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Greece votes against the austerity plan

Jul 06, 2015

Opinion polls, when conducted with integrity, are a reliable measure of public opinion, coming within about 3 percent of the truth.

Before the vote last week, opinion polls in Greece were insisting that public opinion was divided evenly, with half the people intending to vote “yes” and half “no” on the austerity measures demanded by the Eurozone. Once the vote was taken, it became obvious that the pollsters were lying in order to try to influence the vote. The vote was 61% voting “no” and 39% voting “yes.” The “no” side won by a landslide.


In Sunday's referendum on creditor proposals, 61 percent of Greeks voted “no” — a much higher proportion than anticipated….

Greeks were voting Sunday in a critical bailout referendum, with opinion polls showing people evenly split on whether to accept creditors’ proposals for more austerity in exchange for rescue loans, or defiantly reject the deal.

So it seems that the question now that the Greeks have to face is whether to try to bail in the big bankrupt banks by stealing the people’s deposits or to nationalize the banks and fund them with newly-issued Greek currency (drachma). It is a virtual certainty that Greece will have to return to the drachma in order to have sufficient money in circulation to service what remains of their economy. What is really at stake here, it seems to me, is whether their money should be issued debt-free, or if they should pay interest to use someone else’s money that was printed out of nothing and loaned to them at interest.

The lifeblood of Babylon is fiat currency, and its slavery is directly proportional to the debt that is created. The Greek people may not understand fully what the underlying issue is, but they feel it in their daily lives. It is the creditors who misjudged the situation. They saw an opportunity to make a high rate of interest on Greek bonds and thought that the Eurozone would guarantee payment by its pressure on the Greek government. They lost their bets and their money, at least for now.

Financiers today lend money on the “risk” principle. The greater the risk, the more interest the debtors will have to pay. In other words, if repayment becomes improbable, then they raise the interest rate to make repayment impossible. In the end, this policy will always bring down the system.

Euros will continue to be used in Greece, but soon they will be used alongside the drachma, much like in Britain, the euro is used alongside the pound. Having two currencies used by the public is not unusual.

Expulsion? or Pressure to Leave the Eurozone?

There is also a lot of hot air expended with talk about the Eurozone expelling Greece from its Club. However, there is no place in the Eurozone charter or laws that provide for them to expel any member. Hence, most reports speak of this in more passive terms:

Greece may “drop out” of the Eurozone

Greece may “leave” the Eurozone

Greece may be “forced out” of the Eurozone (By who?)

The bottom line is that Greece itself would have to make that decision. The most that the other Euro nations can do is to put pressure on Greece to leave on its own accord. From the comments already published on the news, it is quite clear that Euro officials plan to attack Greece financially and to boycott the drachma (if it is issued by Greece). It is their intent to make it clear to Spain, Portugal, and Italy what sort of treatment they would receive if they tried to follow Greece’s example.

Dr. Paul Craig Roberts gives us a short comment on what might happen:


As the Greek banks are closed and evidently cannot reopen without a resolution of the issue, EU inflexibility would force Greece to leave the euro and return to its own currency in order to reopen the banks. This would not require Greece’s departure from the EU as the UK and one or two other EU member states have their own currencies. However, most likely the EU and Washington and Washington’s Japanese, Canadian, and Australian vassals would attack the new Greek currency and drive its value in exchange markets to such a low value that Greece could not import and wealth held in Greek currency would be worthless abroad.

Dr. Roberts then suggests that China and Russia would step in to defend Greece and to finance a new banking system. Such an action would not only consolidate Greece’s separation from Europe, but it would also weaken NATO and undermine its Ukrainian plot. He says,

The Greek drama is far from over. Pray that the Russian and Chinese governments understand that rescuing Greece is the start of the process of unravelling NATO, Washington’s mechanism for bringing conflict to Russia and China. The One Percent have Italy and Spain targeted for looting, and eventually France and Germany herself. If the Greek people rescue themselves from the clutches of the EU, Italy and Spain could follow.

As Southern Europe departs NATO, Washington’s ability to create violence in Ukraine is diminished as the world realigns against the Evil Empire.

Washington’s power could suddenly diminish, thus saving the world from the nuclear war toward which Washington’s neoconservatives are pushing.

The Derivatives Factor

The real underlying problem, which none of the “talking heads” discuss on mainstream media, is the derivative problem. So far, this problem is on hold, because in spite of the Greek “missed payment” on June 3 and then on June 30, they are still not using the word “default” in a legal sense. As long as the default is called something else officially, all of the creditors remain in limbo. Likewise, the derivatives remain in limbo and cannot begin to unravel. In other words, those gamblers who lost money don’t have to pay up yet.


On the heels of the historic Greek vote rejecting more European austerity, the man who has become legendary for his predictions on QE, historic moves in currencies, and major global events spoke with King World News about how the BIS is trying to hide a terrifying nightmare that is going to send the world into a full-blown panic.

Egon von Greyerz:  “The derivative position of US banks for Q1 2015 has just been published and the reading is more frightening than ever….

BIS Hiding A Nightmare That Will Send The World The World Into Full-Blown Panic

“The top 5 US banks have total a derivative exposure of $247 trillion. This is 3.5 times world GDP. Total derivatives for all banks in the world are just over $600 trillion. But these figures are less than half of the real exposure. A few years ago the BIS in Basel changed the basis of valuation of derivatives to “Value to Maturity.”

Meanwhile, if we step back and look at the world picture, it appears that the world is heading toward a “perfect storm.” It is not only the euro that is in danger of plunging if Greece decides to leave the Eurozone. China’s stock market has dropped 30% since mid-June. Stocks have lost $2.36 Trillion has evaporated in just a few weeks, which is the equivalent of 10 times the GDP of Greece last year. China’s government has now committed $19 Billion to prop up the stock market, but we will see how successful their efforts will be.

Meanwhile, here in America, the manipulated markets are also heading toward the cliff. The potential for a meltdown in the next few months is under control for the moment, but problems in Europe and China could easily bring a financial tsunami to our shores.

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Category: News Commentary
Blog Author: Dr. Stephen Jones