Need for Cancellation of the Current Superficial, Unjustified,
and Perpetuating Greek Debt

Dr. John N. Kallianiotis
University of Scranton


 Greece is a small in size nation surrounding by enemies. Greeks had started abandon Greece since the middle of the 15th century, after the invasion and wars by the uncivilized Mongols (Ottoman Turks) and continues even today with the economic war by the “civilized” West (European partners).  Greece from a big Empire, which civilized the world, was led to occupation and after hundreds of years of revolutions, wars, and sacrifices a small part of the country is, today, free. This nation was forced undemocratically (without referenda) to join the EU and the worst of all to join (without fulfilling even the criteria) the EMU (Euro-zone). Also, it was forced to borrow hundreds of billion of euros to buy unwanted military supplies and pay high commissions (tens of billions of euros). The country has, today, a population of ten million Greeks and two million illegal immigrants (allodox, anti-Greeks and anti-Orthodox, mostly from Albania, Asia, and Africa). Greeks that are abroad (outside of this controlled, dependent, and without sovereignty nation, today) are estimated to be one hundred million people and this number is increasing, due to the austerity measures by the “usury” lenders and their supporters (Troika).  The country is in its worst financial, economic, and social crisis since its conception, seven thousands years ago, and the only solution is to ask the world community to cancel her unfair and usurious debt.

The European Central Bank (ECB) is responsible for these Euro-zone debt crises because it did not increase the liquidity in the EMU economies and financial institutions; also towards governments, and thus, businesses were and are suffering with this financial distress and recession. In periods of economic crises (recessions), the central banks must buy government securities and offer reserves to the financial institutions and consequently, banks will supply loans to businesses and the entire economy. Germany was against any measures that could improve growth in member-nations and IMF was invited to finance the EU members, like they were third-world underdeveloped nations. A rational European has many unanswered questions for all these structures, unions, international institutions, deregulations of the financial markets, politicians without power, and about people without any rights as laborers and protection as persons (personalities). Then, something has to be done to stop this back-sliding of humanity’s achievements, after all its struggles for improvements. These 100% debt (with borrowing money) financing of governments, businesses, and individuals was a big deceit by economists, tax systems, and financial institutions (lenders). We must understand that the optimal amount of debt is zero.[1]

A Swift Economic History of Greece 

Greece, as the most advanced ancient nation on earth, civilized and Christianize the entire West. It gave its culture, values, education, and paideia to the West, but many barbarian invasions to Western Europe made these nations to lose completely these Greek values and virtues and from an obedient daughter, it became an apostate one. These nations, due to envy, rivalry, and inferiority syndrome are against their mother, Greece. Many times, they showed their hostility and declared wars against Greece [from the crusades (from the 1st in 1098 to the 7th in 1270) to Italy and Germany, in 1940]. But, Greece, as a caring mother, civilized a little later, in the 10th century, the Eastern European nations and above all, the vast nation of Russia. Today, for more than a thousand years these nations continue to be faithful, respectful, and admirers of Greece, considering her as their spiritual mother. Unfortunately, the apostate daughters prohibit any relationship between Greece and its daughters in Eastern Europe. Antagonism, malice, ignorance, and stupidity divide Europe and Europeans for thousands of years and it is continued.

 Unfortunately, Greece had started borrowing money from the West (England, France, etc.) since 1824, during the war of independence from the barbarian Turks to be able to buy weapons. And up to now, it continues to borrow from the same nations plus the United States because the threat from the same enemy is there and it is conserved by the sellers of the arms, too. The country has paid, in interest and commissions, ten times the amount of principals. At the time that a loan was offered, the interest and the commission plus indemnities to Turks to leave Greece (Turkey has to pay indemnities to Greece after 400 years of occupation and not Greece, but this also was a decision of Greece’s Western allies and partners, now members of the same union, the EU) were withheld and the poor nation was receiving between 20% to 50% of the total loan. Also, one third of this borrowing money was going back to pay for the purchase of weapons (unnecessary purchase of armaments imposed to Greece by its lenders-allies) and thus, the money was staying in the vaults of the Western lenders. Greece was and is paying only interest (sometimes the interest rate had reached 34%) and if its debt will not be canceled, Greece will pay interest to eternity because her pseudo-politicians signed a memorandum that put the country as collateral for these loans. But, as it was mentioned, the country has already paid ten times the principal; thus, it does not owe any money to anyone and the current artificial debt must be canceled.[2]

 Greece’s national debt is €330 billion (143% of its GDP) and from these loans, as it was mentioned above 1/3 (€110 billion) have been spent to buy military equipments and arms, which most of them are not working and for these weapons the commissions towards politicians, middlemen, and other corrupted people were in tens of billions of euros and in cash not in loans or with credit. These weapons were mostly from the U.S., then from Germany and France, and some fewer from Holland, Russia, and Italy.[3]  This is a serious social crime against Greek citizens, against the security of the country, and against the welfare of the entire nation by its allies and European partners. All these corrupted participants in these irrational and unnecessary arms purchases with borrowing money must go to jail because their actions is the most serious social crime against an entire nation and its citizens. For this reason, Greece has to stop payments on these loans, today, and this action is necessary and just for her citizens’ wellbeing, which is the only objective of any democratic government.

Further, after the Italian invasion and their defeat by Greeks, Germany occupied Greece for four years (1940-1944). The German executive squads executed 38,960 Greeks. Also, there were killed by Germans another 12,103 people, which brings the total casualties to 51,063 Greeks. Furthermore, Germans stole the Greek gold from the Bank of Greece and they forced Greece to take a loan to feed the occupational German army. In addition, they destroyed the Greek livestock, the mineral installations; they destroyed 80% of the railway track, they blew up bridges, stations, and tunnels. From 220 locomotives of the Greek railways, when they left Greece, there were only 33 of them. From 312 passenger wagons, Germans stole 306; thus, Greece was left with 6 wagons. From the 4,544 cargo wagons of the Greek railways, Germans left only 63 for Greece. The German conquerors took over 70% of the Greek cars and they destroyed the entire road system of the country. These German conquerors leveled completely 100,000 houses and they damaged 50,000 others. They burned down whole villages, in other cases. These barbarians destroyed the biggest seaports’ facilities of Greece even the Corinth canal. They stole the 73% of the commercial and passenger ships of the country. According to U.N. statistics, Germany had losses, due to the war that it caused to Europe, of 135% of its GDP and Greece had losses of 170% of her GDP.  Germany that is the only responsible for this WWII (and WWI) had less damages compared to Greece from the German and Italian invasions.[4]

 All these war crimes, lootings, arsons, bombings, and catastrophes were having a cost of hundreds of billions of euros and with the interest since 1940 have become trillions of euros, today, which make the total debt of Greece insignificant. Greek politicians had to have asked during all these years for the war reparation, as the other nations did and received indemnities from Germany. But, even today, the current coalition government has to ask for German indemnities. Thus, Greece will pay back all her loans and the remaining amount it will be a trillion of euros surplus. After taking Germany to the International Court of Justice, Greece has to leave the Euro-zone (or it could be better for Greece if Germany force her to leave and in this case, Greeks will be grateful to Angela Merkel forever); then, to send these corrupted politicians to permanent vacations and to elect a patriotic Greek government, which will lead Greece back to her traditional values and to her true allies (who have the same value system with Greece).

 Troika has to be thrown out of the country because a sovereign nation is inconceivable to have three foreign young people from nowhere to dictate to Greeks their policy, their income, their taxes, their spending, their public wealth, their wellbeing, and their future. Troika’s anti-growth and pro-cyclical austerity measures will keep the country to a permanent recession, to destruction of her social net, and it forces Greece to sell off her entire public wealth (which is very dangerous for the country’s security and safety). The most tragic is what the Greek citizens are facing every day and it is becoming worse; they are becoming immigrants to Germany and Australia and the suicide rate in Greece that was zero is taking enormous dimensions. Then, the question is, here; where are the benefits from the euro, the European partners, the Troika with its conditional loans on two inhumane memoranda,[5] and having the same people in government that have caused the current crisis?

 On September 6, 2012, Mario Draghi (the governor of the ECB) announced a bond-buying plan to reduce interest rates for struggling Euro-zone nations and to fight speculation of a breakup of the euro.[6] Due to this announcement from the ECB, the DJIA gained 244.52 points (1.9% growth) and the same happened to the European stock markets.[7] But, the governor of the Bundesbank (German Central Bank) said that this policy of the ECB is wrong and he voted against this choice of the ECB.[8] This action is good, but it is too late for Europeans (Fed started buying U.S. government securities in 2009 and bought $2 trillion) because already the PIIGS and other European “animals” are in recession since 2009, in high unemployment, in forceful sell off of their public wealth,[9] destruction of their societies, and high suicide rates (even in Orthodox Greece, in France, and other nations of the “Christendom”). Then, the ECB is responsible for the European debt crisis because of its inaction and the same responsibility falls on the EU and the IMF (unfortunately, IMF has the worst reputation in controlling economic crises; it leads them completely out of control and makes the recessions deeper).[10]


 This suspicious Greek debt is unsustainable and every one knows it (EU, IMF, politicians, and even simple people) except the current Greek coalition government, who signed two memoranda of submission of the nation and it is responsible for all these sufferings of the country, its citizens, and its future generations. Greece joined the Euro-zone without referendum, which means undemocratically, and without satisfying the Maastricht criteria that means, the EU (and Kostas Simites with his “helper” from Goldman Sachs) are accountable for violating knowingly EMU’s own criteria. Together with this unfenced yard, the EU, came the millions of illegal immigrants, the unfair regulations and directives from the EU and competition from the outside of the Union economies (mostly from China), which started this creeping, but unexpected and peculiar crisis in the country. There are no benefits from any union or European institution or common currency to offset the loss of public policy, sovereignty, and social welfare of a nation. The enormous corruption of all these anti-Greek, anti-Orthodox, and “new age” agents, who have been imposed as “Greek politicians” the last 38 years, destroyed the economic and social structure of Greece, which cannot be considered as a mistake because no one in human history has ever made a mistake of this magnitude; then, something is very suspicious, here, ant the Justice Department must take in its hand this serious case of enslavement of an entire nation.

 Lastly, it came the planned global financial crisis (systemic risk), which affected most of the nations, due to their high correlation with the extreme market-oriented nations (which created this crisis), and it affected even more the nations, which had lost their public policies, their national currency, and their precious independence and self-sufficiency. One of these nations was the value-oriented Greece, which had no experience from the free-market, its speculators, its instruments, and its innovations (its enormous risk “toxic” assets) and due to her vulnerability became the number one and the most exploited victim of this “modern capitalism”, the unmerciful globalization. The Euro-zone policies, which are imposed by Germany (and seconded by France) are helping only Germany and are against all the other European member-nations. These policies have created enormous economic disequilibria, social disturbances, and astonishing exploitation of small nations (like Greece) and their citizens. Europe is going back to the social state that was during the Roman Empire; if this was the objective of the EU, it has been accomplished; European citizens are living in a social state before the dark ages. But, Greece is not responsible for the falling “New Roman Empire” (the EU); the country needs growth and expansionary public policy, trade policy (to depreciate its national currency and not “internal devaluation” and to impose some import taxes and tariffs to Chinese and other importables that their cost of production is one tenth of the Greek cost), control of tax evasions (which is unfair for the rest of the citizens), self-sufficiency, homogeneity, and protection of her identity. Thus, the country has to leave the Euro-zone, stop the payments of debt, and increase the safety of her citizens (sending the illegal immigrants back to their countries of origin), and the security of her borders. If these actions cannot be taken this fall of 2012, the country will be in very serious and irreparable danger, but there is hope because there is God.

[1] Governments and individuals, today, are working very hard and the largest proportion of their tax revenue and income go for the payment of interest on their enormous debts. We all have spent the present value of our expected future income that we will earn during our entire life. Then, our future consumption, spending, and government expenditures have to be very small, which will affect negatively future growth, employment, and the welfare of the coming generations.  Also, the interest rates on loans are out of control by allowing lenders to put a risk premium up to 40% in some case.

[2] See, Michael Burke, “Cancel The Greek Debt”, Socialist Economic Bulletin, June 16, 2012, pp. 1-2.

[3] See, “How they Made Greece ‘a Rubbish Dump of Armaments’ ”,, September 4, 2012.

[5] The unemployment rate in Greece has passed 24%, more than 1,200,000 people are unemployed and in some regions, the unemployment rate is 50%. The country is in deep depression and Troika is talking about further reductions in salaries, increases in taxes (VAT became 23% in Greece), and laying off of more public workers for the country to receive the next installment of loan. This is exactly the opposite policy of what Greece and every nation in recession require. It is obvious that something is absolutely wrong and suspicious with this Greek debt-political crisis. Greece will never get off from this vicious cycle!..

[6] See,, September 6, 2012.

[7] See, The Wall Street Journal, September 7, 2012.

[8] Something must be absolute wrong with these neo-Germans and the rest of European nations must take some serious actions against these German aggressions. See also,, September 7, 2012.

[10] For example, see the followings: The IMF has the obstacle of being unfamiliar with local economic conditions, cultures, and environments in the countries they are requiring policy reform. The Fund knows very little about what public spending on programs like public health and education actually means, especially in African countries; they have no feel for the impact that their proposed national budget will have on people. The economic advice the IMF gives might not always take into consideration the difference between what spending means on paper and how its felt by citizens. For example, Jeffrey Sach’s work shows that “the Fund’s usual prescription is ‘budgetary belt tightening to countries who are much too poor to own belts’.” The IMF’s role as a generalist institution specializing in macroeconomic issues needs reform. Conditionality has also been criticized because a country can pledge collateral of “acceptable assets” in order to obtain waivers on certain conditions. However, that assumes that all countries have the capability and choice to provide acceptable collateral. One view is that conditionality undermines domestic political institutions. The recipient governments are sacrificing policy autonomy in exchange for funds, which can lead to public resentment of the local leadership for accepting and enforcing the IMF conditions. Political instability can result from more leadership turnover as political leaders are replaced in electoral backlashes. IMF conditions are often criticized for their bias against economic growth and reduce government services, thus increasing unemployment. Another criticism is that IMF programs are only designed to address poor governance, excessive government spending, excessive government intervention in markets, and too much state ownership<refname=”The End of Poverty” />. This assumes that this narrow range of issues represents the only possible problems; everything is standardized and differing contexts are ignored. A country may also be compelled to accept conditions it would not normally accept had they not been in a financial crisis in need of assistance. It is claimed that conditionalities retard social stability and hence inhibit the stated goals of the IMF, while Structural Adjustment Programs lead to an increase in poverty in recipient countries. The IMF sometimes advocates “austerity programmes,” cutting public spending and increasing taxes even when the economy is weak, in order to bring budgets closer to a balance, thus reducing budget deficits. Countries are often advised to lower their corporate tax rate. In Globalization and Its Discontents, Joseph E. Stiglitz, former chief economist and senior vice president at the World Bank, criticizes these policies. He argues that by converting to a more monetarist approach, the purpose of the fund is no longer valid, as it was designed to provide funds for countries to carry out Keynesian reflections, and that the IMF “was not participating in a conspiracy, but it was reflecting the interests and ideology of the Western financial community.”  (

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