Leaked Memo Blows The Lid Off Of The Entire Greek Bailout (Government "Solutions" Knowingly Making Problem Worse)

..and guess who benefits? The IMF, ECB and other ever so ethical institutions. These institutions know what they are doing. They'll lend the money that they know can never be re-paid and take over these European countries one by one.

Much of this is being coordinated by the EFSF. Let's see who runs that gig...

The Chief Executive Officer of the EFSF is Klaus Regling, a former Director General of the European Commission’s Directorate General for Economic and Financial Affairs, having previously worked at the IMF and the German Ministry of Finance.

The Board of the European Financial Stability Facility comprise high level representatives of the 17 euro area member states, including Deputy Ministers or Secretaries of State or Director Generals of the Treasury. The European Commission and the European Central Bank can each appoint an observer to the EFSF Board. Chairman of the Board is Thomas Wieser, who is also Chairman of EU's Economic and Financial Committee.
Although there is no specific statutory requirement for accountability to the European Parliament, the Facility is expected to operate a close relationship with relevant committees within the EU.

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The article is below:

At least Europe is no longer in denial about the effects of austerity in Greece, and the ability for the country to improve its economic situation via drastic cuts.
Peter Spiegel at FT has obtained a confidential 10-page memo distributed to senior officials in Europe over the last week, which lays it out the truth:

It warned that two of the new bail-out’s main principles might be self-defeating. Forcing austerity on Greece could cause debt levels to rise by severely weakening the economy while its €200bn debt restructuring could prevent Greece from ever returning to the financial markets by scaring off future private investors.

“Prolonged financial support on appropriate terms by the official sector may be necessary,” the report said.

What's more -- and this Spiegel puts in a follow-up blog post -- all the economic assumptions being used are too rosy, further rendering prospects of a successful bailout unlikely.
He also has some excerpts from the note, including reasonable downside expectations if things don't go swimmingly:

Under the tailored scenario described above, the debt ratio would peak at 178 percent of GDP in 2015. Once growth did recover, fiscal policy achieved its target, and privatization picked up, the debt would begin to slowly decline. Debt to GDP would fall to around 160 percent of GDP by 2020, well above the target of about 120 percent of GDP set by European leaders. Financing needs through 2020 would amount to perhaps €245 billion. Under the assumption that stronger growth could follow on the eventual elimination of the competitiveness gap, the debt ratio would slowly converge to that in the baseline, but likely only in the late 2020s. With debt ratios so high in the next decade, smaller shocks would produce unsustainable dynamics, leaving the program highly accident-prone.

Again, basically what it shows is that European leaders can't deny what everyone sees at obvious: That everything undertaken so far is destroying the Greek economy, and that further reforms will only make it worse.

via Business Insider --> http://www.businessinsider.com/leaked-memo-blows-the-lid-off...