The debate could be made that Greece should never have adopted the EU's single currency (euro); that they were doomed from the start! Their economic output and policies did not meet the EU's prerequisites. Both sides overlooked the greek weaknesses in their enthusiasm to include Greece as one more adopter of the euro's single currency policy.
The downfall of Greece was made much worse by the actions of the IMF and global financial institutions.
The IMF used Greece as an example to their ways of inflicting hardship and austerity in deals that can never help the borrower but rather hasten it's demise with unattainable targets and 'looting' of its assets by forcing the sale of national treasures and national profit-making corporations. After a number of cash injections into the greek coffers, the IMF clamped down with repayment plans that forced Greece to sell profit-making assets like airports, national treasures and lands in order to raise quick cash to meet IMF repayment schedule. No entity would buy money-losing assets so Greece is now in a worse predicament to honor future repayments.
The global financial institutions saw in Greece an opportunity for profits, a business transaction. Goldman Sachs and others played the derivatives 'game' and credit-swaps 'game' with Greece. This high-stakes game further leverages the weak player [Greece in this case] and benefits the financiers. Greece played along to appear to have a better financial position than it truly had and the banks gladly dealt the cards as they are the profit makers of any credit agreement.
The recipients of the 2nd and 3rd bailout funds given to Greece were not greek institutions. The monies did not go into Greece to help restart their economy, did not go to Greece to help it rollout recovery plans. The funds from the later greek bailouts went to the out-of-country creditors [the global financiers] who had advanced funds to Greece and now were owed substantial interest payments.
At one point, banks were closed for over a week and depositors could not access funds. More austerity was imposed on the greek citizens by imposing strict banking withdrawal limits at 60 euro per person per day. The intent is to prevent the drying up of bank funds. An unintended (or is it intended) consequence is further stifling their economy and preventing the consumer from contributing to its growth by curbing money velocity (rate at which money exchanges hands in spending: more spending = higher velocity=improved economy). Another effect of all that has happened in Greece is the move away from using financial institutions and keeping money 'under the mattress'.
The vultures (global financial groups: IMF, Goldman, etc) saw as an opportunity to exploit Greece and the plan started well before 2001.
The correct action with Greece would have been to let Greece declare bankruptcy back in 2010 before bailouts, issue NO bailout money and enact a bankruptcy repayment plan amortized over decades. That ethical solution would not have benefitted the banking group so it was never really on the table as an option. The solution of injecting more and more money has decimated Greece and benefitted global financial institutions. It is similar to assuming a drug addict will cure himself if the drug dealer provides him with more and more drugs while the drug dealer literally repossesses the addict's possessions until nothing is left.
To the observer, this scenario is being setup and replayed in industrialized countries all around the world. Nations, businesses and individuals are living on credit. Sovereign governments risk their sovereignty with debt ratios that exceed GDP. The global financiers are poised to take advantage and repeat their greek playbook elsewhere. Next time though, it will involve larger economies and it will devastate more countries in a domino effect.
To the wise, observe the decimation of Greece and take steps to avoid being a victim when your country is targeted. Reduce debt exposure, keep some cash on hand at all times, allocate at least 10% of assets to physical bullion (gold & silver rounds or bars) and keep it where you can physically access it.
Greece debt crisis: timeline
EU, IMF agree $147 billion bailout for Greece
How Goldman Sachs Profited From the Greek Debt Crisis
Greece stands on the brink of bankruptcy
Greeks are going to be furious when the government chops up the country for a fire sale
Greece, Missing I.M.F. Payment, Is Called Effectively in Default
Greece Shuts Banks, Limits Daily ATM Withdrawal to 60 Euros
Greek Deposits Become Eligible For Bail-In On January 1, 2016
Greece debt crisis: Eurozone summit strikes deal
Book of Truth prophecy:
These people will now control each of you through a global currency and your country’s indebtedness. No country will escape their clutches.1
- February 18th, 2012
Watch now, as European countries succumb to dictatorship, no better than the days of Hitler.
The plans are in place by the world group to take over each country in Europe.
Greece will be the catalyst, which will provide the excuse to bring down Babylon.2
- February 18th, 2012
Your banking system will be the cause and Germany, once again, will be involved in this tragedy as it was on the last two occasions.
When it commences, much will be over saving the economy, and catastrophe will affect Greece3
- May 16th, 2012
References & links: