Posts From KTFA By Thunderhawk
Sold! German Bank to Control, Sell Greek Public Assets
To save its crumbling economy, Greece was forced to hand over its public assets to an external fund controlled by a German bank, managed by Herr Wolfgang Schaeuble himself.
Greece and its international creditors reached an agreement after long negotiations over the past weekend. The cash-strapped Mediterranean nation will now receive a €95-billion bailout over the next three years in exchange for quite harsh economic reforms.
However, the deal didn't come as easily for Greece. German Finance Minister Wolfgang Schaeuble proposed that as much as €50-billion of Greek public assets must be transferred to an external fund and privatized over time.
Essentially, this means Greece must hand over its public assets worth €50-billion — to the German-government owned fund to be sold by the Germans.
The fund is called the Institution for Growth and controlled by the German bank KfW, a German government-owned development bank based out of Frankfurt. Now this is where things get awkward: the current Chairman of the Institution for Growth is none other than Schaeuble himself.
The move may be interpreted as impinging on the sovereignty of Greece. However, what can the Mediterranean nation really do? The morale of the story is simple: bend to Germany's will, or your economy will be destroyed.
Russian Companies Ready to Participate in Greek Assets’ Privatization
The Russian side is ready to participate in the privatization of Greek enterprises, a range of Russian companies are willing to invest in industrial and infrastructure projects in Greece, a source in the Russian government told RIA Novosti Monday.
The source said that Russia's largest railway company, Russian Railways, had stated earlier its interest in the acquisition of the three Greek assets — Thessaloniki ports, as well as the TrainOSE and ROSCO railway companies.
"A number of other Russian companies are also interested in investing in Greece, particularly in certain industrial and infrastructure facilities," the source added.
By ThunderHawk » July 13th, 2015, 3:19 pm • [Post 193]
Ron Paul on Greece Crisis: Is America Next?
Now that Eurozone leaders have agreed to provide Greece with a new bailout, the economic crisis has seemingly been averted. But as former US presidential candidate Ron Paul points out, this resolution is only a temporary fix, another "crisis is inevitable," and it could mirror the United States’ own demise.
"As this column is being written, a deal may have been reached providing Greece with yet another bailout if the Greek government adopts new 'austerity' measures," Ron Paul wrote for the Ron Paul Institute on Sunday.
A tentative deal has indeed come to pass, and is already being criticized for its harsh conditions. Fifty billion euros worth of public assets are being removed from Greek government control, for instance. But nevertheless, averting a crisis "will allow all sides to brag about how they came together to save the Greek economy and the European Monetary Fund," Paul writes.
But the deal still avoids one of the core causes of the crisis: military spending.
"Even as its economy collapses and the government makes (minor) cuts in welfare spending, Greece’s military budget remains among the largest in the European Union."
This, of course, sounds eerily familiar to the problems facing another major military spender.
"…The United States military budget remains larger than the combined budgets of the world’s next 15 highest spending militaries," Paul points out. Little, if any, of the military budget is spent defending the American people from foreign threats.
"Instead, the American government wastes billions of dollars on an imperial foreign policy that makes Americans less safe," he adds. "America will never get its fiscal house in order until we change our foreign policy and stop wasting trillions on unnecessary and unconstitutional wars."
Of course, military spending was not the sole cause of the Greece crisis, nor will it be the only factor in the impending American downfall. The ballooning welfare state is also to blame.
"Like Greece, America suffers from excessive welfare and entitlement spending. Reducing military spending and corporate welfare will allow the government to transition away from the welfare state without hurting those dependent on government programs."
For now, the United States can rest easy on the fact that the dollar is the world’s reserve currency. But as the US Federal Reserve continues to artificially prop up that currency, other nations will gradually move away from the dollar.
"China and Russia are already moving away from using the dollar in international transactions," Paul writes. "It is only a matter of time before more countries challenge the dollar’s reserve currency status, and, when this happens, a Greece-style catastrophe may be unavoidable."
Are American politicians ready for such an event? All evidence suggests they’re ill-prepared.
"The only real debate between the two parties is over whether we should spend more on welfare or warfare," Paul notes.
"Too many Americans believe they have a moral right to government support. This entitlement mentally is just as common, if not more so, among corporate welfare queens of the militarily-industrial complex, the big banks, and the crony capitalists as it is among lower-income Americans."
How can the United States avoid an economic crisis reminiscent of Greece?
"Congress will only reverse course when a critical mass of people reject the entitlement mentality and understand that the government is incapable of running the world, running our lives, and running the economy."
"Therefore, those of us who know the truth must spread the ideas of, and grow the movement for, limited government, free markets, sound money, and peace."
Greek Banks to Remain Closed Monday
Greek banks, supposed to reopen Monday after two weeks of closure, will remain shut for the day, an employee at one of the four largest Greek banks told RIA Novosti Monday.
Banks in Greece were closed late June amid massive cash withdrawal following the announcement of a national referendum on Greek international creditors’ bailout terms.
The government explained that banks were closed as an emergency move to protect the Greek financial system due to a lack of liquidity.
It was earlier announced that banks would reopen July 6, however the closure has been extended. According to the source, banks may reopen Tuesday.
"We wait every day for the resumption of normal work, however today the bank will stay closed. There have been no orders to start work," the source said.
UK Contribution to Greek Loan May Amount to $1.5Bln
The UK share of the loan to save the Greek economy from collapse by means of the European Financial Stabilization Mechanism (EFSM) may amount to $1.5 billion,
Sky News reported Monday citing own sources.
Greece is struggling to repay its debts, including $270 billion which it owes to its main creditors — the European Central Bank, the International Monetary Fund and some Eurozone countries.
According to Sky News' sources, the EFSM mechanism could be activated before the new rescue plan of some €86 billion ($95 billion) for the Greek economy is finally approved. The EFSM could help Greece pay its bills until the new loan is approved.
Since the EFSM is an European Union-wide initiative, and not limited to the Eurozone states, the United Kingdom and other EU members outside the monetary union must also contribute to financing it.
The EFSM was created in 2010 to support the economies of the EU states worst hit by the economic crisis.