Pan-European Greek Bailout Mutiny Gathers Steam, As Calls For "Euro Without Greece" Plebiscite Grow Louder

Tyler Durden's picture

Just like last year at about this time, the tables are turning on the funders of the latest Greek bailout. As Athens News reports: "Austrian mass-circulation tabloid Oesterreich, expressing rising taxpayer resentment around the EU, called for an EU-wide plebiscite "to let those who have to pay for Greece decide" whether to rescue it again or preserve "a euro without Greece"...[it also said] zigzagging over Greek aid pointed to a lack of a strategy allowing "shameless financial markets (to) blackmail apparently helpless politicians", and it called for an EU-wide referendum." Elsewhere, Geert Wilders, head of the third largest Dutch political party, the Party For Freedom, said "Greece should leave the euro zone and reintroduce the drachma (pre-euro currency). No more Dutch tax money to the corrupt and de facto bankrupt Greek." So the end result is that once again neither the Greek nor the European population wants the latest bailout that is forced upon them by the banking system, which is terrified about what happens if failure is reintroduced as a final outcome. Yet while it will take a lot to organize Europe's conflicting popular interests, the immediate decision-making power resides with Greece, where in just over 24 hours the all-critical vote of confidence in the ruling party will take place, whose failure is simply unthinkable in terms of downstream effects for the Eurozone. And as anyone familiar with the constitution of "united" Europe can attest, the jettisoning of Greece from the currency union will be next to impossible without a thorough redo of the bylaws of not only the Eurozone but all other artificially unionizing constructs that will promptly be forced to unwind should Greece "just say no" to more banker bailouts.

From Athens News:

Ta Nea, a centre-left, pro-government Greek daily, welcomed what it said were signs from recent Greek negotiations with EU creditors that it would be able to spare the financially neediest Greeks from the next "austerity clamp".
"Our lenders and partners do not wish to see the Greek economy collapsing. In this context the government can argue that to achieve targets Greek society must not be exhausted."
But centre-left newspaper Ethnos said Prime Minister George Papandreou's Socialist government was caught "in an iron social and political vise" by popular resistance to more sacrifice.
"The stance of society (veers between) negative to massively angry. All parties are refusing to work with the government and are asking for elections," Ethnos warned.
The Eleftherotypia daily vented the view of many ordinary Greeks, blaming the EU and other outsiders for their crisis.
"Led by Germany the EU, instead of showing solidarity and trying to solve the problem as a family matter in the Union, confronted Greece. It imposed punishing rules... instead of providing help," Eleftherotypia said. "Today Greece is at risk of becoming Europe's little whore." Underlining the peril to some EU coalition governments inherent in showering more money on Greece, the leader of the Dutch rightist Freedom Party that props up the minority government said it opposed more largesse for Greeks.
"Greece should leave the euro zone and reintroduce the drachma (pre-euro currency). No more Dutch tax money to the corrupt and de facto bankrupt Greek," Geert Wilders said.

He said that if the Dutch government joined a new bailout for Greece, then it "will have a major and very serious political problem with my party".

In Germany, Europe's most widely read and influential newspaper, Bild  said financially squeezed taxpayers were bristling at conservative Chancellor Angela Merkel's readiness to cough up more relief for Greece rather than her own people.
"Will the Greek crisis ruin all hopes for tax cuts in Germany? In Germany more and more citizens are asking themselves -- there is money for the Greeks but when will there be some for me, the simple taxpayer?" Bild said.
The conservative daily Frankfurter Allgemeine said Merkel was working feverishly to come up with a permanent EU financial stability regime "but is giving out the impression of a fire marshal in perpetual stress: several fires, few pails, no plan".
"The German government calls this 'crisis politics' ... But the citizen does not understand where this is going... this yo-yo-ing is difficult to explain to the voter," the German financial daily Handelsblatt said in an editorial.
"Political pressure on Merkel from the conservatives and her coalition is rising immensely," it said.
The liberal Munich daily Sueddeutsche Zeitung said Germans are "warily asking whether it can be right to tie up one package after another for a country being governed by corrupt elites.
"Should Greece not leave the EU, or reapply? ... For a long time the Greek crisis has not been (so much) about money but about the biggest asset the EU has -- its credibility. Its disastrous crisis management is making citizens, allies and financial markets nervous," the Sueddeutsche said.

End result: EURUSD jumps by over 100 pips in overnight central bank trading.

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SoNH80's picture

It's summer.  The nude beaches along the Baltic are packed, as are the septums of the Germans, Austrians, and Dutch frying in the Ibiza sun.  A fatal flaw of some EU watcher analysis is the assumption that the EU operates on democratic principles... NOT

So Close's picture

interesting what if scenario...   In  particular I like domino "11"

SoNH80's picture

Slide 3:

Europe's Banks Rocked

 Europe's banks are big holders of Greek debt. They have something like $53 billion outstanding. France, Germany and the U.K. are the most exposed.

"If bondholders were required to take a 40 percent 'haircut'—a figure thrown up by many analysts—this would translate to losses in the order of €15.6 billion," or $22 billion, according to one report.

Well, we know how that will be "fixed"-- the European banks will phone their favorite friend, Uncle Ben Bernanke, who'll wire over $22.2 billion in Miki Maus Money to make them whole, c/o the FRBNY (the extra $200 million is a nice tip for their trouble.....)


carbonmutant's picture

Any solution for Greece must also apply to the other PIIGS

There isn't enough credibility in the Euro system to cover those obligations...

SoNH80's picture

Yes... all PIIGS/counterparties will have their turn at the Fed trough... and the ECB can continue their faux-hard money posturing....

Djirk's picture

So if Greece was booted out of the EU wouldnt you still have the debt problem and potential meltdown. Dear banks can you say workout.

Scary part is that fascists like Wilders use the crisis to drive their agenda.

Anyone seen the hateful movie created by Meneer Wilders.

Calmyourself's picture

You know the end is near when truth becomes hate..  Read Wilders speech to the kangaroo court that was trying him for hate crimes.. Fascist I do not think so..

Djirk's picture

did you watch the movie he produced, not the slick free speech performance

masterinchancery's picture

Sounds like you are the Fascist, or maybe member of the Muslim Brotherhood?  Stone any women today?

Coke and Hookers's picture

Well Djirk, I sure don't want to be condemned by you (and your awesome moral authority) so maybe I should do something politically correct and non-fascist to avoid that. Something you wouldn't dream of criticising.

Like perhaps dragging a woman who wants to learn how to read or drive a car to the next football field and shoot her in the  back of the head with an AK47? Or perhaps force some 8 year old girl to marry an old pervert?

Djirk ... fuck you and your PC fascist bullshit. Get lost.


Djirk's picture

Yeah I got my facts confused, I heard they tie gay people up to the back of cars and drag them until death....also the women are so poor and high on drugs they put their newborn kids in dumspters....oh wait that is the USofA.

Exactly, you guys drank the kool aid, all Muslims eat their children and kill any non muslim on site......or is it the extreme few, who politicians use to scare you into getting their way.

You are right though Wilders is not a facist. I was forecasting.....nationalist, xenophobe, blamed an entire religious race on his countrys problems.....sound familiar.

OK OK there is a long way to go until Muslim women reach the status of western women, who can only make reservations.

Y all been workin on Maggies Farm too long

eureka's picture

SoNH80, RE "the assumption that the EU operates on democratic principles... NOT"

Does the U.S.?

baby_BLYTHE's picture

I don't understand why they are so hesitant about reissuing the Drachma.

God forbid billionaire Hedge Fund Hyenas would take a tiny haircut.

Are these governments really that captured by these jackals?

Azannoth's picture

They can't afford a setback in the Globalization, remember 1st unify Europe than the North American Union than the World


This is not about money or profit, it's about world Domination

topcallingtroll's picture

It is really about people spending more than they earn.  The crack addict is equally to blame as the crack dealer.

Rossalgondamer's picture

Considering all the time and money spent - AI reply routines should be less dichotomous. 

Raynja's picture

They know the addict will give up family, friends, property, and self respect to get another fix.

Question is are the citizens or the people in charge addicted to the debt.

msamour's picture

Technically, there would not be any crack addicts if there were never any crack dealers, Right?!? Yeah, I rest my case...

Jack Burton's picture

+1 Bingo. We have a winner! "World Domination by the banking cartels". That is what this is all about, why Greece MUST stay in the Euro, why Greece must be bailed out. I mean the European banks must be bailed out. No haircuts. Bankers make the decissions, the people pay the price, and governments respond to the banker's demands not the people's. It as plain as day what this is all about.

Greyhat's picture

Of cause it is, its simple, remember 1933, Reichstag in Berlin was burning and the Nazis made "protection laws". 2011 Greece is fiscaly burning and they introduce a "Package of six legislative proposals" about austerity by force from Brussels, economic governance.

If they tptb have fiscal control over Europe on of the final steps is taken.


This is the old strategy of tension game, translated into financial markets.

Now think again about Lehman, where the bailout powerplay began... ;)

AnAnonymous's picture

If they tptb have fiscal control over Europe on of the final steps is taken.


Transfer of taxation power from nations to European supra national structure is one objective.

Dont know if it will be reached with Greece though. They might prefer to sacrifice Greece in order to build up on fear, showing what can happen and making transfer of taxation power an acceptable option.

AnAnonymous's picture

If they tptb have fiscal control over Europe on of the final steps is taken.


Transfer of taxation power from nations to European supra national structure is one objective.

Dont know if it will be reached with Greece though. They might prefer to sacrifice Greece in order to build up on fear, showing what can happen and making transfer of taxation power an acceptable option.

topcallingtroll's picture

The greeks would have to live within their means and could not run a budget deficit if they went back to the drachma.  No one would lend them money.  they are already shut out of the debt market.

Jack Burton's picture

Iceland is back in the world debt market and successful. But then Iceland is a bit different than Greece. A nation of hard workers who pay their taxes versus? Greece!

trav7777's picture

Iceland didn't default; they just let their banking system crash.

The sky didn't fall, last I checked.

The funds, banks, and vicariously, the German people, have been subsidizing Greece since their accession to the EU.  They were expecting a coupon back on their "investment."  It ain't gonna happen.

Everyone is expecting their money to make money by the principle of economic growth in the aggregate.  That growth is no longer occurring.

Before the days of growth and banking, you grew what you needed to eat for the entire year.  Stockpiling grains did not produce magic compound interest and more grain.  This is the future.  The only people earning returns now are doing so via inflation and leverage. 

traderjoe's picture

No. Sovereign countries do NOT have to borrow money from private corporations. That is a meme created by the bankers. Sovereign countries can print money - without debt and without interest. 

Repudiate the odious debt. 

The Profit Prophet's picture

If the Greeks were smart they would:

-Throw out their Cleptoticians

-"Right Size" their Euro based bonds (coining my own cool new term for default)

-Pull-out of the EU

-Reinstate a gold-backed Drachma

T.E.I.N. everyone!

Tom_333's picture

Agree. Why would it be so complicated to kick Greece out of the Eurozone as stated in the article.They (Greek politicians) have broken almost every rule,used every loophole and as it seems conspired with the squid and others to defraud.

Let them go.It´s for the best for all sides.

The Greeks (people and possibly the military) will then take things into their own hands and find proper decorations for the lampposts around Syntagma square.

Urban Redneck's picture

Because the arrogant clowns who designed the EU & Euro didn't think it was possible a member State could go bankrupt or would ever desire to leave to NWO shithole they were dreaming up, so they never developed appropriate contingency plans and mechanisms.

If Greece leaves it needs to leave the EU not just the Eurozone.


eureka's picture

UR, RE "the arrogant clowns who designed the EU & Euro didn't think it was possible a member State could go bankrupt or would ever desire to leave to NWO shithole they were dreaming up, so they never developed appropriate contingency plans and mechanisms. If Greece leaves it needs to leave the EU not just the Eurozone."

As opposed to the US Globa-Corp-Fi-Hegemon-Wall-Street-PentaGun genious oligarchs, who gave rise to China and death to US working/middle class, and who similarly cannot envision that any US state will ever desire to leave The US HomeLand Fascist Federation? 

Watch California next month.

Watch US crumble over the next 12 months.

Tom_333's picture


If they earnestly want to hang their politicians(bankers and other assorted ...people) it´d good to leave the EU since capital punishment is outlawed under EU law.

Look at it this way. They take a break...a hiatus...a transition time ....and then do what they need to do.This without being harangued by the EU parliament OR bombed by the U.S.

Biggest problem they have is to clean house without upsetting The Squid not to get bombed when they default and cause all thosed CDS to burn a hole in th squids pocket.



kito's picture

and just think how cheap their olive oil and tourism would be with the reinstated drachma. its a win win for the greeks.

Pitchman's picture

Appeasing their Bankster Overlords is all the political/bureaucratic minions know.

“It is hard to free fools from the chains they revere.”- Voltaire


AMERICA: A "De-constructed Third World Nation-State" -International Banking Cartel Vs. The People

RobotTrader's picture

XLF just turned green after being red all morning after Citi downgraded a bunch of banks.

CRB Index didn't crash like I thought it would.

Might be a reversal day today.

equity_momo's picture

If you listened to me you'd fade yourself. Learn from George Costanza RT , youd make a killing.

topcallingtroll's picture

+ 10000

I make the best decisions when I fade myself!

lieutenantjohnchard's picture
almost always wrong. never in doubt. by RobotTrader
on Sun, 06/19/2011 - 12:02


Will SPY gap down under the 200-day Monday morning?

Will the CRB Index fall apart?

Gap up in the USDX to break out over the previous highs?

10-yr. yield collapse to 2.90%?

Yep, sure feels like it.

Bears get ready to rumble!!!!

PaperBear's picture

Greek parliaments must pass the vote of 'no confidence' in their government.

equity_momo's picture

Can you hear that? Listen carefully.

Its a whole chorus of eurotard politicians fiddling whilst the Continent burns.

Violins bitchez.

AnAnonymous's picture

Powder to the eyes: people calling for an option they do not have in order to portray themselves for what they are not.

Here's their propagandist scenario:

If Greece is maintained in EU, it will be against people who want to throw Greece out (this option does not exist) so in the end, this victory will be a great display of European solidarity (which is only an illusion, as Greece staying in Europe is only the result of the impossibility of kicking it out)



gmrpeabody's picture

Please don't let it be misconstrued that I do not totally disagree!

buzzsaw99's picture

With Greece / without Greece doesn't matter a hill of beans. The bonds are the issue. Banksters win again bitchez!

trav7777's picture

banksters and the usury clan only have primacy absent time of war.

Germany is going to figure out that if they really want their money back from Greece, they will have to go take it.

These bullshit liberal "rules" that people cling to aren't worth dick.

steve.stuart's picture

Look at Turkey they are in lot better shape than the PIGS ... the PIGS should get out the Euro currency ...when UK can be part of Euro without the Euro Currency why not the PIGS?

Jack Burton's picture

Indeed! Turkish growth is impressive. They are fools if they try and get into the stupid Euro club.

eureka's picture

First Turkey must qualify (democracy/free press) to join EU. Later, to join Euro.