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Posted by on Jun 20, 2011 in Economy, TG Roundup, USA, Worldwide

Lies are Lies – in English or in Greek

A little over a year ago the pronouncement that Greek was rescued from the brink was a big fat Greek lie. Anybody who paid a slight bit of attention to the truth behind the headlines would have known this.

In the 2010 deal mainly Germany and other European nations came to the rescue of Greece drowning in debt. In simple terms, the rescue package, which came with strings attached, prevented Greece from defaulting on its sovereign debt. In return, Greece was forced to adopt a strict austerity plan, which meant a lot of lost jobs. Of course, austerity is essential when you are drowning in debt – no question about that.  However, all the irresponsible borrowing by nations such as Greece was enabled by irresponsible and even predatory lending by money center banks. The banks are yet to pay the price for their mistakes.

The 2010 Greek rescue deal helped the parasites, a.k.a. bank executives to keep booking phoney profits for the banks and maintain their lavish bonuses. At the same time, general public suffered with job losses and reduced wages. When a loan goes bad, both parties have to pay the consequences: lender and borrower. The bailouts accomplish one and only one thing – delay the inevitable.

Now Greece is again on the brink. If the default occurs this time, watch out for serious repercussions in the financial markets.