As Greece races towards tomorrow’s deadline, several legislators within the British government are offering an entirely different solution to the problem. On June 29, 25 MP’s from outside the leading conservative party have suggested that the Eurozone cancel the $380 billion Greece owes the IMF and Troika, and instead have the creditors seize the money from the institutions who actually profited from the Greek crisis.
MPs, trade unionists, economists and campaigners have called upon David Cameron to support Greek debt cancellation, saying it could be funded by seizing capital from speculators and banks that were the true beneficiaries of Athens’ bailouts.
In an open letter to the prime minister, some 25 Labour and Green Party MPs demanded the government support the organization of a European summit to agree upon a debt write-down for Greece.
Published by the Guardian on Sunday, the letter also called for an end to destructive austerity policies that have wrought poverty and injustice across Europe. – Russia Today
This plan of course flies in the face of the ‘too big to fail’ model, and the direction governments have instituted since 2008 for using depositor and creditor monies to backstop bank speculation and bad market bets.
The fact of the matter is, this monetary problem has always come from policies created by central banks, who destroyed free market price discovery and manipulated interest rates and money supplies to protect a small class of investors (banks). And since regulators after the 2008 credit crisis implosion did not ensure that the banking elite would mot do the same type of speculation again (derivatives and junk bonds), the problem has not only returned to the same levels of just seven years ago, but is now demonstratively greater.
Iceland provided the model that Greece should have followed early on in their debt crisis, but were hindered by the fact that the European Commission forced upon the people of Greece a technocratic ruler who simply borrowed more money, and imposed austerity to the point where the Southern European country could never recover. And now several years after high unemployment, higher debt obligations, and no real sustainable production has taken place that could have helped pay off their debts, the only solution is for a cancellation of the debt, or a complete default, which in the end is most beneficial to everyone, and which should have been done for Greece and the rest of the PIIGS when the banks themselves were bailed out by the taxpayers.
Kenneth Schortgen Jr is a writer for Secretsofthefed.com, Examiner.com, Roguemoney.net, and To the Death Media, and hosts the popular web blog, The Daily Economist. Ken can also be heard Wednesday afternoons giving an weekly economic report on the Angel Clark radio show.