DEBT MANAGEMENT, THE MOST PROFITABLE BUSINESS
The Eurozone debt increased from 92.7% of GDP in the last quarter of 2013 to 93.9% in the first quarter of 2014. Greece’s debt is at 174.1%, Italy’s is at 135%, and Portugal’s at 132% of their GDP. Towards the end of 2014, it is projected that Greece’s debt will reach up to 180% of GDP. (At the start of the “crisis” Greece’s debt was only at 120% of GDP.)
Bloomberg recently published that a hedge fund named Dromeus Capital Management SA, posted a profit of 160%, gambling on the destructive path of Greece. These economic groups are typically “high risk capital investors” or, to put it in simple terms “distinguished, big players,” guaranteed safe and anonymous bets.
The above scheme – or should one even say scam - was set up in October 2012 by Achilles Risvas and Jason Manolopoulos, and six months later, in March 2012, Greece completed a PSI (Private Sector Involvement): When a borrower cannot cope with the repayment of a loan, the lender proceeds with a virtual debt reduction through the cut in value of the bonds held by private investors.
In the case of Greece however, some of the private bondholders were exempt from the procedure. The loans that had been recently sponsored by the Troika on the basis of the Memorandum signed with the EU, the IMF (International Monetary Fund) and the ECB (European Central Bank), were excluded from the reduction procedure. Other parts of the debt were also excluded.
The haircut that came with the PSI brought about a rise in the market value of Greek bonds, and in November 2012, the Greek state repurchased these bonds. As a result, the speculators who had bought the bonds at a very low price sold them back to the Greek state for four times their original value.
Recently, the “Minister of Justice and Transparency” Charalambos Athanassiou erased all the provisions of the “Asset and funds-source declaration Law” so that politicians, media moguls, and others involved in the above transactions would not be exposed as participants of this backstage gambling against Greece.
Taking into account the above development, suspicion that the PSI was just a rigged job of plundering public money instead of an effort to settle the debt, is now backed by evidence.
According to recent studies by the National Bureau of Economic Research, among all 34 countries of the OECD (Organization for Economic Cooperation and Development), Greece is the country that has suffered the biggest economic slump, as well as the greatest social destruction.
Social misery, it appears, constitutes an extremely profitable business for international speculators and gamblers, greatly supported by a financial system representing the international bank cartel itself.