage China's economic and technological penetration in its Western sphere of influence, through a Foreign Policyarticle.

Although the article adopts Trump-style anti-Chinese propaganda, it is clear that the US imperialists have difficulties to accept Trump's inconvenient proposal regarding the expansion of G-7, because it includes "hostile" Russia.

Instead, they think that London's proposal regarding the expansion of G-7 (into D-10), is the most appropriate.

Although according to the article, "The D-10 is not an anti-China alliance.", its hawkish style is more than evident, as can be depicted with that "United Kingdom's D-10 is the right size and shape ... covering only the Cold War West.", for a start.

Furthermore, according to the article, the UK appears to be the most suitable, among the US allies, to lead the race against China…

Hong Kong’s ‘pro-democracy’ movement allies with far-right US politicians that seek to crush Black Lives Matter

As a Hong Kong protest leader promotes far-right condemnations of US anti-racism demonstrations and activists shut down a Black Lives Matter rally in the city, Hong Kong organizers forge close ties with hardline Republicans in Washington.
by Ajit Singh
Part 4 - Hong Kong’s opposition aligned with same far-right US politicians repressing Black Lives Matter
There are some within Hong Kong’s “pro-democracy” movement who have issued statements expressing support for the protests taking place in the US and the Black Lives Matter movement, arguing that both movements are engaged in a shared struggle against oppression and police brutality. 
Joshua Wong, a poster-boy for the Hong Kong protests, along with Nathan Law and other leading members of his political party, Demosistō, have stated that they stand with Black Lives Matter. “Many of you have asked me about the ongoing U.S. protests” wrote Wong in a June 2 tweet. “As a human-rights activist, I stand firmly on the side of the #BlackLivesMat…

Here we go again: neoliberal machine prepares ground to blame the Greens for a potential Biden defeat in November

globinfo freexchange

It seems that the neoliberal machine creates the suitable climate in order to put the blame on the usual scapegoats in case Joe Biden loses November's election.

Politico's recent article leaves little doubt. Check out the title:
Jill Stein cost Hillary dearly in 2016. Democrats are still writing off her successor.

And the first paragraphs confirm the case:

                         Jill Stein still haunts Hillary Clinton’s campaign team. “Oh woof. I can’t bear to talk about that,” said former communications director Jennifer Palmieri. For good reason: Had voters in Pennsylvania, Michigan and Wisconsin cast their ballots for Clinton rather than the Green Party’s Stein, Clinton would be president. 

                         Now, with the Green Party set to elevate its presumptive nominee — Howie Hawkins, a longtime labor activist keen on attracting disillusioned Bernie Sanders voters and calling for a “#DemExit” — many Democrats are unfazed. Not to worry, they sa…

Βούρκος, παρακράτος και... σκάνδαλα

Kαθώς τα εσωτερικά προβλήματα, οι αποτυχίες, το φιάσκο της διασπάθισης των 20 εκατ. ευρώ αλλά και η τρέχουσα και επερχόμενη κατάρρευση της οικονομίας απειλούν την επίπλαστη εικόνα της κυβέρνησης και ναρκοθετούν το ρίσκο των διπλών εκλογών του Φθινοπώρου, η ΝΔ φαίνεται ότι επιλέγει να κυλήσει την πολιτική ζωή στο βούρκο και να μεταχειριστεί πρακτικές παρακράτους.  
Ελλείψει πολιτικού αφηγήματος, ο Υπουργός Άδωνις Γεωργιάδης όταν δεν εγκαινιάζει ανύπαρκτες επενδύσεις στο Ελληνικό, απειλεί δημοσιογράφους, πολιτικούς αντιπάλους ακόμη και εισαγγελείς που τον ελέγχουν για μίζες, στους οποίου υπόσχεται φυλακή και δίνει τον τόνο της θεσμικής αμετροέπειας.
Η ακροδεξιά κυβερνητική πτέρυγα, που έχει κουρελιάσει κάθε έννοια νομιμότητας στην Προανακριτική Επιτροπή, επιστρατεύει παράνομες υποκλοπές και γυρνά τη χώρα στις εποχές του «Μαυρίκη», προσπαθώντας απεγνωσμένα να αντιπαρέλθει τις αποκαλύψεις για τα εμβάσματα της Novartis και τις μίζες των 2,5 εκατ. ευρώ από τον Παναμά. Αλλά και το ίδιο το π…

Pentagon war game includes scenario for military response to domestic Gen Z rebellion

by Nick Turse
In the face of protests composed largely of young people, the presence of America’s military on the streets of major cities has been a controversial development. But this isn’t the first time that Generation Z — those born after 1996 — has popped up on the Pentagon’s radar.
Documents obtained by The Intercept via the Freedom of Information Act reveal that a Pentagon war game, called the 2018 Joint Land, Air and Sea Strategic Special Program, or JLASS, offered a scenario in which members of Generation Z, driven by malaise and discontent, launch a “Zbellion” in America in the mid-2020s.
The Zbellion plot was a small part of JLASS 2018, which also featured scenarios involving Islamist militants in Africa, anti-capitalist extremists, and ISIS successors. The war game was conducted by students and faculty from the U.S. military’s war colleges, the training grounds for prospective generals and admirals. While it is explicitly not a national intelligence estimate, the war game, …