The banks and the euro have escaped immediate economic disaster after the Greek parliament today voted by a narrow margin in favour of privatisations and austerity measures mandated by the EU, IMF and ECB.
However, a fresh clash with the Greek parliament and people is preprogrammed when the Troika undertake their next review of Greece’s finances in September.
George Papandreou’s socialist government pushed through a €28bn package of drastic tax increases and budget cuts by 155 votes to 138 while protestors outside the parliament faced tear gas and even plastic bullets from riot police. Unions also staged a 48 hour strike.
Watch live stream of the protests at:
A vote is to be held tomorrow on enabling legislation to allow the sale to foreign corporations of Greek government assets by a special agency overseen by EU, IMF and ECB officials.
The passage of this legislation will clear the way for the next interest payment on the country’s astronomical national debt to be made to American, French and German banks in July.
Greek souvereign debt is set to rise to 170% of the GDP next year after IMF, EU austerity measures mandated in 2010 crushed the economy, and the new cuts will only deepen Greece’s dire economic situation.
Greece already has with the lowest credit rating in the world and is considered by rating agencies, bond markets and economists to be insolvent and not illiquid. But a recommendation to create an insolvency mechanism for over indebted eurozone countries such as Greece was buried by the German government in autumn 2010.
According to an IMF report, Greece is set to spend 131 billion euros on interest payments and refinancing on its national debt between 2009 and 2014 as part of the fiction that Greece is just illiquid.
But it is not just the Greeks who will be forced by their complicit governments to give money they cannot afford to the banks for engineered fractional-reserve banking debts.
The cost of the Greek bankster bailout is set to rise to 1,450 euros for each household in Europe, according to a report by Open Europe.
The Greek socialist government pushed through the austerity package demanded by the EU and IMF by fanning fears of bankruptcy after failing to take steps to prepare for an orderly insolvency of the country and in spite of the fact that the example of Argentina showed that a default, even a disorderly default, can return a country to rapid growth.
Only one PASOK lawmaker voted against the measures which will burden the poorest section of society with new “bank” taxes so brutal that Die Welt newspaper admitted they would lead to uprisings if implemented in Germany. All members of the main opposition conservative party voted against the package apart from one lawmaker.
In spite of the passage of the legislation, a default and the demise of the euro is almost certain given the economic facts, which will push people into resistance.
The IMF, EU and ECB are due to undertake their next review of Greece’s progress in implementing the austerity measures in September.
By that time the impact of savage salary cuts and job cuts, tax increases and spending cuts will begin to make itself felt, making even stiffer opposition from the people of Greece and unions to any further measures certain.
In addition, the staggering costs of the Greek bank bailout will become clearer to eurozone taxpayers, especially German tax payers, it will become clear there is no end in sight to the bailouts.
“Even if Greece gets its bailout and its economy rebounds, the government would have to run a budget surplus, excluding debt-service costs, of 5 percent of GDP for about three decades to bring down debt to the 60 percent maximum allowed by euro- area rules,” reports Bloomberg.
Greek banks have received almost €100bn in loans from the ECB under an emergency liquidity assistance programme in spite of the fact the banks are insolvent and their finances are set to further deteriorate, meaning eurozone tax payers will have to pick up the bill.
The ECB has burned so much capital by supporting insolvent Greek, Irish, Portuguese and Spanish banks that it is set to become a net debtor to itself in just two years, German economist Hans Werner Sinn has calculated. Sinn called the way the EECB offered loans to banks for junk collateral an invitation to the banks to “self service.”
The ECB has resisted a default by Greece to avoid having to declare these losses on its books.
As the social and economic meltdown that is resulting from transferring so much money to banks becomes apparent, resistance to the bankster bailouts is set to grow across the eurozone.
The EU, IMF and ECB financial empire has taken off its mask and made an unprecedented grab for the assets and taxes of the people of Greece and in this lie the seeds of its own defeat.
“All warfare is based on deception,” said Sun Tzu.
“The general, unable to control his irritation, will launch his men to the assault like swarming ants, with the result that one-third of his men are slain, while the town still remains untaken. Such are the disastrous effects of a siege.”
The Bilderberg elite have launched their Troika to assault Greece like swarming ants and the result is that they have nearly been defeated already in the Greek parliament and at a fairly early stage in theircampaign of financial warfare against Europe. Ireland, Portugal, Spain, Italy and Germany are all still in earlier stages of the eurozone debt slavery entrapment than Greece.
There will be no more swift victory for the elite, just a prolonged campaign finishing in the demise of the euro given the degree of awareness already existing among people across Europe of how the banks are looting tax payers with the help of complicit governments and much of the mainstream media.