After the anti-austerity NO vote at last weekend’s Greek referendum, and subsequent street party, the hangover remains. Greeks took a bipolar position of rejecting more austerity but equally wanting the EU to continue funding their lifestyle. How much has changed in the subsequent week? The EU creditors’ austerity plan was resoundingly rejected by almost two to one Greeks but we now see the ruling Syriza Party tabling an almost identical austerity plan before the Greek Parliament for ratification.
Reuters stock photo
For the offer of a promised rather nebulously timed future 3 year, 53 billion Euro bailout, the Greek President has agreed to implement draconian pension reforms; taxation reform; privatizations of the bloated Greek Public Sector; Increases in VAT (in the Aegean holiday islands and at hotels frequented by foreigners) due to be implemented as a sop, in October, at the end of the tourist season.
The current Greek debt crisis is really just a small skirmish by private mega-banks who have discovered a way to raid the public treasuries and the taxpayers money. The duplicitous fiscal methodology followed by Central banks worldwide that has operated since Breton Woods at the end of WWII, has found new expression in massive raids by too big to fail banks in collusion with sovereign central banks.
The convoluted but not all that complex ‘money-go-round’ methodology that central banks use to ‘create’ credit and issue ‘fiat currency’ out of thin air needs the compliance of large commercial banks to carry off this feat of fiscal slight of hand. Greece’s current travails are only a mere expression of this scam. Long before Greeks were on the financial ropes, way back in 1980 the Greek Private indebtedness stood at a mere 37.4% of GDP and Public debt was only 22.6% of GDP. The ripple effects of two oil crises and profligate spending by leftist governments put paid to that ‘comfortable indebtedness’ so that by the late 1990s Greek Public debt stood at 100% of GDP whilst Private debt hardly moved at 38.8% when measured as a percentage of GDP.
Well as forecast the Greeks voted NO on more austerity as they would. They would have voted YES if the question was “do you want the rest of Europe to continue subsidising your profligate lifestyle”? , but that option was not afforded them.
Apparently most Euro nations’ elites would have voted YES if they had been invited BUT their ‘captive populations’ would have voted a resounding NO. European people have had enough of the Greeks and their habit of spending other people’s money. Their leaders, who are equally complicit with the Greeks in this greek tragedy, want their money back but fear even more a Grexit that would set a precedent for the rest of the Mediterranean members.
The State of Texas has decided it wants to keep all of its gold within it’s state borders. This translates to 5,600 gold bars worth $650 million in the Lone Star state.
The Texas gold is currently stored at a New York bank.
For the time being, the new Texas Bullion Depository exists only in name, but not reality. There is no mention as to where the depository would be located or funded.
Republican state Rep. Giovanni Capriglione authored the new gold bill and Republican Gov. Greg Abbott signed it.
I’ll be more interested to see if any gold actually exists in the Fed Reserve Bank in New York whatsoever.
With just hours to go before the Greek referendum over whether to abide by the austerity conditions set by Europe or break with the European experiment, the ‘experts’ give their opinions. A YES vote would mean more of the same austerity measures and even a tightening of the screws as Greeks battle to manage their loan exposure.
A NO vote would cast Greece into unknown waters where there isn’t even a mechanism available to manage this crisis or chart a reasoned course out of Europe.