Sunday, June 26, 2011

America's role in this Greek tragedy

Mark Weisbrot

The European authorities are playing a dangerous game of "chicken" with Greece right now. It is overdue for US members of Congress to exercise some oversight as to what our government's role is in this process, and how we might be preparing for a Greek debt default. Depending on how it happens, this default could have serious repercussions for the international financial system, the US economy and, indeed, the world economy.

The US government has a direct and significant role in the Greek crisis because the US treasury department has the predominant voice in the International Monetary Fund (IMF). The IMF, together with the European Commission and the European Central Bank (ECB) – the three are commonly referred to as "the Troika" – are negotiating a new austerity package with the Greek government, in return for a new bailout deal. This package promises more suffering for the Greek people – that is acknowledged by all sides. But the Troika thinks it can ram the programme through the Greek parliament on Tuesday, with the threat that the IMF will not disburse the next $17bn instalment of Greece's current loan package – thus putting Greece in a situation of sudden default.

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1 comment:

  1. Following Americas bankster bailout example the greek government is about to approve a bit of bankster greek love for the greek people .Man women and child.
    The Greeks like responsible ,reasonable
    americans after the bazooka financial coup ,are ready to bend over to save their bankers from their iresponsible debts.

    America has a big bankrupt Greek future too.
    The US economy IS now a credit crisis economy
    like Greece .
    Per capita its debts are much bigger than that of the little greeks.
    Like Greece america was running on foreign credit.
    Like greece ponzi america has an unsustainable sea of debts from shore to shining sea.

    What US economy?
    america is no longer a profitable great manufacturing and trading power. but the worlds biggest debtor.

    Once productive of profit jobs and industries are still being exported every day.
    Pre –crisis 74% of the GDP was consumption, including consumption of government services and wars so as to subsidise and justify the military industrial complex, financing 9.11 events , the job creating “homeland security” industry. TSA jobs etc.
    All financed by deficit spending and foreigners buying american debt bonds, national and private bankster .
    Even Physical wealth creating jobs in housing construction in america have disapeared as the fictionaly valued property bubble and value of middle class savings in housing and the mortgage industry profits disapear too.

    And no recovery possible as there are no real profits to be made in high waged america.
    The finance sector is a bailed out insolvant mess.
    Even the government has lost its ability to provide financial help as its future tax revenues are promised to pay off the bondholders the Fed exists to serve.
    America has lost its good name as as a responsible money printer and as world confidence in the future value
    dollar is lost. The US central bank has become the worlds laughing stock as the main buyer of government debt. Funny inflationary money scam stuff .Future toilet paper!

    The great Ponzi has imploded.
    What is so difficult about that to grasp?

    There is nothing left now for a parasitical economy but old debts to pay and any remaining fantasy credit finance backed by annual trillion dollar +money printing stimulus and bankster hand outs as a subsitute for profitability.
    The US was consuming whatever cheap labor Chinese goodies from wall mart they couldd get on credit ,
    the midle class was using the bubble valued house as an ATM, the middle class youth was converted into debt peons with student loans to learn non existant jobs .
    Every body else is maxed out on credit card debts. Millions are not paying their mortgage debts.
    The insolvant banks even tho they are getting interest free money from the Fed are not handing out credit but
    are hanging onto their cash ready like greeks for the next round of the credit crisis.

    IT is said that the greeks should sell and privatise the Parthenon once the seat of government in ancient greece in order to pay down some of the national debt .

    This option is no longer possible for americans in the future as the historic congress, senate and the US treasury dept. were privatised and sold out by their members years ago.


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