Greek Prime Minister George Papandreou has struck a deal with ministers to step down and hand power to a negotiated coalition government if they help him win a confidence vote on Friday . . . . The source said Papandreou admitted he had made a mistake in calling on Monday for a referendum on a bailout packageIf you read between the lines, the other nations said to him, “how dare you end the game when we have agreed to anti the money up for you to play?” PM Papandreou was born in the USA of Greek parents. I’ve listened to a few interviews he has given and he impresses me as someone who wants the best for Greece and is quite in tune to what will happen next.
The referendum would have avoided a collapse of the Greek government. If the Greek electorate made the decision, the chance of revolution was slim. You made your bed, now sleep in it. The trouble is, Greek politics are so corrupt, that the masses will not tolerate the austerity measures for long. Europe has rewritten Greece’s loans. Greece is going to pay for things already consumed for the next 10 years. The lenders want their money. It’s a little like going a restaurant, and discover you owe for all of those that ate before you.
The other interesting fact is that the IMF is involved in this mess. The most powerful man on the board of Governor’s is Tim Geithner with 17 percent of the vote. And the way it works, if Tim says no, the no’s have it. We have had the Fannie and Freddie Mae fiasco, what’s a little Greece to fry it all in? The Germans and the French are not going to bail out the “lazy Greeks.” They are the ones owed the money. So with an IMF bailout, the Germans and French don’t take the big hit, the US---AKA IMF (Daddy big bucks) does.
The Chart below shows who's in charge at the IMF, kind of a FYI thing.
Greek Prime Minister George Papandreou tried to save Greece by telling the creditors to go fly a kite and it should have worked out at an acceptable level for the Greek citizens. The new austerity measures pose a serious choice for Greece; pay retirement benefits or pay the debt? The military will end up taking over the government and their youth will abandon the country for jobs in other lands.
The real question to ask is: “Where is the REAL money coming from to pay for all of this?” I don’t have a clue. It’s a little like trying to hustle a hooker for a payday loan. What do you have that she needs—absolutely nothing!