After 2008 there were words of intent about changing the gambling practises of the banking community but one abuse continues to follow another. However it is now becoming very clear that it will not be the regulators that bring the banks to heel but their own greed.
We have become more educated about the reality of why Greece can no longer service its debt obligations, resulting in growing sympathy and support for the manner in which they are fighting back. Although there are now hints of giving further ground to their creditors they have done the rest of us an incalculable service in opening our eyes to the reality of the financial abuse going on across the Planet.
We now hear that the tiny island of Puerto Rica has just put its hand up to the impossibility of its debt situation and Ukraine is following in the footsteps of Greece, with more debt being piled upon the Ukraine people to meet existing debt obligations. With the debacle of Greece fully in the headlines and sympathy growing for their cause the idiocy of repeating the ‘Greek Mistake’ with Puerto Rica and Ukraine beggars belief.
This is an exact repeat of the 2008 sub-prime mortgage scandal, where debt was piled upon people who the banks knew could not afford it. To protect themselves from their own bad practise they then packaged up this bad debt with good debt and sold the bundles on to each other in a global ‘pass the parcel’. Except there was not just one winner at the end, because the taxpayer made them ALL winners when the parcel finally unfolded.
With the revelations about Greece, Puerto Rica and Ukraine, not to mention Italy, Portugal and Spain (that we know about), it is obvious that the banks have not changed any of their dangerous lending. The global financial system was left riddled with bad debt from 2008, a lot of which is still in there and now being topped up with vast amounts of sovereign debt. These countries and many more, including the UK, have become saturated in debt because our taxes were stolen and then replaced by debt we simply could not afford through that earlier theft.
The blame and responsibility is entirely that of the banks, as I do not believe for one minute that any country walked into the headquarters of the IMF or Goldman Sachs and put a gun to their CEO’s heads demanding “Give us dosh OR ELSE”!
The people who lost their houses in the sub-prime fiasco suffered the indignity of sleeping under bridges or in tents, staring helplessly at lost homes that remained empty for months, if not years. This is now the fate of the rest of us, who are staring on equally helplessly as our national assets are sold off (stolen) at rock bottom prices and our social service become as empty as those former homes, all in the name of ‘Austerity’.
We refer to them as banks but these are not the practises of traditional banking, who looked after their own interests by ensuring they only lend their money to responsible people who they know could both afford and take responsibility for that debt.
It is obvious from the growing number of hands going up in default that the common denominator is moneylending practise and not banking practise. That it is going on at such a global scale is serious cause for concern, because we are not talking about financial issues here but those of power. The brutal fashion in which Greece is being treated demonstrates the need felt necessary to fully assert that power as they continue their odious debt lending.
Greece may be considering weakening their current stance but they are also having their lawyers study the nature of their debt obligations with a view to having it formally classified as ‘Odious Debt’, that they may then legally return it from whence it came. That would be a game changer!
Odious Debt is a far bigger can of worms than ‘Austerity’ and would heap a stigma upon the banking system that could challenge its very foundations. And if Greece does not follow through, someone else will, as I believe our growing awareness of the reality of what is happening is placing the writing on the wall!
Until the next time.
Thinking from his Book: Global Magna Carta. Returning Power to the 99% . . . If They Want It! By J T Coombes