Goldman's Great Greek Swindle and the American Blowback
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You've heard this crappy joke before. Financial vampire squid Goldman Sachs games billions on the books for a prestigious client, hiding its lack of real value, while both continue to lucratively trade on false data. Time passes, Goldman retracts its feeding tube, the prestigious client implodes, and the collateral damage escalates. Cue the cruel laugh track.
The client this time?
"The European Union bureaucrats that are driving the system wanted their own empire," economist Paul Craig Roberts, one-time assistant U.S. Treasury secretary in the Reagan administration, told AlterNet. "So the European Union was expanded into financially weaker states, which can no longer print money to cover their debts as they all use the euro. What Goldman Sachs did for the Greek government was to help hide the size of the Greek debt, since European Union membership requires maintaining a fairly low deficit-to-GDP ratio."
What happens when you, unlike the
"Here we have the U.S. government," Roberts wrote last year in a rant called, conveniently enough, " Americans: Serfs Ruled By Oligarchs ," which is "totally dependent on the generosity of foreigners to finance its red ink, which extends in large quantities as far as the eye can see, completely under the thumb of the military/security complex, which will destroy us all in order to meet Wall Street share price expectations."
In other words, same joke, different country. Right now, Greece is dependenton the generosity of foreigners to keep it, and by extension the European Union, solvent enough to survive the crisis. German chancellor Angela Merkel plans to meet with
"The question is whether
Either move could stop the bombs from exploding in front of JP Morgan Chase, but probably not. After
"It doesn't take a huge glitch to set a chain of events in motion with very destructive consequences for economies," James Kunstler, author of The Long Emergency and The Geography of Nowhere, told AlterNet. "The 1998 Russian default wasn't huge, but it created a lot of mischief. The collapse of the Malaysian ringgit pranged the whole South Asian sector of the global economy, and eventually caused major dislocation for Europe and