The Facts on the Greek Crisis

As the EU bankers and puppet politicians continue applying their thumb-screws to Greece’s government, there are few indications of rational reporting on this crisis – in either the mainstream or Alternative media. This is regrettable as the facts (and the overall scenario) could not be simpler.

Greece is bankrupt. This should be no surprise to anyone, as it has never been solvent since it declared debt-default for the first time, in 2012. As a matter of basic arithmetic; the only way that Greece’s economy can ever improve, and Greece can ever have a future is if the EU (Greece’s primary creditor) agrees to substantial debt-reduction. This is nothing more than elementary logic.

The EU has absolutely refused to consider any debt-relief. Its position is as simple as it is sadistic:

i)  It demands piling more debt onto this bankrupt economy (which will cause much more economic harm to Greece).

ii)  It also demands more “Austerity” (which will also cause much more harm to Greece’s economy), as a “condition” for burying it under even more debt.

After 6+ years of this futile, suicidal “Austerity” dance; one would think that people would clue-in to the economic rape taking place here, but there are virtually zero signs of comprehension, as Europe’s economies are systematically destroyed, one by one. Yet the process with each nation (as with Greece) is identical.

All (or virtually all) of these regimes is already hopelessly insolvent. Each time one of these Deadbeat Debtors reaches a “crisis” (i.e. every time there are significant quantities of debt coming due) the EU Vampires engage in the same scorched-earth sadism.

1)  They demand loaning even more billions to nations which are already totally incapable of sustaining their present debts.

2)  The Vampires also demand (more) massive cut-backs in spending (i.e. more “Austerity”) in return for burying these bankrupt nations under more debt.

This should already be enough to make this financial clear-cutting apparent to readers, but apparently it isn’t, and it’s all because of the mythology of Austerity. Very simply, it doesn’t work, and it never has.

Every European nation which has made these “Austerity cut-backs” has not become more solvent as a result. Instead they become more insolvent. This is counterintuitive to most readers, and thus requires explanation.

The problem is that (as the economic pendulum has swung extremely to the right) all of these nations have already cut too much. In real dollars, social spending in every major Western nation has totally collapsed over the past seven years. Obviously the problem is not “too much spending”; it is not enough tax revenues.

Here, the picture is also crystal-clear, and has been explained in detail, in numerous previous commentaries. In real dollars; tax revenues have collapsed for every major Western economy. Obviously no amount of cut-backs can ever make these nations solvent if they lack the tax-base to even finance the interest payments on their debt (on a viable basis).

There are two aspects to the collapse in Western tax revenues:

a) These corrupt governments refuse to tax the wealth of the Ultra-Wealthy. As the Top 1% (by themselves) now literally hoard most of the wealth in our economies; these ultra-misers have never been taxed less – at any time in history.

b)  Austerity destroys revenues. For each $1 of Austerity spending-cuts; this destroys $2 of government revenues. Obviously with such arithmetic, no government can make themselves “more solvent” via Austerity, only less so.

The facts bear this out, in absolutely unequivocal terms. Every nation that imposed more, sadistic Austerity on its nation saw its revenues fall much further, making the nation more insolvent. Over the past six years; the only time that any of these nations have experienced the slightest improvement in their economies is when they reduce Austerity – cut less, not more.

What is perhaps most-infuriating is that the big-picture progression here also could not be clearer, or more inevitable. As each round of “debt negotiations” take place; the Vampires pile more debt onto the victim-nation (increasing interest payments) and then also demand less-spending (on the people) to free-up more funds, to pay the higher interest payments.

As all these economies get weaker and weaker, and more and more insolvent; the spending (on the people) always goes down – as demanded by the bankers – and the interest payments always go up. Inevitably, this progression leads us to a point where 100% of every tax dollar goes to paying interest on debt (but never paying-off any debt), and 0% of revenues is spent on the people. Absolute economic suicide.

Obviously such insanity is not remotely possible, and these bankrupt regimes will implode long before they get to 100% interest payments. In fact; no nation can withstand wasting even 25% of its revenues on paying interest on debt. Every major Western economy will implode into bankruptcy – soon, and involuntarily – if its debts are not dramatically reduced.