In a world filled with debt-ridden countries in danger of financial collapse, Greece has become the latest poster child for bad monetary policy and political bureaucracy. Many argued that Greece should never have entered the Eurozone in 2001, including German Chancellor Angela Merkel and the Former President of France Nicolas Sarkozy.
American political economist, Robert B. Reich, explained the extent of the situation in a recent post on The Nation. “ European Union accounting rules allowed member nations to manage their debt with so-called off-market rates in swaps, pushed by Goldman and other Wall Street banks.”
“The Maastricht Treaty required all eurozone member states to show improvement in their public finances, but Greece was heading in the wrong direction. Then Goldman Sachs came to the rescue.”
– Robert B. Reich
The former US Secretary of Labor described Wall Streets “predatory lending,” which resulted in Greece owing Goldman Sachs 5.1 billion Euros, “ Mario Draghi, now head of the European Central Bank and a major player in the current Greek drama, was then managing director of Goldman’s international division.”
Eurozone problems have since come to a head, with the Greek government missing a vital deadline to pay its bills. This resulted in a 3-week bank closure nationwide, with capital controls restricting Greeks from withdrawing more than 50 to 60 Euros a day.
In an apparent attempt to democratize the situation, on July 5 the Greek people were asked to vote in a referendum asking the question, “Should the proposal that was submitted by the European Commission, the European Central Bank, and the International Monetary Fund at the Eurogroup of 25 June 2015, which consists of two parts that together constitute their comprehensive proposal, be accepted?”
The first document is titled ‘Reforms for the completion
Originally appeared at: http://bravenewcoin.com/news/bitcoin-in-greece/