One 77-year-old’s search for the truth: 9/11, election fraud, illegal wars, Wall Street criminality, a stolen nuke, the neocon wars, control of the U.S. government by global corporations, the unjustified assault on Social Security, media complicity, and the "Great Recession" about to become the second Great Depression. "The most important truths are hidden from us by the powerful few who strive to steal the American dream by keeping We the People in the dark."
Wednesday, July 08, 2015
Paul Craig Roberts predicts the final outcome of the Greek referendum and refusal to be looted by the troika, i.e., the EU Commission, European Central Bank, and the IMF. It is not what you think. It's Washington screwing of the EU pillagers by requiring that Greece be given relief from the troika's plan to loot their remaining national assets. But there is no kindness in Washington. Rather their motive is to avert Greece's leaving the EU (likely to have been followed by Italy and Spain) in order that Washington and its European NATO vassals can continue fomenting a war with Russia that may kill us all. A must read!
The Greek referendum, in which the Greek government’s position easily
prevailed, tells the troika (EU Commission, European Central Bank, IMF,
with of course Washington as the puppet master) that the Greek people
support their government’s position that the years of austerity to which
Greece has been subjected have seriously worsened the debt problem.
The Greek government has been trying to turn the austerity approach into
reforms that would lessen the debt burden via a rise in employment,
GDP, and tax revenues.
The first response of most EU politicians to the Greek referendum
outcome was to bluster about Greece exiting Europe. Washington is not
prepared for this to happen and has told its vassals to give the Greeks a
deal that they can accept that will keep them within the EU.
Washington has a higher interest than the interests of the US
financial interests who purchased discounted sovereign debt with a view
toward profiting from a deal that pays 100 cents on the dollar.
Washington also has higher interest than the interests of the European
One Percent intent on using Greece’s indebtedness to loot the country of
its national assets. Washington’s higher interest is the protection of
the unity of the EU and, thereby, NATO, Washington’s mechanism for
bringing conflict to Russia.
If the inflexible Germans were to have Greece booted from the EU,
Greece’s turn to Russia and financial rescue would put the same idea in
the heads of Italy and Spain and perhaps ultimately France. NATO would
unravel as Southern Europe became members of Russia’s Eurasian trade
bloc, and American power would unravel with NATO.
This is simply unacceptable to Washington.
If reports are correct, Victoria Nuland has already paid a visit to
the Greek prime minister and explained to him that he is neither to
leave the EU or cozy up to the Russians or there will be consequences,
polite language for overthrow or assassination. Indeed, the Greek prime
minister probably knows this without need of a visit.
I conclude that the “Greek debt crisis” is now contained. The IMF
has already adopted the Greek government’s position with the release of
the IMF report that it was a mistake from the beginning to impose
austerity on Greece. Pressured by this report and by Washington, the EU
Commission and European Central Bank will now work with the Greek
government to come up with a plan acceptable to Greece.
This means that Italy, Spain, and Portugal can also expect more lenient treatment.
The losers are the looters who intended to use austerity measures to
force these countries to transfer national assets into private hands. I
am not implying that they are completely deterred, only that the extent
of the plunder has been reduced.
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.
Russia and China have missed an opportunity to begin the unraveling
of NATO by assisting Greece’s departure from the EU. Whatever the cost,
it would be tiny in comparison to the military buildup that Washington
is forcing on both countries. Russia and China might have decided that
Washington could no more accept Greece’s alignment with Russia than
Russia can accept Ukraine becoming a member of NATO.
If the Greek situation and the waiting Italian and Spanish situations
are now resolved along the lines that this article suggests, it means
that the NATO mechanism for Washington’s pressure on Russia remains
intact and that the conflict that Washington has created will continue.
This is the bad news and the downside of Greece’s victory over the