I’ve been writing about Goldman Sucks — that is, rapacious economics star chamber Goldman Sachs — for years now. And I’m glad the rest of the world is finally paying attention. Literally. But don’t kid yourself: Just because Goldman helped sink Greece, and perhaps the euro, doesn’t mean they aren’t planning to do the same to America and the dollar. I laughed and cried about it for AlterNet.
Goldman’s Great Greek Swindle and the American Blowback
[Scott Thill, AlterNet]
You’ve heard this crappy joke before. Financial vampire squid Goldman Sachs games billions on the books for a prestigious client, hiding its lack of real value, while both continue to lucratively trade on false data. Time passes, Goldman retracts its feeding tube, the prestigious client implodes, and the collateral damage escalates. Cue the cruel laugh track.
The client this time? Greece, where Goldman executed a currency swap worth billions, without reporting it of course. The collateral damage? The euro, and perhaps the entire European Union, depending on how the house of cards falls. But to be fair, Goldman couldn’t have done it alone.
“The European Union bureaucrats that are driving the system wanted their own empire,” economist Paul Craig Roberts, one-time assistant U.S. Treasury secretary in the Reagan administration, told AlterNet. “So the European Union was expanded into financially weaker states, which can no longer print money to cover their debts as they all use the euro. What Goldman Sachs did for the Greek government was to help hide the size of the Greek debt, since European Union membership requires maintaining a fairly low deficit-to-GDP ratio.”
What happens when you, unlike the United States and its money-makers at the Federal Reserve, can’t simply print your way out of an economic meltdown to bring those numbers in line? In Greece, you get street riots, austerity measures, bank runs, runaway nationalism, crippling sanctions and what passes for a serfdom ruled by an oligarchy. Ask Roberts, however, and he’ll argue no such thin red, white and blue line exists across the pond. Americans are stuck in the same mess.