Good luck to Greece, and why you won’t find the real reasons for their crisis in the mainstream media

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Posted Jul 6 2015 by Dave Darby of Lowimpact.org
greece

It’s so ironic that the biggest lesson in how to destroy democracy is being delivered to the world in the birthplace of democracy.

This is the real reason Greece is in trouble. I’m no academic – this is really easy. You won’t see similar accounts in the corporate media – because, well, it’s corporate.

I know that if you’re reading this, you probably have a good grasp of this already – I just wanted to document it in a few easy points. It’s an easy ‘cut-and-paste’ way to counter claims by corporate stooges that ungrateful Greece has refused a ‘rescue package’ or that they’ve ‘mismanaged their economy’ or been ‘irresponsible’.

I’ve only included links for points that are not common knowledge.

  1. Thatcher and Reagan deregulate the financial sector (let’s take the historical start-point as the birth of the neoliberal project – although of course we could go back further).
  2. Deregulated financial sector does what the hell it likes – for example sub-prime mortgages.
  3. Sub-prime mortgages get packaged and sold around the world as mortgage-backed securities – sounds secure, doesn’t it?
  4. Sounds even more secure when ratings agencies give these dodgy packages excellent ratings.
  5. Billionaire insiders become even richer by betting that these packages are going to explode – http://www.marketwatch.com/story/goldman-charged-with-fraud-over-paulson-cdo-trade-2010-04-16.
  6. Because of course they turn out to be worthless and the global economy crashes.
  7. Ordinary taxpayers everywhere have to pay to bail out corporate financial institutions. The Greek people, for example, had to pay 48 billion euros (around £30 billion) to recapitalise their banks – http://america.aljazeera.com/articles/2015/7/1/greek-bailout-money-went-to-banks-not-greece.html.
  8. The corporate sector, via ratings agencies, downgrade national bonds, making their interest payments increase, making it more difficult for countries to pay them – http://fmwww.bc.edu/EC-P/wp841.pdf. This was particularly crippling for Greece – http://www.tradingeconomics.com/greece/government-bond-yield.
  9. The corporate sector, via the IMF and the ECB, loan Greece 110 billion euros, with the proviso that they accept a stringent austerity package.
  10. Further austerity measures force the Greek prime minister to resign, and ‘technocratic economist’ Lucas Papademos is ‘appointed’ to oversee more austerity measures. He was previously vice-president of the European Central Bank, and there was no election – http://www.theguardian.com/world/2011/nov/11/lucas-papademos-greece-prime-minister.
  11. Papademos privatises more Greek assets – i.e. takes anything profitable from the Greek people and sells it cheaply to the corporate sector (a typical part of any austerity package) http://www.wsj.com/articles/SB10001424052702304520804576341414080784514.
  12. The corporate media portrays the Greeks as ‘irresponsible’ and that the corporate sector is offering a ‘rescue package’.

The main points are that this crisis was initiated by pro-corporate politicians deregulating the financial sector at the behest of their corporate masters, who then took the opportunity to fraudulently offer sub-prime mortgages and package them up to sell them for vast amounts of profit – money that they still have. The fault lies with the corporate sector, not with the Greek government, and certainly not with the Greek people. Greece is a long way behind the US when it comes to debt and irresponsible borrowing.

Of course, it’s now the Greek people who will suffer – but they’ve shown that they prefer freedom to serfdom, and in time, maybe history will show this day to be the beginning of the end for the corporate empire. I hope so.