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The European Nash Dis-equilibrium Through The Eyes Of A Greek

Tyler Durden's picture





 

In a somewhat mind-blowing 'gotcha' this evening (that we saw coming from the moment the words left his lips), the Greek finance minister has been forced to admit he's a lying cheat drop claims that he had secured a two-year extension for debt repayments and an agreement with creditors over EUR13.5bn in proposed austerity measures - because HE HADN'T! As The Guardian reports, Stournaras played to stereotype perfectly (the Greeks only got in the euro thanks to off-market currency swaps to reduce debt optics off-balance sheet) by lying once again (if you lie big enough it has to stock, right?). The U-turn - which he was forced to make after Germany denied the deal (yes Zee Germans again the only ones that anyone should be listening to) - caused chaotic scenes in parliament. As we have vociferously described, and Mr. Panos confirmed, the leverage is all with the Greeks (as much as the world does not want to admit it) as one Greek official said (frighteningly honestly!):

"Even if the troika give us a negative report, what are they going to do? Are they really going to not give us the installment [to keep Greece's economy afloat] two weeks before the US elections, with everything that entails – default, bankruptcy, global market turmoil? These labour reforms will turn our country into Bangladesh. They have no fiscal benefit and will actually derail the adjustment program. The political system will collapse if we impose them. The troika is demanding that we commit suicide!"

 

Via The Guardian:

Chaos in the Greek parliament following a row over the country's revised bailout plan brought fresh gloom to the eurozone as figures showed the currency union moving closer to recession.

 

The Greek finance minister was forced to drop claims that he had secured a two-year extension for debt repayments and an agreement with creditors over €13.5bn (£10.9bn) of proposed austerity measures when he addressed MPs on Wednesday.

 

Yannis Stournaras had previously told MPs that a deal was ready, only to later admit that negotiators had yet to approve a final draft. The U-turn, which Stournaras was forced to admit after Germany denied any deal, triggered chaotic scenes in parliament as opposition MPs objected to proposed tax rises and job cuts.

 

It was unclear last night whether the government will be able to submit two separate bills on austerity cuts and labour reforms due to be debated in parliament next week.

 

Greece has spent months in talks with its creditors, headed by the troika of the International Monetary Fund, the European Central Bank and the European Union.

 

Stournaras wants Greece to cut its debt pile by reducing the interest and extending the term of its bailout loans. Analysts still expect Athens to win improved loan terms, though not until it relinquishes more supervisory powers to the troika, which wants to closely monitor any deal.

 

One Greek official said the troika would need to back down over demands for tough labour laws or risk a political revolt.

 

"Even if the troika give us a negative report, what are they going to do? Are they really going to not give us the instalment [to keep Greece's economy afloat] two weeks before the US elections, with everything that entails – default, bankruptcy, global market turmoil?" he asked.

 

"These labour reforms will turn our country into Bangladesh. They have no fiscal benefit and will actually derail the adjustment programme. The political system will collapse if we impose them.
"The troika is demanding that we commit suicide, which is why we believe this is a matter that should be solved on a political level by the prime minister and not with the troika."

 

Stournaras was forced into his U-turn after the German finance minister, Wolfgang Schäuble, told reporters in Berlin that a deal would be impossible until the troika concluded its report.

 

Schäuble, who is a key architect of the austerity measures dominating Europe's economic landscape, warned that the eurozone's finance ministers must also read the report before agreeing to the two-year loan extension called for by the Greek government.

...

and as a reminder, The Greek Plan for Dummies:

 


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Wed, 10/24/2012 - 20:06 | Link to Comment Lost Wages
Lost Wages's picture

Don't send pitas. Don't send gyro meat. Just send cash.

Wed, 10/24/2012 - 20:10 | Link to Comment idea_hamster
idea_hamster's picture

T

Wed, 10/24/2012 - 20:13 | Link to Comment lineskis
lineskis's picture

Zenious, Zenious, Zenious!

Wed, 10/24/2012 - 20:26 | Link to Comment idea_hamster
idea_hamster's picture

[^^ post fail]

They're not demanding that the Greeks commit suicide.
They're demanding that they have a Sixth-Sense Bruce-Willis moment, and realize that they shot themselves in the gut and bled out long ago -- but now they have to accept that they are, right now, AT BEST Bangladesh.

Wed, 10/24/2012 - 20:34 | Link to Comment Mactheknife
Mactheknife's picture

Here's the thing...the Greeks are EXPERTS at defaulting...over the last hundred years they've done it like 8 or 9 times (I forget) and you can bet they are going to do it again.  But as long as the EU insists on giving them money (can't really call it loaning) they are going to milk it for all they can. 

Wed, 10/24/2012 - 21:32 | Link to Comment mjcOH1
mjcOH1's picture

Why is this news?   It's news when the Greeks don't lie about the terms of their bailout package.

Wed, 10/24/2012 - 22:04 | Link to Comment FEDbuster
FEDbuster's picture

I am wondering what happened to "Mr. Panos"?  He hasn't posted since this video, and that was 7 months ago.  Did the Greeks pass their own version of the NDAA?

Wed, 10/24/2012 - 20:22 | Link to Comment Eireann go Brach
Eireann go Brach's picture

What an insult to Bangladesh!

Thu, 10/25/2012 - 00:17 | Link to Comment Schmuck Raker
Schmuck Raker's picture

"Bangladesh is not Greece."

Thu, 10/25/2012 - 07:16 | Link to Comment Popo
Popo's picture

Bangladeshis work their asses off and actually produce things. Greeks live in government sponsored comfort, produce nothing and expect Germans to pick up whatever the government can't manage to cover.

In 20 years Bangladesh will be largely middle class. I expect Greeks will be living in their own shit and still refusing to work.

Thu, 10/25/2012 - 13:35 | Link to Comment Davalicious
Davalicious's picture

Bangies are not that productive, especially in-country. They get by on aid money and remittences from overseas workers. One guy works in Dubai, and the rest of the family tree mooch off him. Whole swathes of the country have baby booms on relatives foreign income, but no industry. The population is 160 million+, up from 35 mil in1948. They import food, and multi level marketing scams that dried up liquidity for the whole country. The politicians are in such a rush to get their cash out ($$$) that companies find it hard to open an LC for importing. Tbe middle class has been wiped out.

Thu, 10/25/2012 - 04:34 | Link to Comment Ar-Pharazôn
Ar-Pharazôn's picture

ireland is following close....

Wed, 10/24/2012 - 20:06 | Link to Comment nmewn
nmewn's picture

You dance with the ugly girl you brought or you ditch her.

Thu, 10/25/2012 - 01:54 | Link to Comment upWising
upWising's picture

"You Got To Dance With Them What Brung You."

–Molly Ivins channeling what passes for "Texas Wisdom"

Wed, 10/24/2012 - 20:07 | Link to Comment UP Forester
UP Forester's picture

Jump, you fuckers!

Wed, 10/24/2012 - 20:14 | Link to Comment UP Forester
UP Forester's picture

WTF, was that a pop-up ad after posting?

Must suck ass to lose paid contributors, I guess....

Wed, 10/24/2012 - 20:50 | Link to Comment Wm the Shrubber
Wm the Shrubber's picture

B.A.D. reference - excellent!

Wed, 10/24/2012 - 20:09 | Link to Comment asteroids
asteroids's picture

I wonder what Greeks really think of Mr. Panos. BTW, I think he's funny as all hell.

Wed, 10/24/2012 - 20:13 | Link to Comment knukles
knukles's picture

Has nobody figured this shit out or are they just jerking themselves off?

 

Never mind....

 

(PS Germans, you might be advised to holiday elsewhere beside the sunny Mediterranean shores this season....  ya'll might wind up kidnapped for ransom, murdered, BBQ'd or God only knows what...  Ya'll ever think there's gonna be some real blood about this shit?  Wake up, Dimitri, they're trying to kill you!)

Wed, 10/24/2012 - 20:20 | Link to Comment Pancho Villa
Pancho Villa's picture

Well he ALMOST got that one past the Germans. After all, it took them more than 30 seconds to deny it.

Can't blame a guy for trying. Can't blame a politician for lying.

Wed, 10/24/2012 - 20:23 | Link to Comment tooriskytoinvest
tooriskytoinvest's picture

Robert Feinberg: Buffett, Blankfein Discuss the Economy

http://www.moneynews.com/Economy/Feinberg-Buffett-Blankfein-BofA/2012/10/24/id/461343

Moody’s: More US City, Town Ratings Headed for Junkville

http://www.moneynews.com/FinanceNews/Moody-s-local-muni-junk/2012/10/24/id/461340

A Frightening Chart Indicate That There Is A 66% Chance That We Will Enter A Great Bear Market

http://investmentwatchblog.com/a-frightening-chart-indicate-that-there-is-a-66-chance-that-were-heading-into-a-great-bear-market/

Wed, 10/24/2012 - 20:44 | Link to Comment Zero Govt
Zero Govt's picture

"These labour reforms will turn our country into Bangladesh."

Cue Bangladesh foreign minister, 9am sharp tomorrow, with his official release (retort): "We are definately not Greece, have no wish to be Greece, will not turn into Greece in any foreseable future."

"The troika is demanding that we commit suicide!"

Cue Christine Lagarde, 9am sharp tomorrow, with her official IMF release (propaganda): "Le Troika is not asking Greece to commit suicide, we are demanding Greece commit suicide to repay the Rockerfelles and Rothchilds rightful owners of the planet of which I am but a humble tax-free servent enjoying a luxury lifestyle, limos, hotels and handbags while Greeks rot in the street. Some peoples lifetsyles are more important than others. Vive la Socialism. Thank you".

Wed, 10/24/2012 - 20:28 | Link to Comment Dareconomics
Dareconomics's picture

This guy smokes too much, but he is a great Prime Minister.

Thu, 10/25/2012 - 06:53 | Link to Comment Non Passaran
Non Passaran's picture

This idiot is great motivation to log on even when one doesn't have anything to say. I logged on just to junk him.

Wed, 10/24/2012 - 20:36 | Link to Comment chump666
chump666's picture

F*ck Greece is yesterdays news. 

 

Wed, 10/24/2012 - 20:58 | Link to Comment dsg2003gt
dsg2003gt's picture

That video was awesome!

Wed, 10/24/2012 - 21:47 | Link to Comment zorba THE GREEK
zorba THE GREEK's picture

Greece has survived, basicly intact, for over 2000 years.

Anyone who underestimates the Greeks ability to overcome

adversity has not been paying attention. If you think the Greeks

don't know what they are doing, try playing poker with them.

Greece is a laid back country full of rich people who don't pay taxes.

Enough said.

Wed, 10/24/2012 - 23:38 | Link to Comment naked short
naked short's picture

Bangladesh should protest tomorrow!

Thu, 10/25/2012 - 00:37 | Link to Comment mantrid
mantrid's picture

 

These labour reforms will turn our country into Bangladesh

tough labour laws

 

laughable. they think their commie labour laws are what make them part of the so called developed-world. they are Bangladesh already thanks those laws. geesh, how tough it is accept no union bargaining! as if these laws wasn't tough for employeers.

 

 

Thu, 10/25/2012 - 01:32 | Link to Comment vainamoinen
vainamoinen's picture

"The troika is demanding that we commit suicide!"

precisely -

Thu, 10/25/2012 - 01:47 | Link to Comment q99x2
q99x2's picture

Greeks you have a slam dunk here. Get the money while its hot off the press.

Thu, 10/25/2012 - 06:06 | Link to Comment DutchMadness
DutchMadness's picture

The centuries old trick: The good guy and the bad guy...The Greecs are masters in negotiating deals. The end-result will be as expected: loads of fresh cash to Greece. Efgharisto para poli! Cali mera!

Thu, 10/25/2012 - 08:10 | Link to Comment sofokleous
sofokleous's picture

the deal is in place ... all the rest is smoking gun...

 

the Greek FinMin , a technocrat, made the following political statement.... MP vote next week ! We have our deal reached with the EU....

Thu, 10/25/2012 - 08:51 | Link to Comment AvoidingTaxation
AvoidingTaxation's picture

Greece is not BANGLADESH

Do NOT follow this link or you will be banned from the site!