More words without… meanings!

by Professor Giorgos Piperopoulos

The much discussed “haircut” of Greek bonds (PSI) came to an end and was followed by publicly expressed exuberant statements by both professor Venizelos (the SINGLE and favourite candidate for the Chairmanship of PASOK who will most probably be voted into office with a very large majority) and by Dr. Papademos, while Greek public opinion was utterly impressed with the deafening SILENCE of Mr Samaras… (How are your “renegotiations” going Mr Samaras?;)

Subsequently since there were some private investors who refused to participate in the “haircut” voluntarily, (a reality which could create problems for the integration of the PSI and the second European package of 130 billion Euros) initially Mr. Venizelos as Greece’s Economic Czar and then unanimously the Greek Cabinet FORCED the “deniers” to accept the “haircut” imposed on them…

This announcement of such a decision by Greek Government led the ISDA and International Financial Houses to trigger the CDS since by making participation in the famed PSI “mandatory» OFFICIALLY Greece has caused a “credit event” and is now in the status of “controlled” (but not “uncontrolled”) bankruptcy!…

If Greece went out today to borrow from the international financial markets, if such loans were granted to the “technically bankrupt” country, they would bear an interest rate, please take a deep breath, close to 40%!…

Professor Venizelos in his exuberant statement described as “important and historic this day while he removed from the shoulders of the Greek people a national debt of 100 billion euro!… He did not say, however, how many billions of euro under this new arrangement future generations of Greeks will have to repay to our Lenders…

Even If we accepted what you told us my esteemed university colleague, Deputy Prime Minister for Finance and soon Chairman of PASOK we still did not hear from you, despite the easiness which distinguishes you in your verbal rhetorical positions: How these incredible figures of the financial obligations of Greece and the Greeks were amassed and by whom they were created? Will any member of the Political Systems that rules Greece for the last 38 years as Prime Ministers, Ministers, MPs and managers of public companies and service institutions ever be held accountable for having brought us to this dramatic, pitiful and catastrophic end as a people and a Nation?

And the Prime Minister Dr Papademos, in his Statement to the people said among other things “the PSI now opens the prospects for the second bail out MEMORANDUM of 130 billion euro and better future and growth for our economy”.

Showing good will let us say that the Greeks accept what you said dear former Governor of the Bank of Greece, former Deputy Governor of the European Central Bank, former Advisor of the Prime Ministers of PASOK Mr Papandreou and Simitis and current Prime Minister of Greece.

But how do you as a Doctor in economics could explain the EXUBERANCE you and Professor Venizelos have showed in the face of published reports of foreign financial rating institutions stating that you are now in charge of a technically “bankrupt” country?

And, incidentally, have you forgotten that ths Leader of PASOK and ex-PM who selected and appointed you to this SEAT OF POWER with the Parliamentary support of the New Democracy and LAOS parties only a few months ago were anathematizing the terms “credit event” and “controlled bankruptcy” and were scaring us with such terms?

And as a world renown economist how do you explain that only two years ago Greece could borrow at rates of 7% to 10% (which were then considered CATASTROPHIC) and now after ALL the Greeks have lost in salaries, wages, pensions and standards of living as well as in National pride interest rates are running at the astronomical levels of close to 40%, the Economy continues to be in recession which flirts with double-digit levels, the unemployment rates (officially and technically) have exceeded the level of 21% while the rate for youth unemployment hovers at around 50%?…

“HAIRCUT”, BONDS, LOANS, SUCCESS, SALVATION, DEVELOPMENT, “CREDIT EVENT”, “controlled” BANKRUPTCY, UNEMPLOYMENT, AUSTERITY MEASURES and MORE cuts of salaries, wages, pensions, benefits and yet you harbor “HOPES” for IMPROVEMENT and economic growth!… While you continue Governing us words keep loosing their… meanings!



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