Starvation Is The Price Greeks Will Pay For
Remaining In The EU
By Paul Craig
June 16, 2015 "Information
Clearing House" -
Syriza, the new Greek government that intended
to rescue Greece from austerity, has come a cropper. The government
relied on the good will of its EU “partners,” only to find that its
“partners” had no good will. The Greek government did not understand
that the only concern was the bottom line, or profits, of those who
held the Greek debt.
The Greek people are as out to lunch as their
government. The majority of Greeks want to remain in the EU even
though it means that their pensions, their wages, their social
services, and their employment opportunities will be reduced.
Apparently for Greeks, being a part of Europe is worth being driven
into the ground.
The alleged “Greek crisis” makes no sense
whatsoever. It is obvious that Greece cannot with its devastated
economy repay the debts that Goldman Sachs hid and then capitalized
on the inside information, helping to cause the crisis. If the
solvency of the holders of the Greek debt, apparently the NY hedge
funds and German and Dutch banks, depends on being repaid, the
European Central Bank could just follow the example of the Federal
Reserve and print the money to secure the Greek debt. The ECB is
already printing 60 billion euros a month to save the European
financial system, so why not include Greece?
A conservative might say that such a course of
action would cause inflation, but it hasn’t. The Fed has been
creating money hands over fists for seven years, and according to
the government there is no inflation. We even have negative interest
rates attesting to the absence of inflation. Why will creating money
for Greece create inflation but not for Goldman Sachs, Citibank, and
Obviously, the Western world doesn’t want to help
Greece. The West wants to loot Greece. The deal is that Greece gets
new loans with which to repay existing loans in exchange for selling
municipal water companies to private investors (water rates will go
up on the Greek people), for selling the state lottery to private
investors (Greek government revenues drop, thus making debt
repayment more difficult), and for other such “privatizations” such
as selling the protected Greek islands to real estate developers.
This is a good deal for everyone but Greece.
If the Greek government had any sense, it would
simply default. That would make Greece debt free. With just a few
words, Greece can go from a heavily indebted country to a debt-free
Greece could then finance its own bond issues, and
if it needed external credit, Greece could accept the Russian offer.
Indeed, if the Russian and Chinese governments had
any sense, they would pay Greece to default and to leave the EU and
NATO. The unravelling of Washington’s empire would begin, and the
threat of war that Russia and China face would go away. The Russians
and Chinese would save far more on unnecessary war preparation that
saving Greece would cost them.
Dr. Paul Craig Roberts was Assistant Secretary of
the Treasury for Economic Policy and associate editor of the Wall
Street Journal. He was columnist for Business Week, Scripps Howard
News Service, and Creators Syndicate. He has had many university
appointments. His internet columns have attracted a worldwide
following. Roberts' latest books are
The Failure of Laissez Faire Capitalism and
Economic Dissolution of the West
How America Was Lost.