Re: if politics overrules the economy then the people are shafted
@AC
Your rather long post seems to be on the singular subject of Goldman Sachs if I am right and didnt miss anything? Isnt Goldman Sachs private, and so the EU should have the ability to lodge some form of legal complaint if GS broke the law. Even if GS didnt break the law if the EU feels they abused or cheated the EU then they can stop sending GS business and not accept their recommendations in future. I am not going to try and defend GS.
Me and LDS are discussing the hypothetical possibility that the EU knew how duff the Greek and Italian economic management system was but let them in anyway (and we seem to be focussing on Greece). You offer the hypothetical possibility that the EU had no idea. I can believe either could have been the reality so will discuss from either.
The outcome after all of that is Greece went under from the recession and it owed and thanks to the EU still owes money that is cannot possibly repay because it doesnt exist. That money is lost, the question is who takes that loss. It was private debt that could be defaulted on but the rich members banks would have taken the hit for lending out the money. So instead of the private sector taking the loss the ECB bought the debt and made it the EU tax payers problem*. So tax payers in the EU have been forced to bail out the banks, not Greece.
This works well for the EU because the richer members dont have to deal with any of their private banks that might be exposed to the losses, and the EU has 'bought' a member country. Greece will do what they are told because they are in perpetual debt to the ECB who wont write off the losses and just holds onto it. The money wont be repaid but its a good leash to control a member.
*Cameron was proud of his signed agreement the EU would not use our contribution to bail out Greece (i.e. the GBP was not to be used to bail out the EUR). Unfortunately the EU then did it anyway.
Biting the hand that feeds IT
