Why the Greeks should repudiate the debts

GREECE SHOULD HAVE TURNED DOWN THE GERMAN MONEY AND RESTORED THE DRACHMA
by Christopher Story

So, reverting to Frau Merkel’s statement that ‘the Euro is in danger’, the critical point underlying this observation is as follows. Germany has provided a substantial sum of ‘good’ money in loans to help ‘bail out’ Greece (on a temporary basis). Which means that Greece has to pay this money back with interest (somehow).

If Greece were to extract itself suddenly from the Collective Currency, its replacement drachma would naturally be sharply devalued against the Euro – which would leave Greece in an even worse situation, as it would have to repay the Euro-denominated loans with devalued drachmae.

Which means as follows:

• Number One: Greece is caught and can never get out of its bind, short of its entire external debt being written off. Presumably Frau A. Merkel took the risk that, in order to ‘save’ the pan-German hegemony project, the funds allocated for Greece would ultimately be lost: in which case language is not available to describe the cynicism of this move.

• Germany, having reacted in knee-jerk fashion in order to ‘protect the Euro’ has realised that, as Angela Merkel has pronounced, ‘the Euro is indeed in danger’ because Greece’s situation (to be replicated in Portugal, Spain, and Italy, for starters) is now irretrievable.

• The Greeks should have got out of the Collective Currency system straight away, turning down the German loan. A de facto default would be a better option than where they are now.

BUT THERE IS ANOTHER DIMENSION WHICH, DESPITE WHAT WE HAVE PUBLISHED, HAS SO FAR BEEN COMPLETELY OVERLOOKED. CONTRACTS ENTERED INTO FOR AN ILLEGAL PURPOSE ARE NULL AND VOID. Therefore, what the Greeks should have done, if they had had their wits about them, was to declare all the fraudulent transactions conducted mainly through Citibank, Athens, VOID, thereby cancelling the fraudulent debts unilaterally, which they are entitled to do on this basis.

By repudiating the fraudulent debt on this sound legal basis and specifically making it clear that the underlying contracts, entered into under the previous Greek Government, are VOID, they would perform two key functions: first, they would 'get out from under'; and secondly, they would hasten the total collapse of the entire fraudulent derivatives sector, which is happening anyway, doing us all a favour. By acknowledging the validity of the debts, the Greeks have made a fatal mistake. All those debts are null and void because the underlying contracts were entered into for an illegal purpose. Surely there are lawyers in Greece capable of understanding this.

Even at this late stage, the Greeks should repudiate the debts on this sound legal basis, and send the foreign and German money back with a note saying:

'Thanks, but on second thoughts. no thanks'.