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Is the Plan to Actually Have Greece Fail?

COMMENT: Pon­der­ing the con­tin­u­ing euro­zone mess and the enslave­ment of Greece [1], one won­ders if indeed the bailout(s) are designed to fail. The Finan­cial Times arti­cle below fea­tures com­men­tary from one observ­er who won­ders about that pos­si­bil­i­ty. (Kudos to “Pter­rafractyl” for research­ing that one for us.)

Cer­tain­ly, the plans to slash wages will inevitably depress the Greek econ­o­my [2] still fur­ther. The pro­posed [manda­to­ry] reduc­tion in spend­ing on med­ical care and phar­ma­ceu­ti­cals will inevitably effect a qua­si-eugen­ics pro­gram, in which the elder­ly and infirm will be culled from the herd.

This is a way of effect­ing a Nazi-style purge of Greek soci­ety, and doing so dur­ing a von Clause­witz­ian-style “post-war.”

(As we have seen in the past, the Nazi eugen­ics laws [3] and pro­grams were not only derived from intel­lec­tu­al schools regard­ed with great favor in the U.S. and U.K. [among oth­er places], but the pro­grams the Third Reich imple­ment­ed were cel­e­brat­ed by Amer­i­can and British intel­lec­tu­als.)

“Athens Told to Change Spend­ing and Tax­es” by Peter Spiegel,  Ger­rit Wies­mann and Ker­rin Hope [Finan­cial Times]; CNBC.com; 2/24/2012. [4]

. . . . “The pro­gram is much, much more ambi­tious than eco­nomic reform,” said Mujta­ba Rah­man, Europe ana­lyst at the Eura­sia Group risk con­sul­tancy. “This is state build­ing, as typ­i­cally under­stood in tra­di­tional low-income con­texts.” . . .

. . . .Among the mea­sures that must be com­pleted in the next sev­en days are reduc­ing state spend­ing on phar­ma­ceu­ti­cals by 1.1 bil­lion euros; com­plet­ing 75 full-scale audits and 225 val­ue added tax audits of large tax­pay­ers; and lib­er­al­is­ing pro­fes­sions such as beau­ty salons, tour guides and diet cen­tres. . . .

. . . . Mr Rah­man said the scale and the speed of the reforms demand­ed raised ques­tions about whether scep­ti­cal euro zone lenders were set­ting up Greece to fail some­time with­in the next year.

“Even if one under­stands the polit­i­cal imper­a­tive, the pro­gram is being set up to fail as many of the tar­gets will be impos­si­ble to achieve,” he said. . . .

COMMENT: It appears that some cir­cles in Ger­many (and in some of the major finan­cial hous­es of Wall Street) are expect­ing the Greek bailout to fail and (at least in some cas­es) see­ing that as a good thing.

This rais­es more ques­tions than it answers, includ­ing the pos­si­bil­i­ty that some­one could make a great deal of mon­ey by buy­ing short on some­thing that would be expect­ed to plunge in val­ue if Greece defaults.

If a Greek default, per­haps in com­bi­na­tion with a Europe-wide reces­sion, were to send the U.S. econ­o­my into reces­sion, it would ben­e­fit the GOP can­di­dates. As we have seen in the past, the Repub­li­can par­ty is close­ly con­nect­ed to the Under­ground Reich and the post­war Nazi dias­po­ra.

The British and French are opposed to allow­ing Greece to go bank­rupt.

“Secret Ger­man Plans for Greece to Go Bank­rupt”; news.com.au; 2/20/2012. [5]

. . . . The rum­bling calls for Greece to face bank­rupt­cy come amid fears that even this lat­est bailout will not be enough to stop the nation sink­ing fur­ther into debt.

Hence the secret plans for bank­rupt­cy.

Offi­cials say Greece’s pub­lic debt will still be 129 per cent of GDP in 2020.

Con­cern about con­tin­u­al bailouts has also reached Wall Street with rumours cir­cu­lat­ing that banks are prepar­ing for a “cred­it event” soon after March 20 — that’s finan­cial jar­gon used by cred­it agen­cies to mean a default or in even sim­pli­er terms some­one unable to pay their bills.

March 20 is the dead­line for Greece to pay  €14.5bn to cred­i­tors.

Inside Ger­many there are deep divi­sions over whether to con­tin­ue to sup­port Greece.

Bavaria’s finance min­is­ter Markus Soder said the sta­bil­i­ty of euro as a world reserve cur­ren­cy is more impor­tant than Greece’s wel­fare.

“It would be bet­ter if Greece stepped out of the euro,” he said.

Last week BankingNews.gr, a Greek lan­guage busi­ness news site claimed that “the actu­al posi­tion of Ger­many is that Greece should go bank­rupt.” . . .

. . . . French pre­mier François Fil­lon said it was “utter­ly irrep­son­si­ble” to put the idea of a Greek default into play.

While Britain’s For­eign Sec­re­tary, William Hague, said it would be a tech­ni­cal night­mare if Greece is forced out of EMU.

“They don’t have the old cur­ren­cy sit­ting in the vaults ready to dis­trib­ute. It’s not straight­for­ward to leave the euro. It was built with­out exits,” he told the BBC’s Andrew Marr show.

But could the Greeks kick them­selves out of the Euro?

It’s entire­ly pos­si­ble. In April Greece goes to the polls and there’s a chance the hard Left Syriza par­ty could form gov­ern­ment. . . .