Wednesday, February 17, 2010

Business is Good at the Temple

More is coming out about the involvement of Goldman Sachs and other Wall Street banks in the Greek tragedy currently unfolding. The fear in Europe is that they have been engaging in the same sort of bad bond hanky panky in multiple countries. In order to hide the extent of Greece’s indebtedness from EU regulators they went all the way back to biblical times and dusted off the practice of “money changing“. By issuing bonds denominated in Yen and USD and then converting back to Euros at what they euphemistically referred to as an “historical” rate they generated a billion USD in “profit” for the Greek government and a several hundred million in commission for themselves.

Goldman alone has taken home 725 million Euros in the last ten years by managing bond sales for Greece. How much that is in USD depends on the “historical” value of the Euro. The US corporate media off starts all of its brief coverage of this scandal with the disclaimer that the US banks didn’t cause the crisis but helped cover it up. Causing investors to lose 15 billion USD so that you can make a billion for yourself isn’t a major crime like stealing a loaf of Psomi (psoh-MEE, a cheap bread that was popular for people to live on during frugal times in Greece). The Greek people disagree however, there has been one bank bombed so far.

The reason Greece might “default” on its debt is that much of this debt was from a practice that was pushed heavily in the US during the reign of the Bush Crime Family. They sold public infrastructure to private companies at bargain prices (sales handled by Wall Street) and lost the subsequent revenue putting them increasingly into debt and the public was burdened with heavy tolls and fees as they waited for the flat earth prosperity they were promised.

In the old days a money changer that cheated the public had his portable table smashed. A certain long haired, sandal wearing liberal reformer has been immortalized in a widely circulated book for doing just that. The word bankrupt literally means to “break the board”. Today the “board” or bank is above the law and bankrupt is what happens to the rest of us. Cheap bread is the future but don’t get caught stealing any just because you’re starving.


indianabob said...

Great job, once again! I get alerted when Mike Malloy reads these.

Keep hammering away and I won't forget to store canned goods.