Greece: the canary in the coalmine

oecd national debt from 1988 to 2007

greece demonstration and riots

Greece’s national strike has turned violent with demonstrators running pitched battles with the police in central Athens.

In the context of the developing story of Greece’s pending debt default, we should be reminded of what German Chancellor Angela Merkel stated recently in respect to the Greek financial situation – and others in the EU who are in similar straights – that “Euro debt is now becoming the object of speculation by precisely those (financial) institutions that we saved a year-and-a-half ago….That’s very difficult to explain to people in a democracy (to trust those) that brought us to the abyss….” She was of course referring to Goldman Sachs and the other giant financial institutions and speculators of international currencies that are deeply mired and have roots in the situation Greece finds itself in.

We should be reminded that the national debts of just about every Western nation in the world is in the danger zone. During the past 30 years these nations, including the United States, Canada, European nations, have been accumulating excessive public debt while their respective economies were vibrant. However, as we have seen in the past 20 to 30 years, and in what seems suspicious when correlated to the increasing levels of debt, these nations have been losing their productive and manufacturing capacities to largely Eastern nations such as China and Japan. “Western nations have become largely uncompetitive” is what economic and financial pundits will tell people, but that is not the whole story. Indeed, many of these pundits fail to mention how China has pegged its currency to the US dollar since 1994 which essentially caused capital flight from Western nations to Asian countries to take advantage of these illegal subsidies (under WTO rules, that is). Take a look at the following graph to see the comparison of debt in the Western world:

oecd national debt from 1988 to 2007

What was it someone once said about the ‘control of national currencies?’ Something about if they can control a nations money supply, they care not what government is in power because they in fact can control any government. It is long past time for governments to regain control over their sovereign money and to take it out of the hands of the private banks and international globalists.

real net debt usa and eurozone comparison

Take Argentina as a case in point. In early 2002 Argentina defaulted on repaying $141 billion in foreign dollar debt. One of the most devastating economic collapses in modern history ensued. The IMF was crucial. In early 2000 Argentina had turned to the IMF for emergency credit to prevent a collapse of its currency, then fixed to the strong US dollar. As the dollar rose, Argentina found its exports trade collapsing. The country went into recession. The IMF stepped in with a $48 billion “rescue” package. But there were conditions.

eurozone sustainability graph

First the government had to agree to severe IMF-dictated cuts in government spending before it would get any money. State subsidies on food for low income were ended, triggering food riots. Interest rates exploded in a vain effort to convince foreign banks and bondholders to not sell. That only worsened the economic depression. State companies were forced to privatize to raise money and “promote free market” liberalization. The Buenos Aires water system was sold for pennies to Enron, as was a pipeline going from Argentina to Chile.

The conditions of an IMF deal are always the same. Privatization of state industries is top on the list. The effect of privatization with a cheap Peso or Rouble currency is that foreign dollar investors are able to buy up the prime assets of a country dirt cheap. Often the politicians involved in the country get corrupted by the lure of under-the-table deals in privatizing their national assets. Foreign multinationals can grab profitable mining, oil, or other national treasures with their dollars.

Walkout In Greece Turns Ugly On The Streets
Greece’s national strike has turned violent with demonstrators running pitched battles with the police in central Athens.

About 200 protesters threw rocks, bottles and petrol bombs while riot police retaliated by firing tear gas into the crowds.

Greece has been paralysed by a 24-hour strike over new austerity measures being introduced by the government.

Greek Prime Minister George Papandreou is attempting to reform the country’s bloated public sector in the face of mounting national debts.

His government wants to freeze pay, increase the retirement age to 63 and raise extra duty on fuel, cigarettes and alcohol.

Yannis Panagopoulos, head of the private sector union GSEE, said: “We ask the government to set people’s needs as a priority and adopt a mix of economic and social policies that won’t lead to recession but to jobs.” You can read more about the Greece General Strike at Sky News.

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