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Varoufakis Warns "Cloud Of Fear Over Europe Becoming Worse Than Former Soviet Union"
The cracks in the foundation, walls, and ceiling of the European Union are beginning to widen. During an interview with Italian State TV RAI3, Greek Finance Minister Yanis Varoufakis hinted at Greece's "New Deal for Europe" strategy (to be financed by the EIB) but it was the glimpse behind the curtain of EU solidarity that was most shocking as he explained, "Greeks don't have a monopoly on the truth. What we can do, for the rest of Europe, and for Italy in particular, is to open a small door to the truth," adding rather stunningly, that Italy "stands in solidarity with [Greece] but cannot tell the truth as they fear of possible consequences on behalf of Germany."
Excerpts from the interview to be aired Sunday Feb 15th...
"Officials of an important Italian institution approached me and told me that they are in solidarity with our country, but they cannot tell the truth as Italy is threatened by bankruptcy and they fear from the German consequences."
"In recent years, a cloud of fear has covered throughout Europe. We risk to become worse the the former Soviet Union."
"I want to tell you that we, Greeks, do not have the monopoly on truth. What we can do for the rest of Europe and especially for Italy, is to open a small door to the truth. We can not find the truth on our own, but we can open a door and move so you can support us. In this way, we all can move from the darkness of today’s austerity to the light of European rational, logical discussion."
"The Greek government will propose a New Deal for Europe, as American President Roosevelt did. A New Deal for Europe which is to be financed by the European Investment Bank in order to increase by ten times the funds that have been allocated so far."
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Further to the fracturing of Europe's status quo that Varoufakis has exposed, President Obama has - rather breaking with protocol - joined the Greek anti-austerity chorus (by Ashoka Mody via Project Syndicate)...
US President Barack Obama’s recent call to ease the austerity imposed on Greece is remarkable – and not only for his endorsement of the newly elected Greek government’s negotiating position in the face of its official creditors. Obama’s comments represent a break with the long-standing tradition of official American silence on European monetary affairs. While scholars in the United States have frequently denounced the policies of Europe’s monetary union, their government has looked the other way.
Those who criticize the euro or how it is managed have long run the risk of being dismissed as Anglo-Saxons or, worse, anti-Europeans. British Prime Minister Margaret Thatcher accurately foresaw the folly of a European monetary union. Gordon Brown, as British Chancellor of the Exchequer, followed in Thatcher’s footsteps. When his staff presented carefully researched reasons for not joining the euro, many Europeans sneered.
And that is why Obama’s statement was such a breath of fresh air. It came a day after German Chancellor Angela Merkel said that Greece should not expect more debt relief and must maintain austerity. Meanwhile, after days of not-so-veiled threats, the European Central Bank is on the verge of cutting funding to Greek banks. The guardians of financial stability are amplifying a destabilizing bank run.
Obama’s breach of Europe’s intellectual insularity is all the more remarkable because even the International Monetary Fund has acquiesced in German-imposed orthodoxy. As IMF Managing Director Christine Lagarde told the Irish Times: “A debt is a debt, and it is a contract. Defaulting, restructuring, changing the terms has consequences.”
The Fund stood by in the 1990s, when the eurozone misadventure was concocted. In 2002, the director of the IMF’s European Department described the fiscal rules that institutionalized the culture of persistent austerity as a “sound framework.” And, in May 2010, the IMF endorsed the European authorities’ decision not to impose losses on Greece’s private creditors – a move that was reversed only after unprecedented fiscal belt-tightening sent the Greek economy into a tailspin.
The delays and errors in managing the Greek crisis started early. In July 2010, Lagarde, who was France’s finance minister at the time, recognized the damage incurred by those initial delays, “If we had been able to address [Greece’s debt] right from the start, say in February, I think we would have been able to prevent it from snowballing the way that it did.” Even the IMF acknowledged that it had been a mistake not to impose losses on private creditors preemptively; it finally did so only in June 2013, when the damage had already been done.
There is plenty of blame to go around. Former US Treasury Secretary Timothy Geithner championed a hardline stance against debt restructuring during a crisis. As a result, despite warnings by several IMF Directors in May 2010 that restructuring was inevitable, the US supported the European position that private creditors needed to be paid in full.
Lee Buchheit, a leading sovereign-debt attorney and the man who managed the eventual Greek debt restructuring in 2012, was harshly critical of the authorities’ failure to face up to reality. As he put it, “I find it hard to imagine they will now man up to the proposition that they delayed – at appalling cost to Greece, its creditors, and its official-sector sponsors – an essential debt restructuring.”
Obama may have arrived late to the right conclusion, but he expressed what should be an obvious truth: “You cannot keep on squeezing countries that are in the midst of depression.”
If Obama’s words are to count, he must continue to push for the kind of deal Greece needs – one that errs on the side of too much debt forgiveness, rather than too little. Recent analysis shows that forgiveness of Greece’s official debt is unambiguously desirable, as another bogus deal will keep the Greek economy depressed, ensuring that the problem soon recurs. If European sensitivities must be assuaged, Greece’s debt repayment could be drawn out over 100 years.
At the end of the day, debt forgiveness benefits creditors as much as it helps debtors. Creditors have known this since at least the sixteenth century, when Spain’s King Philip II became the world’s first known serial sovereign defaulter. As Jesus put it, “It is more blessed to give than to receive.”
European authorities must come to understand that the next act of the Greek tragedy will not be confined to Greece. If relief fails to materialize, political discontent will spread, extremist forces will gain strength, and the survival of the European Union itself could be endangered.
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This guy is calling for moar government and moar debt. He is not calling for an end to any of this shit, but, rather, MOAR!
In the game of chicken if nobody blinks, they both lose. That is the best we can hope for here.
The only reason I like this guy is he is going to burn the EMZ and the EU by extension to the ground.
Anyone who promises to do that I like, be it they Communists, Socialists, Centrists, Rightwingers or Authoritarians -- you promise to burn the EU and EMZ to the ground, you have my vote.
What the fuck are these idiots arguing about?
It's too late baby now, It's too late.
They should preparing for the end game now.
Greece, print your own Drachma's debt free for fucks sake. End the fractional central bank monopoly, create-money-out-of-thin-air-and-sell-it-to-govts bullshit.
Economic war is only the beginning. Some nations are already preparing to leave the EU and quite probably NATO...
02.08 BREAKING NEWS: Cyprus to Offer Russia Air and Naval Bases
Greece/Cyprus aligning with Russia and Turkey turning to the Muslim Brotherhood and radical Islam. It might be a bit rough to be on either side of the dividing line in Cyprus for the next little while.
But hey, what could go wrong there? /sarc
But seriously, when will Turkey be leaving NATO?
Before posting comments,read up on turkey.
The ECB wants Greece to continue to kick the can down the road. Greece refuses to keep kicking.
Praising Obama and FDR in one short interview.
He offers a way of creating magnitudes of more debt.
Hero indeed! /s
If Obama is for it, I am against it........something smells fishy......and I AM NOT TALKING ABOUT THE Kenyaians labia....
Moochelle's scrotum?
[quote]
A New Deal for Europe which is to be financed by the European Investment Bank in order to increase by ten times the funds that have been allocated so far.
[/quote]
Here's a thought: Pay yer own way in real Specie! Make things and for Allah's sake, STOP relying on a Govt to pay yer way!
Soros can eat a fat dick.
He already does...
5 billion is chump change today. Soros could make all this go away.
... the Germans appear that they seek a decent exit from the dead end which they created and Varoufakis gave them one: he stated that the Greek government essentially agree with the 67% of the program imposed by the Troika.
A good move by Varoufakis but the Germans are determined to complete the destructive neoliberal experiment in Greece. They play with fire. Greece is determined to end this for good.
Germans aren't hoping for anything else but Greece going the full lenght. Don't let maskirovka website (e.g. Zerohedge) fool you.
I'm starting to believe in this Schmita debt forgiveness thing.
This is true. But before this year, I thought Shemita was the name of a waitress at my local Waffle House.
Mission almost accomplished.
Wow Varoufuckis. Future of big government spending, pan-regional bank. Forward comrades! Forward unto starvation!
Varoufakis. Pharaoh, pay up to complete the integration project or let my people go.
The First Debt Messiah suddenly sees the light...
Obama cares not about the Greeks, he cares about the opportunities that a busted Euro presents his bankster buddies.
Better a hundred years debt than a 100 years war. Better yet, forgive and forget. Beating dead horses and squeezing blood out of turnips is a ridiculous waste of energy.
erase the debt, leave the euro, issue your own non fiat currency
+1 And I'm packin' for Santorini.
Tsipras just promised thousands of people free food, free electricity and free accomodation. Paid for by new non-fiat curerncy... Bwahahhahaha
They better start mining for lots of gold and silver in Greece
Beggars can't be choosers. Tsipras and Varoufuckis will find out soon. Even blackmailing beggars.
They can when their actions will implode an entire mountain of debt and equity.
it really bothers you, doesn't it?
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The Greeks point the gun to their own head and tell the Europeans do what I say or I'll shoot.
The pirate diplomacy of Will Turner.
Maybe so, but Will Turner had some leverage!
It won't work, EIB is an EU institution not a Eurozone one, making non-Euro countries pay for the problems of the Eurozone is not in any of the treaties, and therefore is a non-starter.
Pssst. Be quiet. UKIP shills here rooting for Greece haven't realized yet.
Cyprus will offer Russia military facilities on its soil, President Nicos Anastasiades said on Friday.
In an interview with a local newspaper, Anastasiades said that a pact strengthening defense relations between the two countries will be signed when he visits Moscow on Feb. 25.
http://www.china.org.cn/world/Off_the_Wire/2015-02/07/content_34758866.h...
"Greece's debt repayment could be drawn out over 100 years."
Shoot, everyone will spend most of their time collecting berries by then.
I don't know why everyone thinks that this default will conclude with a doomsday scenerio, fer fucks sake, its just paper, out with the old in with the new. It's not as if the human chattel will be relieved of anything. In fact it gives the owners of this human farm called earth a chance to consolidate hard assets, reset, and puts the Greek Farm back in play and it's farm animals back in the field under a new and improved yoke of debt interest payments and taxes. As it stands now the farm animals are on strike, this new greek clown is there to talk them back out into the field under the guise "Moar Shit Foreva Socialism Do Over."
Ofuckhead just wants another failed socialist state to get off the news cycle so he can continue it here.
"The Greek government will propose a New Deal for Europe, as American President Roosevelt did."
Roosevelt? That asshole? Fuck the EU, but fuck your new deal too if it's anything like that gawdammed tyrant-assed prick roosevelt did.
Someone should have pushed his wheelchair off the cliff
I doubt that Obama understands didley squat about that of which he speaks.
Presumably has trusted advisors though - same people who are telling him that everything is wonderful.
Obama's policy is clear and coherent, and he has backed it up in both word and deed: "Fuck the EU"
Obama is just a wet sock puppet. The real problem is that his advisors are equally dumb...
What these people fail to realize is that the various measures they suggest are not capable of bringing about the beneficial results aimed at...If the government, faced with this failure of its first intervention, is not prepared to undo its interference with the market and to return to a free economy, it must add to its first measure more and more regulations and restrictions. Proceeding step by step on this way it finally reaches a point in which all economic freedom of individuals has disappeared.
Then socialism of the...Zwangswirtschaft...emerges.
Ludwig Von Mises
The Dictatorial, Anti-Democratic and Socialist Character of Interventionism
Planned Chaos (1951)
Free food, free electricity, free accomodation. Rehiring of state employees. Lol. This will end well for Greece.
Completely off-topic but noteworthy:
http://www.telegraph.co.uk/news/earth/environment/globalwarming/11395516...
If you let the Socialists take over your country their policies will drain all hope for your country and you will lose your freedoms. It doesn't matter if its the Soviet Union or the Troika!
No kidding. The NWO is the doom of the planet. Worse than old Russia and more dangerous. Capture the Queen's with the cloven hooves and haul them into the square. Let justice meet out their punishment. Careful the fool is running around bare.
http://www.truthrevolt.org/news/un-climate-chief-were-intentionally-tran...
US President Barack Obama’s recent call to ease the austerity imposed on Greece is remarkable – and not only for his endorsement of the newly elected Greek government’s negotiating position in the face of its official creditors. Obama’s comments represent a break with the long-standing tradition of official American silence on European monetary affairs. While scholars in the United States have frequently denounced the policies of Europe’s monetary union, their government has looked the other way.
But of course?...
Everyone knows "Barry" is an intelligent and honorable person commited to his oath of office?... Just look at the track record?...
Don't believe me? Just ask all his friends from his high school and undergrad years at Columbia???... Could the American people have done a better job looking the other way towards his two terms in office???...
Keep telling yourselves the worst pathological liar/psychopath that was spawned from a family of professionals that did the same will allow Greece to go it's own merry way!... Especially with all of those well invested NSA and military resources on them!!!
"This was the first outright nazi action ever undertaken by any American President. Ever."...
In case anyone had any lingering doubts about the integrity and motivations of this "white monkey" in the Oval Office and those that serve it! -Thank you for putting it into the finest of words Dr Zuesse
I'm sorry...
Nazi-Zionist goose step loving Jews! Don't we all just love the irony of the situation!
Especially from this guy who is roundly snuffing them daily!
The EU is a new Banker Dictatorship. Germany is the lead power and enforcer of Dictatorship of Banks over all economic life. The EU communists on the other hand control the social and immigration policies of the EU. Open Borders and Mass Illegal Immigration and the drive to lower wages is behind these communists policies.
I always said the EU is the oddest mix of Crony Capitalist Banker Fascism, and a real Soviet Communist social system wedded to ending ethnic and national identity of all native Euopeans.
Look at Brussel's law, rules, regulations and threats. They all point to Banker Rule over all economic activity, and open Communist warfare against any ethnic European. British, French, Spanish, Greek. They must all be destroyed and replaced with African, Muslim and Asian populations willing to work for pennies on the dollar.
Of all 21st century evils, it is hardly Russia over in the eastern tiaga monding their own business who threatens Eruope. It is the evil in Brussels where a foreign outside power rules over all of Europe except Russia. The powers that rule are centered in Banks, Counting Houses, Manipulated Markets, FIRE Economy Centers and a 100% zionist foreign and domestic political agenda. Also called Neoliberal Economic / Neoconservative,American, foreign policy. By anyother name you can call it Zionism and Banksterism.
"In recent years, a cloud of fear has covered throughout Europe. We risk to become worse the the former Soviet Union."
It's past time to pull the plug on the European Union and shut the place down. Send the parasites home without payoffs or fat pensions. Claw back the obscene pensions already in payment to the likes of [up yours] Delores, Barroso and the Garden Gnome. As for Junkett and the Pole dancer, just sack 'em.
So, now the Greeks are to rely on Obama for economic guidance and support? Unless the country suddenly converts to Islam, he'll forget they existin in day or two. He has the attention span of a gnat and the financial acumen of Hugo Chavez.
You know this Greek guy is fucked up if he is relying on Barry for guidance.
Yankus ViralFukus:
A New Deal for Europe which is to be financed by the European Investment Bank in order to increase by ten times the funds that have been allocated so far.
The deadbeat who refuse to make debt payments believe that there is another lender which close their eyes to the bankruptcy of Greece and send these socialists more money. The country will return to the utopia it has been as long as someone else will fund the project. All that is required is 10X the money already lost. That finance minister must have smoked some really bad stuff down in Austin.
It is simply amazing to consider that all of this is created by fictions. Fictional money and fictional entities, all created to make fear. Those responsible may soon find out that it creates more anger than anything else.
What a show this is becoming. It's a shit sandwich no matter how you slice it. Can't wait for Spain to join in. I imagine the plates for drachmas, pesetas and even deutchemarks are being dusted off.
Time to start planning a vacation to Greece.
Merkel ran off script to not arm Ukraine, so Obama is paying back the favor :-P
https://www.youtube.com/watch?v=Qm5d7ei9C2Y&feature=player_embedded
Germany is not fussy if it comes to dealing with leaders that consider and threat to leave the Euro zone. Berlusconi and the Cyprus government (during the 2012-2013 financial crisis) learned that blackmailing and other non democratical methods are applied to crush resistance. What it takes is nothing short than the preparedness to commit "political suicide" to defeat Merkel.
The Soviet Union, of course, was the work of banksters as well, their lab experiment in central planning that ran amok.
I never quite get this suggestion that 'extreme forces will take over if the EU fails' as it's because of extreme forces that the EU exists in the first place!