Got to roll debt baby, call it the tumblin' default.
That's the theme for the week as Greece gets yet another final deadline extension to come up with more and more concessions so they can borrow even more money that they will never be able to pay back. "Honey, got no money" is the line that should be obvious to EU Stones fans as the IMF's chief economist insisted that Greece must cut wages to boost competitiveness and pull the country out of its economic quagmire. "Either you basically increase productivity growth a lot and quickly, and you keep wage growth moderate, or you decrease wages," said Olivier Blanchard.
Sadly, only the Communists are telling the people the truth in Greece – the people are being sold into decades of wage slavery as a population that has already voluntarily accepted 25% wage cuts is now being forced to accept additional 30% wage cuts while the ECB and IMF shove another $192Bn worth of debt down their throats that is ONLY to be used to pay off bondholders who took advantage of them in their time of weakness to force them to roll over their debt at record high rates.
Sacrifices MUST be made, says the former VP of the ECB – who is now the Prime Minister of Greece (unelected as Papandreou was forced out) – but he's not talking to the creditors, but the Greek people, who will still, even if they work for 1/2 wages for the rest of the decade, be 120% of their GDP in debt by 2020 (down from 160% today). So the Greek people are being asked to sacrifice their own retirement and their children's future rather than telling the Banksters to take a hike.