The following is an outline for a proposed new Greek government bond issue to provide all required medium term euro funding for Greece on very attractive terms.
The new bond issue includes an addition to the default provisions that eliminates the risk of loss to investors. The language added to the default provisions states that while in default, and only in the case of default, these transferable securities can be used directly, by the bearer on demand, at face value plus accrued interest, for payment of any debts, including taxes, owed to the Greek government.
My god will it ever end? Is there no slaking capital's thirst? If you were foolish enough to believe that these vultures were trying to solve Greece's financial crisis, then this should disabuse you. Forcing Greece to accept their own irredeemable bonds as payments of any debt owed to it might sound like justice, but it will bring that nation to default for sure. They are strapped for cash now, decreasing their real revenue by substituting uncollectible debt will surely cause an implosion.
Greece is part of the Euro Zone so it cannot devalue its currency nor print more a la the US. It has reduced the incomes of its citizenry to such a drastic degree that they can no longer spend, and hence reduce government revenues from taxation etc. Now this will reduce Greece's revenue even more. This isn't putting out the fire, this is dousing it with fuel.
As I have been saying all along, the banksters are not trying to "rescue" Greece, they are plundering it. They will buy what they want at the auction they have imposed, and take the proceeds from the rest of the sales. Then they will watch Greece collapse into rubble, and scavenge amongst the ruins.
According to Mosler's website, this plan is now "making the rounds in Europe." He's a well-connected bankster who offshores for the big fish. If his plan is implemented, the rape of Greece will be complete.