Europe Fighting Debt With More Debt: Debtocracy, The Movie

Watch this video! For the first time in Greece a documentary has been produced by the audience. "Debtocracy" seeks the causes of the debt crisis and proposes solutions, hidden by the government and the dominant media. It has become an instant hit, with more than one million views on various platforms since it was published.

The movie has been online for a month and delivers both a timeline of the Greek debt crisis plus statements from discontented Greeks who criticize the prevailing neoliberal policies at the roots of Greece's fiscal disaster by uninhibited deficit spending. It has to be noted that the decision to accept Greece as a euro member had been unofficially taken long before Greece joined on June 19, 2000 as the first new euro member after the initial 14 countries. As it now comes to light, EU officials and central bankers had discarded all warning signs in their political drive to spread the common currency across the continent and were well aware that Greece had cooked its economic statistics books.

All Europeans are urged to watch this movie as the situation will not be different in many other Euro nations. No country can shield itself anymore from a Greek-style fallout due to insurmountable debts that will most likely never be repaid as interest rates for bad debtors have been ratcheting up since Q4 2010.
On Monday the EU communicated plans to increase the ceiling of the European Financial Stability Fund (EFSF) to €726 billion.

But this won't be the end of fighting debt with more debt. Netherlands Central Bank Governor Nout Wellink suggested already last Friday to double the EFSF to an unimaginable €1.5 TRILLION.

This should be taken as another sign that nobody in the euro-zone has any idea how much the final tab for the biggest crisis in history will be. A short reminder that complacency is unjustified is delivered by Greece itself. Last year, the estimates for the bailout 2010 started at €30 billion, only to shoot up to a €100 billion. This year is not different: Within two weeks in May, bailout estimates shot from €78 billion to €120 billion.

Now imagine what will happen once Spain and Italy cave in due to unmanageable debt levels and banks saddled with an unknown amount of bad loans to the PIIGS lenders.