Philip Davis'  Instablog

Greece is fixed – now what?  

Well, Greece isn’t really fixed, of course, but look how fast it all turned out to be nothing and this morning hardly anyone is even mentioning it.  The crowds protested but this vote wasn’t in their hands – it was in the hands of their corrupted officials and they voted 100% along party lines to keep Prime Minister Papandreou in power, which will now allow him to push through another $40Bn in budget cuts (14% of GDP or $2.25Tn if applied to the US budget – in a single year) that will pretty much turn the Government of Greece into nothing more than a debt collection service for Banksters – as they no longer have the money to provide any Government services to the people.  

Yes, it’s a Republican wet dream and it will be a fun experiment to see if we can truly strip a government down to the singular function of taxing the citizens to give money to banks – consider it a practice run for their vision of the US as soon as they can get a couple of more seats in the Senate and Michelle Bachmann is President.  On the condition that the Greek Parliament agrees to sell their people down the river, the EU and the IMF agree to give them MORE MONEY.  Well, not GIVE them, of course, they will lend it to them at 5.2% – which is a very nice profit for the lenders and more money than a US 30-year mortgage (but Greece is only given 7.5 years to pay it all back – an impossible task with their debt to GDP ratio).  

This will plunge Greece another 25% of their GDP further into debt while the cuts in Government services are projected to lower their GDP by another 15% so we first add 25% to the 135% debt the already have, which is 160% and then we multiply that by the 15% that the GDP will drop and we get a debt to GDP ratio of 184% – isn’t that special?  So about $600Bn in debt at 5.2% interest is $31.2Bn a year (10% of GDP) JUST IN INTEREST – that would be like the US carrying an annual $1.6Tn interest payment while cutting Government spending down to $1.6Tn – isn’t this a fun game?!?

That’s the…

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