I think, specially with Russia possibly waiting at the backdoor, offering support, Greece's position is so much stronger in the long run, when stepping out of the snakepit called "eurozone". Now England is thinking about stepping out of it too. Very interesting England... my heart-homeland
And finally, over to Reuters for a snap summary: Greek lawmakers on Sunday authorised prime minister Alexis Tsipras’ proposed 5 July bailout referendum, setting Greece on course for a plebiscite that has enraged international creditors and increased Greece’s chances of exiting the eurozone.
The government easily passed the 151-vote threshold needed to authorise the referendum, with deputies from the far-right Golden Dawn voting with the government and pro-European opposition parties New Democracy, Pasok and To Potami and the KKE Communist party voting against.
Greeks are due to vote on whether to accept or reject the latest terms offered by creditors to Athens in order to unlock billions of euros in bailout funds.
European partners have reacted negatively to the announcement of the referendum. On Saturday, they rejected a request by Tsipras to extend the current bailout in order to cover the period leading up to the referendum. The rejection means Athens is likely to default on a key payment to the International Monetary Fund on Tuesday. So, what a day. Thanks for sticking with us. I’d better shut down now. Back in the morning.
If you’re not already sated, check out Ian’s latest report. Goodnight! GW.
Sunday 10:42 AM 5th of July 2015 Alexis Tsipras: The mandate you've given me does not call for a break with Europe, but rather gives me greater negotiating strength.
Update July 5th 2015 10.40pm 22:40 Deutsche Bank: Big win for Tsipras, but....
George Saravelos, analyst at Deutsche Bank, was quick out of the blocks with his views on the no vote.
He says the Bank of Greece is currently holding a conference call with the Greek banks to establish how much cash they have left. The focus is on the European Central Bank and what it will do about the €89bn of emergency liquidity assistance it has been using to keep Greek banks afloat.
“Over the next few hours, both sides’ willingness to re-start negotiations and under what conditions remains the most important next step. Beyond that, it is the increasing pressure on the Greek economy and people via a frozen banking system and capital controls that will drive the speed of developments. Decisions have to be taken soon on whether to return to the path of negotiations or consider the alternative of a Eurozone exit”.
He sees three immediate issues:
“First, the vote marks a big political victory for PM Tsipras. Today’s vote will allow the PM to maintain the political initiative within Greece, re-enforcing his leadership within the party as well as the government. It will be perceived by the government as a strong backing around its tough negotiating strategy.
Second, the poll masks a deeply divided electoral body. The win to the “no” vote was decisive. But opinion polls over the last few days have continued to show an overwhelming support for euro membership. How this can be reconciled with the “no” vote and rising economic costs remains to be seen in coming days. Either way, the referendum process itself and the outcome has increased polarization in Greece. Political tension both within parliament and in potential political demonstrations will be ongoing and unpredictable.
Third, the referendum result now requires Europe to more formally adopt a position on Greece, particularly given the size of the “no”. The European message on whether rejection is equivalent to Eurozone exit has not been consistent, with both Merkel and Schauble in particular not adopting this interpretation. A more clear reaction from Eurozone members should now be expected.”
First comment in the link above: "HoorayHenrietta 5th of July 2015 22:29 pm
Bye bye dears.
From Barclays tonight: "How long Greece can stay in the euro without a financial assistance programme will depend on the ECB’s willingness to continue to provide liquidity to its banking sector and the consequence of a default on the bonds held by the ECB in its SMP portfolio on 20 July. If there is no agreement on a programme, the ECB will shut down ELA no later than 20 July. Banks will then not only be illiquid but would then turn insolvent. As a result, the lack of financing would trigger a collapse of the Greek economy. This situation could not last more than a few days, beyond which the Greek government would have to decide to take back the control over the central bank of Greece and force it to provide liquidity support to Greek banks, therefore printing de facto another currency. This would clearly be a violation of the Treaty and would certainly put Greece outside the monetary union."
What I think of Greece now? In my perception, the present changes in global affairs and .... personal ones (look at the ques at the cash-machines in Greece) seem to shake loose old paradigms and conditions based on "for old time sake", often causing confusion, anxiety and fear. Even more so, when material comfort of living conditions is disturbed and uncertain. Greece is in turmoil, possibly leaving the euro-zone one of these days, which to me is an end to having to live with the gallows in sight, metaphorically speaking. Living with debts for a very long time is disastrous for people's confidence and may lead to a possible decline of moral standards... human kind standards.
The turmoil in present systems based on power and money, the increase of truth coming out caused by bankers revealing their shame for money-matters in shady virtual corners, whistleblowers like Julian Assange, Edward Snowden, seems to call for honesty and genuine humanitarian values and far less logic, knowledge, rules and forms, in how united states or solitary countries should be organized, economically and politically. How can it be, that an economic system was constructed (the EUrozone) and culture/politics of individual countries involved, greatly ignored? Or has it been convenient ignorance, serving a not yet known agenda?
At the bottom of a new future "stairway to heaven on earth" which entails a rejuvenation and re-generation, is our individual opening up to free thinking, awareness of choices, in how our lives can or should be lived. Greece should be sovereign and independent, I should think. After an initial hard couple of years, it can recover, with support of friendly nations. The stage of life, increasingly visible in politics and economics now, worldwide, seems to show fast changing props and spotlights in unsuspected places.
At the same time, immigrants leaving their country's shore, seek shelter on shores of richer countries where the population is in doubt and fear, not knowing how to act or react, therefore neglecting the desperate situation these refugees are in. The banking crisis, Greece's condition, immigrants seeking shelter on shores, all these phenomena seem to relate to one issue, as I perceive it: the corrupt nature of the monetary system at present and the abuse of power on all levels of life.
Greek bailout referendum: 'No' side celebrates decisive win Government officials in Greece say new deal possible
Greeks voted overwhelmingly on Sunday to reject terms of a bailout, risking financial ruin in a show of defiance that could splinter Europe.
With nearly half of the votes counted, official figures showed 61 per cent of Greeks rejecting the bailout offer. An official Interior Ministry projection confirmed the figure as close to the expected final tally.
The astonishingly strong victory by the "No" camp overturned opinion polls that had predicted an outcome too close to call. It leaves Greece in uncharted waters: risking financial and political isolation within the euro zone and a banking collapse if creditors refuse further aid.
But for millions of Greeks the outcome was an angry message to creditors that Greece can longer accept repeated rounds of austerity that, in five years, had left one in four without a job. Prime Minister Alexis Tsipras has denounced the price paid for aid as "blackmail" and a national "humiliation".
Hundreds of Greeks began pouring into the central Syntagma Square in front of parliament to celebrate, after a week of building desperation as banks were shut and cash withdrawals rationed to prevent a collapse of the Greek financial system.
"This is an imprint of the will of the Greek people and now it's up to Europeans to show if they respect our opinion and want to help," said Nikos Tarasis, a 23-year-old student.
Officials from the Greek government, which had argued that a 'No' vote would strengthen its hand to secure a better deal from international creditors after months of wrangling, immediately said they would try to restart talks with European partners.
"I believe there is no Greek today who is not proud, because regardless of what he voted he showed that this country above all respects democracy," Labour Minister Panos Skourletis said.
"The government now has a strong mandate, a strong negotiating card, to bring a deal which will open new ways."
Referendum voters unclear on question or potential aftermath
But euro zone officials shot down any prospect of a quick resumption of talks. One official said there were no plans for an emergency meeting of euro zone finance ministers on Monday, adding the vote outcome meant the ministers "would not know what to discuss".
Many of Athens' partners have warned over the past week that a 'No' vote would mean cutting bridges with Europe and driving Greece's crippled financial system into outright bankruptcy, dramatically worsening the country's economic depression.
The result also delivers a hammer blow to the European Union's grand single currency project. Intended to be permanent and unbreakable when it was created 15 years ago, the euro zone could now be on the point of losing its first member with the risk of further unravelling to come. Results seen as negotiating tool
"I believe such a result can be used as a strong negotiating tool so that Europeans can understand that we are not a colony," said Nefeli Dimou, a 23-year-old student in Athens.
The sticking points that scuppered Greece's bailout talks
Greek banks, which have been closed all week and rationing withdrawals from cash machines, are expected to run out of money within days unless the European Central Bank provides an emergency lifeline. Finance Minister Yanis Varoufakis is due to meet top Greek bankers later on Sunday and State Minister Nikos Pappas, one of Prime Minister Alexis Tsipras's closest aides, said it was "absolutely necessary" to restore liquidity to the banking system now that the vote is over.
However the European Central Bank, which holds a conference call on Monday morning, may be reluctant to increase emergency lending to Greek banks after voters rejected the spending cuts and economic reforms which creditors consider essential to make Greek public finances viable, central bankers said.
First indications were that any joint European political response may take a couple of days. German Chancellor Angela Merkel and French President Francois Hollande will meet in Paris on Monday afternoon. The European Commission, the EU executive, meets in Strasbourg on Tuesday and will report to the European Parliament on the situation.
"EU leaders must get together immediately, even on Monday. The situation is too serious to leave to finance ministers," said Axel Schaefer, a deputy head of the Social Democrat (SPD) group in the German parliament.
"You have to have confidence in the ability of the ECB to act. We must use all the possibilities in the EU budget to help Greece, which is still a member of the euro and the EU."
Uncharted waters for Greece
A 'No' vote puts Greece and the euro zone in uncharted waters. Unable to borrow money on capital markets, Greece has one of the world's highest levels of public debt. The International Monetary Fund warned last week that it would need massive debt relief and 50 billion euros in fresh funds.
Greek officials see the IMF report as a vital support for their argument that the bailout terms as they stood would merely have driven Greece further into depression.
Tsipras called the referendum eight days ago after rejecting the tough terms offered by international creditors as the price for releasing billions of euros in bailout funds.
He denounced the bailout terms as an "ultimatum" and his argument that a 'No' vote would allow the government to get a better deal appears to have convinced many Greeks, particularly among younger voters who have been ravaged by unemployment levels of nearly 50 percent.
"I have been jobless for nearly four years and was telling myself to be patient," said 43-year-old Eleni Deligainni, who said she voted 'No'. "But we've had enough deprivation and unemployment."
Opinion polls over the months have shown a large majority of Greeks want to remain in the euro.
But, exhausted and angry after five years of cuts, falling living standards and rising taxes imposed under successive bailout programmes, many appear to have shrugged off the warnings of disaster, trusting that a deal can still be reached.
quote " Now that Yanis Varoufakis has resigned, in the kind of unique fashion and timing that shows us who the real men are, it’s time to clear the other side of the table as well. The new finance minister, Euclid Tsakalotos, should not have to face the same faces that led to Europe’s painful defeat in yesterday’s Greek referendum.
That would be an utter disgrace, and the EU would not survive it. So we now call for Juncker, Lagarde, Schäuble, Dijsselbloem, Draghi, Merkel and Schulz to move over.
It’s time for the Troika to seek out some real men too. It cannot be that the winner leaves and all the losers get to stay.
The attempts to suppress the IMF debt sustainability analysis were a shameful attempt to mislead the people of Greece, and of Europe as a whole. And don’t forget the US: Lagarde operates out of Washington.
It cannot be that after this mockery of democracy, these same people can just remain where they are. " end of quote .
So one of the victors of the Greek referendum has quit the stage and the ones that caused this disaster for the EU are still there . Juncker, Lagarde, Schäuble, Dijsselbloem, Draghi, Merkel and Schulz should move over. Those people distinguished themselves with their incompetence . They thought that " austerity " would help Greece recover from the inability to pay loans . Instead after 5 years of " austerity " the Greek national product lost at least 25 % respect to the year 2008 . So any watcher of the Greek situation would realize that " austerity " has been a disaster and the economy went backward but the so called unelected in charge of the EU Titanic did not think so , they believe in the Bull dung dogma that people read in the Economic textbooks . The surprising thing is that the IMF operator Lagarde is still in the game of trying to load up a country that cannot pay the existing debt with more debt exended to infinitum so that the poor Greeks will be forever exploited by the banking criminals . From this farce the EU and the Troika come out a lot diminished and their reputation is forever damaged . Thanks to the Greek referendum , now more people in member countries will understand that it is possible to challenge the status quo of this SICK Europe of the unelected traitors .
enemyofNWO wrote: So one of the victors of the Greek referendum has quit the stage and the ones that caused this disaster for the EU are still there . Juncker, Lagarde, Schäuble, Dijsselbloem, Draghi, Merkel and Schulz should move over. Those people distinguished themselves with their incompetence . They thought that " austerity " would help Greece recover from the inability to pay loans . Instead after 5 years of " austerity " the Greek national product lost at least 25 % respect to the year 2008 .
So any watcher of the Greek situation would realize that " austerity " has been a disaster and the economy went backward but the so called unelected in charge of the EU Titanic did not think so , they believe in the Bull dung dogma that people read in the Economic textbooks . The surprising thing is that the IMF operator Lagarde is still in the game of trying to load up a country that cannot pay the existing debt with more debt exended to infinitum so that the poor Greeks will be forever exploited by the banking criminals. From this farce the EU and the Troika come out a lot diminished and their reputation is forever damaged . Thanks to the Greek referendum , now more people in member countries will understand that it is possible to challenge the status quo of this SICK Europe of the unelected traitors .
I agree with you, enemyofNWO, on the Greek situation, the tragedy that holds a teaching for those who are patient, as I see it. Eu is a farce. That's why I wrote earlier "Living with debts for a very long time is disastrous for people's confidence and may lead to a possible decline of moral standards... human kind standards". Specially, I mean the human kindness that is prosperous in times of well being, when people are relaxed with food and companionship being stomached. I do pray for an outcome that will cause a shifting of views in the right direction and a change of attitude in all countries entangled in this EU experiment with many flaws, so far. Let a new dance begin, Zorba!
https://www.youtube.com/watch?v=EiZnhuDWkd4 The above video lasts only 25 minutes and it is full of information .
Max Keiser , Stacy Herbert and Professor Steve Keen the author of debunking Economics discuss the Greek disaster .
Have you noticed that who decides the steps in the economic war against Greece are Angela Merkel and Hollande ? And strangely ? enough the banks who would be mostly damaged by the greek default are German and French ! Deutsche Bank is exposed to the tune of over 70 trillions ( = to 70,000 billions ) to toxic debt . 70 trillions is tens of times more than the German national product .
The two managing directors of Deutsche Bank have resigned recently . The whole of the EU might unwind after the Greek default !
The greek Nation recieved so much tech/portindusty/Powersrtations ect. from Westgermany, that theymade an offical contract in the 80th, that this war-repatriation is paid and void!!! Dunno know what got to the family on the tomatopatch over there... When there they had this loove touristsmoney/hate naziunforgivable platonism towards germans as pattern... Its DRAMA Babe!!! geeks, eehhh Greeks love it...Your moment has come, Mr Tsipras, take back control of your country and leave the Euro – UKIP leader Nigel Farage in the EU parliament, July 8, 2015 NOW WE WANT WARCRIMES OF ISREHELL AND USA BEEING PAID BACK TO THE PEOPLE OF THIS PLANET!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! Griechische Demokratie in ureigener Form. Die Entzauberung der Finanz-Nullen und der EU-Eurokraten und Nieten in Nadelstreifen hat ein psychologisches Ausmaß erreicht, dass man zurecht als “historisches Fiasko” bezeichnen kann.
DIE totalen Machtauflösung der selbsternannten Machtelite Europas zeigt zusammen, was ich seit Jahren in intimer Kenntnis der inneseelischen Dynamik der inkarnierten Persönlichkeit in der Endzeit immer wieder aufgezeigt habe. Und nun ist der Moment der Wahrheitsfindung gekommen und der Abgrund, der sich für Bänker und ihre Seelen-Vampire-Co da auftut, ist von erschreckender Tiefe. Es geht um nichts mehr und um nichts weniger als um das Auflösen des Orion Affentheaters auf diesem obersten Mutterplaneten und die Zurücknahme der meisten inkarnierten dunklen Seelenfragmente von dieser Realität durch Todeserfahrung. Aber erst nachdem sie ihre Schreckenserfahrungen in ihrer selbst-gebastelten Tragödie in der besten Sophoclesschen Tradition gemacht haben.
Der finale Akt des griechischen Drama hat sich vom der Wiege der abendländischen Zivilisation mit unfassbarer Wucht ausgebreitet und ganz Europa in Schrecken versetzt. Elektra muss Trauer tragen, denn die EU hat sich gestern selbst aufgelöst. Und nun für alle Menschen sichtbar, und sogar für die bis dato blinde Lügen-Presse, ist der Kabal-König nackt und die Menschen rufen aus: “Wollt ihr von solchen Nieten und Waschlappen regiert werden.”
Das Nachhallen dieses Ausrufs sind die berühmten Trompeten von Jericho, welche die Orion Matrix nun zum Stürzen bringen werden. Der abendländische Kontinent ist an seiner Unmündigkeit gescheitert und wird von seiner kindlichen Wiege – dem Mutterland der menschlichen Tragödie – verschlungen. Was für eine großartige Symbolik!
Nun ist die Zeit der PAT–Prometheuse gekommen, das Feuer der Läuterung und der Erkenntnis der neuen Menschheit zu bringen. Macht euch bereit!
quote from http://www.zerohedge.com/news/2015-07-08/germany-crushes-all-hope-greece-getting-debt-relief?page=1#comment-6285640
"As the Grexit debate is falling into the background a new, far more powerful conflict emerges: one between Germany on one side, and the IMF, France, Italy, and perhaps even the US, when it comes to the all important issue of debt relief.
As a reminder, it was the unexpected release of the IMF's debt (un)sustainability draft late last week (with US support over the vocal objections of Europe) that not only gave Tsipras a Greferendum win (he did not desire), but showed clearly that without a debt haircut of at least 30%, any Greek deal will merely lead to another, even more violent Greek default down the line.
Of course, it is not only Greece that needs debt reduction but so do all the other peripheral nations:
There is a schedule of Greek payments over the year Have a look and observe for how long Greece is going to pay the ODIOUS DEBT . Permanent slavery is what France and Germany want so that their banks could be saved with the BLOOD of the greek people , Payments are scheduled until 2057 !!!!!!!! Merkel Schouble and Hollande are certifiable INSANE !
Last edited by enemyofNWO on Tue Jul 14, 2015 3:26 am; edited 1 time in total
The Greek Drama in The Guardian: http://www.theguardian.com/business/live/2015/jul/13/greek-crisis-tsipras-battle-bailout-deal-backlash-live#comment-55622263
The Dutch finance minister IJsselbloem is elected again as president of the eurogroup of finance ministers. I wonder if I should I be happy for having left Holland and its failing government. Not sure if it makes any difference, where you live, nowadays. Or even if it's possible to really know what's cooking. I haven't moved overseas for politics, just to enjoy nature and being with pleasant people, returning to a more witchy life in Avalon area.
Here's a report from a resident of Greece, about ordinary life and what happens to the economy and why. This seems to be a highly significant comment in the Guardian live report on the Greek crisis: Poster: imipak
Greece should not have accepted the conditions and declared bankruptcy. It would have been an outright disaster, for a while, but sharp pain you can endure, provided it has an end.
Long-time suffering, not quite bad enough to snap the people, just bad enough to sap them of all will and personality, right in that band where Stockholm Syndrome trumps all, where it is survival at all costs, base animal instincts above human dignity and human rights, that's where this deal puts Greece. And it will never end. How can it? Dehumanize to that extent, kick the tiger enough times, and any outcome other than continued suppression must inevitably lead to disaster.
Greece must tackle its corruption, sure. But as most of the corrupt Greeks are living it up in Germany and other parts of Europe, one might expect a Germany that has any desire to end Greek corruption to start at home. All nations have 5%ers who aren't pulling their weight but are evading taxes and responsibility. This really needs to end globally. I feel sure Germany will demonstrate this by placing 50 billion euros worth of assets owned by such people into EU collective control to be distributed to nations demonstrating tax fraud by such people.
The global level of tax evasion stands, at a guess, at something like a third of a quadrillion U.S. dollars, based on the last known figures of those areas where it is known at all. By rights, Germany should be stumping up a minimum of five or so trillion of seized assets in order to restore balance. Fifty billion, a mere 1% of the lowest possible figure Germans owe, is peanuts and would show willing to fix the issue.
Ergo, they aren't interested in fixing things, just terrifying people.
Ergo, minimizing total pain (as opposed to moment-to-moment suffering) is the best strategy.
Ergo, going bankrupt is the correct choice.
Let the EU deal with the consequences. The EU monetary policy between 2003 and 2007 not only encouraged but actually imposed fiscal naivety. The EU has sought to create terms that made Greece insolvent. Let the EU clean up the mess it made.
The EU is only punishing Greece because it has now tried a left-wing approach after opting for the same right-wing tactics that engulf Europe. Had Golden Dawn been elected, international terrorism would skyrocket, Italy would be invaded with help from the Spanish far-right and war would likely break out, but better terms on debt relief would have been negotiated. And, after all, that's what matters, right?
Forget appeasing the EU fools, forget pacifying the at-home protesters. Go bankrupt. It will please nobody, but save everybody from far, far worse.
Should have posted this earlier, but I just now remembered it, it's great to see what people virtually connected can achieve.
I believe Zeus threw a bolt and interfered
How #thisisacoup went viral
The call went out on Sunday afternoon. “Hi guys, this is an important message about Greece,” wrote an activist named Francesca in a text message to 40 people, including members of Spain’s Indignado movement and leftist coalition party Barcelona en Comú.
“These guys meeting now in the Eurogroup, they all have twitter handles, they deserve to be told by the world to do a deal with Tsipras and stop trying to overthrow him,”
Minutes later, the hashtag #ThisIsACoup was born in Barcelona. It quickly shot to the top of trending lists around the world, including Germany and Greece, sparking a social media backlash against Germany and its finance minister, Wolfgang Schäuble, over the draconian list of demands being forced on the Greek government in return for a third bailout.
The hashtag was first attributed to a physics teacher in Barcelona, who clarified on Monday that it was a collective campaign.
Shortly after, those behind the campaign published a declaration, explaining their motivations. “#ThisIsACoup may have started in Barcelona, but it resonated around the world because it expressed a common sense of impotence of citizens in the face of globalised financial powers,” they wrote.
“We decided to support Francesca’s call to launch an online campaign to support the democratic will of the Greek people in the face of extortion by the EuroGroup in its negotiations with Syriza,” the statement continued.
“The scandalous Eurogroup proposals yesterday made last night the ideal moment to create a hashtag to express and, above all, coordinate, our outrage at the extortion the Greek government and its people were being subject to.”
The hashtag was a nod to the Egyptian hashtag #NotACoup, that trended in 2013.
“We’ve learned how to mobilize online from our counterparts of the Arab Spring and from our own experiences of occupying the squares of Spain.”
There is not the remotest prospect Athens can raise the money set out in the bailout terms, even with the enforced sale of national assets By Larry Elliott
Monday 13 July 2015 16.55 BST Last modified on Monday 13 July 2015 18.18 BST
Keynes never existed. The General Theory of Employment, Interest and Money was never written. Economic history ended on the day Franklin Roosevelt replaced Herbert Hoover as president of the United States.
That’s the gist of the deal that keeps Greece in the euro, an agreement that will deepen the country’s recession, makes its debt position less sustainable and virtually guarantees that its problems come bubbling back to the surface before too long.
One line in the seven-page euro summit statement sums up the thinking behind this act of folly, the one that talks about “quasi- automatic spending cuts in case of deviations from ambitious primary surplus targets”.
Translated into everyday English, what this means is that leaving to one side the interest payments on its debt, Greece will have to raise more in revenues than the government spends each and every year. If the performance of the economy is not strong enough to meet these targets, the “quasi-automatic” spending cuts will kick in. If Greece is in a hole, the rest of the euro zone will hand it a spade and tell it to keep digging.
This approach to the public finances went out of fashion during the 1930s but is now back. Most modern governments operate what are known as “automatic stabilizers”, under which they run bigger deficits (or smaller surpluses) in bad times because it is accepted that raising taxes or cutting spending during a recession reduces demand and so makes the recession worse.
George Osborne has seen it as his job to repair the hole in Britain’s budget deficit caused by the recession of 2008-09, but allowed the automatic stabilizers to work when the economy was struggling in the last parliament. The chancellor’s new fiscal rules requiring the Treasury to run a budget surplus will be suspended if the economy’s annual growth rate dips below 1%.
At the insistence of Berlin, this sort of flexibility is not going to be open to Greece. Angela Merkel and Wolfgang Schäuble, her finance minister, have got everything they were seeking before Alexis Tsipras called the Greek referendum – and more.
Athens has been forced to accept the “streamlining” of its VAT system to raise more tax revenue. That means more goods and services included in the 23% main rate of VAT. It has also dropped its resistance to immediate changes to the pension system, which will mean higher health charges and an end to the solidarity supplement, a top-up payment to the poorest pensioners. The seemingly innocuous pledge to “reduce further the costs of the Greek administration” means sacking civil servants employed since Tsipras was elected in January.
Go for a three-minute video analysis with Jonathan Freedland and Larry Elliott to the link below.
The pre-referendum terms have been made tougher, both through the “quasi-automatic” spending cuts and through the enforced sell-off of Greece’s assets. Over the next three years, the expectation is that Greece will raise €50bn (£35bn) through privatizations, of which €25bn will be used for the recapitalization of its banks. The other €25bn will be split evenly between repaying debt and for investment in the Greek economy.
Greece, to borrow Harold Macmillan’s phrase, will be forced to sell off the family silver (along with the airports, the ports and the banks) to pay for its bailout and to recapitalize its own banks. That’s the plan.
In truth, there is not the remotest prospect of Greece raising €50bn through privatisations in the next three years. The €50bn target was first announced back in 2011, since when the value of the Greek stock market has fallen by 40%, making its assets far less valuable. In the past four years, privatization proceeds have raised just over €3bn.
For the moment, Greece remains in the euro but it should be obvious by now that there are only two ways of resolving the crisis. The first is to write off a large chunk of its debts. The other is to allow it to grow at a pace that allows it to service its debts. This deal offers neither. Its one minor concession is that there will be talks about giving Greece longer to pay its debts provided it takes steps that are certain to lengthen and deepen the recession. This is not a solution. It is a chink of light filtering through the bars of the debtors’ prison."
My thoughts, appalled by today's EU moves: Describing Greece receiving a chink of light, filtering through the bars of the debtors prison, is similar to what I wrote in a comment, today, on Greece's fate now, in the Guardian: "It's like skinning a rabbit, promising it to keep it alive". It's becoming very clear that the agenda of this third bailout package serves certain parties confirming Greece's role, although forced on in a way, staying in the EU, as if they're the savior. How ironic and how evil really! I tend to think that the hour before dawn is the darkest hour of gloom. Let's wait and see, if a sudden next step or measure, pops up and throws the whole deal of this third bailout in the mire where it belongs. Joining the by law non-existent Eurogroup and the invisible money-antics, a banking system causing havoc on the entire planet, all around.
B.B.Baghor wrote: My thoughts, appalled by today's EU moves: Describing Greece receiving a chink of light, filtering through the bars of the debtors prison, is similar to what I wrote in a comment, today, on Greece's fate now, in the Guardian: "It's like skinning a rabbit, promising it to keep it alive". It's becoming very clear that the agenda of this third bailout package serves certain parties confirming Greece's role, although forced on in a way, staying in the EU, as if they're the savior. How ironic and how evil really! I tend to think that the hour before dawn is the darkest hour of gloom. Let's wait and see, if a sudden next step or measure, pops up and throws the whole deal of this third bailout in the mire where it belongs. Joining the by law non-existent Eurogroup and the invisible money-antics, a banking system causing havoc on the entire planet, all around.
European Commission Directorate - General for Economic and Financial Affairs Finance at Center Stage: Some Lessons of the Euro Crisis by Maurice Obstfeld* University of California (Berkeley), NBER and CEPR
"Abstract Because of recent economic crises, financial fragility has regained prominence in both the theory and practice of macroeconomic policy Consistent with macroeconomic paradigms prevalent at the time, the original architecture of the euro zone assumed that safeguards against inflation and excessive government deficits would suffice to guarantee macroeconomic stability. Recent events, in both Europe and the industrial world at large challenge this assumption. After reviewing the roots of the euro crisis in financial-market developments, this essay draws some conclusions for the reform of euro area institutions. The euro area is moving quickly to correct one flaw in the Maastricht treaty, the vesting of all financial supervisory functions with national authorities. However, the sheer size of bank balance sheets suggest that the euro area must also confront a financial/fiscal trilemma: countries in the euro zone can no longer enjoy all three of financial integration with other member states, financial stability, and fiscal independence, because the costs of banking rescues may now go beyond national fiscal capacities. Thus, plans to reform the euro-zone architecture must combine centralized supervision with some centralized fiscal backstop to finance deposit insurance and bank resolution. This perspective also suggests a new argument for fiscal constraints in a monetary union".
Bank of Greece vaults, where deposit boxes are kept Photograph: Helena Smith
A bit further on this: (Quote) "Commentary on EMU's performance during its first decade generally paid much less attention to financial factors than now seems warranted after the euros transition from its relatively placid “latency period” into a stormy adolescence. My note: Oh? Is the kid growing up? This remark makes me wonder if also here in the EMU a situation is present of "the truth is different on every level"?
The European Commission's detailed survey EMU@10, appearing shortly after the onset of global financial-market unrest in August 2007, did discuss financial trends and flagged a number of relevant potential reforms. The report noted (p. 191) that:
In contrast to the accelerating trend in cross-border banking in the euro area, supervisory arrangements remain rather static and predominantly national-based. The result is inefficiency in the framework for supervision and financial-crisis management, implying significant deadweight costs for the financial industry and a potentially inadequate response to contagion risks within an integrated financial system"(end of quote).
On the same page in the link above: "Monday July 20th 2015 17:43 pm
On a day when the Greek banks opened their doors for the first time in three weeks, the debate about future funding needs seems far away. But our economics correspondent Phillip Inman asks what lies ahead for Greece’s battered financial sector.
He writes: Plenty of dangers lie in wait for Greek banks. Already short of cash, they may need lots more when stress tests of their solvency are carried out in a month or two And unable to access the international money markets, they will be in a similar position to the Greek god Telephus, who was wounded by Achilles and yet needed Achilles to return as a doctor before he could be healed. The Greek banks, stripped of many of their assets by the European Central Bank, will need the ECB to make a re-appearance in Athens to aid their recovery...
A couple of months from now, the story could take a grim turn. Not only will hundreds of millions of deposits have been withdrawn in that time, the weakening effects of a broader economic slowdown will have taken their toll.
The full analysis from Phillip: Greek banks face stress tests at the worst time. The Greek economy is likely to be another 5% smaller by the autumn than when the banks were stress-tested last time". Read more http://www.theguardian.com/business/2015/jul/20/greek-banks-face-stress-tests-at-the-worst-time
One of the many comments on Greece's situation of today, in the Guardian: SiberianNights Monday July 20th 2015 18.10 pm
"As Bertrand Russell observed, what we are seeing here is in actual fact just a further consequence of Britain's giant mistake of 1914. If Britain had remained neutral in 1914, Germany would have won a swift victory on the continent, Britain would have been left alone as a sea-power with the remnants of its empire, and the monsters of Nazism, Communism, and the whole 'specter of doom' of the 'EU' would never have emerged. They are all direct consequences of Germany's defeat in WWI, which should never have happened.
Russell put it so well half-way into this interview:-" https://www.youtube.com/watch?v=1bZv3pSaLtY
All this may end into an unknown and unexpected twitch, thanks to the director of this game, described in and mentioned by me at the end of the attachment.
Quote from the book Tarot by Jan Ton.docx
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Correct English subtitles and full text of speech below the video, when viewed at YouTube.
21 okt. 2014 "The European Union should turn the fields of Education, Health and Research into immediate priorities, forming in this way its program. Only by setting these priorities, a genuine interest in people can be proven and none can escape this rule".
What a lion is this man! He still remembers the farmfields and orange orchards of a Greece in wealth
9 jul. 2015 "Manolis Glezos, 92 years old, Syriza MEP, the man who tore down the Nazi flag from the Acropolis, during WW2, steps down today. This is what he said yesterday during the debate on the Greek debt crisis. The subtitle shows utter nonsense, the voice speaking in the background is accurate in translating his speech, in English.
Why is Germany so tough on Greece? Part of article, for full reading, the link is at the bottom of that part. Highly recommended memorizing of German's past.
".......Because Kohl and, during the summer of 1990, Schäuble weren’t Chicago economists keen on radical experiments but politicians who wanted to be re-elected, they pumped millions into a failing economy. This is where parallels with Greece end: there were political limits to the austerity a government could impose on its own people.
The lesson Schäuble learned – and which is likely to influence his decision-making now – is that if you act the pure-hearted neo-liberal you can still get away with decisions that don’t make perfect economic sense. If Schäuble is acting tough with Greece right now, it is because his electorate wants him to act that way; it’s not just that he doesn’t care about the Greek people, he wants people to believe he doesn’t care, because he sees the political advantage in it.
But Schäuble should have learned from history that the Treuhand gamble had catastrophic psychological consequences. Even though the agency was run by Germans, who spoke German, still it was seen by many in the east as an occupying force.
Schäuble’s idea of foreign countries controlling Greek assets and moving them abroad is an even more humiliating concept for any country. Schäuble comes across as a tough and sober accountant. In fact he is just an ordinary politician repeating old mistakes".
********************************************************************************************************************************************************************************************************************************** Germany and Greece need a mediator Michael Scaturro Part of the article, for full reading go to the link at the end of it.
".....Germany feels it is being asked for a gift at the end of a gun, sinking money into a country that will never actually pay it back and that it does not perceive as critical for its national and economic security. Greece is outraged that more austerity will further lower its standard of living, and it is tired of being called lazy and inept by Europe’s de facto hegemonic power.
An impartial mediating team could help treat the emotion and lower the outrage
The finance ministers Wolfgang Schäuble and Euclid Tsakalotos must lead their staffs in committing to outrage mitigation under mediation. This is imperative because functionaries from both governments are, sadly, pushing their negative emotion out into their nations’ media. And Greek and German media are in turn whipping up the kind of populist sentiment that is manifesting itself as anti-Greece protests in front of the Bundestag or Angela Merkel Hitler posters in Athens. The toxicity of the debate has reached fever pitch on both sides".
Arvind Subramanian Arvind Subramanian is Chief Economic Adviser at India’s finance ministry.
Read more at http://www.project-syndicate.org/commentary/imf-grexit-help-by-arvind-subramanian-2015-08#tv2kPHOwYSSevoAm.99
AUG 13, 2015
NEW DELHI – Democracy is about real choices. But, throughout their country’s crisis, the Greek people have been deprived of them. For this, the Europe Union and especially the International Monetary Fund bear considerable responsibility.
Greece was offered two stark choices: Leave the eurozone without financing, or remain and receive support at the price of further austerity. But Greece should have been offered a third option: Leave the euro, but with generous financing.
This option should have been put on the table, recognizing that Greece has broader political reasons for staying within the eurozone. Although exiting the monetary union would have yielded considerable benefits, “Grexit” would have entailed sizable costs as well.
The benefits would have included a massive devaluation, which would have restored some dynamism to what was once a fast-growing economy. But the costs were terrifying. The government would have had to default, the banks would have been ruined, and both would have struggled for years to regain the trust of financial markets. As a result, interest rates would have remained high for a long time to come, impeding efforts to restore growth. Is it any wonder that the Greek government shrank from this horror and chose the “safe” option of austerity?
But this option may not be safe at all. It is in fact, to quote T.S. Eliot, that “awful daring of a moment’s surrender...” Greece will now need to grind away at austerity, hoping that in some distant future “internal devaluation” – that is, wage and price deflation – will help to spark a recovery.
Only the IMF could have offered the third option of an orderly exit. Greece should have been told that it could reap the benefits of devaluation, while the international community would act to minimize the attendant costs. The precise terms of Grexit – agreed by the troika (the IMF, the European Commission, and the European Central Bank) and Greek authorities – surely would have included a negotiated reduction in Greece’s debts, as well as a strategy for recapitalizing the banking system in order minimize uncertainty, pain, and disruption.
This post is for those who can read French and Dutch:
Some parts I've translated and they're here:
"Unsustainable loans are laid upon the Greek people, just to save the German and French banks." On June 17th 2015 the research-committee presents its first results to the Greek parliament. "These debts are laid upon with lawless and evil methods in order to save the German, French and Dutch banks, knowing that this will result in a social disaster" according Renaud Vivien, Belgian member of the research-committee.
Lode Vanoost Tuesday June 16th 2015"
"While the Greek debt unto 2010 was mainly a matter of private sector, more defined: the banks, the debt is since 2010 fully transferred unto the Greek government. By this move, the German, French and Dutch banks were saved, landing into problems because Greek banks were unable to pay their debts. That debt was by the European accord entirely transferred to the Greek govern- ment and thus unto the population. In other words, the "solution" forced on Greece, has as its only purpose, to save the creditors in Germany, France and Holland"
Greece To Surrender Gold, Real Estate, Utilities In Exchange For More Debt And Austerity
Germany’s announcement that it will not allow debt relief for the troubled EU nation will force Greece to auction off the last of its assets and sign over its remaining sovereignty to the EU bureaucracy.
Article via True Activist
For the last several years, Greece has been struggling to keep it together. In 2010, Greece was forced to ask for its first bail-out since it adopted the Euro less than a decade before.
The subsequent austerity programs decimated the Greek economy. Another bail-out was requested in 2012, which then caused major spikes in unemployment and an explosion of public discontent. Three years later, Greece defaulted to the International Monetary Fund (IMF), becoming the first developed country to do so.
Greece’s continuing crisis has caused much economic instability in the Eurozone, but – as Deutsche Bank Research analysts have noted – “we seem to be approaching the conclusion of this episode of the Greece saga.”
With the Greek economy still in ruins and its government still drowning in debt, the government in Athens seems to have few options left, leaving Germany – the EU’s most powerful member – to call the shots as a third bail-out looms. Bavaria’s Finance Minister, Markus Soeder, has announced that he plans to take a tougher stance on the bail-out’s negotiation compared to previous deals, stating that “New billions should only flow when Athens implemented all the reforms. Even then, however, aid should only be given against a pledge “in the form of cash, gold or real estate.”
Essentially, Greece must surrender its remaining assets of real, tangible value in exchange for more Euros to make payments on its massive debt that can never be repaid. Indeed, previous bail-out negotiations revealed that all of Greece’s public property was valued at € 50 billion, a figure which pales in comparison to the price of the necessary loans on debt payments forced upon it by prior bail-outs – an impressive € 90 billion. Despite the obvious fact that this debt is insurmountable for Greece – no matter how much austerity is imposed – all of this assessed public property was forced to be sold per the previous bail-out agreements.
This newest plan would take all that remains.
read on: https://wearechange.org/greece-surrender-gold-real-estate-utilities-exchange-debt-austerity/