The news from Athens continues to bleak over the past few weeks. A 90 year old mother and her 60 year old son jumped to their deaths off on apartment building (See Ekarthimeini article here).
A 62 year old pensioner hung himself off of a tree on the outskirts of Nikaia (See Athens News article here). Migrants are being attacked and are desperate to leave the country. Pharmacists are now refusing the government benefits card and demanding cash only for life saving drugs because they fear not being paid in Euros by the Greek bureaucracy, as payments are already many months behind in reimbursements. Sadly, soup lines are the longest since the end of World War II as the middle class has fallen into dire straits of poverty, forcing dumpster diving by parents and children around the nation.
Even with all of this hardship, the banksters of Brussels and Berlin have noted the anger and frustration of the Greek electorate and fear a victory by the anti-austerity forces but attempting to force the gyro (they’re out of turnips) to bleed is a field of expertise that the financial industry is unfortunately well known for.
The bankers have elected to engage in a new strategy and it will create a humanitarian crisis unseen on the Continent since the siege of Sarajevo and the misery of the Soviet occupation: Starve the Greeks into voting for compliance with austerity.
The lines of credit for many importers in Greece has already been greatly reduced if not outright terminated by many European companies due to the crisis. One must remember that Greece imports 40% of its total food supply and with this reduction in credit, that is a major blow to the government and its ability to ensure sufficient food supplies for the people.
However, a more dire blow was struck this week when several major insurers declined to cover shipments of goods into Greece in case their is a default on payment. This has had the effect of extinguishing credit available to many Greek importers and the concerns are obvious.
On Friday June 1st, the news was exacerbated when the Wall Street Journal reported that the insurance company Atradius, one of the three largest credit insurers worldwide, would cease underwriting policies for export credits to Greece (See: Atradius Won’t Insure New Greek Export Credits, WSJ, June 1, 2012). When taken in combination with the actions by two other insurers, the largest being Euler Hermes along with Coface and the stunning headline and story from the Greek newspaper Protothema begins to make sense:
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