51BI+t9QE+L__SX341_BO1,204,203,200_ The lesson of Greek debt is this: it does not exist to the degree that is reported.

The same is true for the UK and America. The International Monetary Fund, the European Central Bank and the European Commission do not audit a country’s books as an accountant would audit a private company.

Accountants use what is termed the “accrual method” to value debt – your capacity to pay is measured by your capacity to raise revenue, your assets and finally, the loan rate over time, which, in the case of Greece, is extremely low.

The Greek debt has been calculated using a political measuring stick, the so-called Maastricht Standard, that uses only the face value of the loan. Similarly, in America and the UK, debt is measured at ‘face value’, but if net debt was to be calculated using International Public Sector Accounting Standards (IPSAS), debt levels would be approximately 10% of what is claimed.

This is a fact. All serious accountants agree that the accrual method of calculating debt is more accurate to the political one.

You start to smell a rat.

Governments don’t want serious accountants anywhere near their books, as it would expose ugly truths about public finance.

The Office for Budget Responsibility was created in 2010 to provide independent and authoritative analysis of the UK’s public finances’. This is its own propaganda. Its methods are flawed, based on a ‘put crap in, get crap out’ model of prediction, which choses any ‘incoherent mish-mash’ of economic models that will produce the desired political result.

A report in (8 March 2015) stated: ‘George Osborne: likely to use unrealistic public spending assumptions to justify tax cuts’, outlines the fact that methods chosen define the results: ‘The Office for Budget Responsibility’s reports may indeed point to such room for manoeuvre, but only because its methods are flawed. It was on the strength of OBR tables that Mr Osborne was able to brag in his autumn statement that “by 2019-20 Britain is now predicted to have a surplus of £23bn”.

But as the Institute for Government points out, this “prediction” was no such thing. It was rather an incoherent mish-mash of technical outputs of macroeconomic models, and the chancellor’s own cavalier presumptions about expenditure which nobody – the OBR included – believes’.

The situation of false accounting has a precedent:

‘In the late 1930s, the leading partner at Price Waterhouse, George O. May, worried that in the regulatory clean-up that followed the Great Depression, government would take over accounting … Along with British accounting leader Lord Henry Benson, he pushed to create independent standard setting body now known as the International Accounting Standards Board (IASB) … but May and Benson’s world faded in the 70s and 80s with decline of ethical standards in the accounting industry … rather than entering the fray of politics, major accountants are standing on the sidelines. The reason is similar to the problem that was highlighted by the Enron scandal: They work not to insist that independent standards be kept, but rather as hired hands who execute contracted technical missions … Even more, their hands are often tied by political regulation designed to limit the scope of audits. In Europe, a large percentage of all Big Four contracts come from the EU government itself. The Big Four have come to Europe to work for its super-government, but in doing so, they have started to trade their independence for job security, and it has become harder for them to fulfill their real mission, which is to ferret out financial truth … If leading accountants were to step in as the mediators May envisioned, the Greek debt talks would have more credible metrics with which to frame Europe’s existential debate … Renewing the leading role of international accounting standards seems an obvious response to Europe’s debt stalemate. Calling in the standards setters and giving them renewed authority would allow them to serve as a neutral referees to help solve this crisis. They’re there. The EU lenders and Greece need only call on them …’ (Jacob Soll, a professor of history and accounting at the University of Southern California, The Reckoning: Financial Accountability and the Rise and Fall of Nations).

They lie about all so called debt (digits in a computer that all are forced to believe are real) in order to further the ends of corporate capitalism.

Labour markets will be liberalised, as will shop opening hours, with “rigorous reviews and modernisation of collective bargaining, industrial action and, in line with the relevant EU directive and best practice, collective dismissals”. The Greek government is sternly warned that the country’s past approach is “not compatible with the goals of promoting sustainable and inclusive growth”, i.e. growth for the top 1% that rides on the back of the duped 99%.

Throw the liars off your back!

Walk upright like human beings.

Support the Communist Party of Greece (KKE).

Throw the corporation loving infiltrators of the Labour Party off your back!

Support Jeremy Corbyn for the Labour Party leadership.

lenin nightingale 2015


About leninnightingale

A nurse who for decades challenged the nursing establishment, echoing the voices of the silent many- the downtrodden nurses, students, care assistants, patients, and relatives that the 'system' overlooks. This site will present issues that many fear to engage in, prefering to believe what they are told by the Government's 'Ministry of Truth' (i.e. 'Lies').
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