On the decision of the Eurogroup (27/11/12)

(http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/en/ecofin/133857.pdf)

First of all, it has a good amount of black humor ”Greek (…) debt has worsened compared to March 2012 (…) mainly on account of a deteriorated macro-economic situation and delays in programme implementation”. It was precisely the programme that provoked the deterioration of the macro-economic situation and not its ”delayed implementation”. Now they say the debt will be 122% in 2020, so bigger than it was in 2009.

Second, ”fellow” Eurozone member states will have to make less profits on the greek loan. Greek debt is not payable as everybody knows by now. But the ECB and IMF refuse to bear the consequences. So, it is other member states that will do it with all the consequences that could have on relations between states and peoples in Europe and the space it opens on nationalist forces to speculate on that: ”the Greeks are cheating us, they don’t pay back the loans they got”.
Third, the IMF keeps open the possibility of imposing haircuts on the bonds held by the ECB. So, what they did right now is a truce. ECB bonds are highly speculative. They were bought at 70% of their nominal value but Greece has to pay back 100% this value. The ECB has spent 38 billions to buy bonds of a 50 billion value expecting 12 billions profits. Something similar has happened with member states. But maybe the ECB too will soon have to loose profits.
The conclusion is that the only solution remains the citizen-led default to the bankers and the EFSF & ECB. And it’s not only the Greek people who has to do that but all European peoples, because very similar developments will soon happen with Portugal, Spain etc. People should cancel their debt, stop contributing or receiving loans from the ECB and establish a new entente among them were no cuts will be made to nobody and nobody will make profits through insane interest rates from nobody.
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