Category Archives: pyramid scheme

How the Greeks were most ably assisted by Goldman Sachs

Screen Shot 2015-02-02 at 22.09.15Dalrymple writes that the Greek government,

ably assisted by Goldman Sachs, cooked its books and was allowed to join the euro, the European leaders having been duped, or at least having allowed themselves, or pretended, to be duped; whereafter the banks felt emboldened to lend colossal sums in Greece in the full knowledge that default would not be permitted, and that they never would have lent if Greece had retained its drachma.

What was the vast influx of money used for, apart from the inflation of the value of assets, to the great comfort of the possessors thereof?

Why, to pay the salaries of a bloated bureaucracy, reliant for its good fortune on the political parties that hired it, and which it did nothing to justify, at least from an economic point of view.

It was all

a rather beautiful, smooth-running mechanism, in a way, a bit like that of Mr Madoff’s splendid pyramid scheme that seemed so solid and dependable for a time.

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.

The pyramid scheme that is modern Britain

Screen Shot 2013-03-24 at 21.51.22Forget the Cyprus sideshow. It is Britain that is likely to collapse, sooner rather than later. God help us, says Dalrymple, if the inevitable British collapse

should happen in winter, though against this it must be admitted that rioters and looters prefer fine weather.

Compared with all British government ministers over the past few decades, Bernard Madoff

was a moral giant, for at least he had to solicit his funds from his clients rather than extract them under duress.

What is to be done?

Preventive detention for any Briton who expresses political ambitions before the age of fifty. I would advise a similar proceeding in the case of those who want to be architects.