Truths & Lies about the Greek crisis

newPic_8458_jpg_1923056bAuthor and Contributor

Alkis Meletiou

Greece has received more than €252bn in bailouts since 2010, and just 10% have found its way into public spending. All the rest of the money went straight out of the country for the repayments of interests to the creditors, including banks, hedge funds and core Eurozone countries. Germany and France persuaded other lenders to sign up in 2012 for the bond restructuring that prevented the country coming out from euro.

As many expected it was very likely that Greece would end up in a worse situation after the implementation of this programme.

After five years of harsh lay offs, tax rises imposed by the troika (IMF, ECB, EC), unemployment rose more than 25% and the GDP has totally collapsed more than 30% since the beginning of the crisis. Such a decline can only be compared to the one that we saw in the US during the Great Depression.

 Despite all these harsh measures there seems to be no way out. Greece debt rose from 115% to 175% worth of its GDP. Such a level can not be considered sustainable by any means. Despite all the wages cuts that was supposed to make the country more competitive through the internal devaluation process, the country still has a large trade deficit. Taking into consideration that Greece’s major export market is Eurozone, which is still in recession.

Germany’s economic miracle came into reality after a deal struck in London in 1953, which saw HALF of the debts it owed from the war crimes to be written off by the rest of the world.

At this point we have to mention that Germany owes to Greece, war reparations for the war crimes and the war loan taken by Germany during Greece’s occupation in WWII that weren’t settled in London 1953.

West Germany managed to secure 15bn deutschmarks of debt forgiveness in what became known as the London agreement as mentioned above.

Governments in Germany, Finland, Austria , The Netherlands and France have saved billions of euros into crisis thanks to a sharp fall in how much they pay to raise money in the financial markets since their borrowing costs have dramatically dropped.

Northern euro zone taxpayers have not actually lost a cent despite the dishonest and disgraced propaganda of the media. Additionally this has created the fake image of hard working northern Europeans putting money on the line to rescue profligate, work-shy southerners.

Martti Salmi, the head of international and EU affairs at Finland’s ministry of finance. “We have not lost a cent so far,” he told Reuters. “The same as for Germany very much holds for Finland.”

In fact, German officials are well aware of their stronger financing position, the result of a more than two percentage point fall in borrowing costs, even as politicians continue to lament the risks being piled on German taxpayers

Another study from the German insurance giant Allianz has calculated that Germany saved 10.2 billion euros in 2010-2012 because of the lower borrowing costs as yields on its 10 year bonds fell from 3.39 % to 1.18 %. “If we add up the interest rate advantages gained in the period 2010 to 2012 and those that Germany will benefit from in the years to come, we arrive at cumulative interest relief for the German budget of an estimated 67 billion euros,” Allianz said in a paper published last September.

Apart from the initial bilateral loans to Greece in 2010 which totaled 52.9 billion euros, no euro zone taxpayer money was sent to Greece, or any other country. All the later bailouts were financed on markets via the eurozone bailout fund.

Photo source: http://www.telegraph.co.uk/finance/financialcrisis/8580951/Greek-debt-crisis-is-Europes-Lehman-moment.html

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