In June the Greek “Truth Committee on Public Debt” established by Zoi Konstantopoulou the speaker of the Greek parliament “came to the conclusion that Greece should not pay this debt because it is illegal, illegitimate, and odious.”
The establishment media has hidden from view the facts behind the debt and has sided with the banks in declaring the population of Greece deserves austerity and its attendant poverty and misery because of the Greek government’s intransigence and refusal to accept the harsh conditions of the Troika, consisting of the IMF, European Commission and European Central Bank.
Left unsaid is the fact a large portion of the debt totaling about €245 billion was fraudulently dumped on the country in the course of huge bank bailouts in 2010 and 2012.
“And since the huge bank bailouts, ‘Greek debt’ exists only on the basis of the Wall Street practice for unpayable debt, known as ‘extend and pretend.’ Its interest and repayment terms have been so dramatically changed by the creditors — in a backhanded admission that it cannot be paid — that in debt-market terms, it is nearly worthless,” Paul Gallagher wrote in February.
Gallagher explains that the Greek debt swindle is similar to the TARP scam foisted on the American people following the subprime fiasco and a move by the Federal Reserve to print $4 trillion of new money to cover the gambling debt of the financial class. “Its political perpetrators are the same huge banks, and the European Central Bank working with the Federal Reserve,” he writes.
In the course of buying up toxic mortgage securities and derivatives from the United States, the European banks engaged in their own subprime scam and made unrepayable loans to governments in Greece, Ireland, Portugal, and Hungary.
“Big Wall Street banks were involved, particularly Goldman Sachs, which created ‘magic’ derivatives in 2001: Take a bank loan to Greece, make it look like a mere ‘currency swap’ rather than a debt — but turn it into a much bigger debt ten years later,” Gallagher points out.
But most of the loaned money did not stay in Greece. More than 90% went directly and immediately to Deutschebank, HSBC, JPMorgan Chase, “and their fellow sharks, with small amounts crumbling to the hedge funds swimming alongside.”
Former Greek Labor and Social Security Minister and chair of the National Bank of Greece Louka Katseli said Greece actually spent a meager 3% of the $275 billion loaned by the banksters.
“One of the reasons that everybody is so determined to keep Greece in the euro is so that the banks do not have to take a serious hit on their faulty lending policies,” Nigel Farage, Member of the European Parliament from the UK Independent Party, told RT in 2011. “It is almost as if there is an unholy alliance of politicians and bankers versus ordinary people.”