8 Apr 2015

Profit From Misery

The Jubilee Debt Campaign website has a timely reminder that IMF loans are not handouts and that banks are not welfare institutions.
"Ahead of the payment of €462 million by Greece to the IMF on Thursday 9 April, figures released by the Jubilee Debt Campaign show that the IMF has made €2.5 billion of profit out of its loans to Greece since 2010."
This is why banks list loans as assets. They charge rent on the money that they lend out. And remember that the money lent is not someone's real asset or savings. That money did not exist before it was loaned to Greece.

Also the interest payments on the loan are now sucking the life out of the Greek economy. The previous Greek government committed to give their future earnings for decades to come to the IMF in exchange for this loan. They have mined their future to the extent where they hardly have one. And they were effectively bullied into this by the Europeans and the IMF. This is the biggest sub-prime mortgage scam in the world.

What's more the IMF is generating massive profits through this method. The same source says "Out of its lending to all countries in debt crisis between 2010 and 2014 the IMF has made a total profit of €8.4 billion". All those billions are coming from the poorest countries in the world. And how much do they get in aid every year? We cripple these countries and then make them dependent on aid. It's horrific.

Jubilee Debt Campaign point out that the interest rate being charged to Greece is 3.6% which is outrageous. IMF costs would be covered by just 0.9% interest.

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Keep is seemly & on-topic. Thanks.