Germany Gives Greece Just Enough Rope: Varoufakis Says If Troika Rejects Reforms "The Deal Is Dead And Buried"

Tyler Durden's picture

As usual, the fine print of any European "deal" is revealed not only after the agreement, but after the US market close. So for all those waiting for the real punchline, here it is - it also is the reason why Greece got until Monday to reveal the list of "reforms" it would undertake:

"We’re in trouble next week if creditors don’t accept Greece’s reforms", Greek Finance Minister Yanis Varoufakis says. "If our list of reforms is not backed by the institutions, this agreement is dead and buried."

That's bad. But... "But it’s not going to be knocked down by the institutions."

For his sake, let's hopes he is correct in predicting what the Troika, pardon, Institutions will do. Because this is precisely what Schauble meant when he said that the "Greeks Certainly Will Have A Difficult Time To Explain The Deal To Their Voters": under the conditionality of the Troika's approval, the Tsipras government now has to walk back essentially all the promises it made to the Greek people - promises which by some accounts amount to over €20 billion in additional spending - or the Troika, pardon Institutions, will yank the entire deal and the Grexit can then commence.

And that's the bottom line.

It's also the reason Schauble was gloating: because he gave the Greek government just enough rope with which to hang itself.

Then again, if and when the Tsirpas government is booted out next once the Greek euphoria turns to disgust and disillusionment, does Germany really want to negotiate with Golden Dawn instead?

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elegance's picture

Lol. Greece is a toast. Or Syriza. Both good choices.

Greenskeeper_Carl's picture

indeed they are. As i said in another thread, this should put to rest all those thoughts some on here had the syriza was going to put those bankers in their place. Big govt socialist type govts go hand in hand with banker types. True freedom, both personal and monetary, cannot co-exist with central banks. Don;t know why tyler thinks negotiating with golden dawn would go any differently that these socialist clowns. No one wants to take the blame for the inevitable pain that will come along with a real grexit, evne though in the long run, that would be better than living under the thumb of the ECB.

kliguy38's picture

The Greeks talked the talk but the walk was "more than she could bear"

Anusocracy's picture

Just kissing the fist that butters your toast.

BaBaBouy's picture

Ya Gotta Know When Ta Foldem, Know When Ta Foldem....... Da Da Da Daaaa...

CAN Going Clunkity Clunk Clunk Clunk ... ... .. . .. ......

COSMOS's picture

All the Greek reform politicians talk tough to the Euros until they get their Swiss bank accounts filled, and the keys to the villa in Mallorca.  Then they can throw the rest of the Greeks under the bus for the penultimate time.  Had the Spartan 300 known what shits we have today they never would of sacrificed their lives, not for these scums.

The only way real change will happen is when the Greek people storm the government and burn down the building with the politician scum insided them.

BaBaBouy's picture

Well, These 2 Smiling Politicalista Gents Might Be Very RICH Blokes Right Now?????

rccalhoun's picture

the establishment is more powerful than ever.  O might as well write a new constitution.

max2205's picture

Aapl buys Greece... I Greece 

Pinto Currency's picture

 

 

Yanis reelection slogan:   Never did we stand so tall as when we bent over.

Robinhood's picture

Regardless of the fact that they are socialist, I'm hoping that Democracy will prevail. I'm hoping that the will of the Greek people will prevail.  They are, and will be remembered in history, as the first to push the limits. God bless them for trying to standup to the zionist banking cartel. I wish I could crowd fund them. Maybe I'll try.

Robinhood's picture

Actually, I'm not convinced there is any difference between corrupt capitalism and corrupt socialism, both are destine for failure. 

rccalhoun's picture

i see room for many rallies this year......

every time there is a perceived cave in to the staus quo....its 300 spx points up 

remember...these people are all on the same team

next crisis is?

Divided States of America's picture

Big fuckin surprise that the feta cheese Greeks folded like a lawn chair. Tsipiras and varoufakis we're never fighting for the sake of the Greeks, they were holding out for themselves trying to get a deal with the ecb or whatever power position they could get themselves into after they once again use the Greek sheeple as their own personal bargaining tool. All politicians are the same filth and should never be trusted.

Squid-puppets a-go-go's picture

What a fkn amateur Schauble is, the tool was openly gloating.  It doesnt matter what the substance of this agreement is, there will be riots and syriza will be lucky to get out of this alive

Self-enslavement's picture
Self-enslavement (not verified) Squid-puppets a-go-go Feb 20, 2015 9:18 PM

Give me Golden Dawn or give me Chosenite parasites.

zhandax's picture

"use the Greek sheeple as their own personal bargaining tool"

We don't know that they did this yet.  Then again,

"The race is not always to the swift, but that is the way to bet"

new game's picture

there will be NO optimism from this dude. they suck balls and lick chasim. until change is hand in hand with violence, no optimism. it is the only way to change this situation the world is held hostage to.

Handful of Dust's picture

I disagree with some here. There is no doubt in my mind greece will get a bailout soince the counterparties [esp German, French and merkian bankers] will not suffer loss of a penny.

 

jmho

new game's picture

that rope snubble was mentioning, hmmm...

Payne's picture

The Greeks have already demonstrated that the debt is uncollectable.  They wil default.  All the rest of this is just a high school drama club re-enactment of reparations on Germany in 1920s.  It will end badly while the party goes on in Germany.

HowdyDoody's picture

"Well, These 2 Smiling Politicalista Gents Might Be Very RICH Blokes Right Now?????"

It's a well known business plan.

i) Make a startup.
ii) Hype it to high heaven.
iii) Sellout
iv) Profit!

Kiwi Pete's picture

Wtf? They haven't already got a reform package and anti-corruption policy in place? How the hell did they get the first rounds of bail outs? Unbelievable!!

Arius's picture

"How the hell did they get the first rounds of bail outs? Unbelievable!!"

 

Not so unbelievable, if you look at where the money went ... 95% did not even touch ground in athens, it changed accounts in Brussels (you know that country that famously is buying all US bonds).  it is just a game of mirrors, there is NO REAL LOANS or money.

 

continuation of the same practices, its like the women who is trying to find good things on her abducter and rapist... i dont see it going on for too long ... and so it looks to me is mr. market

new game's picture

92 percent if you believe the numbers. but what's 3 percent of 8 percent amoungst criminals..

Arius's picture

not to be picky but according to Disselbloom is somewhere between 96-97% ... yeah, well ... funny how MSM never touches this subject ...

Antifaschistische's picture

Seriously though....was Verifukus just building his resume?  Is he going to hit the lecture circuit now!!  Nothing destroys your credibility more than talking so tough then just not even showing up for the fight.   Sure, I didn't expect much....but his words certainly told us otherwise.

barliman's picture

"Then again, if and when the Tsirpas government is booted out next once the Greek euphoria turns to disgust and disillusionment, does Germany really want to negotiate with Golden Dawn instead?"

So the can gets kicked down the road till .... Monday.

Then the parliament votes out the current dead horses ... but can always elect a new set of Tsirpas dead horses to re-open negotiations next week.

Why not?

Greece can keep electing new dead horses FOREVER ... as long as they have elections.

There are ONLY two choices:

1) GRexit

2) German troops invade Greece (Wait? Won't that be MORE expensive than GRexit?)

and option 1) starts the other PIIGS lining up for their turn.

Crawdaddy's picture

It won't be a done deal until the statement ends with "and everyone should get their flu shot"

new game's picture

OR CHIPPED, FACIAL SCANNED AND DNA'D

Fish Gone Bad's picture

It ends with (ala South Park): And then everyone had ice cream.

Mountainview's picture

It's a done deal for 4 month. Then the can will be kicked again.

darkpool2's picture

More than plausible to me that Greece finds it to their advantage to drag this out for another 4 months or so.......say what you want to hear Monday, but nothing much is going to happen with "that list" over the next 4 months. I tell you whats going to happen.....4 more months of preparation ( putin, china, turkey, new-drachma ....the real list goes on).....and the sweet part is you can blow the bugdet surplus target on the EU's dime, and live off the tit for a while longer. In the end the pain for the EU will be just that much bigger. Who blinked? The EU of course.......they should have pulled the plug now, but oh no, their beautiful pan-european vision clouds their judgement once again.

oudinot's picture

darkpool: I think you are right; that's best anaysis I've head yet.

Thanks.

Ghordius's picture

"Then again, if and when the Tsipras government is booted out next once the Greek euphoria turns to disgust and disillusionment, does Germany really want to negotiate with Golden Dawn instead?"

not quite. yes, the elected Greek Parliament could boot the Tsipras government out and appoint a new one. no, this would not have to include Golden Dawn or even new elections for the next four years

Greece has quite a range of choices, which will open up even more in the next two years. GreXit is still possible, though not likely

Oracle 911's picture

1st) We know nothing for sure. We got just a statement, which is just a piece of garbage with near zero information value (Try translate it into plain English).

2nd) They are talking about the current agreement, which will be extended by 4 months.

3rd) 4 months is enough time for lot of things.

4th) What if the Troika wont agree with new Greek "reforms"?

 

So chill, go to the kitchen and make snacks for the next round.

Lore's picture

How can you be so flippant?  They intend for a lot of innocent people to DIE.

UselessEater's picture

He was flippant about the process being played, IMO. We know whatever happens its the average person who will continue to bear the brunt. Its pretty bad when an a busy Mum, decent working guy like a mechanic or an old retiree is supposed to keep up with the wiles of a Legarde, Dimon or Draghi, etc.

NidStyles's picture

Hard to keep up with people that get paid to sit around all day trying to figure out new ways to screw that busy mum, and mechanic over some more.

 

That's basically what bureaucrats do.

new game's picture

we hire them(elect-ha) and they fuck us over. work less, spend less, exit the matrix as much as possible. virtually impossible to not have to enter and exit matrix daily/weekly to gain fiat. limited exposure for moar fulfilled life. i personally spend 25-30 hrs sucking fiat dick and thats it... zero hours dick licking fiat matrix bullshit is the goal...

Oracle 911's picture

I agree.

The bureaucrats and politicians are working hard for they employer. Sadly usually their employers are not the "average Joe and Jane".

 

Rant: Why nobody said anything when somebody write "yawn" or "bring the popcorn" when the Greeks started negotiations and the shooting escalated in Ukraine? And I have to tell something new: they are people to.

 

BTW: The greeks still can make the Germans (and other creditors) run for they money this month.

new game's picture

yea the popcorn stiiiik is getting old. maybe time to crank out moar on the dillon. much moar productive use of tyme...

Farqued Up's picture

This is going to take too many cokes and boxes of popcorn to watch this comedy.

Paveway IV's picture

I don't think Greece will roll at all. Does the IMF troll here now?

Translation to plain English for Oracle 911:

Varoufakis: If you don't give us some of the last €7.2B now, we'll be bankrupt and you'll never get any of the other €280B paid back. Don't be stupid.

Schauble: Do what we told you Greek whore bastards or no more EU money!

Varoufakis: Look, we only get €200M of chump change out of the €7.2B anyway, the other €7B is just going right back to you as interest. Then we're in the same place four months from now but an additional €7.2B in debt. That's stupid.

Schauble: Well, if you want the €200M to keep the Greece afloat today, then you need to borrow the entire €7.2B less €7.0B interest and stop spending money on your people like a God damn crackhead with a Visa Black card!

Varoufakis: Are you f'king insane? How about giving us the €7.2B and we'll pay €2.2B of it towards the outstanding interest. That will give us €5B to tide us over until we figure out a rational plan where we're actually paying down the loan over time, not going deeper into debt. Kind of like we did with Germany after WWII. 

Schauble: Nein! NEIN! €7.2B for €200M cash, goyen. Put your pensioners in the ovens. Pitchfork your welfare babies. These are the only terms.

Varoufakis: OK - then fuck off. Bankruptcy! Sorry - we're broke and we can't pay any of it back, bitch. €200M isn't going to help much anyway.

Schauble: VAS?? OK - neue plan: we give you €200M and maybe you can stop eating and sell your daughters. But this new Greek plan will conform to the previously agreed terms: €7.2B for €200M cash. Put your pensioners in the ovens. Pitchfork your welfare babies. Do this NOW. Schnell!

Varoufakis: Yeah... OK [sigh]. Let me run this by my people over the weekend [snicker]. Are we done here because I want to get back and short the living crap out of every EU bank before the markets close. I'm about to become very wealthy watching your f'king Ponzi go down.

Schauble: Gut, gut! Arbeit macht frei! Then you will come back with the acceptable Greek plan next Monday?

Veroufakis: [snicker] Of course, Wolfgang... You'll get your f'king Greek plan first thing Monday morning, I promise... Bring some extra Depends!

Proofreder's picture

Agreed !

but, but ... WTF downvoted this ...

Idiot, asshole or moron, it's a tossup, no ?  Perhaps a bankster.

Alberich's picture

Shit like this is why I comb through the comments. Thank you.

BaBaBouy's picture

Sooo............ooo.
I Guess We Can All Wipe Our Asses With The (new)Agreement They Just Got...
Hey, C'mon, Its Still Good For Holding Some Shit.....

Bangin7GramRocks's picture

Not only did Germany fuck Greece's wife. He wiped his dick on the drapes before he left. If Greece acts up again, the bitch will get the donkey punch!