Category Archives: Goldman Sachs

The Mephistophelian superstate

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Jackpot

Dalrymple notes that José Manuel Barroso’s trajectory has been

  1. revolutionary Maoist student
  2. prime minister of Portugal
  3. chief apparatchik of the European Union
  4. vice-president of Goldman Sachs with special responsibility for advising the bank on how to mitigate the effects of Brexit (for the bank, not for Europe)

Screen Shot 2016-07-14 at 08.57.17The attraction of the EU

for those who are prepared to endure its tedium and its requirement always to speak in langue de bois is evident. It offers a golden reward in exchange for the obliteration of personality, character and scruple. It plays Mephistopheles to a hundred minor Fausts.

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Goldman Sachs, Greek economics and the Madoffian model

Screen Shot 2015-02-01 at 22.40.46In Greece, all roads lead to disaster

The pyramid scheme that was the Greek economy

Most of the Greek population appeared to benefit from the scheme that has now collapsed, Dalrymple writes. The two main political parties before the rise of Syriza

operated a system of patronage paid for by borrowing on a huge scale. The system would have been corrupt even if no politician had enriched himself personally. And the European élite believed, or affected to believe, that the national accounts concocted by the Greek politicians in collusion with Goldman Sachs qualified the country for membership of the euro.

The country having acceded to the euro,

French and German banks proceeded to act as if Greek debt were more or less the same as German debt, because membership of the eurozone was supposedly irreversible.

When the equivalence of Greek and German debt

turned out not to be the case, as any tolerably observant visitor to Athens for half an hour could have told them, the fool’s paradise in which the Greeks were living collapsed.

Today

the circle cannot be squared. There is no way out that could possibly justify the hopes placed in Tsipras and his party.