Skip to main content

It's not a bailout for the Greeks at all

We are forever hearing and reading about how the Europeans have, and are again, seeking to bail the Greeks out of their debts crisis, etc.    Problem is the European banks are are doing no such thing.    What those banks have done is to ensure that they are being repaid whatever monies are owing to them - as as this piece "Greece Bailout Was for EU Banks: Study Confirms That Rescue Loans Didn’t Serve the Greek People" on truthdig details.

"A new study offers more confirmation that the so-called bailout packages the European Union (EU) and the International Monetary Fund (IMF) delivered to Greece primarily served European banks rather than the Greek people.

The study released Wednesday by the Berlin-based European School of Management and Technology (ESMT) analyzed where funds from the two aid bailout deals—received on the condition of imposing harsh austerity measures—since 2010 went.

“Contrary to widely held beliefs,” ESMT states, of the €215.9 billion (roughly $246 billion), less than 5 percent went to the Greek fiscal budget. The other 95 percent of the funds “disbursed to Greece since the start of the financial crisis as loans from the bailout mechanism has been directed toward saving the European banks,” Ekathimerini reports.

Reporting by the German business newspaper Handelsblatt adds, “The aid programs were badly designed by Greece’s lenders, the European Central Bank, the Europe Union and the International Monetary Fund. Their priority, the report says, was to save not the Greek people, but its banks and private creditors.”

“Most of the money was used to actually transfer risks from private creditors to public creditors,” ESMT President Jörg Rocholl told DW Wednesday. “This means money was used to repay the private creditors by taking on more debts that were taken by private creditors.”

The report’s findings echo the charge levied by other economists including Nobel Prize-winner Joseph Stiglitz and former Greek finance minister for the anti-austerity Syriza party, Yanis Varoufakis.

Speaking to Democracy Now! last week, Varoufakis said, “We had the largest loan in human history. The question is, what happened to that money? It wasn’t money for Greece. It was money for the banks.”

Comments

Popular posts from this blog

Whatever democracy the Palestinians had is dying

Almost a desperate cry from a well-known, respected and sober moderate Palestinian.

Mustafa Barghouthi is secretary-general of the Palestinian National Initiative and a member of the Palestinian Legislative Council. He was a candidate for the Palestinian presidency in 2005.

He writes in a piece "The Slow Death of Palestinian Democracy" on FP:

"Palestinian municipal elections were supposed to be held last week. Instead, they were canceled. A statement released by the Palestinian Authority claimed the cancellation was "in order to pave the way for a successful end to the siege on Gaza and for continued efforts at unity" between Hamas, which governs the Gaza Strip, and the government in the West Bank.

The cancellation of this election was an unjustified, unlawful, and unacceptable act. It damages democratic rights and makes a mockery of the interests of the Palestinian people.

But this is far more than an internal Palestinian issue. The only lasting peace between Isr…

Big Brother alive and well in the USA in 2007

The so-called "war on terror" has shown itself up in a multitude of manifestations. The most dangerous thing has been governments using the "excuse" of the war to restrict certain civil liberties, allowing government agencies to pursue a variety of things that they would otherwise would not - and should not - be allowed to do and gathering, and retaining, a variety of information on its citizens.

The Washington Post reports on the latest incursions into civil liberties of all Americans:

"The U.S. government is collecting electronic records on the travel habits of millions of Americans who fly, drive or take cruises abroad, retaining data on the persons with whom they travel or plan to stay, the personal items they carry during their journeys, and even the books that travelers have carried, according to documents obtained by a group of civil liberties advocates and statements by government officials.

The personal travel records are meant to be stored for as lo…