Frederick Douglass

"Power concedes nothing without a demand. It never did, and it never will. Find out just what people will submit to, and you have found out the exact amount of injustice and wrong which will be imposed upon them..." Frederick Douglass

Thursday, July 7, 2011

The Greek Bailout, A Vicious Fraud

International banks, under pressure from European governments to help with another Greek bailout, discussed buying back the country's bonds in another attempt to stitch together a rescue plan after a French initiative failed.

As Napoleon put it before he shut down the banks (oh, those were the days!), "The hand that lends is higher than the hand that borrows." Here we see the representatives of the people, their elected officials, going hat in hand to the capitalists and begging for mercy.

European Central Bank and Greek government officials as well as international and Italian banking executives met lobby group the Institute of International Finance (IIF) in Rome on Thursday, an Italian Treasury source said. Another source close to the discussions said Deutsche Bank took part.

The banks are struggling to strike a deal which would let private sector creditors provide cash and breathing space to Greek debtors without being defined as a default by credit ratings agencies -- which have warned they are watching closely.

In the first paragraph we find the all-too-familiar, incestuous relationship between capital and state policy-making institutions (even though in this case it too is a corporation).

In the second we are treated to the grotesque farce that the ratings agencies are watchdogging the banks.
What is not revealed is that the banks own the ratings agencies, and have since the Gramm-Leach-Bliley Act of 1999, which overturned the long-standing New Deal prohibition against such partnerings. For instance Moody's, which just "junked" (to use the more polite term) Portugal, is owned by Berkshire Hathaway (that's Warren Buffet of Odisha land grab fame, and Wells Fargo etc.).