As I have previously written, the Greek “debt crisis” was an orchestration from the beginning. The European Central Bank is printing 60 billion euros per month, and at any time during the “crisis” the ECB could have guaranteed the solvency of any remaining creditor banks by purchasing their holdings of Greek debt, just as the Federal Reserve purchased the troubled mortgage backed “securities” held by the “banks too big to fail.” This easy solution was not taken.
The orchestration was a benefit to Western financial interests in general by enabling enormous speculations on the euro and gambling with derivative bets on sovereign debt and everything connected to it. Each successive “crisis,” such as Sunday’s No vote, became cover for an attack on oil or other commodities. The rigging and manipulation of markets can be hidden by pointing fingers at the latest “crisis.”
John Perkins in his book, Confessions of an Economic Hit Man, describes the process by which Western financial interests intentionally over-lend to weaker countries and then use the pressure of the debt to force the transfer of the countries’ wealth, and often sovereignty, to the West. The IMF and its austerity programs have long played a role in the looting.
In exchange for reducing euro debt on Greece’s books, Greece was to turn over to private interests its water companies, ports, and protected islands. Unless the One Percent can purchase the current Greek government as it purchased previous governments (for example, with payoffs to borrow money with which to purchase submarines), the referendum has frustrated the looters.
In my book, The Failure of Laissez Faire Capitalism, I explained that the Greek “debt crisis” had two other purposes. One was to get rid of the practice of restructuring a country’s debt by writing it down to a level the country could afford and to establish in its place the new principle that people of a country are responsible for the mistakes of creditors who over-lend. The write-down is no longer to occur on the balance sheet of the creditors’ but instead becomes a write-down of pensions, social services, and employment. This, too, is a process of looting.
The other purpose, as Jean-Claude Trichet, the previous head of the European Central Bank, made explicitly clear, was to further reduce the sovereignty of member states of the EU by transferring authority over fiscal policy (tax and spend decisions) from national governments to the EU in Brussels.
Washington favors this centralization of political power in Europe, and Washington favors the One Percent over the people. However, above all Washington favors its own power and has acted to prevent a Greek exit, which could begin the unraveling of NATO.
Vir: Paul Craig Roberts, KWN