Saturday, 27 June 2015

Greek Film Shows Way Out of Debt Bind


"Debtocracy" a 75-minute documentary made for $15K has inflamed popular resistance in Greece by casting the debt crisis in a new light.

Seen on the Internet by over a million Greeks, the film convincingly argues that the debt is a neo-liberal ("Economic Hitman") scam and there are strong precedents for repudiating it.

The brainchild of Costas Lapavitsas, an economist and professor at the School of Oriental and African Studies in London, the film introduces the concept of "odious debt" which the US used in 2003 to renounce Saddam Hussein's $120 B debt to Russia and France.

Defined in the 1920's by Russian economist Alexander Sacks, "odious debt" is incurred by a despotic power, "not for the needs or in the interest of the State, but to strengthen its despotic regime, to repress the population that fights against it, etc. This debt is odious for the population of all the State."

He went on. "This debt is not an obligation for the nation; it is a regime's debt." Sack called it "a personal debt of the power that has incurred it." When this power falls, that debt "consequently . . . falls with the fall of this power."

Sack also considered a debt odious when, "the loans incurred by members of the government or by persons or groups associated with the government to serve interests manifestly personal - interests that are unrelated to the interests of the State." A bribe is an example of a manifestly personal interest.

Now, in order for a debt to be deemed "odious," Sack said that the lender must also be aware that the loan is "contrary to the interests of the nation."

In this case, Professor Sack said, "the creditors have committed a hostile act" against the people. They can't therefore expect that a nation freed from a despotic power will assume the 'odious' debts, which he called "personal debts of that power."

As we shall see, these criteria apply to Greece. But first the film looks at:

EQUADOR

The 'Illuminati' banker-IMF method of absorbing the world's wealth is well documented. They bribe corrupt regimes to incur huge debts for costly boondoggles built by companies owned by the same bankers. Then the bankers make their targets repay these "loans" (created out of thin air) by accepting severe "austerity" programs and privatizing national enterprises and resources.

At first we thought this predatory behavior was reserved for the Third World, but now it's clear Europe and America are also in their cross-hairs.

Rafael Correa, the President of Ecuador didn't think most of his government's income should be used to service the national debt. He ordered an "audit committee" to investigate how this debt was incurred and discovered that 70% was due to the corruption of prior regimes.

He renounced that debt. Equador's bonds fell to 20 cents on the dollar. His government secretly bought it back and saved seven billion dollars in interest.

Interestingly, many civil servants at the Ministry of Finance refused to cooperate with the audit committee. There is always a class which is in cahoots with the bankers and profits at the expense of the people.
http://henrymakow.com/greekfilmmakescase.html

[Posted at the SpookyWeather blog, June 27th, 2015.]

No comments: