WASHINGTON, Nov. 30 (UPI) – Greece’s bailout hit a new hurdle when the International Monetary Fund said it would not give its part of the money until Greece buys its bonds back.
IMF Managing Director Christine Lagarde “would be in a position to recommend to our executive board the completion of the first review of Greece’s program” only after Athens delivers “on the commitments agreed, in particular the implementation of debt buybacks,” IMF spokesman Gerry Rice told reporters.
“Buy back” at a large discount, of course.
While the IMF and other “official” lenders give back nothing.
Of course this is how it is, right? You want money from Joe The Loan Shark, you do what he says. Or he sends over Guido to break your legs.
What I’ve yet to figure out is why private holders put up with this crap. Oh I understand the mentality — “if I don’t go along to get along I’ll get zero.” But how many times do you have to get zero anyway, after you trust these clowns, before you simply erect the middle finger when the threats start and tell them “Go ahead, light the match — we’re both standing in a pool of gasoline!”
C’mon folks — when you get down to it the bottom line here is that they can’t pay. We can’t pay either, particularly when you look at the forward liabilities that have been promised out as “benefits”, especially in medical care.
The lie machine of the political process, where one can promise people unicorns despite having absolutely no ability to pay as agreed and knowing this at the time you make the promise, is nothing new. It pervades not only Europe but here in the United States, and crosses all political parties. Even the so-called Libertarian Gary Johnson lied about his fiscal record — he claimed he “cut spending” in New Mexico as governor but factually increased not only spending but per-capita state debt!
In the private world this is fraud and is punishable by prison time. But as soon as it comes to the political world even those-ardent argument-makers for prosecution fold their tents and accede (e.g. Bill Black) to the claim that “it’s unfair that the people who were promised something that was impossible have to face that reality.”
We have built a world of people who believe in Unicorns and that the political promises to shower them with “other people’s money” were both real and sustainable. Neither is true, but none of the people of the world are yet willing to hold the politicians who lied to them accountable, while at the same time accepting that they were lied to and thus cannot have what they were promised.
There is no solution — here or in Greece — until that changes.