BROUGHT TO THE FRONT FOR REASONS OF TOPICALITY. THE NORTHERN HEMISPHERE BANKS ARE OUR GREATEST THREAT NOW. IN A MORE SLIPPERY WAY THAN FORMER ENEMY COMBATANTS. TAKEN AS A WHOLE THEY ARE EVERY BIT AS MUCH OF A THREAT AS THE SOVIET UNION ONCE WAS.
Greece ought to handle its debts just like the rest of us ought to handle our debts:
Greece ought to freeze its outstanding bonds in their current ownership. Tell everyone who sells them that they will be worthless if they do. Then start paying them out in this order:
Except when they get to the governments and banks they ought to pay them out maybe five to fifteen cents in the dollar and freeze interest from day one. Also from day one they ought to have governments, local and national, and any type of government authority at all, never borrowing money. Always paying off money. Never using debt again.
The individuals have saved to buy those bonds. They deserve to be paid back.
But the banks and governments have not saved to buy those bonds. They do not deserve to be paid back 100 cents in the dollar. Because it wasn’t the Greek people that borrowed that money. It was Greek politicians buying votes, largely from the public sector. The bankers had no business lending the money. They could see that they were subsidising chronic ill discipline in the Greek budgets. And they weren’t subsidising them only with clients money. They weren’t subsidising them only with their own money. Some of this money was ponzied up through bank-cash-pyramiding.
When the other Governments are saying they will help Greece out they are not helping Greece. They are conspiring to hurt both Greece and their own people. It is yet more bank subsidies for incompetent bankers. The politicians steal money off their people, or produce more money out of nothing, and then pay off Greeces debts. But “pay off Greece’s debt” means one thing and one thing only. It means give the banks more money.
We have got to get angry about the constant subsidising of this rent-seeking banking industry. And we’ve got to be a bit wary of their influence. “How many divisions does the Pope have” said Stalin. But Stalin was underestimating one form of influence. And we may be underestimating the collective influence of bankers, across the world. Since for some matters, they really do act like they are all one giant corporation. “Satanic” corporation some would say.
If you think the banks surely don’t have that much influence, then how is it when we hear of Western Europe talking about helping the Greeks with their debts, we don’t see it for what it is? Its paying money out to the banks for no reason. Stealing resources off Joe Europe and giving those resources to bankers.
In general the idea is to 1. Get into universal surplus first. 2. Call a freeze on trading your bonds. 3. Quickly pay out individuals out of your strong surpluses. Or at least quickly pay everyone up to a level which means you haven’t put any individual in trouble.
4. Pay out companies but only slowly. 5. Pay the rest out later. And at zero interest and maybe 5-15c on the dollar. Any static means that months cheque doesn’t show up.
We’ve got to send a message. You cannot just ponzi up money out of thin air, tempt individuals to get their country in debt, and expect that the rest of us recognize that you now have the full value of the money you have ponzied up out of nothing.
Perkins has blown the lid on this behaviour in his confessions of an economic hitman. Those days have to be over. The people who borrow the money are not the ones who are expected to pay it back. This is unacceeptable and its never going to be acceptable.