A bird's eye view of the vineyard
Pepe Escobar : Interview with The Press Project Sun May 22, 2022 13:10 | amarynth
From a unipolar to a multipolar world. This is my itvw with the wonderful folks at The Press Project in Greece. In English, with Greek subtitles.
Sitrep Operation Z: Yes, it is ?The Grind? Sun May 22, 2022 12:34 | amarynth
For the Saker Blog by Saker Staff This is a short sitrep just to bring the latest information together. First, Brian Berletic does a fine job of describing the battlefield
Azov surrenders. Who will be the sacred martyr now? Sun May 22, 2022 10:51 | amarynth
By Batko Milacic for the Saker Blog On the night of May 17, after brief negotiations, Ukrainian army units, blocked by Russian troops at Azovstal in Mariupol, began to surrender.
Germans ´schwedt´ hard for Russian oil Sun May 22, 2022 10:27 | amarynth
´Krautensuiciden´: by Jorge Vilches for the Saker Blog Germans will soon passionately conjugate a very strange new verb amongst themselves, the infinitive form of which is ? to schwedt ?.
Moveable Feast Cafe 2022/05/21 ? Open Thread Sun May 22, 2022 00:30 | herb
2022/05/21 23:30:07Welcome to the ‘Moveable Feast Cafe’. The ‘Moveable Feast’ is an open thread where readers can post wide ranging observations, articles, rants, off topic and have animate discussions of
The Saker >>
Interested in maladministration. Estd. 2005
Fergus Finlay and the maternity hospital ‘gotcha’ trap
Irish Examiner and fake news Anthony
Labour Party: The unvarnished truth Anthony
Humanity: Zero chance of survival Anthony
RTE gives balance – accidentally? Anthony
Public Inquiry >>
A Blog About Human Rights
UN human rights chief calls for priority action ahead of climate summit Sat Oct 30, 2021 17:18 | Human Rights
5 Year Anniversary Of Kem Ley?s Death Sun Jul 11, 2021 12:34 | Human Rights
Poor Living Conditions for Migrants in Southern Italy Mon Jan 18, 2021 10:14 | Human Rights
Right to Water Mon Aug 03, 2020 19:13 | Human Rights
Human Rights Fri Mar 20, 2020 16:33 | Human Rights
Human Rights in Ireland >>
Nick Hudson Coming to London ? Get Tickets Now Tue May 17, 2022 18:00 | Will Jones
Nick Hudson of PANDA is coming to London on Thursday May 26th to deliver ?The Quest for Open Science?, after which he will be interviewed by Jeffrey Peel from the New Era and take questions from the audience.
The post Nick Hudson Coming to London ? Get Tickets Now appeared first on The Daily Sceptic.
Don?t Panic Mr Monkeypox! Social Distancing Returns Due to New Viral Panic Tue May 17, 2022 16:53 | Toby Young
At least one medical practice in West London has reintroduced social distancing to reduce the risk of patients contracting Monkeypox. This, in spite of the fact that there are only nine cases so far in the U.K.
The post Don’t Panic Mr Monkeypox! Social Distancing Returns Due to New Viral Panic appeared first on The Daily Sceptic.
Are All Britain?s Current Woes Traceable to a Group of Entitled ?Tory Toffs? at Oxford in the 1980s? Tue May 17, 2022 13:00 | Toby Young
Simon Kuper's book about how a small group of 'Tory Toffs' who were at Oxford in the 1980s masterminded the Brexit project to reclaim their aristocratic birthright is highly entertaining, but not convincing.
The post Are All Britain’s Current Woes Traceable to a Group of Entitled ‘Tory Toffs’ at Oxford in the 1980s? appeared first on The Daily Sceptic.
Forget Science ? Climate Now Has a Central Role in The Culture Wars Tue May 17, 2022 11:26 | Chris Morrison
You might think that if you debunk patently silly extreme weather claims, the entire fear agenda will go away. Think again. Climate change is now firmly embedded in the culture wars surrounding race, identity and gender.
The post Forget Science ? Climate Now Has a Central Role in The Culture Wars appeared first on The Daily Sceptic.
Would the U.S. Side With Ukraine?s Far-Right Against Zelensky? Tue May 17, 2022 10:10 | Noah Carl
Why didn't the US back Zelensky? The New York Times wrote earlier this year that his government could be overthrown by far-right groups if he ?agrees to a peace deal that in their minds gives too much to Moscow?.
The post Would the U.S. Side With Ukraine?s Far-Right Against Zelensky? appeared first on The Daily Sceptic.
Lockdown Skeptics >>
The leveraged buyout, exploitation and punishment beating of Greece as warning to others.
Thursday May 11, 2017 11:45 by 1 of indy
Many people still don't fully understand why events transpired the way they did during our financial crisis, but this analysis by Michael Hudson reproduced here serves to clearly outline how and why we ended up where we did. The interview is concerned with the greek situation with but the behaviours involved in "loaning to exploit" described in the interview are clearly recognisable from our own experiences.
[I'm reproducing this real news network interview as not only is it a clearly illustrative analysis of the way the system works to shake down vulnerable countries (by a respected economist) but it is also of particular relevance to the present financial predicament of Ireland as well as Greece - ed]
Sharmini Peries: It’s the Real News Network. I am Sharmini Peries coming to you from Baltimore. The European Commission announced on May 2, that an agreement on Greek pension and income tax reforms would pave the way for further discussions on debt release for Greece. The European Commission described this as good news for Greece. The Greek government described the situation in similar terms. However, little attention has been given as to how the wider Greek population are experiencing the consequences of the policies of the Troika. On May Day thousands of Greeks marked International Workers Day with anti-austerity protests. One of the protester’s a 32-year-old lawyer perhaps summed the mood, the best when he said …
Speaker 2: “The current Greek government, like all the ones before it, have implemented measures that has only one goal, the crushing of the workers, the working class and everyone who works themselves to the bone. We are fighting for the survival of the poorest who need help the most.”
Sharmini Peries: To discuss the most recent negotiations underway between Greece and the TROIKA, which is a European Central Bank, the EU and the IMF, here’s Michael Hudson. Michael is a distinguished research professor of Economics at the University of Missouri, Kansas City. He is the author of many books including, “Killing the Host: How Financial Parasites and Debt Bondage the Global Economy” and most recently “J is for Junk Economics: A Survivor’s Guide to Economic Vocabulary in the Age of Deception”. Michael it’s been a while, good to have you back.
Michael Hudson: Good to be here.
Sharmini Peries: Michael, let’s start with what’s being negotiated at the moment.
Michael Hudson: I wouldn’t call it a negotiation. Greece is simply being dictated to. There is no negotiation at all. It’s been told that its economy has shrunk so far by 20%, but has to shrink another 5% making it even worse than the depression. Its wages have fallen and must be cut by another 10%. Its pensions have to be cut back. Probably 5 to 10% of its population of working age will have to immigrate.
The intention is to cut the domestic tax revenues (not raise them), because labor won’t be paying taxes and businesses are going out of business. So we have to assume that the deliberate intention is to lower the government’s revenues by so much that Greece will have to sell off even more of its public domain to foreign creditors. Basically it’s a smash and grab exercise, and the role of Tsipras is not to represent the Greeks because the Troika have said, “The election doesn’t matter. It doesn’t matter what the people vote for. Either you do what we say or we will smash your banking system.” Tsipras’s job is to say, “Yes I will do whatever you want. I want to stay in power rather than falling in election.”
Sharmini Peries: Right. Michael you dedicated almost three chapters in your book “Killing the Host” to how the IMF economists actually knew that Greece will not be able to pay back its foreign debt, but yet it went ahead and made these huge loans to Greece. It’s starting to sound like the mortgage fraud scandal where banks were lending people money to buy houses when they knew they couldn’t pay it back. Is it similar?
Michael Hudson: The basic principle is indeed the same. If a creditor makes a loan to a country or a home buyer knowing that there’s no way in which the person can pay, who should bear the responsibility for this? Should the bad lender or irresponsible bondholder have to pay, or should the Greek people have to pay?
IMF economists said that Greece can’t pay, and under the IMF rules it is not allowed to make loans to countries that have no chance of repaying in the foreseeable future. The then-head of the IMF, Dominique Strauss-Kahn, introduced a new rule – the “systemic problem” rule. It said that if Greece doesn’t repay, this will cause problems for the economic system – defined as the international bankers, bondholder’s and European Union budget – then the IMF can make the loan.
This poses a question on international law. If the problem is systemic, not Greek, and if it’s the system that’s being rescued, why should Greek workers have to dismantle their economy? Why should Greece, a sovereign nation, have to dismantle its economy in order to rescue a banking system that is guaranteed to continue to cause more and more austerity, guaranteed to turn the Eurozone into a dead zone? Why should Greece be blamed for the bad malstructured European rules? That’s the moral principle that’s at stake in all this.
Sharmini Peries: Michael, The New York Times has recently published an article titled, “IMF torn over whether to bail out Greece again.” It essentially describes the IMF as being sympathetic towards Greece in spite of the fact as you say, they knew that Greece could not pay back this money when it first lent it the money with the Troika. Right now, the IMF sounds rational and thoughtful about the Greek people. Is this the case?
Michael Hudson: Well, Yanis Varoufakis, the finance minister under Syriza, said that every time he talked to the IMF’s Christine Lagarde and others two years ago, they were sympathetic. They said, “I am terribly sorry we have to destroy your economy. I feel your pain, but we are indeed going to destroy your economy. There is nothing we can do about it. We are only following orders.” The orders were coming from Wall Street, from the Eurozone and from investors who bought or guaranteed Greek bonds.
Being sympathetic, feeling their pain doesn’t really mean anything if the IMF says, “Oh, we know it is a disaster. We are going to screw you anyway, because that’s our job. We are the IMF, after all. Our job is to impose austerity. Our job is to shrink economies, not help them grow. Our constituency is the bondholders and banks.”
Somebody’s going to suffer. Should it the wealthy billionaires and the bankers, or should it be the Greek workers? Well, the Greek workers are not the IMF’s constituency. It says: “We feel your pain, but we’d rather you suffer than our constituency.”
So what you read is simply the usual New York Times hypocrisy, pretending that the IMF really is feeling bad about what it’s doing. If its economists felt bad, they would have done what the IMF European staff did a few years ago after the first loan: They resigned in protest. They would write about it and go public and say, “This system is corrupt. The IMF is working for the bankers against the interest of its member countries.” If they don’t do that, they are not really sympathetic at all. They are just hypocritical.
Sharmini Peries: Right. I know that the European Commission is holding up Greece as an example in order to discourage other member nations in the periphery of Europe so that they won’t default on their loans. Explain to me why Greece is being held up as an example.
Michael Hudson: It’s being made an example for the same reason the United States went into Libya and bombed Syria: It’s to show that we can destroy you if you don’t do what we say. If Spain or Italy or Portugal seeks not to pay its debts, it will meet the same fate. Its banking system will be destroyed, and its currency system will be destroyed.
The basic principle at work is that finance is the new form of warfare. You can now destroy a country’s economy not merely by invading it. You don’t even have to bomb it, as you’ve done in the Near East. All you have to do is withdraw all credit to the banking system, isolate it economically from making payments to foreign countries so that you essentially put sanctions on it. You’ll treat Greece like they’ve treated Iran or other countries.
“We have life and death power over you.” The demonstration effect is not only to stop Greece, but to stop countries from doing what Marine Le Pen is trying to do in France: withdraw from the Eurozone.
The class war is back in business – the class war of finance against labor, imposing austerity and shrinking living standards, lowering wages and cutting back social spending. It’s demonstrating who’s the winner in this economic warfare that’s taking place.
Sharmini Peries: Then why is the Greek population still supportive of Syriza in spite of all of this? I mean, literally not only have they, as a population, been cut to no social safety net, no social security, yet the Syriza government keeps getting supported, elected in referendums, and they seem to be able to maintain power in spite of these austerity measures. Why is that happening?
Michael Hudson: Well, that’s the great tragedy. They initially supported Syriza because it promised not to surrender in this economic war. They said they would fight back. The plan was not pay the debts even if this led Europe to force Greece out of the European Union.
In order to do this however, what Yanis Varoufakis and his advisors such as James Galbraith wanted to do was say, “If we are going not to pay the debt, we are going to be expelled from the Euro Zone. We have to have our own currency. We have to have our own banking system.” But it takes almost a year to put in place your own physical currency, your own means of reprogramming the ATM machines so that people can use it, and reprogramming the banking system.
You also need a contingency plan for when the European Union wrecks the Greek banks, which basically have been the tool of the oligarchy in Greece. The government is going to have to take over these banks and socialize them, and use them for public purposes. Unfortunately, Tsipras never gave Varoufakis and his staff the go ahead. In effect, he ended up double crossing them after the referendum two years ago that said not to surrender. That lead to Varoufakis resigning from the government.
Tsipras decided that he wanted to be reelected, and turned out to be just a politician, realizing that in order to he had to represent the invader and act as a client politician. His clientele is now the European Union, the IMF and the bondholders, not the Greeks. What that means is that if there is an election in Greece, people are not going to vote for him again. He knows that. He is trying to prevent an election. But later this month the Greek parliament is going to have to vote on whether or not to shrink the economy further and cut pensions even more.
If there are defections from Tsipras’s Syriza party, there will be an election and he will be voted out of office. I won’t say out of power, because he has no power except to surrender to the Troika. But he’d be out of office. There will probably have to be a new party created if there’s going to be hope of withstanding the threats that the European Union is making to destroy Greece’s economy if it doesn’t succumb to the austerity program and step up its privatization and sell off even more assets to the bondholders.
Sharmini Peries: Finally, Michael, why did the Greek government remove the option of Grexit from the table in order to move forward?
Michael Hudson: In order to accept the Eurozone. You’re using its currency, but Greece needs to have its own currency. The reason it agreed to stay in was that it had made no preparation for withdrawing. Imagine if you are a state in the United States and you want to withdraw: you have to have your own currency. You have to have your own banking system. You have to have your own constitution. There was no attempt to put real thought behind what their political program was.
They were not prepared and still have not taken steps to prepare for what they are doing. They haven’t made any attempt to justify non-payment of the debt under International Law: the law of odious debt, or give a reason why they are not paying.
The Greek government has not said that no country should be obliged to disregard its democratic voting, dismantle its public sector and give up its sovereignty to bondholders. No country should be obliged to pay foreign creditors if the price of that is shrinking and self destruction of that economy.
They haven’t translated this political program of not paying into what this means in practice to cede sovereignty to the Brussels bureaucracy, meaning the European Central Bank on behalf of its bondholders.
Sharmini Peries: All right Michael, we will keep an eye on this. It looks like it’s going to get more heated in Greece. At least the people and the movements are planning to protest this new deal. I thank you so much for joining us and I hope you can join us again. I understand you are on your way to Greece in a few weeks and we’ll be expecting a report back from you about what you find there. Thank You.
Michael Hudson: Thanks for having me on.
Sharmini Peries: Thank you for joining us here on the Real News Network.
Note: Wikipedia defines Odious debt:
“In international law, odious debt, also known as illegitimate debt, is a legal doctrine that holds that the national debt incurred by a regime for purposes that do not serve the best interests of the nation, should not be enforceable.”
Michael Hudson is President of The Institute for the Study of Long-Term Economic Trends (ISLET), a Wall Street Financial Analyst, Distinguished Research Professor of Economics at the University of Missouri, Kansas City and author of J is Junk Economics (2017), Killing the Host (2015), The Bubble and Beyond (2012) http://michael-hudson.com
Greece Passes New Austerity for New Loans, The Real New Network, May 6, 2017.