29 May 2012

Greek 'Aid' Is Really Enhanced Vendor Financing and Foreign Bank Bailouts

“They don’t want to kill us [the Greek people] but keep us down on our knees so we can keep paying them indefinitely.”

Eva Kyriadou

The similarity to the Icelandic situation is striking.  Greece must deal with the problem of decoupling from the Euro, but other than that the scenario seems fairly straightforward.

Greece needs to assert their independence, and have the will to make it 'stick.'

In the manner of 'mailing in their keys' on an underwater home and the burden of an outsized dodgy loan, the Greek people should consider mailing their eurozone membership back to the ECB and their friends in the Banks and Wall Street hedge funds c/o Berlin, and suggest that the conquest of their country might have to proceed by more conventional and overt means if they want to take the country's sovereign assets and income.

An investigation of all the debt deals would be a first rate idea, with plenty of public disclosure of the corruption and cronysim that was involved between public officials and the banks.
Athens No Longer Sees Most of Its Bailout Aid
May 29, 2012

PARIS — As Greek membership in the euro currency union hangs in the balance, it continues to receive billions of euros in emergency assistance from the so-called troika of lenders overseeing its bailout.

But almost none of the money is going to the Greek government to pay for vital public services. Instead, it is flowing directly back into the troika’s pockets.

And so, the €130 billion, or $162.2 billion, European bailout that was supposed to buy time for Greece is mainly only servicing the interest on the country’s debt — while the Greek economy continues to plummet.

If that seems to make little sense economically, it has a certain logic in the politics of euro-finance. After all, the money dispensed by the troika — the European Central Bank, the International Monetary Fund and the European Union’s member governments — comes from European taxpayers, many of whom are increasingly wary of the political disarray that has beset Athens and clouded the future of the euro zone.

As they pay themselves, though, the troika is also withholding other funds earmarked for keeping the Greek government in operation...

Read the rest here.