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And on the tenth day after the Greek Parliament voted for the new memorandum, the second “bailout” plan for Greece was approved by the Eurogroup. And today by the Bundestag. And there was much rejoicing.

Hold on a second. Why all this joy and relief by the foreign and domestic press alike? Why are those who voted for the new memorandum –the prerequisite for the new bailout plan- patting themselves on the back? Because they claim that bankruptcy was averted? Do we have any idea what they approved? Do those who approved the plan know the “specifics”?

I seriously doubt it. Just a few short weeks ago, both former and active Ministers and MPs admitted that they had in fact NOT read the first memorandum, even though they approved it! Now we know for a fact that this new agreement was a badly translated rendition of an already shady original.

Full of omissions and vague wordings, especially concerning the definition of “mandatory law” which governs the enforcement of the agreement’s terms, this loan agreement is practically begging to be abused.

Because, in essence, the memorandum is exactly that: a loan agreement.

Let us suppose now that the Greek MPs were common people who wished to sign a mortgage agreement in order to pay off their debts. Would anyone in their right mind sign a paper with empty spaces where numbers were supposed to be and with vague phrasings, easily twisted by greedy bankers looking to steal their home?

If they were just a tiny bit practical, wouldn’t they ask questions?  Wouldn’t they read the agreement more thoroughly?

And yet 199 of 300 MPs agreed to mortgage our home on these uncertain and unrealistic terms, conceding the right to any of our creditors to make claims against Greece before the courts of the Grand Duchy of Luxembourg.

Ignorance, negligence, and the intention to deceive the Greek people are evident from the statements of all those who approved the new memorandum. One of them stands out above the rest, however, and comes from the very architect of political unaccountability in Greece.

Evangelos Venizelos, Deputy Prime Minister and Minister for Finance, stated, “…we are pleased to inform the Greek people that we have just lifted 100 billion Euros off their back, more than 50% of our GNP.”

The grand deception lies in the lifting of the “100 billion”. Quite simply, 63 billion of this total is in Greek hands, mostly owned by banks of Greece and Cyprus. These banks will require “direct hair implantation” by the Greek state right after the PSI haircut, if they are to avoid collapse.

The cost of bank bailout is estimated at 30-40 billion Euros, which will be drawn, unsurprisingly from the 130 billion which we just borrowed. The largest part of the remaining 100 billion will be used to pay off our previous loans and interests.

Mr. Venizelos further stated that “our country has been granted a new opportunity, one which we must grasp, primarily on the level of financial and social psychology.” This was probably the only speck of truth in his entire statement, if “primarily” is replaced with “solely”, since there is no other benefit to be found.

The only purpose of this agreement is to reassure the Greek people, give time to our EU partners to prepare for the all but inevitable formal declaration of bankruptcy of Greece and, of course, add even more debt on our backs.

Theoretically, the goal of our debt reaching 120% of our GNP by 2020 is achievable. About as achievable as the development of FTL propulsion technology by Greece by the same date, given the monumental inadequacy of our current administration.

And that’s because all estimates claiming that such a thing is possible, blissfully disregard the fact that the recession in Greece is not slowing, but increasing at the rate of an avalanche. 60000 businesses are expected to shut down in 2012, according to a National Confederation of Hellenic Commerce report. Unemployment is skyrocketing, with an estimated 1 million unemployed people in Greece and growing, and the internal market is grinding to a halt.

The GNP of Greece is state-dependent to an excessive degree, a sad but undeniable fact. As public funding and expenditure is limited, the GNP will inevitably shrink. The Greek public sector must be restructured and businesses must find ways to support themselves without the help of the state, but such a change would take time. The repercussions of an abrupt change cannot be ignored for the sake of ill-conceived bailout plans.

Unfortunately, estimates putting the Greek debt close to 160% of its GNP by 2020 (or even higher) are probably much more realistic.

The greatest problem of Greece, however, is neither the new memorandum, nor the troika, nor Angela Merkel and her ilk. The greatest problem of this country is us Greeks. As long as we continue to support or tolerate our corrupt political system, no amount of rescuing, either honest or guided by ulterior motives, is going to save us.

An excellent example of this corruption is the recent ruling of the Greek Council of State, claiming that the first memorandum was not in violation of our Constitution. Among other outrageous claims, the Greek Council of State deemed that the agreement was not in fact an international treaty.

So an agreement, originally drafted in English, between the Greek state, 14 other countries, the KfW development bank, and two international organizations is NOT an international treaty.

I did not include the IMF along with the other two organizations (ECB and EC), as it has not signed the initial agreement and furthermore has recently expressed doubts about the new one. Members of the IMF are expressing concerns about OUR rights. Not our government, but members of an international organization are opposing a revision of the Greek Constitution.

A revision which, after all, benefits them.

The image of a starving dog comes to mind. One that looks so pathetic, that even the dog catcher is reluctant to euthanize it. Even if that is exactly what he does for a living.

And that’s because Greece is not seen as a “mutt”, it is not (usually considered) a third-world country. It is not even Argentina which, even when it was very prosperous, was still part of Latin America, seen as “lesser” part of the world by unscrupulous “civilized” Westerners. And thus considered “fair game” for the rich and powerful.

Deep inside, every international banker, economist, politician knows that Greece is the cradle of Western civilization, the birthplace of art, democracy and science. Even Mrs. Merkel’s name (Angela Dorothea), is Greek. But neither she, nor anyone else can truly respect us, when we do not respect ourselves.

When we do nothing to stop these power-mongering puppets we call politicians from driving our country to ruin.

Our EU partners and international creditors can only pity us, just a bit, before putting us out of our misery. Or into it.

Intermission #5

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5 Comments

  1. Reblogged this on Shvelos Blog.

  2. very well put, i couldn’t agree more. when so many of us agree on this, why can we not get through to the political class to change direction?

    • Dear Heidi, there are only two ways to achieve this: either all Greek voters show their disapproval of the current system by voting for any other party, apart from the two “major” ones OR we take resistance to the streets. Personally, I am a proponent of the first option, meaning that the majority of the Greek voters should be convinced not to abstain or cast a white or spoilt vote. For all intents and purposes these actions only serve the current status quo. The second option, active resistance, will sadly have to turn to violence, since the Greek “Democracy” no longer allows peaceful protests.

      • hi Niko, thanks for your reply. I worry about the elections for the reason you give – I very much fear that we will end up with something like 40% “blank” votes. Which only serves to strengthen the ‘power’ of every vote for the big parties. If I could I would vote for whichever party I felt was most serious about getting out of the EZ (I think right now that would be KKE, I see DimAr as lacking in guts). I am not against active resistance (though living far from Athens means that whatever we do and say is completely ignored no matter what) and while I understand that violence is likely – how is what is happening right now NOT violence committed against us? Is there anything more violent than letting a child starve?
        I am enjoying your blog, you have excellent posts, looking forward to more!

      • I agree. Robbing children of their future, their education, their food even, as well as robbing the elderly of their well earned and paid for retirement and dignity is violence of the worst kind. And thank you for your kind words.


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