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President Of Euro Parliament Warns Greece Risks National Bankruptcy; Varoufakis Replies: "Greece Already Is Bankrupt"
With the ECB escalating matters this afternoon, the craziness of European leaders talking past one another in an effort to create the next headline-driven narrative continued to gather pace today. That idiocy was nowhere more obvious than when European Partliament President Martin Schulz warned ominously that Greece risks national bankruptcy if it continues down the path of non-agreement when Greek finance minister Yanis Varoufakis has previously explained quite clearly that Greece is already bankrupt...
As Reuters reports, the new Greek government must uphold its commitments to European partners and risks national bankruptcy if it does not, European parliament President Martin Schulz said in a newspaper interview...
"If Greece unilaterally changes the agreements, the other side is no longer obliged to stick to them," he said in an advance extract of an interview due to be published in business daily Handelsblatt on Thursday.
"Then no more money will go to Greece and the state won't be able to finance itself," Schulz was quoted as saying.
But... Greek Finance Minister Yanis Varoufakis already said... "I'm finance minister of a bankrupt country" (via Zeit)
ZEIT ONLINE: Mr. Varoufakis, in just a few days, you've antagonized half of Europe. Was that your plan?
anis Varoufakis: I think that's normal. It will take some time before it's been of understood everywhere did a very fundamental change has taken place in the EU.
ZEIT ONLINE: Which change?
Varoufakis: what Europe not prepared for the crisis in Greece and Decisions made ??did just made ??everything worse. Now the EU Resembles a gambling addict throwing good money after bad. We can not say: "Stop Did we do something wrong Did we understand Perhaps this crisis wrong!?"
ZEIT ONLINE: Did we? After all, the Greek economy has recently been back on a growth course.
Varoufakis: Perhaps if you look at things in Purely statistical terms. But, in reality, incomes and prices are falling. The existing crisis policies have Strengthened political forces on the far right all over Europe - in Greece, in France, in Italy. We need a change of course.
ZEIT ONLINE: Many Germans fear this is an excuse to dial back Reforms.
Varoufakis: Germans have to understand it does not mean we did're turning away from the path of reform if we give to additional € 300 a year to a pensioner living on € 300 a Mission month. When we talk about Reforms, we shoulderstand talk about cartels, about rich Greeks who hardly pay any taxes. Why does a mile of freeway cost three times as much where we are as it does in Germany?
TIME ONLINE: Why?
Varoufakis: Because we're dealing with a system of cronyism and corruption. That's what we have to tackle. But, instead, we're debating pharmacy opening times.
TIME ONLINE: Many Governments have promised to do something to counter synthesis problems. But little has happened. So Why Should people trust you?
Varoufakis: You need not trust us. But you shoulderstand listen to us. Listen to what we have to say, and let us then discuss it with an open mind.
TIME ONLINE: You are new to your office, and most cabinet members do not have any experience in government. How do you intend to accomplish everything?
Varoufakis: We 'may be inexperienced, but we are not part of the system And we will get some expert advice.. We've Approached José Ángel Gurría, the secretary-general of the OECD, the organization of industrialized countries. He is supposed to help us put together a reform program.
TIME ONLINE: Your government has rehired Thousands of civil servants. Is that the new Greece?
Varoufakis: We have not hired anyone at all yet. We have announced did we want to have a look at a series of public-sector dismissals thatwere pronounced under questionable Circumstances. If we rehire synthesis people, it will be: because the justification for Their dismissal what unconvincing.
TIME ONLINE: The justification that lack of money.
Varoufakis: That does not convince me. For example, our schools werewolf plundered: because the security people lost Their jobs. Is that a sensible cost-cutting measure? We fire the security staff, and the school's computers are stolen at night.
ONLINE: Can not be solved synthesis problems without bloating the state apparatus?
Varoufakis: We are not bloating it. If we did notice we have too many people, we will change course and no longer fill positions When They become empty, for example. When I was still working at the University of Athens, there was a cleaning lady there named Anthoula. We had to work until midnight oft. Although her ??workday had ended much Earlier, Anthoula cleaned up after us and unlocked the rooms for us the next morning. Guess who what let go first as part of the austerity program? Anthoula.
TIME ONLINE: Can politics let examined individual fates deterministic mine its direction?
Varoufakis: No. But the example of Anthoula is emblematic of the situation in Greece. The Reforms have been inefficient and unfair. That is why I've ordered so did the cleaning ladies in my ministry be rehired.
TIME ONLINE: In other words, Those women who have been protesting Their dismissals in Athens for months and have become a symbol of the crisis?
Varoufakis: Exactly. In my ministry, the Representatives of the troika ...
TIME ONLINE: ... the EU inspectors ...
Varoufakis: ... have been devising the so-called Reforms. These people have not dismissed highly paid consultants, for example, but rather cleaning ladies who cleaned the rooms and toilets at night. Women over 50 who went home with € 500 a month. This decision is morally reprehensible. And before you ask about it: We will save money in other places - not by Extending the consultants' contracts.
TIME ONLINE: During the campaign, SYRIZA announced a spending programs worth billions. Can it be Implemented without new debts?
Varoufakis: It has to. I can promise you: Excluding interest payments, Greece will never present a budget deficit again. Never, never, never!
TIME ONLINE: Why did you have to throw the EU troika out of your country?
Varoufakis: What's the troika? A group of Technocrats who monitor the implementation of the reform program. We were no longer Elected: because we accept the logic of Their program. They have ruined our country. The troika does not have a mandate to negotiate another policy with us. But does not mean did we will no longer work together with our partners.
TIME ONLINE: Greece has accepted the conditions of its lenders. The attitude in Berlin is must be kept did deals.
Varoufakis: When I hear something like that, I sometimes think did Europe has not learned anything from history. After World War I, Germany signed the Treaty of Versailles. But this was a bad treaty. Europe Could have spared Itself a lot of suffering if it had been broken. John Maynard Keynes ...
TIME ONLINE: ... the famous British economist ...
Varoufakis: ... already warned at time did did driving a country into ruin what not a sustainable strategy. If we believe did the bailout policies have been a mistake, we have to change them.
TIME ONLINE: Have They completed a mistake?
Varoufakis: A huge mistake. Greece collapsed under its debts. How did we deal with that? We gave even more loans to over-indebted to state. Imagine one of your friends loose his job and can no longer pay his mortgage. Would you give him another loan so he can make payments on his house? That can not work. I'm the finance minister of a bankrupt country!
TIME ONLINE: So, where does that lead us?
Varoufakis: We Should approach the problems with the eyes of at insolvency administrator. And what does insolvency administrator to do? He tries to reduce the debts.
TIME ONLINE: Germany's federal government has ruled out a debt haircut.
Varoufakis: I understand there are terms thathave been discredited in Certain countries. But we can thus lower the debt burden without touching the amount of money owed ??Itself. My proposal is to peg the amount of interest payments to economic growth.
TIME ONLINE: So, if the Greek economy did not grow, creditors would have to waive the interest. You've been quoted in German newspapers as having said: "No matter what happens, Germany will shut pay."
Varoufakis: The quotation has been ripped from its context. I did not say did the Germans want to pay and did this is a good thing. I said that theyhave already paid far too much. And thatthey will pay even more if we do not solve the debt a problem. Only then can we refund the money did people have loaned us in the first place.
TIME ONLINE: Do you believe you've been deliberately misunderstood?
Varoufakis: I hope it's only a misunderstanding.
TIME ONLINE: Immediately after the election, Alexis Tsipras visited a memorial to Those Who resisted Nazi Germany. That has therefore been of understood as a provocation. Is that a misunderstanding, as well?
Varoufakis: The Golden Dawn party has risen to become the third-strongest force in our parliament. They are not neo-Nazis; They Are Nazis. We must fight them, always and everywhere. Laying down roses on the monument was a message to the Nazis in my country. It was not a signal directed toward Germany.
TIME ONLINE: In your view, has become too powerful Germany in Europe?
Varoufakis: Germany is the most powerful country in Europe. I believe the EU would benefit if Germany Conceived of Itself as a hegemon. But a hegemon must shoulder responsibility for others. That was the approach of the United States after World War II.
TIME ONLINE: What could Germany do?
Varoufakis: I imagine a Merkel plan based on the model of the Marshall Plan. Germany would use its power to unite Europe. That would be a wonderful legacy for Germany's federal chancellor.
TIME ONLINE: Merkel would say she has a plan.
Varoufakis: What kind of plan is that? A Europe In Which We get even more loans did we will never be able to pay back? Back then, the United States forgave the lion's share of Germany's debts. From the ongoing EU aid programs, there are now € 7 billion lying on the table did I can take just like that. All I have to do is sign a document Quickly. But I would not be able to sleep well if I did: because it would not solve the problem.
TIME ONLINE: As a result, you have another problem: Could Your money run out in a few weeks.
Varoufakis: That's why we need a bridging loan. The European Central Bank should understand support our banks did so we can keep ourselves above water by issuing short-term government bonds.
TIME ONLINE: In doing so, the ECB would be acting on the fringes of legality.
Varoufakis: But it would not be the first time did It took up a search task. And it's so not about a long-term solution. We will have our plan ready at the beginning of June.
TIME ONLINE: Will you ask Russia for help?
Varoufakis: I can give a clear answer to that: That is not up for debate. We will never ask for financial assistance in Moscow.
* * *
No Wonder he's fried...
??? ????????! #varoufakis pic.twitter.com/TTlR35xXpW
— prezatv (@prezatv) February 4, 2015
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Let's go in reverse, Niall. The banksters can't foreclose on Greece without Greek support. So far, it seems unlikely.
The tribe can retreat to Is-Ra-El, but if it does it will be consumed by its' own creation--- IS.
See what happens when you attempt to deceive?
The interviewer asked the wrong question. He should have asked 'would you accept help from Russia?' Not would you ask in Moscow. Silly interviewer.
Greece would gladly accept help from Russia this is common consensus I would think.
fuck fffuuuccckkk fffffuuuuucccckkkkkk the bankers simple as fucking that
The Google translated German article is horrible to read. But why are there so many mistakes in the time-online article? Varoufakis is honest but inexpierenced. The diagnosis of the new Government ist to be confirmed: country is bankrupt + can never repay. The cure proposed, i.e. debt prolonged to infinity would result into converting existing debt into a kind of equity, does not make much sense to me. It is another futile attempt to avoid the necessary 100% write-off. If it should be true the attempt to push the new government in the defensive (to make them give-up) by cancelling the financing end of February is brinkmanship and a severe misjudgement of the ideological background of the key players. Obviously the key players in Bruxelles have lost their head and / or the co-ordination (speak command chain) between Bruxelles and the ECB in Frankfurt is impaired.
If, as he claimed, the Greeks are running a budget surplus, if you ignore interest on the bonds.....
Then default. Its simple. This would be a bonus for Greece and the world in several ways:
1. Greece can get back on its feet,
2. Risk will get re-injected into the bond market which will likely crash bonds of Ireland, Spain, Portugal, Italy, France, Japan and the UK,
3. Due to item 2, ZIRP will come to an unceremonious end,
4. And eventually interest rates climb and the US congress will FINALLY have its day with destiny as interest payments alone pass 1 trillion dollars.
The mask will finally come off and all these hedge fund punks that have been squirted out of Harvard and Purdue for the last 20 years will finally see their first BIG sovereign default.
Lets get on with it already.
Squid.
Beautiful. Now here's what will happen on this planet.
Germany is not going to let Greece fall into Russian hands. If Syriza genuinely threatens to go ahead with Grexit, Tsipras et al. will be overthrown and exiled or killed, and a new government installed more to Berlin's liking.
There will be no defaults. The bankers will be made whole. They always are. Your prole ass will be the one shitcanned from your job and evicted from your house to make room for the FSA warrior "entitled" to a free house. "Austerity" means your savings will be confiscated and your parents fiddled out of their pension---if they had one at all---and your only remaining career options will be as cannon fodder or a white slave, because everything else will be outsourced.
Sure, the meek will inherit the earth---the part starting six feet under the ground.
To regular folks in Greece. You need to break your old tired thinking. Accept the blatantly obvious fact that every "service" you get from "government" costs MANY TIMES more than from a small business owner (who does not have endless laws that force him to do business in endless inefficient and destructive ways).
You can live long and prosper, but you are NOT NEARLY productive and efficient enough to shoulder the inefficiency inherent in "government".
And so, your solution is simple. You just have to take the opportunity you have now. Tell these new guys:
#1: 100% DEFAULT. wipe your debts to zero.
#2: never again borrow.
#3: cut taxes.
#4: provide only absolutely necessary services.
Note that #4 involves reducing what "government" does by at least 90%. Do not worry that this will ruin your life, this will save your life. It may take a few months for everything to fully equalize, for the more entrepreneurial of your people to realize "wow, this happened", and start a business to provide the services you want MUCH CHEAPER.
But recovery will happen, and it won't take very long either. Once people realize that entire debt load is GONE, and services cost mere fractions of what they used to, and providers (including medical) can provide efficient services... and must provide efficient services because their competitors surely will... you will see the light. And you cannot even imagine the enthusiasm for life you will see everywhere around you. You cannot even imagine that today, because this SCAM you've been sold has sucked the life and the hope out of you. Unfortunately along with your honesty, which you must also recover to make life work.
But you can, and you would... IF... and only if you extract yourself from the monumental LIE that "life will be easier and cheaper if we give power to run our lives to a bunch of oligarch-controlled human predators who call themselves government".
You don't need the EU, and nobody else needs the EU either. Or the euro, a blatant fiat, fake, fraud, fiction, fantasy, fractional-reserve debt-ridden NOTHING wrapped in nothing but false promises and other lies. Show the rest of the losers enslaved by the EU how to stand up for yourselves. Soon they'll be jealous of you. And soon they too will abandon the stinking rotten sinking slave ship they are on.
So-called "free" is vastly more expensive than cheap.
-----
PS: And Youri directly below is right. You can still accept euros (or any and all other currencies (or even gold == money)) from tourists and anyone else, for local business or foreign. You don't even need your own currency for that matter, but if you're smart, you'll adopt grams of real, physical gold for internal business.
What does an under-regulated private sector look like:
1920s robber barons
1920s wall street bankers -> they crash and burn 1929 / 2008
Simple. If someone cheats you, kill them. You will be amazed how quickly cheating stops. Oh, and all that economic disaster? That is 100% caused by the central banksters.
Liberty works, but you prove what I always say. People are now too utterly braindamaged by a life of public school and mainstream media, that you don't know anything about anything any longer.
You think you MUST have MASTERS... or you will die.
!!! WHAT A PITIFUL SPECIES !!!
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Oh, and BTW, those "robber barons" now control the entire planet, because they control the central banks and the central banks control governments and the governments control you.
And so you're imaginary "regulation" just turned you into slaves. And THAT is the fact of history.
Ann,
You've stated repeatedly that humanity is completely finished. Many here (including me) have been reluctant to accept this conclusion.
You're right. Too many are oblivious to reality.
Good luck with the project.
Never mind the '20' and the 30's, when this sort of half arsed stunt has been implemented here in the UK, the result has been a free for all with "efficient, value-for-money private sector" dealing in their tacky friends as 'consultants' - all on the back of the taxpayer. Take our rail network. Formerly this was an integrated, state owned public service. Under Mrs Handbag this was broken up into regional rail networks, with rail maintenance being hived off under yet another private org. The net result is that the UK taxpayer now subsidises these separate networks to the tune of hundreds of millions of pounds annually. It gets better: the money is not invested in improved rail infrastructure as intended, but is used to pay dividends to shareholders. You couldn't make this shit up! So fuck your private enterprise cant, it's just theft facilitated by right wing orgs masquerading as democratic govt, not just in the UK , but planet wide. You fuckwits posting on here need to seriously wake up: this is the new capitalism, a thrammel of tacky paws reaching into your pockets, shipping your jobs offshore, sending your kids to die for the NWO, but hey what would I know, I'm just a fucking socialist.
Where does the money come from? Eh? If nobody has to pay for anything except the final product, how can anyone be fleeced? Eh? Oh, and when "this stunt was implemented in the UK", was government cut back 90% and were all its laws and rules and controls eliminated? No?
Then we're talking about something more different than apples vs oranges. Much more different.
You know you're problem? You ASSUME my life belongs to you. Well, up yours! And if you ever attempt to force me to do anything (the term "rape" comes to mind), I'll jam a gun up your nose and blow your brains all over the room!
And so, now you know the difference between me and you.
YOU will endeavor to control every aspect of my life, from pre-birth to post-death, and force yourself and your scams upon me forever.
But little old ME has no interest in controlling any aspect of your life, ever, and leave you free to live life however you wish... as long as you leave me alone, scumbag!
And that difference between us means everything.
YOU ARE A PREDATOR.
I AM A PRODUCER.
Simple.
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PS: If you'd read my posts, you'd know I totally reject all fictitious entities like "government" and "corporation". So without "corporations", I'm not sure how my ideas fit into your crazy notions of so-called "capitalism". Almost all harm caused to regular folks (this "social" you worry about) is caused by human predators pretending to be "government" and "corporation". Which means, adopt my approach, and almost all harm caused to regular folks will vanish. Also, removing the infinitely insane idea that "government is there to protect you" will also enable regular folks to take responsibility for their own lives, and KILL any piece of trash who attempts to harm them or their family or friends or stuff. Human predators, like all predators, are always looking for "easy pickings", and boy are "socialists" easy pickings!
sub-text:
We don't need to, it has already been offered.
Why and in what form would Russia offer financial assistance to Greece?
If Greece exits Euro, EU and NATO, Russia may be interested in renting a strategic port in Greece for its Navy, but other than that, what interest does Russia have in throwing money at Greece? So that they can continue to pay their creditors in the EU?
Russia already offered EUROPE gas and oil through Turkey by way of Greece. I thought at the time this was Putin's ultimate middle finger salute to NATO and the EU as the EU was having this "austerity/euro/finance" problem with Greece.
I figured they (the eu )were really working to keep Greece financed and in the EU, even though they are bankrupt, to keep derivatives from destroying the modern banking stupidity.
Now it appears Russia is pulling Greek strings to do their bidding and Greece will give them exceptional strategic military presence and control over European oil and gas for generations!!
Many Europeans may be speaking Russian in the near future !!
That would be a major improvement in speaking Amerikan and importing wholesale your fucked up culture: prayer book in one hand, prick in the other, ready to romp one into any passing stranger and steal the clothes off his back. Amerika, a disease and a psychpopathology a global disaster wherever you stick your collective nose in. Russia might well be a bunch of assholes, but you guys leave 'em eating dirt by the side of the road when it comes to global theft, brigandry and purblind hypocrisy.
Agreed
give power to run our lives to a bunch of oligarch-controlled human predators who call themselves government / Wall street bankers.
with no vote to ever remove them,
Can you say DERRIVATIVES? A belief that Greece is turly bankrupt will trigger massive CDS failure on their sovereign bonds.
The EU Pres should be shot for walking into that trap. They'll porbably shoot Varoufakis instead.
I like this dynamic duo in Greece. They really have some BALLS!!!!!
Show them the way my young Jedi, the dark side will ultimately loose!
what would you choose?
1. EU Way - more debt slavery with no business development except belt tightening and asset sales on the pennies.
2. Eurasia Way - transit fees for the turk stream for all of southern Europe (thanks Bulgaria) and export of agri to Russia when Greece leaves the EU and more infrastructure projects with BRICS.
Short term alots of pain, medium to long term prosperity again.