Greece Owes Nothing to Britain's Criminal Banking Syndicate

February 20, 2015

The apathy of the rulers of the civilised world to the astonishing circumstance of the descendants of that Greek nation to which they owe their civilisation, rising as it were from the ashes of their ruin, is something perfectly inexplicable to a mere spectator of the shows of this mortal scene. We are all Greeks. Our laws, our literature, our religion, our arts have their root in Greece . . . Percy Bysshe ShelleyIntroduction, Hellas, A Lyrical Drama

Lyndon LaRouche reiterated on Thursday that the entirety of the so-called Greek debt to the Troika, is fraudulent and must not be paid.  "Looting does not constitute legitimate debt," LaRouche warned, and the British-run European and Wall Street banks ran a non-stop looting of the Greek people, the Greek economy, and the Greek banks.  Just because, on some occasions, corrupt Greek officials were in on the swindle with partners like Goldman Sachs does not make the debt any less criminal.

The Greek government must be given full international backing for its stand, that the debt is unpayable and must be slashed.  LaRouche said it even more bluntly:  The debt is illegal, it is unpayable, and it is the fruit of a London-led criminal enterprise that must be shut down altogether, if the world is to survive the coming months without an eruption of general war in the center of Europe.

Members of LaRouchePAC participate in a Greek solidarity rally in New York City on Feb. 11, 2015 with a sign reading "Wall Street and Troika are Bankrupt, Not Greece!"

On Thursday, Greek Finance Minister Yanis Varoufakis wrote to the Eurozone Finance Ministers and ECB President Mario Draghi, demanding a six month extension of the current arrangements, to allow time to organize a debt conference, and to develop a plan for a Greek economic recovery—minus the austerity. Germany instantly rejected the proposal, prompting the Greek government to make the letter public, and setting the stage for a showdown on Friday, when the Eurozone finance ministers meet to determine their next move.  Behind the scenes, even inside the ECB, there is widespread recognition that the debt cannot be paid and that a new arrangement is necessary.  Former French President Valery Giscard d'Estaing told the French media that Greece should be given an opportunity to organize a "friendly exit" from the Euro.

The two essential points to bear in mind are the following:

First, it is the entire trans-Atlantic financial system that is bankrupt—not Greece. The "Ponzi Schemes," and the quantitative easing hyperinflationary swindles have made matters worse.  There is no turning back from an orderly cancellation of the entire gambling debt bubble, starting with the quadrillions of dollars in derivatives, such as the credit default swap contracts that were taken out on the Greek government bonds at the same time that Goldman Sachs and others were shorting the debt

And second, none of the so-called Greek debt to the Troika and the European banks is legitimate.  Not even ten percent of the money went to anything resembling productive investment in the real Greek economy.  The Greek people have been decimated by the British-led looting.  They owe nothing!

Nothing highlights the criminal nature of the British financial empire more than the continuing exposes of HSBC, underway around the world.  Don't forget, that HSBC was once known as "the Hong Kong and Shanghai Banking Corporation"—the Crown jewel of Britain's Opium War policies, and the central bank for the global dope trade.

Now, with the criminal raids in Switzerland, the "deferred prosecution" sweetheart deal from Obama in the United States, the ongoing investigations in India—showing that HSBC, along with the Queen's own Couts Bank, laundered the money for the Daoud Ibrahim-organized Mumbai terrorist attack of late 2008, and the criminal actions against the bank in Argentina, it should be a clear reminder, that the entire London/Wall Street-run trans-Atlantic financial system of too-big-to-fail banks, is one gigantic criminal enterprise.  It is Dope, Inc., and the only appropriate action is a massive global Pecora Commission prosecution and shutdown of these banks.

When you look back at the LIBOR swindle, the revelations of HSBC being the number one drug-money-laundering bank for the Mexican and Colombian drug cartels, the Swiss-based HSBC global tax-evasion scheme, and to the links of HSBC to the Golden Chain of Saudi banks behind the financing of Al Qaeda and ISIS, the point should be clear:  This is global organized crime, at the top.  And they expect to be paid back for the blood they extracted from the Greek people?

A full investigation of HSBC's criminality on behalf of the Crown, would also reveal the intimate relations with Prince Bandar bin-Sultan (or, perhaps, bin-Satan), particularly in the immediate aftermath of 9/11. While the Swiss HSBC private bank documents confirmed that Bandar was a tax-evasion customer, the real story is much bigger. For a period of years, HSBC was the only bank in the United States that would manage Bandar and the Saudi embassy's money.  Before and after 9/11, according to qualified Washington sources, Bandar was receiving $30 million a month in transfers from the Bank of England to his personal account at HSBC New York (and later, HSBC Washington, DC) as his cut in the Al Yamamah arms-for-oil deal that created the biggest terrorist slush fund in history.

SEE "The Anglo-Saudi Terror Network"

The blowing of the lid off the London/Wall Street banking swindle is key to preventing the war from erupting in the heart of Europe.  So far, Putin, Hollande, Merkel, and Poroshenko are sticking to their commitments to a cease-fire in Ukraine, as the first step to a genuine resolution of the crisis, which began with Victoria Nuland's Nazi regime-change operation in 2013-2014. All four leaders know that Obama, on behalf of the British, is pushing to arm the Ukrainians as a trigger for war with Russia. Victoria Nuland, Obama's neo-con Nazi-lover, is running around Georgia and other points east pushing the provocations.

Nuland must be dumped now, as another precondition for war prevention.  As long as she is running around on behalf of Obama, the danger of war is too grave to tolerate.  With her ouster, Obama becomes vulnerable. Either he is removed from office himself, or, as LaRouche put it, "he is considerably constrained," or, the war cannot be stopped.

These are critical days, in which the very future of mankind hangs in the balance.  The Greeks must be given full international support to stand up to the fraudsters and murderers in London.  Nuland must be fired and Obama put in a box or dumped, himself.  That combination of actions is sufficient to push back the war danger.  Then, the orderly wiping out of London and Wall Street's imperial debt bubble, can set the stage for a genuine economic revolution, of the sort launched by Alexander Hamilton at the close of the American Revolution, and mirrored today in the actions of the BRICS.




More Leveraged Than 2007

Northern Europe's biggest private equity fund, according to Bloomberg, says it now sees debt "asset bubbles everywhere we look" as a result of the major central banks' hyperinflationary policies. Thomas von Koch, managing partner at EQT Partners in Stockholm, told Bloomberg that "history offers little help in predicting how this will all end. There are financial bubbles being built up and how they'll be solved, I don't know. It's the asset bubbles in general that concern me. It's wherever we look."

Koch says that debt levels are approaching those recorded in 2006 and 2007, just before the global financial crash.

"You also have a private market chasing yield with a bond spread between those and debt provided by the banks that has never been as narrow as it is today. And the underlying economies for the companies, you don't have much growth. From that perspective, we're more leveraged today than in 2006-2007."

These debt dangers are, of course, concentrated by the use of derivatives of roughly $1 quadrillion in nominal value. ZeroHedge picked up a report circulated Feb. 13 by Citibank Research, which for some reason surveyed 43 other banks, hedge funds, etc. on their use of credit derivatives. The survey found that
"...there seems to have been a shift from using derivatives as a hedging tool [35% doing this], to using them more for alpha generation [60%] as most products [sic] are now used more for adding risk and directional views."
"Adding risk" in bankerspeak means increasing leverage by more debt; "alpha generation" means attaining exceptional profits, which is usually accomplished by debt leveraging.

Recall hedge fund vulture Paul Singer's recent comment about the gargantuan bubble of derivatives, that "if even a small portion of them represent directional trades and not hedges," that makes the potential for a global financial crash.

New Greek Letter to Eurogroup Rejected

Greek Finance Minister Yanis Varoufakis has submitted a new letter to the Eurogroup, comprising the 19 euro area finance ministers, stating the position of the Greek government and a request for an extension of the so-called loan agreement. No sooner was it submitted than the German government rejected it.

The moment European Commission spokesman Margaritis Schinas said that the Greek letter could be the basis for a "reasonable compromise," the German Finance Ministry spokesman, Martin Jäger, said in an e-mailed statement that the Greek government is trying to agree to a bridge-financing without meeting the conditions of its existing rescue program, which of course means there will be no compromise.

The Greek Finance Ministry publicly released its letter, which calls again for a six-month extension of the "Master Financial Assistance Facility Agreement" so as to
"allow the European Central Bank to re-introduce the waiver in accordance with its procedures and regulations," referring to reinstating the waiver on Greek bonds which allowed the ECB to issue normal liquidity to Greek banks.

Obviously the offending part of Athens' letter, signed by Varoufakis, was the statement of purpose for the extension to negotiate a new "Contract for Recovery and Growth" that would
"enable the Greek government to introduce the substantive, far-reaching reforms that are needed to restore the living standards of millions of Greek citizens through sustainable economic growth, gainful employment and social cohesion."
All of which is not in the original Memorandum of self-destruction that the previous Greek government had signed.

The humanitarian crisis which Athens has told the Eurogroup is its first priority, is demonstrated by a highly illustrated graph on, which sandwiches the devastating figures between two halves of the title, "It's More than Obvious That ... The Current Program for Greece Has Failed." The figures show that since 2009 GDP has decreased by 25%, unemployment has reached 27% and youth unemployment has reached 60%, meaning more than 1.2 million people have lost their jobs; 250,000 young Greek scientists have emigrated; 30% of Greek businesses have closed; salaries have been reduced by 40% and pensions by 50%; the poverty rate has increased by 100%; savings bank deposits declined by EU80 billion; households without electricity have increased by 250%; social security funds have dropped by EU35; and the richest 10% of the population own 56% of the wealth.

'Mr. Europe' Calls for Greece To Exit Eurozone

Former French President Valéry Giscard d'Estaing (1974-81), the architect of the would-be "United States of Europe," has called for Greece to exit from the Eurozone and claims that the "pressure of speculative circles" is preventing it. His comments were published yesterday in an interview with the French daily Les Echos.

Giscard presents what is otherwise the typical monetarist argument for a Grexit, including the claim that the only way the Greek government can implement its policy is with a weak currency and devaluation so that it can become "competitive." He says that both he and the German government at the time opposed Greece's entry to the Eurozone in 2001, but the French government insisted, and this has proved to have been a "mistake," he tells Les Echos.

"The problem is ill-posed since the beginning. The fundamental question is whether the Greek economy can start and prosper with such a strong currency as the euro. The answer is clearly no. But instead of focusing on this background and responding, Europeans focus on Greek debt. Of course, it is possible to relieve some of the Greek budget, by adjusting the level of interest rates and maturities. But that's not the point. This will not solve the fundamental problem faced by the country...."

"This process of an orderly exit," Giscard continued, "should and can unfold in a non-conflicting way, in everyone's mutual interest. It's what I would call a 'friendly exit' [sic, in English], an exit in an amicable spirit...." But it is not being done "because of pressure from speculative circles." Thus in his own way confirming that it is the derivatives bubble that is at stake.