Greece’s Debt Battle: What’s the Real Story?


Greece’s voters on Sunday, celebrating democracy, rejected the country’s creditors and their dictatorial efforts to mire the nation in austerity – a no-win situation keeping Greece from reducing unemployment and building the economy.

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Shouting “No!” to austerity.

The hardnosed Troika – the name the creditor European Commission, European Central Bank, and International Monetary Fund hate to hear themselves called – has been refusing to let Greece revise its debt repayment plan, agreed to by a previous government, not Alexis Tsipras’s Syriza party which took control in January. Among other dictates, the Troika has refused to let Greece tax corporations, and demands that suffering pensioners – whose payments have already been reduced by 40 percent – must see deeper cuts.

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The question is this: Why would Germany, with the EU’s most solid economy, and the country basically controlling the relationship with Greece, not want the seat of democratic civilization to get a restructured plan — one that would allow Athens to begin growing a depressed economy with 25% unemployment (higher among youth) and gradually pay off its debt? After all, it was the West’s debt forgiveness to Germany following World War II that allowed Berlin to rebuild and again become an economic power in Europe.

The most forceful voice Peculiar Progressive has heard consistently answer that question is Paul Craig Roberts, a former Assistant Treasury Secretary under Ronald Reagan and one of the brain trust behind Reaganomics. He says simply that the EU (primarily Germany) and international banks want to force Greece into a position where it must sell its public assets, i.e. privatize the natural resources that belong to the Greek people.

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That sounds logical. It’s an effort that Wall Street and major corporations are attempting globally, e.g., Nestle’s effort to privatize water worldwide for profit. It’s an effort suspicioned in new international trade agreements such as the Trans-Pacific Partnership, except Washington and the corporations are forcefully attempting to keep their plot secret. In the case of Greece, it’s the EU’s plotting.

What will happen next? Here’s the way the seasoned Roberts sees it in his column published following Sunday’s Greek vote. It happens to coincide in what we were seeing in our column on Greece back in February, which was the entry into the fray by Russia and China. Says Roberts:

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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.


An inflexible EU creates conditions for Russia and China to act. These two powerful nations have the means to finance Greece and to bring Greece into the economic relationships established by these two countries and by the BRICS.

That, of course, would send Washington’s neoconservatives both in the White House and Congress into fits. Obama has been consistently attempting to find ways to control the EU and NATO, crush Russia’s economy and egg it into war, and stifle China’s growing role as the globe’s economic leader, even saber-rattling against Beijing.

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Alexis Tsipras calling for a “No!” vote.

Peculiar Progressive, therefore, sees the Greek vote leading to the possible unraveling of the European Union, which we wrote about here, including Greece receiving overtures from Russia. The problem is this: a uniting of Greece with Russia and China could move Washington closer to igniting a military confrontation. And since the U.S., Russia and China all have enough nuclear weapons to send Earth into fireworks that can be seen from distant galaxies, it could be the world’s final conflict.

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Roberts is a bit more optimistic. We’ll end with his column’s closing view:

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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.