Merkel Mocks Greece And The Referendum: There Is Money, But The Deal Is Much Harsher Now (And No Debt Haircut)

Tyler Durden's picture

Another day came and went with no breakthrough in negotiations between Athens and Brussels as new Greek FinMin Euclid Tsakalotos reportedly showed up to Tuesday's Eurogroup with nothing to discuss. 

With the ECB tightening the screws on Greek banks and the German finance ministry as well as German lawmakers tightening the screws on Angela Merkel, the Chancellor is drawing a hard line toward the Greeks in the face of calls for debt writedowns from the IMF, Greek PM Alexis Tsipras and the Greek people. 

  • MERKEL SAYS IF GREEK REFORM PROPOSALS ARE SATISFACTORY AND PRIOR  ACTIONS TAKEN, SHORT-TERM FINANCE CAN BE PROVIDED: RTRS
  • MERKEL SAYS SHORT-TERM GREEK FIX HINGES ON LONG-TERM PROPOSALS
  • MERKEL SAYS GREECE NEEDS MULTI-YEAR PROGRAM 
  • MERKEL: GREEK PROPOSALS HAVE TO GO BEYOND WHAT BAILOUT INSTITUTIONS DEMANDED BEFORE REFERENDUM
  • MERKEL SAYS GREECE WILL NEED STRONGER MEASURES TO PLUG FINANCING GAP BECAUSE OF ECONOMIC DETERIORATION
  • MERKEL: EU TO DEAL WITH GREEK DEBT BURDEN AT END OF PROCESS
  • MERKEL SAYS EURO LEADERS DIDN'T DISCUSS AID PACKAGE SIZE
  • MERKEL SAYS SHE ISN'T 'ESPECIALLY OPTIMISTIC' ABOUT GREECE
  • MERKEL RULES OUT DEBT 'HAIRCUT'
  • MERKEL SAYS ECB BRIEFING SIGNALED GREECE NEEDS SUNDAY DECISION

More from Reuters: 

German Chancellor Angela Merkel said on Tuesday she hoped to have sufficient reform proposals from Greece this week to be able to ask the German parliament to approve negotiations on a new long-term aid programme for Athens.

 

She said all 28 European Union leaders would meet next Sunday to discuss support for Greece provided Prime Minister Alexis Tsipras put forward detailed reform proposals along with a loan request by Thursday that were considered satisfactory.

 

If the reform list was adequate and Greece took some prior actions to enact first measures, Merkel said she was sure that short-term finance could be provided to help Athens over its immediate funding needs.

In other words, Merkel just told the Greeks yes, there is some money, but forget debt haircut, and the new deal is far harsher than what was on the table because the Greek economy is now imploding. Also, the deal will be 2-3 years at least to start, so even more austerity is on the table. So to all those who voted "Oxi", if you want your deposits unlocked well... tough.

The headlines keep coming hot and heavy, in which we find that Europe now thinks it is Greece's god:

  • MALTA'S MUSCAT SAYS `SUNDAY IS JUDGMENT DAY'

As Bloomberg reports, "Sunday now looms as the climax of a five-year battle to contain Greece’s debts, potentially splintering a currency that was meant to be irreversible and throwing more than a half-century of economic and political integration into reverse. “We have a Grexit scenario prepared in detail,” European Commission President Jean-Claude Juncker said, using the shorthand for expulsion from the now 19-nation currency area.

And just so it is clear who is calling the shots, here is Juncker explaining:

  • JUNCKER: LAST MOMENT FOR GREEK GOVT WILL BE MONDAY MORNING

What happens then?

"Our inability to find agreement may lead to the bankruptcy of Greece and the insolvency of its banking system,” European Union President Donald Tusk said. “If someone has any illusions that it will not be so, they are naive."

And just in case Greece decides to disobey, Europe is ready to treat Greece as an African nation:

  • JUNCKER: EU COMMISSION HAS HUMANITARIAN PLAN FOR GREECE IF NEED

The only good news for Greece, which was just clearly reduced to a vassal nation state of Europe, is that Merkel did not demand Tsipras' head on a silver platter. Then again, if he does indeed fold, it may be the Greek people themselves who ask for it instead...

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nope-1004's picture

Exactly.  The people voted and it appears it means NOTHING.  German banks decide the policy going forward regardless of the vote.

 

Looney's picture

MERKEL: GREEK PROPOSALS HAVE TO GO BEYOND WHAT BAILOUT INSTITUTIONS DEMANDED BEFORE REFERENDUM

Meaning “all of you will pay dearly, whether you voted OXI, NAI, or didn’t vote at all”.

Greeks are idiots for still wanting to keep the Euro.

Looney

nuubee's picture

The greeks expected a woman to be generous with money? lol.

Mr. Ed's picture

Aw, she's just tryin to scare the PIIGS outta trying the same thing!

Stackers's picture

another "last moment" ....... again

they really mean it this time

Pinto Currency's picture

 

 

"...

German Chancellor Angela Merkel, perhaps the most powerful woman on earth and the principal engineer behind Europe’s campaign to resolve its debt crisis, has shrugged off a new book that claims she was a very active member of the Communist Party during her youth in (then) East Germany.

The book, by German journalists Ralf Georg Reuth and Guenter Lachmann, entitled "The First Life of Angela M.," indicates that Merkel designed and led a Marxist-Leninist education program in a unit of the communist state's youth wing – a role that goes significantly beyond the “cultural duties” for the Free German Youth, a communist group that all young East Germans were required to join, that she had previously referred to.

The book alleges she was responsible for "Agitation and Propaganda (agitprop)” -- meaning, she spread communist ideology. ..."

http://www.ibtimes.com/red-scare-was-angela-merkel-devoted-communist-her...

 

CEDE YOUR SOVEREIGNTY GREECE.

 

PrayingMantis's picture

 

 

... Merkel is going full Urkel ...

... "Heavens to Murgatroyd! Grexit, stage left, Snagglepuss!"

whotookmyalias's picture

A conversation that Merkel thinks just happened:

 

Merkel: Dis is vat you must do!

Greece: Yeah, no that's not happening

Merkel: You dun't understand, I really mean it dis time

Greece: Oh, why didnt you say so, we'll do what you asked

FL_Conservative's picture

Come on Tsipras.  Grow a pair and tell Frau Merkel that the Greeks won't accept any less than a 50% haircut of your current debt balance.  Screw the ECB and the Germans.

BaBaBouy's picture

Get The Fuck Out Of EU While U Can...

SPAIN Italy Etc Will Follow Down The Line...

knukles's picture

These people are CRAZY!

                  "You didn't bankrupt that yourself"

These people are gonna leave the Euro "mechanism", EU and NATO at this rate!

Bumpo's picture

Bitch acts like she's calling the shots.  Let's see, hmmm. Greece: Same offer as last offer - Either restructure our debt over 40 years, at the oh so famous ZIRP lending rate the banks get, or the debt is ALL YOURS! Your call. We're good either way.

Supernova Born's picture

Have newly appointed government information minister Yanis Varoufakis deliver Greece's answer.

sodbuster's picture

Greece!!!! You are on double secret probation!!!!

Publicus's picture

The Greek gods will vanquish the Germans.

Supernova Born's picture

Hubris will vanquish the Germans, as usual.

Veriton's picture

Greek Defense Minister Panos Kammenos’ remarks, as reported by Reuters on February 10, 2015: “…if we see that Germany remains rigid and wants to blow apart Europe, then we have the obligation to go to Plan B. Plan B is to get funding from another source. It could the United States at best, it could be Russia, it could be China or other countries,”

Keyser's picture

Merkel must be getting senile... No haircut, no deal, pretty simple... What is she going to do, persoanlly turn off the lights in Greece? 

There isn't going to be a default, because it would trigger all the CDS's floating around and implode Douchebag Bank...

Richard Chesler's picture

Spoken like a true jew bankster's muppet.

Is another so called holocaust really a surprise?

 

Muthrfuckers!

 

COSMOS's picture

Merkel apparently doesn't even believe in a haircut between her legs up high.  Just look at how that POS looks and say to yourself what hope does Germany have going foward with shit stains like her running the 'cunt-ry'

eclectic syncretist's picture

* MERKEL SAYS THE NUMBER OF "LAST TIME" ULTIMATUMS COULD EVENTUALLY RUN OUT...MAYBE.

*MERKEL SAYS DEMOCRACY DOESN'T MATTER, DEMOCRACY DOESN'T EXIST, ONLY THE BANKSTERS GET TO MAKE THE RULES IN THE OLIGARCHIC EU EURO CONSTRUCTION

*MERKEL SAYS GETTING GREEKS TO PLAY THE LOSING BAILOUT GAME HARDER THAN PULLING GOLD TEETH FROM DEAD JEWS INCINERATED SKULLS

DogOfSinope's picture

Dude, has someone played a practical joke on you and fed you a spoonful of Wasabi instead of pistacio ice cream, so now you can hear what dogs hear?

I agree with all what you said, just swich the caps and bold off. Or buy a new keyboard.

HardlyZero's picture

Greek Groundhog Day - same as it ever was, these Summer days

https://www.youtube.com/watch?v=98AJUj-qxHI

And you may find yourself living in a shotgun shack 
And you may find yourself in another part of the world 
And you may find yourself behind the wheel of a large automobile 
And you may find yourself in a beautiful house, with a beautiful wife 
And you may ask yourself 
Well...How did I get here? 

Letting the days go by
Let the water hold me down 
Letting the days go by
Water flowing underground 
Into the blue again
After the money's gone 
Once in a lifetime
Water flowing underground 

El Vaquero's picture

I.... I'm climbing up, up the corporate ladder!
Watch Out! Well, It's dog eat dog.
Nose against the grindstone, it feels alright.
Watch out, hey! Well, It's dog eat dog.

Sometimes I can't believe this is all really happening!
Sometimes I can't believe that I'm really sitting here!
Sometimes I tell myself, "This is not my beautiful stapler!"
Sometimes I tell myself, "This is not my beautiful chair!"

 

https://www.youtube.com/watch?v=FWhsuqFj8kU

DogOfSinope's picture

Juncker: "Those are my principles, and if you don't like them... well, I have others."

hal10000's picture

Only 50%?  They should go the Ivory soap route.  You know, 99 44/100% haircut.

BandGap's picture

Any use of the word "screw" and the name Merkel should be banned from print.

wendigo's picture
wendigo (not verified) BandGap Jul 7, 2015 5:07 PM

She could be fun, in a leather and whip kinda way. 

ZerOhead's picture

The communists have always been the tools of the GLOBALISTS just like Al Qaeda and ISIS are the tools of the NeoCons.

 

The communists believe that nobody should have the ability to acquire property.

The GLOBALISTS believe that only they (the 0.0001%) should have the ability to acquire property.

 

Not that far off (0.0001%) when you think about it... gotta go... serfs up!

BoPeople's picture
BoPeople (not verified) ZerOhead Jul 7, 2015 7:06 PM

Oddly enough, the so called leaders of a communist country live pretty much exactly like the .0001%.

Communism is a lie and always has been.

Freddie's picture

How is the EU-SSR that much different than the old DDR?

Freedom In Your Lifetime's picture

for realz. they are super serious this time.

greenskeeper carl's picture

She can say whatever the fuck she wants, Greece is flat broke, and you can't extract money out of a bankrupt government. That which can't be repaid won't be, simple as that. Dumbasses never should have lent them the money in the first place.

Freedom In Your Lifetime's picture

You can't extract money from a broke person, but you can blackmail them into more debt and make their children pay for it...

saints51's picture

But if a whole country is flat broke, where are their children to get money and pay off the debt? The most likely outcome is the children would find a way to leave even if by foot. Same folks still holding the bag.

Greece needs to exit the EU, go back to drachma, and form alliance with Russia for defense/economic reasons. I may be wrong but it is what I would do at this point.

hal10000's picture

Even if Moscow would treat Athens better than Berlin, Moscow would still be their master.

Greece should leave the Euro to be their own nation again.  That's what these European nations need to do is rediscover their own communities and stop listening to people say Europe will inch even closer to outright war.

eclectic syncretist's picture

One of the funnier aspects of this is that they won't declare Greece in default because they are straight up fucking terrified of capitalism.

saints51's picture

Can not argue that Hal and well said.

walküre's picture

true. and yet the Greeks think they get more? how fucked up is this?

PermaBug's picture

The Greeks aren't being asked to pay anything you moron, they are being asked to reform their corrupt welfare state before they are given even more billions.

Thank god there's at least 1 person willing to stand up to those lazy, corrupt, spendthrifts.

Merkel of course would love to just write off the debt and be done with them, as she knows, no matter what promises the Greeks make not to waste the money this time, it's all bullshit and they'll be back at the trough begging for more in 6 months.

Maybe if you understood that you'd realize why it's dragging out. Greece of course doesn't want to walk away, they get no more money!

Everyone knows they will never pay a cent of what they owe, the only question is will they succeed in extracting more before they finally go belly up.

Merkel's trying to prevent that but can't formally kick them out. So she plays hardball, and I bet at the last minute she increases the demands. Good for her, throw the bums out!

jusman's picture

Germany got a lot of debt relief after WWII.  Germany did not pay repatriations to Greece.  Germany has moved from military warfare to financial warfare.  The banks orchestrated the current situation.  Nobody wins in the end and everybody (other than the banks) suffer....

Jstanley011's picture

She's overconfident, because "they" told her there's no downside if the taxpayer-backed loans from the EU's bailout fund -- which total €246 billion of the €323 billion total Greek debt -- default. Except "they" are wrong, all wrong. Mr. Market has finally woken up, after his long drug-induced stupor, and he's going to start giving haircuts at the neck...

http://i2.cdn.turner.com/money/dam/assets/150127131739-greek-debt-chart-...

source: http://money.cnn.com/2015/06/29/news/economy/greece-banks-internation-ex...

 

 

booboo's picture

And yet you believe the U.S. will retire their debt.

eclectic syncretist's picture

Bullshit!  Merkel is scared of what might happen if default is declared and capitalism given the chance to clear her and her bankster brethen out of the way of progress.

Marco's picture

This might be true, but she has a pretty good poker face.

OzFan's picture

Bravo!

 

These fcks fear capitalism....they are dumb fcks too because they only know how to win by tigging and cheating.

tedthecanuck's picture

What is she supposed to say?  "Earlier some private entities lent money to Greece, and we had to bail them out, even though we knew at the time we weren't seeing that money again.  Now we have to make noises like we are trying to get the money back.   Sorry people."