Greece Votes “No” to Proposed Bail-out

So, the People of Greece have voted “No” to the bail-out proposals. If history is anything to go by, what will now happen is that some minor amendments will  be made and there will be another referendum in a few weeks time. That is what happened re the Mastrich Treaty and what happened in Ireland. However, there is a possibility that this event is different. I’m not sure, but I would say that the Greek People have given their government instructions to refuse further ‘austerity’, since it is this very austerity which is holding back growth.

But to be perfectly honest, I haven’t the foggiest idea what has been going on. Greece hosted the Olympic Games. Everyone made fortunes except Greece, which was left with a mountain of debt. How can that be?

What I find to be astonishing is the ease with which these debts are created. What we have been seeing is the aftermath of a tsunami of debt creation. For what purpose were the debts created? Were they to build roads? Were they to build hospitals? Were they to pay for the import of Daimler buses which had been made in Germany?

Or were they to pay for excessive pension provisions, shortfalls in tax revenues, smoking ban implementation, etc? It is a strange sort of bribe which turns out to be a loan with interest.

Has Greece learnt from the Cyprus debacle?  Do you remember that? Something very similar happened there. The Cypriot government over-borrowed and fell into difficulties. The EU solution was that bank account owners had to take a ‘haircut’ (lose, say, 10% of their deposits). There was hell to pay. But the Cypriot government had to accept because the run on the banks and their own perilous financial situation meant that they could not pay staff wages or pensions unless they agreed.

Did the EU Elite deliberately contrive these situations by tempting governments like Cyprus, Greece, Spain, Portugal, and, to some extent, Italy, to take on loans which they could only service via continuing growth (and, possibly, deflation of the real value of money)? Here is a quote:

Europe will be forged in crises, and will be the sum of the solutions adopted for those crises.”
(EU founding father Jean Monnet)

Do you see? Suppose that the Cypriot crisis was deliberately contrived by overgenerous lending. When the shit hit the fan, a crisis occurred. The EU Elite solved the crisis by taking just a little more power over the Cyprus government. Greece seems to be in the same position. It was tempted to take loans. It cannot repay even the interest. The government cannot pay pensions and staff because it has no euros. Another loan is required, but that will not be granted unless a little more freedom is relinquished. What freedom? Well, it could be acquiescence with EU Health Policies. How do we know since negotiations are secret?

What was to me a real eye-opener is the ease with which the FCTC meeting in Moscow was closed to public visibility. That was a real eye-opener. It is reasonable to assume that secrecy is normal in these publicly funded organisations.

There may well be a host of conditions attached to the loans, for all we know.

But the secrecy can work both ways. For all we know, the Greek government may have agreed some sort of arrangement with Putin’s Russia. The Chech Republic is in the EU but uses its own currency – the corona. Heavens! The UK is in the EU but has its own currency. Why should not Greece revert to the drachma, for heaven’s sake? When I went to Prague, the hotel I stayed it was quite comfortable with the idea of accepting euros in payment, at a given rate of exchange. Shops also were comfortable with that idea. Why should they not be? And why is the UK so abnormal in that it does not automatically accept euros in payment at a given exchange rate? Are we backward, or something?

Why did Cameron permit the PP legislation to go through in such a rush at the last minute? Would that have happened if the policy was about school dinners? It can only be that PP was of no importance at all. Cameron tossed a scrap to the health zealots to shut them up, but it did not matter one iota. It is like hospitals having dozens of “No Smoking” signs on the outside of the hospital buildings. No one gives a toss. The hype about banning smoking on hospital grounds is just hot air – hospitals have had “No Smoking” signs all over the outside for ages.  No one takes any notice. Why doesn’t the government pass a law that smoking is banned outdoors on hospital grounds with huge fines for hospitals which do not enforce the ban?

Why do we smokers not have ‘possès’ (small groups of volunteers) to call these illegal demands out? The reason is that we ought not to have to have such ‘possès’. It is like having roaming smokers on a beach where smoking is banned. It makes no sense, since nothing positive can come from it.

Defiance has to take a different form. I hope that the Greek defiance is not just a chess-like ploy – swap a pawn for a pawn. I hope that the Greek defiance is deeply entrenched in a wish not to be slaves of the EU Empire.

The Southern ‘States’, Spain, Greece, Portugal, Italy, have something which the rest of us have not. They have year-round pleasant weather almost all of the time. They need not pay vast amounts of money for central heating, which they might only use for a couple of weeks in the depths of winter. They can sit outside almost all year round and enjoy the sun. I have observed that many Spanish people are particularly fond of bread and vegetation as a staples of their diet. They seem less inclined towards sausages, fried bacon and such. There is no place for the nonsense of ‘dieticians’. Instead, hospitals provide superb cancer treatments and such.

 

Does the EU have a future?

Not as it is currently constituted. It needs to be completely broken up. It is stupidly costly, elitist, and interfering.

However, if States made it their business to rein back the control exerted by “EXPERTS”, there might be a chance that EU nations could adopt common ideals over time. Thus, rather than Hollande, French PM, interfering with Greece, he might stop thousands of ‘migrants’ milling about around Calais. The simple solution would be to move the camps, with English agreement, to Jersey or somewhere similar. That is, an island which is halfway between. There, these people could be given work and contribute to the economy. They could be offered transit to similar camps in the Outer Hebrides or to South Georgia, where they could make a real contribution. Or, perhaps, to Siberia, with Russian permission. Siberia is almost a continent, desperate to be opened up just as the wild west of America was. The influx of North African youths would surely jump at the chance to be pioneers in Siberia.

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Thus, it is apparent that the EU is a ‘fair weather’ apparition. Should we be surprised that the Elite cannot cope with adversity other than to create further adversity?

Further, should we be surprise that the UN, the WHO, the IMF, the World Bank are all conceived as ‘perfect’? We should not be surprised since they are the creatures of The Elite.

If the UK is not careful, it too will become a Greece. Its carcase will be picked over by the vultures of the EU Elite, just as Cyprus and Greece are being pecked for every morsel of nourishment for Global Wealth.

Communism failed, and rightly so, since it reduced individuals to cyphers. The EU is Communism by another name. And yet, if it were not constituted on typical economic lines (which could have been left to the Common Market), it could have been a force for unity of European peoples. That is, that the xenophobic fears could have been assuaged. Instead, the EU is making them worse.

The EU is badly constituted. It it was up to me (!), I would start all over again. I would place the EU headquarters in Iceland. I would place the UN headquarters in Siberia. I would place the WHO headquarters in Somalia. I would place the Security Council headquarters in Libya. I would place the FCTC headquarters in the Antarctic.

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The really, really important thing is that the People of Greece must hold firm. If, in their understanding, people can retire a 55 and get a pension, then they must accept the consequences. Those consequences need not be burdensome, provided that the level of pension is low. Further, it is not unlikely that pensioners will work to increase their income beyond the minimum provided by the pension. It is not for the State to interfere in such circumstances.

Greece can sort itself out. What is most important is that The Elite in the EU must be stopped from milking the People. Thus, Greece, if it remains in the EU, must demand absolute disclosure of costs, bribes, back-handers, ‘quid pro quo’s, relationships between World Bank, EU Central Bank, IMF, and demand to know to what extent those organisations act in areas which are not really within their competence. For example, what role has the World Bank in sending men to the Moon? I would suspect that the answer is ‘None’, and yet the World Bank seems to have been infiltrated by anti-smoking zealots.

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How can the UN, World Bank, IMF, International Settlements Bank, EU Central Bank, etc, etc, be reformed? They cannot. They must be abolished. They must be replaced without Fanatics being on their boards. The activities of humans create the banks, and not the other way round. The other way round is slavery.

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5 Responses to “Greece Votes “No” to Proposed Bail-out”

  1. cherie79 Says:

    I agree with every word but unfortunately I can’t see how it will happen without some disaster precipating it.

  2. smokingscot Says:

    I agree with the main thrust of your argument Junican.

    It’s with your interpretation of the the Cyprus bail-in where I really must clarify.

    Cyprus the State was not and still isn’t the problem. The State of Cyprus is actually reasonably well managed and they’re far too small to go with grand plans and such.

    The problem was the two main banks in Cyprus. Laiki and Bank of Cyprus. They were so good at lending that their assets hit 827% of the GDP of Cyprus.

    http://www.ceicdata.com/en/press/lack-diversification-and-huge-banking-sector-sank-cypriot-economy

    So when the world crisis hit and many of their loans turned to mush, the Cyprus government was far to small to do as Brown did with our bad banks – nationalise them.

    Cyprus had no choice but to seek assistance from the EU. And then it was their intention to get money to tide over the offending banks until they could sort themselves out.

    Naive it may have been, but the EU more or less said they’d only stump up a certain percentage of what was needed and the rest had to be found internally.

    There have been swingeing tax hikes in Cyprus, really brutal things that hit VAT, vehicle road tax, tobacco and cigarettes, property, land, dividends and even deposit interest (up from 10% to 30% and let’s face it at 0.5% deposit interest, 30% tax is a big effing wallop).

    Those have gone largely unnoticed elsewhere. What people do remember is the “bail-in”. That only affected those who had accounts with Laiki Bank and had more than Euro 100,000 on deposit. They are likely to lose between 40 and 60% of their deposits, however they all have shares in the new Bank of Cyprus that’s the equivalent of their lost deposits (once that’s been worked out – “Bad Laiki” will take several years to fully liquidate).

    Only 4% of all customers in Laiki were affected and many were from Russia, Israel and a certain individual from Malta (I believe). And the Cyprus government offered free Cyprus passports to every foreign depositor who had more than Euro 3 million on deposit.

    (To many Russians that alone was well worth the short term loss).

    Laiki Bank was closed, split into Bad Laiki and Good Laiki and the good bit was amalgamated with B of C.

    B of C shares are currently suspended and the bank has reported back to back losses since 2013.

    The real problem is there was no law to allow the bank to take back property where the loan had become delinquent. That law was finally passed in April or May of this year with certain caveats: essentially it allows the bank to repossess property that’s not occupied by the owner, but makes it very difficult for them to do so if it’s a genuine family home.

    It’s not everything the Chairman of the B of C wanted (he happens to be an Irishman by the way), but it’s a start.

    Lots of other things have changed because of the Troika, but I re-emphasise it’s never been about the State of Cyprus, rather it’s to meet their debt repayments.

    They’ve discovered viable quantities of gas offshore in Cyprus and the plan is to pipe that to Egypt where they can liquify it. All going well, within three years Cyprus will be exporting the stuff, probably to the EU and within five years will have a significant budget surplus.

    One thing I must add is what actually started all the balance sheet problems is both Laiki and B of C had very large amounts invested in Greek bonds, so it was the Greek haircut that really precipitated the whole fiasco. Why did they have so many bonds, because they were good well managed banks?

    They were pressured to take these bonds from German banks is why.

    (I believe that when trading eventually starts with B of C, we’ll see a scenario that’s very similar to Lloyds Bank in the UK. That won’t help the many older people who lost most of their savings but under the circumstances the State of Cyprus has been reasonably considerate).

    • junican Says:

      Thanks for that, SS. I must admit that I had forgotten almost all the detail of the Cyprus event. I do remember (I hope!) that the EU originally wanted ALL account holders to suffer a haircut, but the Cyprus parliament would not pass the law with that proviso. It only agreed when a limit was agreed.
      I seem to remember that the Cypriot Banks had attracted lots of deposits by paying rather high rates of interest. When depositors wanted their money back, the banks could not oblige. When they called for assistance, the haircut was the price that had to be paid. Well, something like that!

  3. Sike Says:

    i believe that a lot of that a lot of the original debt came from buying weapons from Germany and maybe France and then that was swirled around and nurtured by banks into an un-payable debt

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