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Varoufakis Has Futuristic Greek Debt Plan That "Fills Mario Draghi's Soul With Fear"

Tyler Durden's picture




 

In “Germany Gives Greece Grexit Referendum Greenlight,” we pointed to comments by German FinMin Wolfgang Schaeuble which seemed to indicate that the EU paymaster would like to see PM Tsipras put euro membership to a popular vote. Such a move could accelerate negotiations with creditors by effectively allowing Syriza to claim it hasn’t betrayed its support base, but a vote also risks plunging the country into turmoil should the gambit backfire (i.e. if Greeks unexpectedly vote to leave the currency bloc). Either way is probably fine with German officials who, at this juncture, have run almost completely out of patience with members of Angela Merkel’s Christian Democratic bloc pressing the Chancellor to cut the Greeks loose. Now that Athens has resorted to tapping its IMF SDR account to pay the bills, German calls for a euro referendum are getting louder. Here’ Bloomberg with more:

The German Finance Ministry is supporting the idea of a vote by Greek citizens to either accept the economic reforms being sought by creditors to receive a payout from the country’s bailout program or ultimately opt to leave the euro.

 

A referendum could bring the conflict to a head after months of inconclusive talks between Greece and its creditors that have exasperated Germany and other euro-area countries. Public support for economic reforms might lead Greece toward a deal, while rejection could set the country on a path to leaving the euro.

 

“If the Greek government thinks it should hold a referendum, it should hold a referendum,” Schaeuble told reporters in Brussels on Monday. 

 

“Maybe it would even be the right measure to let the Greek people decide whether they’re ready to accept what needs to be done”...

 

Schaeuble’s stance on a Greek plebiscite is a departure from Germany’s position in 2011. Back then, Prime Minister George Papandreou dropped his plan for a referendum after Chancellor Angela Merkel and French President Nicolas Sarkozy urged him not to hold the vote. A financial backstop for the euro region and policy changes in former crisis countries since then have made contagion risks “marginal,” Schaeuble has said.

 

"The Greek government is increasingly facing the dilemma that it can’t deliver on its own election promises and this is something the German government of course is also aware of,” Tanja Boerzel, a political scientist at Berlin’s Free University, said by phone. “Then it’s easier to let the Greek people decide in the hope that they vote to stay in the euro.”

 

A pro-reform vote would take away Tsipras’s “argument that they’ve promised something else” and that he has an anti-austerity mandate from his voters, Boerzel said by phone.

Meanwhile, a familiar face is once again proving to be quite adept at using the stalemate between Athens and Brussels as an opportunity to play geopolitical chess, even as the latest example of Russian meddling comes across as rather absurd on its face. 

Again, via Bloomberg:

Having scratched together the 750 million euros ($845 million) it owes the International Monetary Fund and with a few weeks of cash left in its accounts, Greece is now being invited to join a club with a membership fee running into the billions.

 

The disclosure this week from Athens that Russia wants to make Greece the sixth member of the BRICS bank sounded like nothing more than a late April Fool’s joke to Jim O’Neill. He’s the former Goldman Sachs Group Inc. economist who in 2001 coined the term BRIC -- Brazil, Russia, India and China. South Africa was subsequently invited to join by the others.

 

Last year they set up a development bank to rival the IMF. It will have authorized capital of $100 billion with each founding member contributing $10 billion.

 

So what gives? Certainly Greece, whose economy has shrunk by about a quarter as it became of ward of the euro zone, doesn’t exactly meet the vision laid out by O’Neill to highlight the growing economic weight of developing nations…

 

The invitation is therefore almost certainly geopolitical. Firming up eastern ties is one of Greek Premier Alexis Tsipras’s few points of leverage with his creditors. Panagiotis Roumeliotis, Greece’s former representative to IMF, has been appointed to explore the possibility of joining the BRICS bank.

Through it all, you can rest assured that Athens isn’t about to sit idly by and default on its obligations — at least not according to government spokesman Gabriel Sakellaridis:

  • GREECE DOES WHAT IT HAS TO, EACH TIME A PAYMENT IS DUE: GOVT

It sure does, and that includes borrowing from the IMF to pay the IMF, raiding pension funds to pay pensioners, pillaging schools and hospitals, and shaking down local governments for cash. 

Of course no update on Hellenic hell would be complete without a bit of fire and brimstone from an increasingly unhinged Yanis Varoufakis who still believes the best solution when it comes to Greek debt is to package it all up and overnight it into the “distant future.”

Via Reuters:

Varoufakis first raised the idea of swapping Greek debt for growth-linked or perpetual bonds when his leftist government came to power earlier this year, But Athens has since dropped the proposal after it got a cool reception from euro zone partners.

 

The outspoken minister, who has been sidelined in talks with European Union and International Monetary Fund lenders, brought it up again on Thursday, saying 27 billion euros of bonds owed to the ECB after 6.7 billion euros worth are repaid in July and August should be pushed back.

 

"What must be done (is that) these 27 billion of bonds that are still held by the ECB should be taken from there and sent overnight to the distant future," he told parliament.

 

"How could this be done? Through a swap.”

There you go — simple. The only thing standing in the way (besides creditors not wanting to hold bonds where the long end of the curve is labeled “distant future”) is Jens Wiedmann, because were Mario Draghi to agree to a debt swap, he would risk infuriating the Bundesbank chief who already harbors ill-will towards the ECB for launching QE. Or at least that’s how Varoufakis imagines it. 

*  *  *

And because when it comes to insane rhetoric, nobody does it like Yanis, we’ll leave you with the following excerpt from the FinMin’s latest speech to parliament:

"The idea of a swap between the Greek government and the ECB fills Mr. Draghi's soul with fear."

 

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Thu, 05/14/2015 - 08:06 | 6092387 Looney
Looney's picture

I ain’t no Greek-hater, but the only useful thing the Greeks have come up with throughout their history is… spraying Windex on pimples?

The democracy-thingy, where 49 people out of 100 are screwed just because they are the minority, may have caused more death and destruction than other forms of government. So, Windex it is! ;-)

Looney

Thu, 05/14/2015 - 08:14 | 6092410 VinceFostersGhost
VinceFostersGhost's picture

 

 

You can have my answer now if you'd like...

https://www.youtube.com/watch?v=KnmIoF_2Q4Y

Thu, 05/14/2015 - 08:18 | 6092421 Butterflying
Butterflying's picture

My last pay check was $9500 working 12 hours a week online. My sisters friend has been averaging 15k for months now and she works about 20 hours a week. I can't believe how easy it was once I tried it out. This is what I do... www.jobs-review.com

Thu, 05/14/2015 - 08:20 | 6092428 VinceFostersGhost
VinceFostersGhost's picture

 

 

Good thing Sunday Tyler isn't working today, you would be so dead.

Thu, 05/14/2015 - 08:27 | 6092439 Wolferl
Wolferl's picture

Here´s my futuristic Greek debt plan:

 

Throw those pathetic Greeks out of Europe already and let them go to hell.

 

And Varoufakis is just a perfect example for those parasitic Greek liars and cheaters.

 

Thu, 05/14/2015 - 08:30 | 6092456 Ghordius
Ghordius's picture

there is no need to extend that "pathetic" from a government of one country to all the people of that country (I know, I'm repeating myself, but so is Wolferl)

Thu, 05/14/2015 - 08:50 | 6092505 negative rates
negative rates's picture

He lost his mind so far back that now he just sounds like a broken record.

Thu, 05/14/2015 - 09:11 | 6092596 eclectic syncretist
eclectic syncretist's picture

The bankster overlords of Super Coward Mario, Christine Largesse, and Janet Felon's greatest fear is that the Greek's exit and then there isn't any real disaster (as their lackeys have been claiming there surely will be), and that Greece recovers just fine. This would point out the true fact that there is no need for them, and that what they have to offer is actually a disservice to everyone, governments and citizens.

That the banksters can not allow, according to their rape, pillage, and plunder (with a ball-point pen of course, just to keep a self-denial facade of civility around their corrupt, dishonorable, and even malevolent doings) code of immorality.  Look for the banksters to arrange a false flag disaster for Greece should it flush the Euro down it's toilets (as it surely should).

Thu, 05/14/2015 - 09:45 | 6092777 fockewulf190
fockewulf190's picture

No.  Their biggest fear is that the derivatives tied to Greek debt are triggered.  That event causes the chain reaction which finally starts the Great Reset. 

Thu, 05/14/2015 - 11:21 | 6093214 Bemused Observer
Bemused Observer's picture

I have no doubt that if Greece leaves, Germany & Co. will go into hyper-drive in their attempts to ensure Greece's failure.

Of course, if they got CAUGHT doing that...

Thu, 05/14/2015 - 11:28 | 6093253 Wolferl
Wolferl's picture

They are Greeks, no effort by others whatsoever is needed to ensure their failure. The Greeks are a basket case since 150 years and always will.

Thu, 05/14/2015 - 13:36 | 6093748 mmanvil74
mmanvil74's picture

I cannot understand why Greece would not simply leave the Euro and default on their debt.  It is such an obvious no-brainer, it amazes me they are still debating what to do.  

Greece should default on all of their Euro debt and print Drachmas and here is why:

First, Greece would benefit by having a weaker currency (drachma) vs. the Euro.  This will bring in zillions of tourists and make whatever else Greeks produce very cheap on world markets.  Weakening your currency during hard times is a tried and tested method of stimulating your economy and rebalancing with trading partners, which is why the Euro was a dumb idea in the first place.

Second, they will eliminate the billions in Euro-denominated interest payments that is dragging the cost of running their country down like a student loan and mortgage would on an unemployed phsycology grad.  Sometimes bankruptcy just is the best alternative.  Wipe away the debt and start fresh.  The Troika may threaten to cut them from international lending forever more but there is Russia and China based financiers more than willing to fill that gap.

I just don't see the upside for Greece to keep the Euro, other than to be able to earn a hard currency to be spent abroad which is a tall price to pay to keep an entire economy in depression for years.  If there are no jobs, there is no currency to earn and spend abroad anyway.

Obviously there must be elements to the debate I am missing, and the Troika must have additional leverage I am not seeing, but it seems clear to me the new Greek leaders are in a position to leave the Euro and they should.  Follow Iceland's example of what happens when you tell the bankers to stuff it.

Fri, 05/15/2015 - 11:21 | 6097367 Bemused Observer
Bemused Observer's picture

We can't ignore psychology in all this. It applies to nations as well as individuals.
Why does the abused wife stay with her husband? Fear of the unknown...of 'consequences'. Fear of retribution. Shame and guilt over some imagined 'offense' that the abuser uses to manipulate, the list goes on.
Too bad there's no therapy for nations.

Thu, 05/14/2015 - 08:50 | 6092506 Wolferl
Wolferl's picture

Lol, your Regierungsprecher-speak is cute. Is this you Steffen Seibert?

Thu, 05/14/2015 - 09:41 | 6092754 Brazen Heist
Brazen Heist's picture

U sound like a broken record buddy...and you also sound like a rigid, stubborn German as well.

Thu, 05/14/2015 - 10:24 | 6092931 Wolferl
Wolferl's picture

I am a rigid, stubborn German and proud of it.

Thu, 05/14/2015 - 12:50 | 6093583 edotabin
edotabin's picture

You used to say "Kick them out of MY Europe". What happened?  Europe isn't yours anymore? 

Thu, 05/14/2015 - 17:03 | 6094582 Wolferl
Wolferl's picture

I guess I said "Kick them out of my European Union" a few times. But you are right, it´s my Europe too, needless to say.

Thu, 05/14/2015 - 22:28 | 6095769 Pokemon
Pokemon's picture

You obviosly have cultural heritage on how to "throw" people around don't you? From gas chambers and ovens to your creative outspoken statements to Greek people. Please keep entertaining us with your boring comments

Thu, 05/14/2015 - 14:25 | 6093917 DutchR
DutchR's picture

Tylers get a cut from the jobs review thingy or it was zapped a long time ago, don't sweat it.

 

Fuck this comment structure, my comment was to VinceFostersGhost.

Thu, 05/14/2015 - 09:02 | 6092555 jmcwala
jmcwala's picture

I can't believe this person is choosing ZH to advertise this fraud. ZH heads are among the most skeptical to be found. Butterflying or whatever pseudonyms you come up with- stop it.

Thu, 05/14/2015 - 09:16 | 6092625 MsCreant
MsCreant's picture

Shhhh....his entire portfolio is loaded with greek debt, let em alone. He's gotta do, what he's gotta do, if you follow.

Thu, 05/14/2015 - 11:06 | 6093118 Lea
Lea's picture

"The democracy-thingy, where 49 people out of 100 are screwed just because they are the minority, may have caused more death and destruction than other forms of government."

51% percent of people like you is better than a bunch of corrupt oligarchs sitting in or lobbying in Congress and deciding for the 99%.
Take your pick, buddy. I've chosen.

Thu, 05/14/2015 - 08:08 | 6092388 Headbanger
Thu, 05/14/2015 - 08:09 | 6092390 LawsofPhysics
LawsofPhysics's picture

Remove your consent, period. If you vote, you consent, if you pay taxes, you consent.  Nothing changes until the "leadership" in the private/public (let's be honest corporations=banks=government now) that brought us to this point are held accountable, period.

Interesting times.  Perhaps the risk/reward paradigm is returning after all, be optimistic people.

Thu, 05/14/2015 - 08:13 | 6092409 Ghordius
Ghordius's picture

well, some 500 mayors of Greek municipalities have withdrawn consent to the Greek (central) government. they were supposed to hand over money, and with the exception of two of them they did not

funny that it's not more in the media, eh? it spoils both major narratives about Greece

Thu, 05/14/2015 - 08:31 | 6092460 new game
new game's picture

reason we don't know is because it is the real situation-desparation before the inevitable. default...

Thu, 05/14/2015 - 09:20 | 6092652 back to basics
back to basics's picture

Do you have a link to a credible source that can substantiate your claim, or are you parroting shit again which appears in Bild and in the stoutly anti-Syriza Greek MMS without a shred of evidence?

Thu, 05/14/2015 - 08:10 | 6092395 agent default
agent default's picture

Syriza is trying to do a 180, but they cannot figure out how.  Between exaggerated promises and the hard core Marxists in Syriza, they are in a deadlock.

Thu, 05/14/2015 - 08:17 | 6092419 Peter Pan
Peter Pan's picture

This is called "up shit creek without a paddle."

Thu, 05/14/2015 - 08:11 | 6092398 Ghordius
Ghordius's picture

I seriously, seriously have something against politicians that talk about perhaps having a referendum. particularly when they don't really look neither necessary nor relevant

referenda are a serious matter. and if you do them, you should do them regularly, and as part of the political process. the worst kind of referendum is the one that is supposed to settle something forever...

... and so it's never repeated

Thu, 05/14/2015 - 08:15 | 6092416 Philo Beddoe
Philo Beddoe's picture

Pretty sure Mark Twain would feel the same way about referendums as he did about voting, 

Thu, 05/14/2015 - 08:53 | 6092514 negative rates
negative rates's picture

Well his vote don't count anymore cause he's dead, as for those who walked in his foot steps, the spoils are all yours.

Thu, 05/14/2015 - 09:19 | 6092643 MsCreant
MsCreant's picture

Au contraire mon cheri, he votes early and often if he is dead!

Thu, 05/14/2015 - 14:32 | 6093948 DutchR
DutchR's picture

Like the referendum we, the Dutch, had 60% against the euro, look were we are today.....

 

I'ts all kabuki

Thu, 05/14/2015 - 08:28 | 6092453 Sanity Bear
Sanity Bear's picture

The worst kind of referendum is the one where you vote over and over again until the result that TPTB want comes up.

Thu, 05/14/2015 - 08:35 | 6092472 Motasaurus
Motasaurus's picture

Didn't the Greeks already have a referrendum a couple of years ago, but the EU didn't like it so simply replaced the government with their own?

I seem to remember that happening, and it's not something I usually dream about... 

Thu, 05/14/2015 - 08:41 | 6092480 Ghordius
Ghordius's picture

that's another of the many, many myths about Europe that you can find in the English-speaking media

the Prime Minister of Greece started to talk about a referendum. the Greek Parliament, which is the elected body that is his master, boss and employer... did not like that talk, threw him out and appointed a different government (and now I wish the current Greek Parliament would throw out this new bunch)

Thu, 05/14/2015 - 08:58 | 6092533 TheMeatTrapper
TheMeatTrapper's picture

Will this be another referendum where they get to vote until they get it right?

Thu, 05/14/2015 - 09:09 | 6092588 Motasaurus
Motasaurus's picture

So, exactly what I wrote, yeah?

Thu, 05/14/2015 - 09:21 | 6092656 MsCreant
MsCreant's picture

Did not let them vote.

Thu, 05/14/2015 - 09:24 | 6092674 back to basics
back to basics's picture

You are ignorant.

Papandreou was ousted at an EU meeting that took place in Cannes. It was an EU decision with certain Greek players who would benefit from the change (Samaras and Venizelos) going along.

Get your facts straight and stop parroting shit.

Thu, 05/14/2015 - 10:12 | 6092880 falak pema
falak pema's picture

that sept 2011 G20 cannes summit did four things :

1° Consolidate the US/FR/UK alignment which ousted Q-daffy from Libya  some months previously and it gave Hillary a free hand to set up Libya post-mortem rehash in Benghazi. We know how that has ended! 

2° Oust Papandreou.

3° Oust Berlu from Italy. That was some game changer as Berlu resented the Merkozy dictat of making Italian banks hold Italian bonds to a maximum thus saving the core EU banks. Berlu wanted moar banking solidarity of course, not isolation of Club Med banks from core ! 

4° Confirm and shoe in Draghi to replace the austere Trichet who was scared stiff of "doing what it takes" and Draghi did not disappoint Geithner, the man who made Mutti cry at that meeting, 'cos she knew that Draghi's future moves at ECB would be by making Germany the backstop to EU printing. Not via eurobonds but by back door saving of banks once they had aligned to the Merkozy dictat (local banks must own majority of their local govt bonds via EU inter bank swap deals).

That meeting made EU and ECB totally Squid compatible and made those banks more solvable by the huge Euro/USD swap deals that Ben's QE program was funding out of thin air. Euro banks got some oxygen from both FED and ECB and Trichet's scarediness gave way to Draghi's flamboyance which the markets loved (but not the HFs who were scamming the Club Med govt bonds and loving it), as it saved the Euro zone from immediate default.

Some summit that! 

Thu, 05/14/2015 - 08:51 | 6092507 falak pema
falak pema's picture

C'mon Ghordius this Greece scam is not to be taken seriously. Its just an enigma of capitalism wrapped up in a bond printing press that is getting the hiccups in the tug of war between Mutti and Draghi. 

The good news for VAroufakis is that his wife is now touted as the muse who inspired Pulp singer Jarvis Cocker (nice name to inspire a dame).

At the price that they sell Picasso's painting these days I'm sure she has more value on the market as a new Mona Lisa than his bond swap-a doodle dandy parade in front of mesmerised EU finance ministers.

The smell of exasperation matches the odor of fear...hahaha, Danae would be nice as cocktail topic at those uptight meetings. (Pun optional).

http://www.independent.co.uk/news/business/news/yanis-varoufakis-respond...

Thu, 05/14/2015 - 08:14 | 6092413 small towel
small towel's picture

"I never use fake money when I play monopoly. I always use real monopoly money"

 

Yanis Varoufakis

Thu, 05/14/2015 - 08:20 | 6092415 Max Damage
Max Damage's picture

Draghi has a soul? Novel idea there from the Greeks. Maybe they meant sole? the one he wipes the shit off onto savers heads

Thu, 05/14/2015 - 08:26 | 6092442 Ghordius
Ghordius's picture

as a matter of fact, Draghi ought to be less important to the Tsipras Cabinet then their representative at the ECB, the governor of the Bank of Greece

of course, that's another guy with whom Varoufakis is on a war path, and is trying to get replaced

Thu, 05/14/2015 - 09:29 | 6092698 back to basics
back to basics's picture

Now you crossed the line into being an idiot.

Stournaras is implicated in fraud, decisions that did not benefit the Greek people (Siemens settlement), and of late releasing information to the press that compromises the Greek position.

Varoufakis doesn't have a vendetta with him, lots of Greek MPs are calling for his removal as they should. Many people have been executed for treason for a lot less.

Fri, 05/15/2015 - 03:01 | 6096182 Ghordius
Ghordius's picture

ah, so suddently you know something about Greek Members of Parliament?

Thu, 05/14/2015 - 08:16 | 6092417 Peter Pan
Peter Pan's picture

It doesn't matter which way the Greeks vote in a referendum, because Greece is not viable on its present trajectory whether it has debt or no debt.

Leaving religious considerations to the side, the only hope for Greece is if its pension dependent oldies actually suicide and if at least half of the useless public servants are sacked.

I know I will be down voted like crazy but few people realize the gap between the expectations of many Greeks and the actual means of the government and the country to meet those expectations.

In the end, the great build up and squandering of debt based capital has covered up the abovementioned gap in all nations to one degree or another and a reckoning is on the cards for all of us sooner or later.

Unfunded liabilities will get us all in the end.

Thu, 05/14/2015 - 08:28 | 6092451 Ghordius
Ghordius's picture

and this is another complete dogma, completely fabricated by one side of this conflict: that "Greece is not viable on its present trajectory..."

Thu, 05/14/2015 - 08:35 | 6092469 Peter Pan
Peter Pan's picture

Come on Ghordius, please explain how the hell Greece can be viable given its present mindset and circumstances. Let's face it, even the US is not viable if it were not for its massive money printing.

This world either has to learn to live in peace and stop being wasteful or it's in for a hell that will last well into the next generation.

Globalization unfortunately has spread economic disease and the toys we got have not been worth it.

Thu, 05/14/2015 - 08:43 | 6092486 Ghordius
Ghordius's picture

two words the Marxists like Varoufakis hate: balanced budgets

Greece was nearly there. and might be forced to be there, which is imho worse

Thu, 05/14/2015 - 08:54 | 6092517 Peter Pan
Peter Pan's picture

Greece was never "nearly there"in recent years.The figures were a sham. Ask the countless number of people who are owed money by the Greek government and have not been paid and the countless number of people who paid taxes on uncollected income, and the countless number of people who paid taxes in advance, because that is how they gave the apearance of an almost balanced budget without ever achieving it.

Thu, 05/14/2015 - 09:09 | 6092589 Calmyourself
Calmyourself's picture

Then you should lay out how it is dogma, because to the rest of us ECB, IMF and most observers the Greeks have some bills to pay that they cannot pay.  Leaving aside how this occurred " corrupt bankers and politicians" explain how this course is sustainable.

Thu, 05/14/2015 - 13:36 | 6093735 scrappy
scrappy's picture

Greece could restructure unfunded liabilities, or perhaps go back to folk medicine, or perhaps this!

http://kingworldnews.com/paul-craig-roberts-as-greece-pivots-putin-unlea...

Ozo is a cure all for headaches.

Thu, 05/14/2015 - 08:18 | 6092422 Fukushima Fricassee
Fukushima Fricassee's picture

Certain a historical crash is coming, the when is still in doubt.

Thu, 05/14/2015 - 08:21 | 6092431 Ted Baker
Ted Baker's picture

IT READS:-

"What must be done (is that) these 27 billion of bonds that are still held by the ECB should be taken from there and sent overnight to the distant future," he told parliament.

the same can be said about the greeks, buy them a one-way ticket to hell

Thu, 05/14/2015 - 08:21 | 6092432 jcamargo
jcamargo's picture

What Varoufakis thinks about the world has to be taken only for its comedy value.

Thu, 05/14/2015 - 08:27 | 6092447 Philo Beddoe
Philo Beddoe's picture

That would put him in the same league as Carrot Top. 

Thu, 05/14/2015 - 08:40 | 6092478 falak pema
falak pema's picture

What Varou thinks about his wife has to be taken seriously, she is his best asset on the betting table!

Thu, 05/14/2015 - 08:22 | 6092434 Miss Expectations
Miss Expectations's picture

Because voting worked out so well with Scotland and Switzerland.

 

Thu, 05/14/2015 - 08:38 | 6092475 Motasaurus
Motasaurus's picture

A vote is meaningless without the balls to back it up with action.

Voting did wonders for Iceland. All their bankers are in prison now. 

Thu, 05/14/2015 - 08:26 | 6092440 GFORCE
GFORCE's picture

http://market-guru.co.uk/looking-for-a-pause-in-amzn/ Maybe they will give the vote (blame) to citizens. The real fear is Greece leaving and finding growth. That wouls spur bigger nations to ditch austerity.

Thu, 05/14/2015 - 08:26 | 6092443 Quinvarius
Quinvarius's picture

If the ECB wanted to fix this problem it could easily be fixed.  Just replace all that greek debt in people's accounst with printed money and forgive it.  Then they can go buy more stupid debt with the cash.   But they don't want to fix the problem.  Clearly, the ECB has an illogical, emotional interest in prolonging this fucking stupidity. 

Thu, 05/14/2015 - 08:39 | 6092476 Motasaurus
Motasaurus's picture

That's spot on, and also why this whole Grexit thing is a such a farce. 
The ECB is in full money printing mode to simply monetise the debt away. If they cared about fixing Greece they'd do exactly that. 

Thu, 05/14/2015 - 09:11 | 6092595 Calmyourself
Calmyourself's picture

The ECB is teaching lessons to others who may get out of line, Italy, Spain, Portugal.

Thu, 05/14/2015 - 11:31 | 6093267 Honey Badger
Honey Badger's picture

The problem with that is that if you want to chew gum in class, you have to bring enough gum for everyone.

Thu, 05/14/2015 - 08:26 | 6092444 q99x2
q99x2's picture

I thought they defaulted two days ago. Guess not.

Thu, 05/14/2015 - 08:28 | 6092449 VinceFostersGhost
VinceFostersGhost's picture

 

 

In theory, they defaulted quite some time ago.

Thu, 05/14/2015 - 08:27 | 6092448 CHC
CHC's picture

Great idea, I must try it.  Got debt?  Box it up - slap a label on it - ship it out to...the distant future.  Awesome!

Thu, 05/14/2015 - 08:30 | 6092455 SheepDog-One
SheepDog-One's picture

Completely unimpressed by more word jousting.

Thu, 05/14/2015 - 08:31 | 6092459 lordbyroniv
lordbyroniv's picture

Voting is a jewish trick

Thu, 05/14/2015 - 09:36 | 6092726 Teknopagan
Teknopagan's picture

and democracy the rule of money

Thu, 05/14/2015 - 08:41 | 6092479 gatorengineer
gatorengineer's picture

Not sure why the Greeks are jumping on the Referendum.  Its not for them its a sham, for the German voter and Merkel.  It plays out like this, The Greeks have the the referendum, it passes 60 to 40% or something like that (thanks Diebold), Greece gets Emergency bail out, say they suck in another 50 billion euros (between emergency bank liquidity, which is promptly withdrawn and put in olive cans in the back year, and 6 months to pass the reforms), they pass no reforms....  Can kicked at least 6 months.  Easy.

Germany and the north on the hook for 50 B more...  

What am I missing?

Thu, 05/14/2015 - 08:46 | 6092496 Ghordius
Ghordius's picture

a lot. Tyler's sarcasm in other articles, for example, about Greeks not wanting to have this referendum. or the fact that Greeks use paper ballots instead of Diebold. or that Greeks want to keep the EUR, and don't want Greece to default. and much more, to be frank. read a bit the ZH articles on Greece of the last month

Thu, 05/14/2015 - 09:02 | 6092550 gatorengineer
gatorengineer's picture

The Diebold comment was probably excessive SARC, but the bottom line is that the Greeks, like everyone else what some one else to pay for their lifestyle, Socialism only works till you run out of other peoples money.  It here in the US, Detroit, Shitcago, Califormia, New Jersey etc.....  Its going to come down, its just remains to be seen if Greece will be the pebble that starts the avalanche.  Hint - Shitcago might beat them too it, being over 63B in the hole.

 

Thu, 05/14/2015 - 13:01 | 6093619 not a yahoo
not a yahoo's picture

Have you seen any of the greek propaganda in the last 4 months? The simple fact that Schaeuble is the one that suggested the referendum is a sure fire way the Greeks will never consider that option.

Thu, 05/14/2015 - 08:42 | 6092481 exartizo
exartizo's picture

....sooo... if I'm reading this right... Merkel and Sarkozy...aka Merkozy actually *screwed* the Greek people over by buying as much time as they could for the Euro Zone to marginalize the effect of an eventual Grexit they knew in 2011 was coming.

*smashing*

Thu, 05/14/2015 - 08:44 | 6092489 MS7
MS7's picture

If Tsipras wanted the Greek people to vote in favor of exit from the euro, he would stop saying what a catastrophe an exit would be. He can influence popular opinion to go either way but so far he has not tried to in any way suggest that a Grexit might not be so bad. I'm not sure why. He doesn't seem to be a puppet exactly but perhaps a part-time puppet.

Thu, 05/14/2015 - 08:45 | 6092492 crashguru
crashguru's picture

In principle a good idea, this way the banks can pretend their Gr bonds are recoverable. The question is why he wants the Greek suffering to eternity. I am afraid the answer is related his Marxist thinking and his believes in central planning, like his  "crisis solution", i.e. the EIB investment plan.  Lets hope he is just buying time to prepare for the new Drachma.

 

Thu, 05/14/2015 - 10:17 | 6092908 Duude
Duude's picture

Yanis Varoufakis is no fool. He knows Greek socialism will die without other countries supporting the effort, assuming of course, Greece doesn't metamorph into a communist state.  Its essential to the Greek socialist party to remain in the EU and the bail outs continue forever.

Thu, 05/14/2015 - 10:44 | 6092973 Die Weiße Rose
Die Weiße Rose's picture

Varoufakis is one of those Intellectuals, who really haven't got a clue about real life or real economy or how to make it all work.

Like so many other "pseudo-intellectuals and academics" he is a total loser hiding behind theoretical ideas that are mere lunacy and fake, even fraud.

Varoufakis has run out of time and money, and those who where sympathetic to Greece, can now see that in the end the bills need to get paid.

Time simply has run out and Greece has become a liability noone wants to get stuck with.

Not the IMF, the ECB the EU or private investors like Russia or China.

In the end Greece people will have to pay their own way, like everyone else.

No more special privileges or entitlements....

Time to wake up to reality. Time is Money !

Reality will hit hard all of a sudden, once the Money is gone.

Varoufakis ( like so many other theorists and pseudo-intellectuals) still has to learn a lot from that experience.

WR;)

Thu, 05/14/2015 - 10:37 | 6092991 Soul Glow
Soul Glow's picture

YV sure talks a big game.

Thu, 05/14/2015 - 11:00 | 6093117 Sid James
Sid James's picture

But they have just had a referendum. It's called an election.

Thu, 05/14/2015 - 11:09 | 6093160 Lea
Lea's picture

"A Greek Debt Plan That "Fills Mario Draghi's Soul With Fear"... that's empty rhetorics. Draghi has no soul.

Thu, 05/14/2015 - 11:24 | 6093225 jarana
jarana's picture

"It sure does, and that includes borrowing from the IMF to pay the IMF, raiding pension funds to pay pensioners, pillaging schools and hospitals, and shaking down local governments for cash."

As many other times, nothing more needs to be added after quoting Tyler D.

Thu, 05/14/2015 - 11:26 | 6093238 Crocodile
Crocodile's picture

Greece stays in the Eurozone until the Eurozone disintegrates completely, for the situation is "damned if they stay and damned if they don't" and kicking the can down the road has come to an end.  When this happens and it will, then all world-wide financial hell breaks loose.

Thu, 05/14/2015 - 13:04 | 6093625 edotabin
edotabin's picture

Should I stay or should I go?  If I stay there will be trouble and if I leave it will be double"

-- The Clash

Thu, 05/14/2015 - 12:17 | 6093456 fremannx
fremannx's picture

Varoufarkis may be a scary dude, but he long ago figured out why the world is in economic depression. In this four part video interview with Varoufakis, he explains, in metaphorical terms, how the United States has played the major role in collapsing the global economies and why Europe’s economies, through their own mismanagement, have little hope of surviving another looming financial crisis. 

The Global Minotaur

 http://www.globaldeflationnews.com/the-global-minotaur-a-global-finance-...

Thu, 05/14/2015 - 12:56 | 6093607 not a yahoo
not a yahoo's picture

V is inexhaustible: He found another word for haircut, again. Basically he's shown that almost any type of financial transaction can be used as a haircut, which you have to give him credit for.

Thu, 05/14/2015 - 15:46 | 6094246 JenkinsLane
JenkinsLane's picture

I've come to the conclusion that Varoufakis is an egotistical prick who is in love with the sound of his own voice.

Fri, 05/15/2015 - 01:42 | 6096127 Majic
Majic's picture

Zero hedge is a cool place to get news and develop a nervous tic at the same time:).  How long is this Greek shit going to go on?  Sonvabitch!, they are FUCKING BROKE!  Mario, you ain't getting yer' money back unless you give the Greeks the money to pay you ( loop mail).

     Holy Shite!  Fuck-a- duck, you dirty birdie, whatever! It is worse than a fucking teen drama movie!  Worse yet it is being ran by fucktards who would seat themselves in the Parthenon of the leaders of the imaginary free world!  This Grecco Abortion is beginning to feel like a paper cut with lemon juice in it.

 

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