fredag 17 februari 2012

The loan sharks are now beating up a poor viktim as an example for all the others

Greece now is entering in to a phase of what only can be characterized as extreme austerity. The Greeks are now function on more or less a day by day basis, after having been financially depressed down to a mere survival mode.
Seems totally insane as well as completely illogical as you try to make someone already technically bankrupt and financially totally depressed by extensive over in debt ness take on even more debt while at the same time forcing them to save even more.

If you really want to make a future for these people well then you need first of all to clear off all debt so that you may be able from there to then grow your way out of misery. With an already extensive debt situation getting on even more debt and try to save your way out of your dilemma is not a viable method to solve the issue.

The real underlying problem in fact is not the Greek over in debt ness but that the large worldwide banks in fact already are insolvent and thus technically bankrupt and only made to keep on surviving due to extensive creative bookkeeping measures.

What they then clearly cannot cope with is a default of a country and this then would make it utterly impossible to further delay the unavoidable – a bankruptcy of what in fact is most of our financial system as we know it.

Now if Greece is forced to sell out all its assets well then these insolvent financial institutes will be able to try to exchange what in fact is their toxic waste of humongous and totally, completely valueless paper assets (e.g. Derivatives junk)and replace this with real tangible stuff like e.g. Greek airports, subways, electric grid, water- and sour system etc. Stuff that in fact may also provide some cash flow and earning capacity. So take over the electric grid then hike prices and you may make some money and have som actual wealth in you books as a change for the paper junk you had before.

So clearly that then one drivers behind what’s now going on as all of the earlier publicly owned assets now and as we speak are being transferred to private hands. Shame then for the bank there is one challenge in all of this and that's the people living in Greece that somehow and in a totally wrecked economy somehow then must survive, one way or the other.

As long as there is no real threat to this privatization process it will go on in what then can be described as a chicken race. Grab as much as you can for as long as you can and keep at it until it really is no way you can continue e.g. the host really has no oxygen or blood left in is body. You know even a parasite needs it’s host and somewhere along the line killing it off completely may in fact be contra productive. But until then expect no mercy and expect no forgiveness (in this case debt forgiveness).

Second issue here is that as this already today insolvent finance sector had been forced to take the hit it may survive the blow from a small economy like Greece. But rest assured if Greece will default and is able to get away with it then Ireland will see this also as the only logical next step, as will Portugal, as will Italy as will Spain. There is no way the financial secort will be able such an avalance of defaults.

So now by blocking Greece from defaulting and in the meantime trying to ring fence the negative outcome of a possible Greek default (inevitable) the banks are hoping they will be able to in the meantime not only reduce the risks but also trade of some of their paper junk to real cash flow real worth stuff.

Then when actually Greece defaults as it then becoming evident for all it may not survive at all other vice the indeed chilling message to all other over in debted countries will be “sure you can default but don’t you dare think of it or well totally wreck your economy like we did Greece”.

That’s the way loan sharks go about their business by stating an example beating up a failing lender in front of other possible debt challenged individuals. The real question is why on earth are the, by the people elected politicians in e.g. Germany, in France, in the UK and USA, to this extent trying to save a financial system that anyway cannot be saved?

What’s really in it for them promoting the interests of the finance industry and by doing so clearly then working against the will and what’s best for the people that acually elected them in the first place? Bottom line - who really are our politicians working for?

Mind you all of what now is going on is made possible in the name of democracy. Clearly then this proves how democracy has become just another spin word for oligarchic interest as publicly owned and paid for property is transferred to the private few as we speak.

What is needed in fact is not democracy buy real rule of law! Re-regulatio of the fianancial markets, remove the banks ability to create money and removing the Maastricht Clausul restriction on Central Banks thus allowing them to issue a soverig states own money without any interest.

In short whats needed now is rule of law and a monetary reform. Democracy however without it is something you can store in what then will become a historical dust bin of feodalistic fachisem.

Iceland Did ‘The Right Thing" Defaulting

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