The BIG fat Greece con on Germany? Or the BIG fat Germany con job on Greece?

The BIG fat German con job on Greece – with strings attached – plus finance included.

I always wondered why Greece was admitted to the Euro – the whole situation was not ‘kosher’ and history has allowed us to look back on the big fat Greek con job and the bigger fatter German con job.

The Greek con job started with the repackaging of the national loans prior to joining the Euro in 2001.

Lloyd (we do God’s work) Blankfein and his Goldman Sachs team helped Greece hide the true extent of its debt — and in the process almost doubled it.

When the first debt deal was struck in 2000, Greece owed about €600 million more than the 2.8 billion euros it had borrowed (and above allowable debt for the Country to be accepted into the Euro group).

Goldman Sachs cooked up an ‘off-the-books’ – or ‘off the balance sheet’ derivative for Greece so that it disguised the actual shortfall – but increased the government’s losses to €5.1 billion due to currency movements.

Was this an illegal transaction?

Morally and ethically the Greek government was wrong – Goldman Sachs held themselves out to be ‘professionals’ in the debt / swap arrangements – but all this transaction did was highlight that GS was totally ignorant as to countries / currencies and knew sweet F.A. about business cycles / country – currency cycles. GS swapped the debt with Yen – a strengthening global currency then they had the debt converted – at a very reasonable exchange rate – which in hindsight nearly doubled the debt.

That aside the EU knew of this transaction – Germany (as a major force in the EU) knew about it too – yet Greece was admitted to the Eurozone.

All said and done no person would have been the wiser – except through a bribery scandal within Greece that has laid waste to a lot of politicians credentials.

The acceptance by Greece to the Euro story has a very strange twist and that came about in July 2014 – Greek business consultant Alexandros Avatangelos made a serious accusation – The Greek accession to the eurozone was in part due to multi billion euro business transaction – with the German armaments industry.

Now we have a situation in which Germany ‘may’ have colluded with Greece to gain entry into the Euro that the then German Chancellor – Gerhard Schroeder allowed Greece to enter the eurozone – despite knowledge of the bad financial situation of the country’s economy, in other words trading the euro entrance for armament contracts.

Shortly after Greece was admitted in the euro zone (with Gerhard Schröder’s consent), the government in Athens ordered 170 Leopard 2 tanks – manufacturer Krauss-Maffei Wegmann and for about €2.3 billion – ordered submarines by the German manufacturer HDW Werft (HDW ) in Kiel, now part of Thyssen-Krupp.

Greece bought the submarines, “so that we come into the euro,” Avatangelos claimed – “The submarine mission was important for HDW and thus for the elections campaign of the SPD in the Germany.”

“This massive criticism still stands unchallenged in the room. If one poses relevant questions to ex-Chancellor Schröder, one gets no response.”

The article was posted on 2. February 2015. (full article in German STERN (1))

Messy?

Well very messy – Germany funded Greece to acquire these armaments and submarines – then it turns out that the deliveries were lemons – even the submarines listed and could not operate without additional ballast.

So I am wondering whether the politicians that were involved with these matters have any regrets?

Should ‘Euro’ protocol and requirements been enacted correctly in the first place – then the current situation would have never occurred. That is hindsight – that though, it is not history.

Just pure greed and political grandstanding by both parties – none more so than what is unfolding now between two Germany defense contractors and Greece – the insinuation that millions of euros paid in bribes to Greek politicians to procure armaments.

(Three pages of the document uploaded by onalert.gr, link below (2) there is no reference to a specific armament contract – for which the bribes have been allegedly paid – nor to a time period that the bribes changed hands.)

However, German media (3) reported in November 2014, that the bribes paid by the two German companies to Greeks are being estimated between at least 35 million and up to 60 million euro, and that the case refers to the order of ‘4 Submarines Class 214’ (2000-2002) by Ferrostaal/HDW Werft and of air defense system ASRAD developed by Rheinmetall.

Legal action of the Greek State started already in September 2014 – by the previous Nea Dimokratia-PASOK government.

One wonders what else happened over the past 15 years if the elected politicians and bureaucrats are this corrupt – again history will no doubt shed light on more shenanigans – but then it will only be history – nothing will change what has come before.

References:
1. http://blogs.stern.de/hans-martin_tillack/staatsgeheimnis-griechen-hilfe/
2. http://www.tagesspiegel.de/wirtschaft/schmiergeld-anklage-in-griechenland-deutsche-manager-unter-korruptionsverdacht/10983666.html
3. http://www.onalert.gr/stories/to-eggrafo-fotia-gia-tis-mizes-ton-62-ekatommyrion/40631

Edit:

Shit – it gets worse – Ten years after the discovery of the scandal and judges have finally took the decision to refer 64 suspects to stand trial over bribes paid by German giant SIEMENS to secure a public contract. Among the 64 suspects are 13 German nationals, executives of the parent company. According to the judges decision SIEMENS has allegedly paid bribes of estimated €70 million to secure a contract and digitize the network of then Greek Public Telecommunications System OTE. The contract “Convention 8002″ was signed in 1997.
Among the suspects is also the former powerful man of SIEMENS HELLAS Michalis Christoforakos, who escaped to Germany and authorities there refused to extradite him to Greece’s previous requests.

The 13 German names mentioned refer to former executives of the parent company and former executives of OTE.

The charges refer to “money laundering”, “active and passive bribery” and “accomplishment to such actions.”

http://www.wsj.com/articles/greek-court-indicts-64-in-siemens-ote-bribery-case-1425932131

New data on the path taken by 2.1 million euro were sent to the court in Athens in connection with the corruption scandal related to former Minister of Defence Akis Tsochatzopoulos.

He and another 18 related persons are in the dock for corruption and laundering of money obtained from illegal activities directly related to the purchase of three faulty German submarines for the Greek navy. It is believed that Michalis Patantos’ company MIE, which is also involved in a deal with submarines, invested some of the money used for the bribe.

According to people familiar with the case, this information could prove crucial to the trial but there have been no details on how it might affect the prosecution.

http://www.grreporter.info/en/road_money_case_tsochatzopoulos/9336

And many more but this tops the cake – Independent Greeks MP Pavlos Haikalis claims on a TV show he was offered €3 million to vote in favour of the government’s presidential nominee, Stavros Dimas.

* Press reports identify the man who allegedly tried to bribe Haikalis as one Giorgos Apostolopoulos, a former Deutsche Bank employee.

* According to the Independent Greeks leader Panos Kammenos, state prosecutor Isidoros Doyiakos has denied earlier reports that his office had issued an announcement that it could not confirm Haikalis’ claim after conducting an extensive investigation.

http://www.thepressproject.net/article/70571/Independent-Greeks-MP-I-was-offered-between-2-and-3-mln–to-vote-for-president

Oh – and I thought that this was timely from the Bank – really breaking news – the US authorities are investigating German banking giant Deutsche Bank over alleged money laundering in Russia, people familiar with the matter said Monday.

The investigation centers on billions of dollars’ worth of transactions carried out by Deutsche Bank in Russia that New York state regulators believe may have been used to disguise money illegally moved out of Russia, the sources told AFP.

Another fine – another slap on the wrist – another CEO to resign?

Now it intrigues me as to why German companies have no ethics and the German regulatory authority doesn’t give a shit about how these companies operate.

It is an embarrassment – everyone turns a blind eye or protects these wankers.

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