'Greek quagmire may sink banking cartel'
Tue Nov 8, 2011 8:29AM
Interview with Max Keiser, financial journalist
Greece faces a burgeoning sovereign debt which threatens to bring down major international banking cartels that seek to prop the European country in bid to delay their own crash, says a money markets analyst.
Greek leaders have resumed talks on appointing a new prime minister and a coalition government.
The ruling socialist party and opposition conservatives have talked over the phone on the composition of a 15-week administration.
The discussions come after Prime Minister George Papandreou agreed to step down.
Press TV has conducted an interview with Max Keiser, a financial journalist in Paris, to further explore the issue.
The video offers the opinions of two additional guests: Deepak Tripathi, a writer and commentator from London, and Stephen Lendman who is an American author. Below is the text of the interview.
Press TV: Max, first of all, let's discuss the uncertainty about Greece. Where do you think Greece is headed now? Is it certain now that it will adopt the bailout package?
Keiser: I think you have to take a bigger view and understand that going back to 2007, there has never been really a full disclosure about the amount of debts that various banks, sovereigns and hedge funds are holding and this crisis keeps getting worse because we keep finding out every month that there are in fact billions more debts that should have been disclosed years ago but are just being disclosed now and this is causing all kinds of market dislocations and political panic.
So in terms of Greece, they have more debt yet to disclose that has been hidden in their economy, same thing for France, same thing for Italy. Italy, of course, is sitting on hundreds of billions of euros of debt that they have yet to disclose.
The only ones that are making any sense of this in the total world are the people buying gold and silver who see that this is all going to end quite badly.
Press TV: I'd like to expand on the idea of the eurozone. Max, we know now that Germany and France have been quite adamant in their push to keep Greece in the eurozone.
There is this paradox because at the same time we are asking where are France, Germany and other the eurozone members going to bring this fund and cash-strapped themselves. They are going to bring this cash for Greece that is becoming a burden for them.
Why are they so adamant to keep Greece in the eurozone?
Keiser: They want to keep Greece in the eurozone and they want to keep Ireland in the eurozone and these are countries because the banks of these countries own lots of German and French debt and vice versa. So there is a huge Ponzi scheme or you could call it a daisy chain that is interlocking with these countries.
So if Greece goes under, then the German banks in particular Deutsche Bank goes bankrupt or JP Morgan in New York would go bankrupt, more quickly than they are already going bankrupt. There is nothing going to stop these major banks going bankrupt.
We are seeing this play out in real time and this is the end of the neo-liberal banking model as it was figured out thirty years ago in Chicago but it is only a question of how fast. So they are desperately trying to keep these countries onboard but unfortunately the people in Ireland, I was just in Ireland, they are starting to realize in Ireland that they have lost their sovereignty.
It is no longer a sovereign country; it is no longer a sovereign state. It is now being run by the IMF when they are stealing their assets and they are getting quite upset about it. They kicked out the British already and, you know, it has already been quite a volatile situation in Ireland.
Now it looks like the troubles are coming back but this time the new Bobby Sands will be directing attentions toward HSBC, Barclays and other British banks who have operated as financial terrorists.
Press TV: Max, do you think that Europe is prepared for a eurozone fall?
Keiser: It is a global phenomenon. The euro is collapsing, so is the US dollar. So the question is: is the world ready for the global collapse? I do not think it is because none of the politicians are preparing people for this global collapse.
The only people who are preparing are the people buying gold and silver and those prices keep going up as part of this multi-year bull market in precious metals. Those are the only people who are going to survive this collapse but the euro is bad, but the dollar is much worse.
So going forward, it is not the question of whether or not the euro goes down; you have to understand that the entire global banking system with 600 trillion dollars and derivatives -- that have no counter party able to pay that risk off -- is collapsing.
It has been collapsing for three or four years and it will continue to collapse until we have a new Bretton Wood's type international conference where the entire global currency grid is completely reconfigured against something of impeachable value and that is something will once again be gold.