From ZeroHedge, Breakdown Of Greek Austerity Measures.

The Greek parliament is debating the latest set of austerity measures, which it needs to pass to qualify for another payment under the bail-out from the European Union and the International Monetary Fund. The five-year plan was changed last week to allow for more money to be raised through tax increases and less money to be saved through spending cuts. The plan involves cutting 14.32bn euros ($20.50bn; £12.82bn) of public spending, while raising 14.09bn euros in taxes over five years.

As some people in the comments said, it looks like the US and Euro banksters are going ‘all in’ here.  After Iceland told them to go piss up a rope, they can’t very well let the Greeks off the hook without blowing up their grand plans for a world currency and world government.

I have no issue with the reduction in the Public Sector, especially defense spending and cutting nominal wages by 15%.  They are all the proper methods to stimulate a moribund economy, now wracked by riots and civil unrest.  In no way, though, should approximately 50% of this ‘austerity’ come in the form of higher taxation.  That’s just slavery with a legislative veneer.  If I were a young Greek today I’d be in the streets looking for someone’s head.

But in all debt transactions there are two sides, one that assumed the capital risk of lending and the one who assumed the risk of having been lent to.  This plan reeks of one side getting everything due to them via the use of force at the ballot box/legislature.  It’s nonsense.  The Greek government should declare a default and tell their debtors in Brussels to come back with a better offer.

Cut 25% of the government over the next 3 years.  Restructure the retirement system to lessen the future obligations by 25-30%, if not more.  Return education and health care to what’s left of the private sector and let it rebuild an infrastructure that is rife with waste and sloth.  But do not sell the assets of the Greek people to cover a short-term balloon payment on a debt. And do not, at the point of a gun, pry 10-15% more of the people’s income to be sucked out of the country, never to return. No.  No. No. No. No.

When all of this fails to return Greece to prosperity in their demanded time frame, what’s the next balloon payment?  The Parthenon?  Nuts to that!  Iceland’s is the path out of this for the Greeks.  That may be difficult culturally, given their history over the past 60 years, but it’s not impossible.  The hole may be big, but the walls aren’t so steep they can’t be climbed.

If the banksters really wanted to be repaid they know what I’m proposing is right.  But that’s not what they want.  They want control and this is the means by which to get it.  They are going all in because they have leverage over spineless politicians.  They’re going all in because if they don’t the Euro fails.

Gary North, last week, laid out a possible path for the PIIGS block, to pull out of the EMU and default on the debt.

This is a political game of chicken. The fate of the euro is on the line. If Greece’s government decides to pull out of the European Monetary Union and to return to its own currency, the governments of Portugal and Spain may see light at the end of their respective fiscal tunnels.

It’s the only right course of action.  This situation is anathema to advocates of a free society.  But the first step in solving it is not to pay back those that lent knowing the debt could never be repaid but continued on b/c of an unnatural flow of funds collected via taxation and money printing.