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Mike Stathis Was Right About the IMF and the Greek Crisis

Shortly after the financial crisis of 2008, problems in Greece began to spiral out of control. And as always, the IMF came to "rescue" Greece.

I wrote a couple of articles exposing the reality of the situation from my view point because I felt it was critical to understand that Greece was serving as a testing ground for what we could see in other EU member nations down the road. 

In short, the IMF made the worst possible decisions in dealing with Greece's economic crisis. I allege these decisions were made intentionally in order to weaken the Greek economy so that the Jewish banking cartel could "buy" Greek assets at fire sale prices. 

Ever since our friends at the IMF devised a plot to destroy the Greek economy in order to implement a plan to steal much of Greece's most vital and valuable assets, these pawns of the international banking cartel have received only limited criticism.

Mr. Stathis was perhaps the harshest of these critics. His analysis and conclusions were certainly the most eye-opening. But of course, his views had remained virtually hidden from the world as a result of him being completely banned by all media.

Remember that if a tree falls in the forest but you don't hear the sound of the fall, you won't realize it fell. 

As you can imagine the majority of the players from within the Jewish mafia crime syndicate (academic and Wall Street economists, financial professors, officials, bureaucrats, etc.) were supportive of the IMF's approach. 

At this point the reader is advised to review Mike's 2012 article, The Rape of Greece by the Jewish Bankers

In this article you should note that Mr. Stathis estimated that Greece would not return to pre-crisis economic growth before 2030.

In contrast, the "geniuses" at the IMF expected Greece to return to pre-crisis conditions by 2017 to 2021. The following passage contains an opening excerpt from this 2012 article. 

"After suffering through nearly five years of a very severe recession, the worst is yet to come for the Greek people. According to consensus estimates it will take twelve years for the Greek economy to regain its pre-recession output. 

Although I view this estimate as generous, it nevertheless represents an extremely slow recovery when compared to the most adversely affected nations from previous financial crises. My own estimates indicate that it will take Greece at least eighteen years to reach its pre-recession economic output. 

Even if Greece were to begin its recovery later this year, it will have lost more than 16% of GDP since its pre-recession peak, making it one of the most severe losses of economic output seen from all financial crises in the 20th and 21st centuries.

Of course, Greece is not going to begin a recovery in 2012, 2013 or 2014. In fact, by the time the IMF is finished with its austerity measures, Greece could set a new world record in terms of economic destruction.

So what is the root cause for the implosion of the Greek economy?

Is it due to the nation’s high rate of tax evasion, lack of competitiveness, its overly generous retirement system and poor labor participation, as we have all been told by the media and their “expert” sources? 

If you believe these are the real reasons for the collapse of Greece, you may have also been fooled by other myths and lies spread by the banking cartel and their media friends."

Recently the IMF sought to address its decisions on the handling of Greece in order to justify its reckless actions. Please take a look at this piece below. 

The IMF and the Greek Crisis: Myths and Realities

Note in this article how the IMF official has acknowledged its failure with Greece, while attempting to offer extraneous reasons.

According to the IMF's previous estimates, Greece was expected to return to pre-crisis growth in eight years or by 2017.   The IMF later revised this estimate to 12 years or by 2021.

As you can see in the article passage below, as of September 30, 2019 the IMF now estimates that it will take Greece an additional 18 years or by 2034 to return to pre-crisis output levels. Meanwhile the European Commission's estimate is by 2031.  

"Let me begin with a snapshot of where Greece stands today. When designing the program, we realized that the need for a sharp internal devaluation would cause a deep depression. In terms of GDP per capita, we assumed that it would take Greece 8 years to return to pre-crisis level. This was as bad as in the United States Great Depression’s in the 1930s, and considerable worse than the four years that it took countries affected by the Asian crisis.

The outcome was much worse. Today, almost ten years later, GDP per capita is still 22 percent below the pre-crisis level. We forecast that it will take another 15 years, until 2034, to return to pre-crisis levels. Under the Commission’s forecast it will take until 2031."

This is indeed a strange meeting for the IMF, as it is the first time we can recall whereby the IMF hs felt the need to justify what turned out to be a disaster.  

What's the point? 

Revisions of forecasts are a normal part of the process involved when making detailed estimates. But because no one has a crystal ball, no one knows what possible deviations might occur relative to the assumptions made in formulating the estimates.

As you can appreciate, Mr. Stathis' estimates pertaining to the severity and duration of the economic crisis in Greece never changed since they were first published in 2012.

Even though Stathis never revisited these previous estimates in order to consider revisions, his initial estimates remain quite accurate today given the latest estimates made by the IMF and European Commission. 

This is certainly not the first time Mr. Stathis has made estimates that have held up for years without the need for further modification. And it won't be the last either.

Most estimates require numerous revisions. By now the reason for this should be obvious. As the time duration of the event or desired outcome in question is extended, the possibility of more deviations or unforeseen circumstances enters into the picture, which alters the estimates.

However, there are times when the assessment has been crafted so well that the original estimate remains unaltered years and sometimes decades into the future.

Again, this only occurs in a very small percentage of estimates at best. 

If you are able to identify an analyst who has achieved this level of accuracy on at least a few occasions, you can be confident that you have found a true gem.   

This importance of this achievement is enhanced even further when you consider that the IMF is a very large global organization employing thousands of highly trained analysts and economics, with unmatched access to economic data funded by a multi-billion dollar annual budget.

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