australianvoice (australianvoice) wrote,

The EU/IMF Destruction of Greece - the Cradle of Western Civilization

This video by Paul Craig Roberts has a very good discussion of the way Greece got into trouble with the banks and why they have not been able to find a way out.

Greece has not been discussed in the mainstream news for the last year or two. The Greeks were “news” as they prepared to accept a “bail out” by the EU. Greece had a high level of debt and could not repay its loans. The “help” was eventually accepted but came with mandatory “reforms” dictated by the EU and US banks. Once the new government accepted the “reforms”, Greece dropped out of the news again.

The reason we have seen nothing about Greece is that the “reforms” began a savage campaign of austerity and privatization that could well completely destroy the country. 95% of the money “given" to Greece actually went to bail out the US and EU banks. The Globalist mafia led by the US and the EU has two different ways to destroy countries. One way is to use military violence in the form of an attack or invasion (Afghanistan, Iraq and Libya), subversion by mercenaries (Syria) or coup (Ukraine). The other way is to use financial control to enforce austerity and privatization. This is the method used on Greece.

The IMF control of Greece has no genuine economic purpose.It is not intended to help the people of Greece, and the damage caused is the worst ever seen in the West. What follows is a brief summary of the “reforms” imposed on Greece by the German and other European governments, the EU and the International Monetary Fund (IMF). Dimitris Konstantakopoulos describes it as “one of the greatest economic and social catastrophes in the whole history of international capitalism.”(1) It could also be seen as an omen. What are we to think when the political and financial leaders of the West seek to destroy what has often been described as the cradle of Western Civilization? Is this a warning for the rest of us?


1) Greece was allowed/encouraged to take out large loans from US/EU banks.
2) At some point the IMF decides that they – the IMF – must take control of the economy. People assume they can do better.
3) This control overrides any democratic control or constitutional limitations. It amounts to total loss of sovereignty.
4) Banks then insist on cutting wages/pensions, increasing taxes to pay back debt, privatize all public assets.
5) On Greece “thousands of pages of legal text are introduced to Greece,  translated by automatic translation computer programs from English into often incorrect Greek and then voted by Parliament, under the pressure ultimatums from German Minister of Finance and IMF economic assassins. All this in opposition to the will of the Greek people, as directly expressed in the referendum of July 5th, 2015 and to the most fundamental provisions of the Greek Constitution and of the Treaties of the EU.”


-Tens of thousands of Greeks have committed suicide.
-1.5 million Greeks living in conditions of extreme poverty. (The population of Greece in 2015 was 10.8 million.)
-Pensioners have just had their pensions cut by another 30% in the 17th successive pension reduction in seven years.
-More than half of young Greeks are unemployed with no prospect of employment in sight.
-Greece has seen a fall of 27% in its economic output, its GDP. This is more, in relative terms, than the material losses of France or Germany during the First World War. It is more than what we witnessed during the depression of 1929-33 in the USA or the crisis of the Weimar Republic in Germany.

What follows is a summary of an article entitled “The European Left and the Greek Tragedy” by Dimitris Konstantakopoulos.

Dimitris Konstantakopoulos asked Mr. Reichenbach, the head of the “European Task Force” for Greece, why there is such a difference in the outcome of the Troika programs for Greece and, for example, Portugal. Mr. Reichenbach responded by saying “We obtained these results in Greece because we subtracted three times more demand from the Greek economy than from the Portuguese economy”. This deep, unprecedented, depression is quite simply the result of the economic measures imposed by the Troika.

This program was adopted by virtue of a coup d’état within the IMF itself in 2010. (The coup occurred when Dominique Strauss-Kahn was replaced by Christine Lagarde. One can assume that he was replaced because he would not have allowed the IMF to attack Greece as it did under her management.) A coup d’état was necessary because the economists were able to predict the outcome, and such an outcome was clearly unacceptable even in terms of neoliberal orthodoxy.

Such a coup inside the IMF would be impossible without the consent of the German, French and US governments, of the EU Commission and of the Captains of international high finance.

This is why the Greek Reform Program is the premeditated assassination, by economic and political means, of a European nation and its state. If they tried to apply such a program in all southern countries they would run the risk of consolidating an alliance and triggering a revolt of half of Europe. This is why they had to choose just one country as a site for their  experiment, using it as a scapegoat for all European ills and a threat or warning, by implication, for all the others. In this they were successful as we can see in Italy.

The EU said in 2010 they want to help Greece solve its problems. They keep repeating Greece has received an enormous amount of financial help from its European partners and the IMF. That is true. But what they don’t say is that more than 95% of that money went back to Deutsche Bank, PNB Paribas and other European and US banks.

The Greek bail-out program was truly a bail-out program,  but not for Greece. It was a bail-out program for European and US banks, who were able to write off their losses by writing them into the Greek state budget, making the Greek sovereign debt more “unsustainable” and destroying Greece’s productive and social infrastructure.

At the same time Germany and other northern countries made a huge direct, net financial gain out of the destruction of Greece, in terms of the rates paid for their state bonds and the profit out of the looting Greek public and private property.

In 2010 they said that Greece had to adopt the bail-out program because it was over-indebted. As a result of those policies the Greek sovereign debt climbed from 115% of the GDP to 185% of GDP. Their objective was to increase Greek sovereign and private debt and then use it to appropriate Greek public and  private property and Greek state sovereignty.

This is why the German government persistently refuses serious debate on debt and any serious and definite solution to the problem. It is that Berlin wants to keep this weapon in its permanent possession and use it to loot and subjugate Greece.

The IMF also wants to keep it, but it also wants more stability in the whole program and also its gradual transposition from Greece to the whole of Europe. will also involve neocolonial regulations that will remain in force for many decades.

The term “reforms” is the invention of contemporary Orwells and Goebbels to denote what is clearly a crime and an act of looting and of war, albeit not conventional but political and economic: a “debt war” against the Greek people, Greek democracy and sovereignty.

Greece has become a terrain for experimentation in “regime change” and even what we might call “country change” in the West. What they are attempting to do is to transform the regime of Western democracy into a mechanism for direct rule by Finance.  The external forms of parliamentary democracy are kept intact, but emptied of content.

Thousands of pages of legal text (and nobody knows who  prepared it, and on whose orders) are introduced to Greece,  translated by automatic translation computer programs from English into often incorrect Greek and then voted by a simulacrum of Parliament, under the pressure ultimatums of a maniac German Minister of Finance and IMF economic assassins. All this in opposition to the will of the Greek people, as directly expressed in the referendum of July 5th, 2015 and to the most fundamental provisions of the Greek Constitution and of the Treaties of the EU. Others have introduced the perhaps more accurate term of “debt colony” to describe it.

It is not even a straightforward colony.  It is a colony subjected to permanent destruction and looting, in the process of being transformed into a variety of slave economy and slave society. More than half of young Greeks do not have a job or the prospect of finding one, in spite of the demolition, in both law and practice, of salaries and of any rights formerly possessed by working persons.

Those who emigrate are the best educated and most active, precisely those whom this country needs if it is to survive. Thousands of very well educated (at the expense of the Greek state) doctors and nurses are, for example, now staffing German hospitals, as the Greek health system crumbles under the weight of to the so-called “reforms”.

If Finance succeeds, with the help of European political elites, including so-called Leftists, in imposing such a regime on Greece, it will not try to expand it, sooner or later, first to Southern, then also to Northern Europe?

The statement unfortunately not only supports the economic and social destruction of Greece and the abolition of democracy. It also supports the looting of this country. Its words on free competition coincide with the pressure being placed upon the Greek government to abandon its last resistance to the selling off of all Greek public property, including the selling off of the country’s main electricity producing company, the Public Power Corporation.

They have acquired, or they are acquiring, the communications, the airports, albeit only the profitable ones, the tourist industry, the real estate. They are taking over everything, including the private property of Greeks, through exorbitant taxation, imposed by the necessity of serving a unsustainable debt.

The empire of Finance will have triumphed exactly where the Acropolis still stands as a reminder of the defeated saga of the Athenian democracy.

The IMF in Europe has the role of supreme economic governor. I wonder since when exactly such an organization, which, by its activities in the Third and the ex-”Socialist” world, has earned a far worse reputation than, for example, the CIA, and which constitutes nothing other than the collective expression of the will of international finance capital and the United States of America,

Because the previous restructuring, known as PSI, turned out to be the first debt restructuring in living memory to go so clearly against the interests of the debtor.
In the context of this PSI they first obliged Greek hospitals, pension funds, universities to write off their state bonds, thus losing the greater part of their property. They then embarked on radical transformation of the legal terms of the Greek sovereign debt, to the disadvantage of Greece, by changing it from debt to private entities to debt to states, introducing British colonial law and the jurisdiction of foreign courts over questions related to debt disputes.

Before the 2011 PSI debt restructuring the Greek debt was denominated in the Greek national currency, so it goes without saying that it would be converted automatically into a Greek currency if Greece had decided to leave the Euro. After 2011 it was denominated in euros. Previously the  Greek Parliament and Greek courts were responsible for it. Now, British colonial law is applicable and foreign courts have the jurisdiction to judge the relevant conflicts.

What is needed is an international commission to investigate the Greek question as a whole, the origin of the Greek debt, the Goldman Sachs swaps, to ask Mr. Draghi, a veteran of this bank to explain what h knows about all that, the role of the German government and of the Brussels Commission, the connections between business leaders in France and in Germany and the corrupted Greek political class, and many other things that could help European citizens understand what is happening.

1. Most material has been taken from a very thoughtfull article “The European Left and the Greek Tragedy” by Dimitris Konstantakopoulos.
Tags: all, archive, imperialism, world economy

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