Friday, June 15, 2012

The Greek election on Sunday is just as important as the one in November


As the Greek election looms what have the imposed IMF and Euro zone austerity measures done to help Greece's economy recover for years of  government mismanagement and recession?

With unemployment at record highs among all groups and the cost of living sky rocketing the austerity measures have left the Greek people in an economic free fall. You try living on 700 euro's a month or without your government pension and see how long you can survive. That's exactly what's been asked of the Greek people.  Seeing no benefit from these programs one must ask who then is benefiting  from Greece's tragedy?

 Why hasn’t the Greek bailout worked?
Despite implementing draconian austerity measures, Greece is still neck-deep in a years-long recession. But the bailout did, from one perspective, work. Yes, unemployment among youth is over 50%, nearly 1 in 3 Greeks are living in poverty or damn near close to it, and 1 in 5 young Greeks plan to flee the barren wasteland that is the current Greek employment landscape. Yes, families are expected to live on just hundreds of euros a month. And yes, standards of living have plummeted while the cost of living skyrockets. The rate of suicides is alarming, homeless shelters are overcrowded, the Greek government is in tatters, tourism is down and extremism is rising.
 Greece has been beaten down into a bloody heap of a broken society crumbled at the bottom of what Germany has affectionately labeled a “bottomless pit," but saving Greece wasn’t the goal of “aiding Greece.” Containing her was, and the news over the last few weeks demonstrates that in that respect — when the austerity-only bailout program is viewed not as a lifesaver but as a European tourniquet to isolate a wounded sovereign appendage — the bailout program was a wild success.   One need only look at a recent New York Times analysis to see the true nature of the “Greek” bailout
 Its membership in the euro currency union hanging in the balance, Greece continues to receive billions of euros in emergency assistance from a so-called troika of lenders overseeing its bailout.
But almost none of the money is going to the Greek government to pay for vital public services. Instead, it is flowing directly back into the troika’s pockets. [...]
As they pay themselves, though, the troika members are also withholding other funds intended to keep the Greek government in operation. [...] In an elaborate payment system that began after the May 6 election that brought down the Greek government and is meant to ensure that the Greeks do not touch the cash, the big three creditors are now wiring bailout payments to an escrow account in Greece. There the money sits for two or three days — before much of it is sent back to the troika as interest payments on the Greek bonds that Europe accepted under terms of the bailout deal struck in February.

  

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