Greece and Goldman Sachs

Posted: May 7, 2010 by thesundowner in Uncategorized

What’s the difference between Greece and the U.S.?

Not much.

The Greeks have been over-spending for decades. Stupid stuff, such as allowing civil servants to retire in their 40’s, and permitting their unmarried or divorced daughters to collect their pension after they have died.

Government-owned and hugely unprofitable Olympic Airways, government-owned and unprofitable utilities, hundreds of benefit programs and subsidies of every sort, have made Greece the classic example of government gone wrong…

…thanks to politicians, naturally.

The same has gone on in most European (and socialist) nations:

  • Portugal
  • Spain
  • Japan
  • Ireland
  • the UK
  • and of course, The United States.

Not a single citizen in any of the beleaguered nations with debts to the stratosphere, voted for these debts. I didn’t vote to make America have a $13 trillion current debt, did you?

I’m also certain that not a single Greek voted for out of control spending either. But once all these entitlement programs and bailouts were in place, it becomes virtually impossible to get rid of them…

…at least not without riots, strikes, and violence, which is happening right now in Greece.

And it will happen here too…

…especially in the big cities, mark my words.

In order to make their huge payment due in early May, the Greeks didn’t know what to do other than beg and borrow. They cut programs and bailouts, but that’s resulting in civil unrest. Germany has a strong economy, and its government thought seriously about bailing out Greece. The Germans howled in anger over that proposal, but it happened anyway. Forget the opinion of the populace!

The IMF loaned, as did other foolish national treasuries, so Greece has been saved…for a short time.

And the only reason the IMF loaned money was because of the United States contribution of several hundred billion dollars from TARP.

You do remember the bailout, don’t you?

Well, you weren’t told by your elected officials, but you paid for Greece’s bailout, too.

Just thought I would let you know.

How can Greece ever pay back the loans? Any euros it borrows will command huge interest rates, because its credit rating has been reduced to “Junk.”

Truth is, Greece can’t pay back the loans. They don’t have the infrastructure to do it.

I wouldn’t loan Greece an ounce of gold, and I am sure you wouldn’t either. They’re too big a risk.

Greece is in a bit of a quandary, because the same thing is coming down the pike for Spain, Portugal, Japan, the UK…

…and of course right here in the Good Ol’ U.S. of A.

Spain is in virtually the same predicament as Greece, and it has an economy five times as big as Greece. Frankly, I’m surprised Spain didn’t belly-up before Greece.

All thanks to stupid, greedy politicians… and in this case… Goldman Sachs.

How?

From a February article in of all places, the New York Times, comes the crookedness of both Goldman Sachs as well as Greek politicians. From the Journal piece:

“In order to use the euro as currency, a nation can not have more than a certain portion of its economy in debts. Greece was way over the limit. Goldman Sachs came up with an answer which would merely push off the day of reckoning till a future date.

The first thing they did was to fabricate an instrument which would push Greece’s health care debt far into the future, similar to a homeowner taking out a second mortgage. It had worked before. In 2001, just after Greece was admitted to Europe’s monetary union, Goldman helped the government quietly borrow millions, people familiar with the transaction said. That deal, hidden from the public view because it was treated as a currency trade rather than a loan, helped Athens to meet Europe’s deficit rules, while continuing to spend beyond its means.

As in the American sub-prime crisis, financial derivatives played a role in the run up of Greek debt. Instruments developed by Goldman Sachs, J.P. Morgan Chase, and a wide range of other banks, enabled politicians to mask additional borrowing in Greece, Italy, and possibly elsewhere.

In dozens of deals across the continent, banks provided cash upfront, in return for government payments in the future, with those liabilities left off the books. Greece, for example, traded away the rights to airport fees, and lottery proceeds for years to come. Wall Street did not create the Greek debt problem, but bankers enabled Greece to borrow beyond their means, in deals that were perfectly legal.”

The United States Senate grilled Goldman Sachs big shots, and never did get an honest answer to their questions. They did a perfectly ‘legal;’ thing, and that was to sell junk to the unwary, shallow, vote hungry politicians, and then short on the deal, and make a lot of money.

Hey! Didn’t Bernie Madoff do something similar and get 150 years for it?

Did Goldman make a lot of commissions helping Greece get into trouble? Did they profit hugely from the shorts after selling the instruments?

Of course they did. They made an ASS-LOAD of money from it! Billions!

But… it was perfectly “legal.”

Did any citizen or group of citizens vote for it?

Nope. But YOU paid for it. Or, rather, your kids and grandchildren will pay for it.

Well, how is one to pay for this?

The only politically correct answer is, MORE TAXES!

Politicians are so f***ing stupid, and economically illiterate, that the whole bunch of them should be voted out TODAY!

Not in November.

Now, the ObamacRATS are speaking of a VAT (value added tax) which taxes an item at every single stage of its manufacture or production.

Hey, Bozo! Yeah! I’m talking to you idiots in the District of Criminals!

I’ve got an idea: QUIT SPENDING OUR F***ING MONEY!

Now, how’s THAT for a “Big F***ing Deal, Uncle Joe?”

The Tea Party Movement has nothing to with race, but about both Republican and Democrat wild spending, just like in Greece.

All the spending over the decades since FDR, has given us and other nations, an underclass, which depends on the handouts, public housing, food stamps, and all sorts of government freebies, paid by us in the form of declining dollar value and outrageous taxes, to simply live, copulate, and produce endless more numbers of the underclass so they can be your voting bloc.

But they’re “wising up” and they’re getting sick and f***ing tired of “living on the plantation!”

When the proverbial sh*t hits the fan, and politicians finally decide to cut spending to pay at least some of the debt, the underclass will riot, burn, and ransack.

When they do, get your guns and ammo and get out of the big cities, head to the hills and protect yourself and your family. If you can convert your assets to gold and silver, you’ll be much better off against a surefire, oncoming, hyper-inflation.

If you have ANY assets in ANY type of account, especially in banks…

…YOU’RE SCREWED!

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