Author: Spencer

One day after German legislators leaked an IMF report admitting that the “last offer” to Greece would not have made euro debt payable, even if Greece had accepted it, the IMF, itself, has had to publish that report.

Its additional admission—that Greece needs relief on at least 50 billion euros of its debt—is being publicized worldwide and in Greece, and could strongly affect the outcome of the Sunday referendum in Greece on that “last offer.” It acknowledges, at least in part, the truth of the Greek government’s position, and the incompetence of the European “institutions”—acting for Wall Street and London banks—in refusing to agree to the write-down of any debt.

The IMF report appeared in full on the same day that a major Associated Press story from London was published in the major U.S. press, shaming Germany’s leadership for rejecting the Greek proposal of an international debt conference. Germany had half its debt written off by such a conference in 1953, when Greece was one of its creditors, and the “German economic miracle” followed.

Even before the AP story appeared, the London Guardian had reported:

Yet the European creditors—and the IMF—had just given Greece a last offer which refused any debt relief, and German Chancellor Merkel had called it “very generous”!

The Greek population now would have to vote to reject such a dishonest and discredited “last offer.”

In a third development, Sputnik News reported that a director of China’s Institute of Quantitative and Technical Economics opened the potential of China providing credit to Greece. Fan Mingtao said, “I believe there are two ways to give Greece Chinese aid. First, within the framework of the international aid through EU countries. Second, China could aid Greece directly. Especially considering the Silk Road Economic Belt and the Asian Infrastructure Investment Bank, China has this ability.”

One day after German legislators leaked an IMF report admitting that the “last offer” to Greece would not have made euro debt payable, even if Greece had accepted it, the IMF, itself, has had to publish that report.

Its additional admission—that Greece needs relief on at least 50 billion euros of its debt—is being publicized worldwide and in Greece, and could strongly affect the outcome of the Sunday referendum in Greece on that “last offer.” It acknowledges, at least in part, the truth of the Greek government’s position, and the incompetence of the European “institutions”—acting for Wall Street and London banks—in refusing to agree to the write-down of any debt.

The IMF report appeared in full on the same day that a major Associated Press story from London was published in the major U.S. press, shaming Germany’s leadership for rejecting the Greek proposal of an international debt conference. Germany had half its debt written off by such a conference in 1953, when Greece was one of its creditors, and the “German economic miracle” followed.

Even before the AP story appeared, the London Guardian had reported:

Yet the European creditors—and the IMF—had just given Greece a last offer which refused any debt relief, and German Chancellor Merkel had called it “very generous”!

The Greek population now would have to vote to reject such a dishonest and discredited “last offer.”

In a third development, Sputnik News reported that a director of China’s Institute of Quantitative and Technical Economics opened the potential of China providing credit to Greece. Fan Mingtao said, “I believe there are two ways to give Greece Chinese aid. First, within the framework of the international aid through EU countries. Second, China could aid Greece directly. Especially considering the Silk Road Economic Belt and the Asian Infrastructure Investment Bank, China has this ability.”

One day after German legislators leaked an IMF report admitting that the “last offer” to Greece would not have made euro debt payable, even if Greece had accepted it, the IMF, itself, has had to publish that report.

Its additional admission—that Greece needs relief on at least 50 billion euros of its debt—is being publicized worldwide and in Greece, and could strongly affect the outcome of the Sunday referendum in Greece on that “last offer.” It acknowledges, at least in part, the truth of the Greek government’s position, and the incompetence of the European “institutions”—acting for Wall Street and London banks—in refusing to agree to the write-down of any debt.

The IMF report appeared in full on the same day that a major Associated Press story from London was published in the major U.S. press, shaming Germany’s leadership for rejecting the Greek proposal of an international debt conference. Germany had half its debt written off by such a conference in 1953, when Greece was one of its creditors, and the “German economic miracle” followed.

Even before the AP story appeared, the London Guardian had reported:

Yet the European creditors—and the IMF—had just given Greece a last offer which refused any debt relief, and German Chancellor Merkel had called it “very generous”!

The Greek population now would have to vote to reject such a dishonest and discredited “last offer.”

In a third development, Sputnik News reported that a director of China’s Institute of Quantitative and Technical Economics opened the potential of China providing credit to Greece. Fan Mingtao said, “I believe there are two ways to give Greece Chinese aid. First, within the framework of the international aid through EU countries. Second, China could aid Greece directly. Especially considering the Silk Road Economic Belt and the Asian Infrastructure Investment Bank, China has this ability.”

The German newspaper Suddeutsche Zeitung obtained documents leaked by Bundestag deputies, which were an analysis by the IMF of the European creditors’ “last offer” to Greece on June 26. Intended to explain the offer to legislators who could have to vote on it, the analysis actually showed that the “really very generous” [per Angela Merkel] ultimatum plan, could never have gotten Greece below a debt/GDP ratio of 125%, with continuously deepening austerity sapping its economy and people. The analysis was published in full in the London Guardian July 1.

Of course, the creditors’ loyal staffs tried to blame their analysis of the plan’s guaranteed failure, on the Syriza government in Greece. “It is clear that the policy slippages and uncertainties of the last months have made the achievement of the 2012 targets [for debt/GDP ratios—ed.] impossible under any scenario,” they recited dutifully.

But even making the most optimistic, discredited, actually absurd assumptions about the deeper tax, wage, and pension austerity leading to rapid growth in the rest of this decade, the plan would not “work.” “Under all the scenarios looked at by the Troika,” wrote the Guardian, which all assume a third bailout program, Greece has no chance of meeting the target of reducing its debt” which was set in 2012. Its “unsustainable” level of debt would continue at least until 2030.

The reason this failure was planned — and why the IMF et al. thought the Bundestag would vote for it nonetheless — was in order to allow Greece no debt write-down. As the Guardian notes in its lead, “The documents … support Greece’s argument that it needs substantial debt relief for a lasting economic recovery.” Anything, including asking European parliaments to vote for a debt-payment plan self-described as unworkable, was preferable, for the Troika, to allowing Greece the kind of debt write-down given to Germany in 1953.

What was the really very generous plan? Greece was to achieve a primary budget surplus of 1% of GDP this year, rapidly rising to 3.5% of GDP (7 billion euros) by 2018; it was to raise VAT taxes by 2 billion euros immediately; cut annual pension payments by 2 billion euros immediately and cap them permanently; rescind the temporary increase in minimum wages; sell off state-owned islands, ports, etc. to raise 15 billion euros by 2016; etc.

Greek Prime Minister Tsipras effectively threw the vote on this made-to-fail plan from the Bundestag to the Greek population by referendum.

The German newspaper Suddeutsche Zeitung obtained documents leaked by Bundestag deputies, which were an analysis by the IMF of the European creditors’ “last offer” to Greece on June 26. Intended to explain the offer to legislators who could have to vote on it, the analysis actually showed that the “really very generous” [per Angela Merkel] ultimatum plan, could never have gotten Greece below a debt/GDP ratio of 125%, with continuously deepening austerity sapping its economy and people. The analysis was published in full in the London Guardian July 1.

Of course, the creditors’ loyal staffs tried to blame their analysis of the plan’s guaranteed failure, on the Syriza government in Greece. “It is clear that the policy slippages and uncertainties of the last months have made the achievement of the 2012 targets [for debt/GDP ratios—ed.] impossible under any scenario,” they recited dutifully.

But even making the most optimistic, discredited, actually absurd assumptions about the deeper tax, wage, and pension austerity leading to rapid growth in the rest of this decade, the plan would not “work.” “Under all the scenarios looked at by the Troika,” wrote the Guardian, which all assume a third bailout program, Greece has no chance of meeting the target of reducing its debt” which was set in 2012. Its “unsustainable” level of debt would continue at least until 2030.

The reason this failure was planned — and why the IMF et al. thought the Bundestag would vote for it nonetheless — was in order to allow Greece no debt write-down. As the Guardian notes in its lead, “The documents … support Greece’s argument that it needs substantial debt relief for a lasting economic recovery.” Anything, including asking European parliaments to vote for a debt-payment plan self-described as unworkable, was preferable, for the Troika, to allowing Greece the kind of debt write-down given to Germany in 1953.

What was the really very generous plan? Greece was to achieve a primary budget surplus of 1% of GDP this year, rapidly rising to 3.5% of GDP (7 billion euros) by 2018; it was to raise VAT taxes by 2 billion euros immediately; cut annual pension payments by 2 billion euros immediately and cap them permanently; rescind the temporary increase in minimum wages; sell off state-owned islands, ports, etc. to raise 15 billion euros by 2016; etc.

Greek Prime Minister Tsipras effectively threw the vote on this made-to-fail plan from the Bundestag to the Greek population by referendum.

The German newspaper Suddeutsche Zeitung obtained documents leaked by Bundestag deputies, which were an analysis by the IMF of the European creditors’ “last offer” to Greece on June 26. Intended to explain the offer to legislators who could have to vote on it, the analysis actually showed that the “really very generous” [per Angela Merkel] ultimatum plan, could never have gotten Greece below a debt/GDP ratio of 125%, with continuously deepening austerity sapping its economy and people. The analysis was published in full in the London Guardian July 1.

Of course, the creditors’ loyal staffs tried to blame their analysis of the plan’s guaranteed failure, on the Syriza government in Greece. “It is clear that the policy slippages and uncertainties of the last months have made the achievement of the 2012 targets [for debt/GDP ratios—ed.] impossible under any scenario,” they recited dutifully.

But even making the most optimistic, discredited, actually absurd assumptions about the deeper tax, wage, and pension austerity leading to rapid growth in the rest of this decade, the plan would not “work.” “Under all the scenarios looked at by the Troika,” wrote the Guardian, which all assume a third bailout program, Greece has no chance of meeting the target of reducing its debt” which was set in 2012. Its “unsustainable” level of debt would continue at least until 2030.

The reason this failure was planned — and why the IMF et al. thought the Bundestag would vote for it nonetheless — was in order to allow Greece no debt write-down. As the Guardian notes in its lead, “The documents … support Greece’s argument that it needs substantial debt relief for a lasting economic recovery.” Anything, including asking European parliaments to vote for a debt-payment plan self-described as unworkable, was preferable, for the Troika, to allowing Greece the kind of debt write-down given to Germany in 1953.

What was the really very generous plan? Greece was to achieve a primary budget surplus of 1% of GDP this year, rapidly rising to 3.5% of GDP (7 billion euros) by 2018; it was to raise VAT taxes by 2 billion euros immediately; cut annual pension payments by 2 billion euros immediately and cap them permanently; rescind the temporary increase in minimum wages; sell off state-owned islands, ports, etc. to raise 15 billion euros by 2016; etc.

Greek Prime Minister Tsipras effectively threw the vote on this made-to-fail plan from the Bundestag to the Greek population by referendum.

After a day of unbelievable psychological warfare and threats, Greek Prime Minister Alexis Tsipras made another public television address to the nation urging a “No” vote in the Sunday, July 5th referendum. He denounced the British Empire-run campaign of lies and blackmail.

Regarding the government’s decision to close the banks, he blamed “extreme circles” who “blackmail ordinary citizens” by refusing to extend liquidity to the Greek banks, reported Athens-Macedonia News Agency. He said:

He called for Greeks to vote “No,” as representing the people’s clear choice of how they want to live on the day after, and for return to values in Europe, as well as strong pressure for a sustainable and fairer agreement. He said the referendum on July 5 does not constitute a coup, but that it’s the “appointed governments” who led to such an event. “I call on you to say no to memorandum formulas that are destroying Europe,” he said, adding that a “no” vote was an obligation to history. He also promised that wages, pensions, and the savings of those that had elected not to transfer their money abroad will not be lost.

Meanwhile, Productive Reconstruction, Environment and Energy Minister Panagiotis Lafazanis told Russia 24 TV network that Greece has a backup plan if the EU cuts off funding.  Lafazanis said: “The situation is very difficult but we shouldn’t allow [creditors] the opportunity to exploit us…The lack of funding from the European Union is not the end of the world. There are other sources of funding.”

Lafazanis said that Greece is not collapsing because banks have been closed. He said:

Lafazanis said it was too early to reveal the details of Athens’ Plan B, because the government is still holding out the option of coming to an agreement with its European “partners.”

After a day of unbelievable psychological warfare and threats, Greek Prime Minister Alexis Tsipras made another public television address to the nation urging a “No” vote in the Sunday, July 5th referendum. He denounced the British Empire-run campaign of lies and blackmail.

Regarding the government’s decision to close the banks, he blamed “extreme circles” who “blackmail ordinary citizens” by refusing to extend liquidity to the Greek banks, reported Athens-Macedonia News Agency. He said:

He called for Greeks to vote “No,” as representing the people’s clear choice of how they want to live on the day after, and for return to values in Europe, as well as strong pressure for a sustainable and fairer agreement. He said the referendum on July 5 does not constitute a coup, but that it’s the “appointed governments” who led to such an event. “I call on you to say no to memorandum formulas that are destroying Europe,” he said, adding that a “no” vote was an obligation to history. He also promised that wages, pensions, and the savings of those that had elected not to transfer their money abroad will not be lost.

Meanwhile, Productive Reconstruction, Environment and Energy Minister Panagiotis Lafazanis told Russia 24 TV network that Greece has a backup plan if the EU cuts off funding.  Lafazanis said: “The situation is very difficult but we shouldn’t allow [creditors] the opportunity to exploit us…The lack of funding from the European Union is not the end of the world. There are other sources of funding.”

Lafazanis said that Greece is not collapsing because banks have been closed. He said:

Lafazanis said it was too early to reveal the details of Athens’ Plan B, because the government is still holding out the option of coming to an agreement with its European “partners.”

The Troika and allied European heads of state have all fallen in line behind a suicidal scheme to use the upcoming Sunday referendum in Greece to overthrow the Tsipras government. This is the significance of the across-the-board refusal to take up the Greek government’s letter to the Troika on Tuesday night, proposing a major debt write-down, and modified economic reforms, based on the weekend proposal by the European Union. Schaeuble, Merkel, Renzi, and Hollande all rejected the Greek proposal out of hand, and following a conference call among EMU finance ministers, it was formally announced that there would be no discussions with Greece prior to the Sunday referendum.  The financial media, led by the Financial Times, put out a string of fraudulent stories, all aimed against Greek Prime Minister Tsipras, including wild claims that Greek voters were turning against the government.  The kind of regime change that was most recently employed in Ukraine, featuring military-style black propaganda, is now being unleashed inside the EU against Greece.

Lyndon LaRouche commented on Wednesday that this swindle is going to backfire against the relevant parties leading this attack on Greece. 

LaRouche reiterated that the entire Greek so-called Troika debt is fraudulent.  Greece was raped and is now being pressured to pay off the rapists.  This cannot be tolerated, LaRouche declared.

Instead of bringing down the Tsipras government, these actions are more likely to trigger the collapse of the entire trans-Atlantic financial system, including the entire Wall Street bubble, now officially assessed at $26.5 trillion in bailout obligations alone.

The only real solution is for there to be an immediate international conference, modeled on the 1953 London Debt Conference, to wipe out the fraudulent Greek debt and all of the gambling debt built up in the London/Wall Street system.  In the United States, this means the immediate reinstatement of Glass- Steagall, just as it was originally enacted in June 1933.  The Glass-Steagall model must be immediately adopted in Europe and globally.

The biggest danger, LaRouche warned, is that the London/Wall Street forces, led by the British Monarchy, will react to the backfire of the Greek showdown by going for war—against Russia and perhaps against China.  The elements of just such a war provocation are all in place, with the NATO deployments right up against the Russian borders in the Baltic and Balkan regions. Russia’s official representative to NATO, Alexander Grushko, delivered a pointed warning in a teleconference with journalists in Brussels on Wednesday, in which he declared that NATO had launched a containment campaign against Russia, prior to the launching of the US-NATO regime change operation in Ukraine.  He cited plans to establish NATO forward command posts in the three Baltic states, Romania, Bulgaria, and Poland, and warned that if NATO goes ahead with missile defense deployments following a P5+1 deal with Iran, it will be further evidence of the targeting of Russia.

The reality is that the entire trans-Atlantic system may not survive the week, as the result of the insane and desperate actions launched against Greece, and the imminent backfire.