While urging the Greek people to say ‘No!’ to a failed policy of austerity, Mitch Feierstein has warned that the Greek crisis is a ‘diversion’ from even more potent threats to the global financial system.
Speaking from New York on Friday, the author of Planet Ponzi explained: “The Greek crisis is a diversion – the bigger picture here are the FIGS — France, Italy and Spain — (with debts more toxic than arsenic), China’s stock market bubble gone bad and the coming global recession.
“France, Italy and Spain are all insolvent and this is already becoming apparent. France has record unemployment, collapsing revenues, zero set asides for pensions, civil unrest & more… Italy high unemployment– between 2000-2015 only 2 countries in the world have had worse growth Zimbabwe & Haiti. But Italy’s can boast having one of the EU’s biggest bond markets. Spain’s youth unemployment is above 70% in some areas – and bad loans? You bet!”
He added that in China the stock markets have crashed (the Shanghai index is down 26% in 3 weeks), which has grave implications for its domestic growth.
On Greece Feierstein was adamant: “Goldman Sachs falsified Greece’s financial credentials to get them into the Euro and now the troika are trying to painfully trash Greece, making it an international spectacle: a warning lesson as to why you need to be compliant and obedient.”
He added: “Even the IMF now agrees with me that Greek debt is unsustainable.” On Thursday the IMF admitted that Greece needs debt relief and £50bn ($70 billion euros) in new financing from October through to 2018.
The author was also keen to point out the irony of unelected officials trying to unseat a democratically-elected Greek government. “The troika (IMF, ECB and EC) is trying to instigate regime change in Greece. Yet, the Syriza government was democratically-elected by the Greek people. They have a mandate from the majority of the people. That should be meaningful. We don’t want a repeat of what happened in Italy, where the Government was replaced.”
He also complained that the mainstream media is attempting to install fear in the Greek population and ignoring the real issues.
“With Greece It’s pray, delay extend and pretend. Giving ex-Goldman ECB Boss Draghi a green light to expand QE to the point of ‘turning Japanese’. It’s likely the ECB will buy not only Ponzi bonds but also: corporate debt, crappy ABS and eventually stocks. Great for Goldman, not so great for Main St.” He said.
Putting it in context Feierstein concluded: “We have have created bubbles in every single market everywhere. The bond market in every country is ridiculously priced, you can’t value stocks. Stocks are trading at all time highs, not on valuations but on money printing and corporate buybacks, the money has to slosh somewhere. In the past 7 years there has been more debt accrued by all the government in the world than in the history of time.”
In the mainstream media there has been much speculation and comment on the machinations of the democratically-elected Greek Syria government.
However, for those with memories, the reputation of some of the chief negotiators for the troika are much more unsavoury. Moreover, these people were never democratically elected and know far less about economics than the Greek Finance Minister Yanis Varoufakis.
Here are a few stories that you might like to read at your leisure this weekend. Then ask yourself, would you vote to place the future of Europe in their hands?
Jean-Claude Juncker – President of the European Commission, the executive branch of the European Union.
Chrisine Lagarde – IMF Chief
Mario Draghi – President of the European Central Bank