The debt of Greece (which in no way can be repaid) is allowing IMF and other debt-holders to impose brutal austerity measures on the country – ruling it basically by the force of money-dependency – making laws – selling democracy.
Some also say – Greece is an experiment – on how much austerity the elites can bring upon the poor – and how much they will have to spend on military and police to keep what they have stolen.
If that is so – it is sickening to put profit over people’s lifes.
It is for sure destabilizing the whole financial european union. Having economies with different strength – using the same money – DOES NOT WORK. I think some people knew that from lessons from history.
Even worse: No exit strategy from the euro-money-zone shall exist. If that was an French idea or not. Now they have to come up with solutions.
Mario Draghi – head of European Central Bank – is also from Goldman Sachs. I feel fooled from the highest levels.
The investment bank made millions by helping to hide the true extent of the debt, and in the process almost doubled it.
By Robert B. Reich July 16, 2015
In 2001, Greece was looking for ways to disguise its mounting financial troubles.
The Maastricht Treaty required all eurozone member states to show improvement in their public finances, but Greece was heading in the wrong direction.
Then Goldman Sachs came to the rescue, arranging a secret loan of 2.8 billion euros for Greece, disguised as an off-the-books “cross-currency swap”—a complicated transaction in which Greece’s foreign-currency debt was converted into a domestic-currency obligation using a fictitious market exchange rate.
As a result, about 2 percent of Greece’s debt magically disappeared from its national accounts.
For its services, Goldman received a whopping 600 million euros ($793 million), according to Spyros Papanicolaou, who took over from Sardelis in 2005.
That came to about 12 percent of Goldman’s revenue from its giant trading and principal-investments unit in 2001—which posted record sales that year.
The unit was run by Blankfein.
Then the deal turned sour.
After the 9/11 attacks, bond yields plunged, resulting in a big loss for Greece because of the formula Goldman had used to compute the country’s debt repayments under the swap. By 2005, Greece owed almost double what it had put into the deal, pushing its off-the-books debt from 2.8 billion euros to 5.1 billion. In 2005, the deal was restructured and that 5.1 billion euros in debt locked in. Perhaps not incidentally, Mario Draghi, now head of the European Central Bank and a major player in the current Greek drama, was then managing director of Goldman’s international division.
A good question remains – why did no body sue Goldman Sachs?
Big Banks and Corporations sue governments at every possible occasion and chance for profit.