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Totally confirmed: The bailouts have saved the banksters not Greece

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Αfter six years of orchestrated destruction of the Greek economy through the IMF recipe, a new report came to confirm without any doubt what many already knew: that the bailout packages for Greece were directed exclusively to the banksters to save them from the economic Armageddon that came from the US in 2008 to hit eurozone.


After six years of ongoing bailouts amounting to more than €220 billion, or $253 billion in loans, Greece just cannot get out of crisis mode. It is tempting to blame those who refused to reform the country’s pensions and labor markets for the latest calamity.

But a study by the European School of Management and Technology, a copy of which Handelsblatt has obtained exclusively, gives another perspective. The aid programs were badly designed by Greece’s lenders, the European Central Bank, the Europe Union and the International Monetary Fund. Their priority, the report says, was to save not the Greek people, but its banks and private creditors.

This accusation has been around for a long time. But now, for the first time, the Berlin-based ESMT has compiled a detailed calculation over 24 pages. Their economists looked at every individual loan instalment and examined where the money from the first two aid packages, amounting to €215.9 billion, actually went. Researchers found that only €9.7 billion, or less than 5 percent of the total, ended up in the Greek state budget, where it could benefit citizens directly. The rest was used to service old debts and interest payments.

The report under the title "Where did the Greek bailout money go?" can be accessed here:


As Zoe Konstantopoulou, former Speaker of the Hellenic Parliament (Greek) had mentioned: “Germany and France demand Greece’s submission and the repayment of a contested debt. However, they hide the fact that the so-called bailout program didn’t save the Greek people, but French and German banks - and this is one of the indisputable facts which were revealed and documented as part of the preliminary results of the commission [Truth Commission to Audit the Greek Debt].

This is not the first time that the Western financial mafia mobilized its mechanisms to save banksters and investors, bringing absolute destruction to national economies.

The large laboratory, chosen by the gurus of the free market to conduct their new experiment, was South-East Asia of 90s. Under the American pressure, countries like South Korea and Thailand, withdrew all their restrictions allowing the inflow of capital from the West. This helped for the so-called “Asian miracle” in the economy.

But a group of economists in the White House, headed by Joseph Stiglitz, worried that, the flood of money from the West, would fund a massive speculative bubble in property, and when the boom collapsed, the money would flee, leaving countries like Thailand and South Korea decimated. According to Stiglitz, all this flow of money was not for the interest of Korea or US, but for the interest of a very small group of people making money from these medium-term capital flows, i.e. some bankers and hedge funds.

But the group faced the opposition of Robert Rubin, which was the Secretary of Treasury at that time, and former co-chairman in Goldman Sachs. Rubin was preventing the warnings of the group to reach the president.

The Asian crisis began in Thailand. Hundreds of thousands of offices and apartments were built, but nobody wanted them, and brokers went bankrupt under the weight of loans. Investors from the West panicked and rushed to get their money out of the country. The panic began to spread first in South Korea. Housewives formed queues to give their surplus to the government to save country, but this was not enough.

Then, groups of technocrats of IMF arrived and offered billions of dollars in loans to stabilize the economies. The IMF argued that the reason of the crisis was that Asian economies were not westernized enough. In exchange for loans, they should turn to free market models. This meant cuts in government spending and elimination of the corruption and nepotism of the power elites. The crisis worsened and spread to Indonesia, whose president Suharto was an “emperor” enclosed by a corrupt clique of advisors and family members. At first, he refused to do what the IMF wanted, so the IMF turned to Rubin.

Rubin and the Treasury were determined to press Suharto to do what they wanted. In January 1998, Suharto retreated and signed an agreement with IMF. Indonesia received a huge loan to stabilize the economy which worked for a while. But later, the Indonesian currency collapsed, loosing 80% of its value and destroying the economy. The exchange rate of the country collapsed and the economy went into free fall. Indonesia was not the only one. In every country which received loans from IMF, such as Thailand and South Korea, the economy was stable for a while and then the exchange rate collapsed. Billions of dollars were given to Asian banks from the IMF, but many of them were used immediately to rescue western investors who wanted to take their money out of the country.

Providing billions of dollars in loans, the IMF rescued western investors and pushed the taxpayers of the countries deeper into debt because they had to repay the IMF. The result of the cuts was the destruction of the area. In Indonesia, the government subsidies were removed as instructed by the western bankers. Prices soared and within a few months, in a country of more than 200 million, 15% of the male workforce lost their jobs. Economic output fell by 14%. The economy collapsed and ethnic and religious strife began. The same happened in Thailand and South Korea. Millions of people went back into poverty from which they thought they had escaped forever. By the mid 1998, the Asian economies collapsed. It was the biggest disaster for countries since the big recession of the 30s.

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