Monthly Archives: April 2016

IMF plots “credit event” to push Greece to the brink of default


Even though other international events have largely pushed it in the background, the Greek debt drama continues. The IMF and the EU institutions cannot agree on the terms of the next stage of the bailout. The IMF wants debt relief, while Germany is opposed to it; the IMF also disagrees with the numbers given both by Greece and the Eurogroup to achieve savings and repayments.

The differences from the perspective of Greek people and the state’s bondage to creditors are rather cosmetic, but the discussion of “debt relief” and repayment terms is central to how the Greek crisis has been managed by technocrats and politicians in northern European countries.

A leaked transcript of a recent IMF teleconference suggests that the IMF technocrats have considered creating a “credit event” that would force Greece and Europe to accept their terms – something that would push the Greek state to the brink of default, so as to leave them no choice but capitulate to the IMF demands.

Paul Mason explains what the IMF technocrats mean by “credit event” and what is at stake:

“So let me decode. An ‘event’ is a financial crisis bringing Greece close to default. Just like last year, when the banks closed, millions of people faced economic and psychological catastrophe.

Only this time, the IMF wants to inflict that catastrophe on a nation holding tens of thousands of refugees and tasked with one of the most complex and legally dubious international border policing missions in modern history.”

Let’s not forget that the Greek government and the new incarnation of Syriza still led by Tsipras share responsibility for the devastation brought about on Greeks, and are not mere “victims” of IMF and EU plots. Tsipras betrayed Greek citizens when in July last year he signed the bailout, disregarding overwhelming support against it in the referendum and Syriza’s original mandate.

More recently, he also betrayed migrants and refugees by accepting the EU-Turkey deal which will see new arrivals in Greece being sent back to Turkey, if they do not apply for asylum or if their claim is rejected.