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Varoufakis' Stunning Accusation: Schauble Wants A Grexit "To Put The Fear Of God" Into The French
Earlier we reported that Yanis Varoufakis, seemingly detained by "family reasons" would be unable to join his fellow parliamentarians and personally vote in what is likely the most important vote of Syriza's administration: the one in which he and his party capitulate to the Troika and vote "Yes" to the proposal he and Tsipras urged everyone to reject just one week ago.
Subsequently, it was made clear what these family reasons are:
The self-described “erratic Marxist” will be on the nearby holiday island of … Aegina. In fact, he Tweeted that he reason for his absence is “family reasons”. Nevertheless, two hours before his Tweet was posted, the once obscure academic was spotted on the ferry boat “Phivos”, headed for Aegina, where his wife owns a stylish vacation home.
The author of the “global Minotaur” nevertheless sent a letter to the Parliament president saying he would vote “yes” for the proposal, although the letter will not be counted, given that Parliament regulations stipulate that only deputies on official Parliament business are allowed to cast votes via correspondence.
Judgment aside about his decision to take a holiday from a vote that his strategy guided Greece into, it was clear that he has Wifi on the ferry because this afternoon, While V-Fak may well have been in transit, the Guardian released an Op-Ed penned by Varoufakis titled "Germany won’t spare Greek pain – it has an interest in breaking us." Readers can read it in its entirety here but here is the punchline:
This weekend brings the climax of the talks as Euclid Tsakalotos, my successor, strives, again, to put the horse before the cart – to convince a hostile Eurogroup that debt restructuring is a prerequisite of success for reforming Greece, not an ex-post reward for it. Why is this so hard to get across? I see three reasons.
One is that institutional inertia is hard to beat. A second, that unsustainable debt gives creditors immense power over debtors – and power, as we know, corrupts even the finest. But it is the third which seems to me more pertinent and, indeed, more interesting.
The euro is a hybrid of a fixed exchange-rate regime, like the 1980s ERM, or the 1930s gold standard, and a state currency. The former relies on the fear of expulsion to hold together, while state money involves mechanisms for recycling surpluses between member states (for instance, a federal budget, common bonds). The eurozone falls between these stools – it is more than an exchange-rate regime and less than a state.
And there’s the rub. After the crisis of 2008/9, Europe didn’t know how to respond. Should it prepare the ground for at least one expulsion (that is, Grexit) to strengthen discipline? Or move to a federation? So far it has done neither, its existentialist angst forever rising. Schäuble is convinced that as things stand, he needs a Grexit to clear the air, one way or another. Suddenly, a permanently unsustainable Greek public debt, without which the risk of Grexit would fade, has acquired a new usefulness for Schauble.
What do I mean by that? Based on months of negotiation, my conviction is that the German finance minister wants Greece to be pushed out of the single currency to put the fear of God into the French and have them accept his model of a disciplinarian eurozone.
He does have a point: Recall "Forget Grexit, "Madame Frexit" Says France Is Next: French Presidential Frontrunner Wants Out Of "Failed" Euro." So perhaps making an example of the social collapse that would result from a Eurozone exit, would be seen a good lesson for French voters ahead of the 2017 French presidential elections in Schauble's mind
But is Varoufakis right? Perhaps ... but also recall this from the FT in 2014 recalling Europe's first formulation of Plan Z:
To the astonishment of almost everyone in the room, Angela Merkel began to cry.
“Das ist nicht fair.” That is not fair, the German chancellor said angrily, tears welling in her eyes. “Ich bringe mich nicht selbst um.” I am not going to commit suicide.
For those who witnessed the breakdown in a small conference room in the French seaside resort of Cannes, it was shocking enough to watch Europe’s most powerful and emotionally controlled leader brought to tears.
But the scene was even more remarkable, those present said, for the two objects of her ire: the man sitting next to her, French President Nicolas Sarkozy, and the other across the table, US President Barack Obama.
Greece was imploding politically; Italy, a country too big to bail out, appeared just days away from being cut off from global financial markets; and Ms Merkel, try as Mr Sarkozy and Mr Obama might, could not be convinced to increase German contributions to the eurozone’s “firewall” – the “big bazooka” or “wall of money” they believed had to grow dramatically to fend off attacks by panicking bond traders.
Instead, a cornered Ms Merkel threw the French and American criticism back in their faces. If Mr Sarkozy or Mr Obama did not like the way her government ran, they had only themselves to blame. After all, it was their allied militaries that had “imposed” the German constitution on a defeated wartime foe six decades earlier.
“It was the point where clearly the eurozone as we know it could have exploded,” said a member of the French delegation at Cannes. “It was the feeling [that with] the contagion, at this point, you were on the brink of explosion.”
Will this time Merkel risk the explosion of the Eurozone with her own actions: her biggest historic legacy? Probably not, and while Schauble has much sway, it is still Merkel's word over his.
No, Varoufakis may be right about Greece being made an example of (unless he is merely trying to deflect blame from himself for putting Greece in this position and for conspicuously avoiding voting for a plan he himself derided untilt the end), but the one person who will decide the future of Greece in the Eurozone is neither Schauble nor Merkel but Mario Draghi, also known as Goldman Sachs. Because if Goldman wants more Q€, it will get more Q€.
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Throw Tsirpussy under the bus,Whatthefackus!
Call him a traitor
Politicians SUCK! And I don't mean some of them, I mean "All of them."
What a huge mess they've been able to put together.
Working for a few bankers instead of the People, they're gonna pay all the bills.
Europe is struggling, meanwhile, bankers are organizing their business elsewhere. I.e., Hasn't Wolfenshon's own investment firm been operating in China for years now?
It was 2011 and two Capital Funds were already approved:
A-Capital Asia, which is building a Rmb3bn ($465m) renminbi and euro fund, and Lord Rothschild’s group, a joint venture between RIT Capital, Creat Group, the Chinese investment conglomerate,
and Quercus Associates, the investment advisory company. Foreign banks and funds including Blackstone, Goldman Sachs, Morgan Stanley and Carlyle have already set up renminbi-denominated private equity funds in China, although these focus mainly on domestic investments.
When europeans would be poor enough then less profitable, they'll be perfectly settled down and fully operatives in "emerging markets".
If it's about f*ccckin zee Frenchie I'm damn ok with it.
....only dropped once....
Notice the Froggy's putting a world of hurt on USSA in the form of computer attacks in the last four days.
Interesting.
Angela Merkel shedding tears? 'Bout the same as the Bismarck leaking diesel fuel.
We are Weimar.. France Vichy but watch out Goldman.... as their customer hedge crony bond guys alread know... the strings attached.. OXI OXI OXI
Is this bald assclown relevant to anyone here?
Sounds like none of those fairies other than Goldman Sachs haa a military to back them up. In that case Goldman Sachs wins.
Looks like Germany taking charge of Europe again, just like in WWII.
Well we are all getting lots of warning of that brick wall coming toward us.
Prepare best you can, for whenever we hit.
Fuck Germany. They were bailed out in 1953 when 50% of their WWI and WWII debt was forgiven by the same countries they pillaged and murdered in these wars, including Greece. Then after the reunification Helmut Kohl started building 'his Europe'. The Euro was very much in their favour and the reunication taxes and measures that continued well after the reunification was paid for (but that almost bankrupted Germany) flooded German banks with cheap Euro that they lent to anybody that wanted to borrow and that functioned as an export subsidy. Then it all went wrong in Greece, it were these German (and French and Dutch) banks that were bailed out by the EU tax payers.
For a country that destroyed a continent twice in the span of 40 years killing millions and that caused thereby the division of Europe in two parts that they are now trying to put together they'd better tone down their empirial ambitions. Perhaps a Gerxit is more appropriate.
You never let a serious crisis go to waste. And what I mean by that it's an opportunity to do things you think you could not do before.
Rahm Emanuel
The self-described “erratic Marxist” will be on the nearby holiday island of … Aegina. In fact, he Tweeted that he reason for his absence is “family reasons”. Nevertheless, two hours before his Tweet was posted, the once obscure academic was spotted on the ferry boat “Phivos”, headed for Aegina, where his wife owns a stylish vacation home.
LOFL - fucking snake oil salesman pinhead poses as 'one of the common people' yet again
dumbasses fall for that shit all the time.
Good Grief....If Greece leaves the euro and renounce their eurodebt things might be dicey at first. In time the burden of excess debt once lifted will lead to a boom for Greece.
Not the kind of example the meglomaniacs behind the euro would like any other euro state to see.
Yeah, just what Europe needs, more inputs from Goldman Sach's agents and their kissing cousins at the IMF.
http://www.zerohedge.com/news/2015-07-10/chinas-margin-debt-easily-highe...
Restructure all TBTFs and stamp them out or existence, and the unaffordable debt 'problems' will totally disappear, in short order, and strong vibrant growth will return everywhere.
You were born for this Frau Merkel, put the axe to the root of this TBTF debauchery. The following generation of Europeans will thank you and regard you a hero. But this one won't. So do it and then finish the job with European federation that is not controlled by TBTF.
We'll watch and help where and when we can.
We all need a leader to do this, to eliminate TBTF, and create a European Federation, and I believe that leader is you, Miss Merkel.
Whether Tsipras and Varoufakis are traitors is in some ways neither here nor there.
The bottom line is that Greece
1. Is an aging population
2. The young are leaving in droves.
3. A great del of the money has already left the country
4. The nation's debts are insurmountable
5. Unemployment is well over 25%
6. It is questionable if in fact it is running a primary surplus
7. It is still has a parliament and a public service that is both too large and unproductive in the main.
8. Factories, shops and businesses have closed by the droves.
9. The tax burden on the people through VAT and income taxes is over the top.
10. Bureaucracy makes any transaction complicated and time consuming.
11. It's military expenditure while too high is unfortunately dictated by a hostile neighbour.
12. It has an illegal immigrant problem the size of Antarctica.
13. Its politicians are corrupt and self interested in the main.
14. The rest of the world is also broke and therefore limited as to what it can offer.
In view of the above, anyone that believes that Greece's problems are now under control as a result of agreeing to European terms, is either stupid or stupid.
Watch Greece become an African style nation.
I can't disagree with any of that PP.
In truth, Greece is a Balkan country not a European country.
It only became wound up with Europe after WWII when Washington/NATO wanted to install itself there as the Eastern outpost of the Anglo-American Empire to protect it from the imagined threat of the USSR.
So they ended up with corrupt Balkanese politicians running the country as though it was a richer Western country with all the welfare systems and overspending etc.
The two just don't fit together and it was never going to last. The EU's attempts to shock it into line and become a real European country have been a costly failure.
Dear Smacker,
As I said yesterday, the Euro is a one size fits all design. Just like a grave.
As to whether Greece is part of Europe or not, I would say that the question is whether all the other nations (with the exception of Italy) are in fact part of Europe.
You need to remember that the Greeks and Romans set up colonies and cities all over the place and it was their learning that has enlightened Europe and all of its subsequent generations. Not the other way round.
As for corrupt politicians, by definition you cannot have an honest politician.
In relation to Greece's plight there are historical reasons going back 2500 years as to why it finds itself in this predicament.
Well, Europe is generally defined as a geographical part of the global land mass. One look at a map reveals that the countries you allude to are in fact part of that, including Italy, Germany, France et al. Greece on the other hand is right over there in the east and adjacent to the Balkans. It has a sub-culture more similar to that region than Europe proper and this is why Greece has long had a Balkan immigrant flood (see ZH on Mitilini). The Balkans are arguably part of Europe - some say yes, others not so much. Ditto Russia and Turkey.
Question is whether Greece fits in as part of Merkel's Fourth Reich
It's history rhyming, Lehmann and AIG .... Greece is an example
https://www.youtube.com/watch?v=_VFCQNdgDHE
Well maybe they are following the old USA plan to totally destroy Greece's cultural identity and independence.
So all that has happened in this last affair is a lot of money left Greece and its banks, confidence in the toilet, spending will cease, and money under beds will increase, and those who can leave will leave. NET result of all this more shrinkage of Greece GDP and revenues, and with futher austerity and higher taxes, well inevitable total collapse of the economy into a third world.
They will become a nation of the poor an d beggars, and that will be Mission Accomplished for the Troika/Germany?
So who will be funding the military coup this time around? USA/CIA, Germany, Israel, Russia, China ???
The Kabuki thearter will begin again soon anyway, when they will need more money.
There is of course only one true answer for Greece, total default, then join up with BRICS. Cant do any worse than this.
You guys are missing the point : Varoufakis has just revealed in his game theory mindset what has happened behind the Tinsel curtain.
The issue is NOT Greece and its insolvency; that is a GIVEN. This issue is Euro debt, especially in the intersticies of the private banks and the obvious and increasing scam of UNSUSTAINABILTY, that "free money" printing is inflicting on the public debt burden, in order to alleviate the private debt hidden under the carpet of "unmarked to market" assets now held by banks and CBs; the real gorilla in the euro building.
And the GREXIT pebble will burst that illusion WORSE than any kick the can treatment by writing off Greek debt can do.
Of course, this is unpalatable to EU technocrats who keep singing "we are in control of bank debt in euro land". And its unpalatable to Mutti and Schauble who want the periphery of their Euro empire to bleed in order to protect their own national wealth; pretexting that the EU Constitution (and post war German constitution imposed by the Allies) does not allow debt forgiveness of a sovereign state member of Eurozone, nor its acceptance by Germany on its own public ledger.
We all know that is hogwash. Given the world financial crisis the THEORETICAL rules have to adapted to FINANCIAL REALITY. That is what in essence POLITICS IS. You junk the rules you NEVER junk REALITY.
So, Yanis knows that Mutti is NOW EXPOSED and the whole world is now saying, reality being what it is, Mutti has to bend over and give Greece debt forgiveness and AVOID GREXIT which is like INVITING in the financial plague to the whole world system.
What has France got to do with this political conundrum ?
Thats easy if you have been following the discussions behind the Curtain. France does NOT align to Mutti's version of Peripheral austerity to save the CORE banks. France probably knows given its weak economy it will fall when Southern Europe goes to the wall. So... France as the USA are now saying :
"Tough shit Mutti your 5 year austerity drive has reached its end zone. Grexit will bring the house down.
So We AGREE to save your face by getting Greece to OFFICIALLY Kneel to you this week end. But if your face gets saved your juicy butt gets grilled behind the curtain; as you WILL accept debt reduction (which is not officially on the books) and you will accept interest moratorium and WE WILL ENSURE THAT THE GREEK government puts in place the taxation and economic reforms to make Greece a true functional state when this crisis is over, aka 5 years from now (we hope, haha)."
That is what is at stake this week-end. If Mutti says NO, then history will punish her. If Mutti says yes then the crisis of tomorrow will occur some time further down the road.
In any case, the world financial crisis is not the making of Greece its the making of PAx AMericana and Euro financial shenangians, like Japanese etc. etc. etc.
So lets not blame the COmmie Yanis for what the capitalists have done to world capitalism gone mad!
But that is another story that still has to play itself out.
Well played Yanis, you have CORNERED MUtti and Schauble. For them its NOW or NEVER time this WEEK END.
We will now find out if Mutti is capable of starting a new Guelf-Ghibelline financial war in Eurozone!
so for this latest "last chance saloon" deal, Greece cuts 13bn and gets 53bn in return, bringing the overall national debt up to about 270bn or so.
I feel like doing a Biff Tannen headlock on every single Eurozone leader.... "helloooo, helloooo, anybody home?"
.
.
It's hilarious when Leftit and Anarchist ZHers
cover for the corrupt Greeks and their filthy government
by shouting "banksters!!!1!!!eleventy!!" over and over...
While at the same time...when it comes to Germans or Merkel
it's "burn them at the stake!" time.
All about THEM.
You F*CKING HYPOCRITES.
Keep it up, PLEASE!
Your double standards amuse me to no end.
Nebbish...
I don't buy that also.
Maybe I should rephrase that, I didn't believed that Tsipras wanted to loose the referendum. I stand corrected within a very short time frame. So maybe there's more truth in it, as I am willing to believe....
A very elucidating article from Greek government insider: http://www.mediapart.fr/en/journal/international/080715/we-underestimate...
It confirms that EU is a fascists undemocratic entity without any rights nor power of the nation states. Dieseboom and Schauble will be hanged, hopefully.
And it shows that it's not a coincidence that EU is financing nazi freaks in Ukraine, the EU motherfuckers do as bankers say.
EU has failed and the end will be very ugly.
Varoufakis is the Euro Obama with the media crafted image and drooling boy fans.
Varoufakis is the real "light-worker" lol and haha
Gime a break, there is no savior here and it is way late for an armed revolution.
Suck it up and support the Donald who's daughter married into the tribe and converted.
Donald says he will fight for Israel forever, hell kinda makes sense if you are wanting to
do business in NYC aka H-Town.
C/P: { BRUSSELS (AP) -- Greek government negotiators headed into bailout talks Saturday after both parliament and Athens' international creditors gave the proposals enough backing to set up a weekend of crucial negotiations to stave off financial collapse.
The Greek parliament early Saturday passed the bailout proposals package with 251 votes in favor and 32 against.}..
That's it!..
I want Greeks to buy bitcoin. Last Price $291 and climbing bitchez.
Syriza dissent worsens, 15 more MPs say they won't back austerity (despite supporting Tsipras last night) #Greece http://goo.gl/VZDw0x
A recent post on Colonel Cassad links to a video showing the staged filiming of an ISIS 'execution' movie. Apparently it was found by a hacker group Cyber Berkut. They claim to have hacked McCain's 'electronic media' (Facebook? email?) where they found the video.
https://z5h64q92x9.net/proxy_u/ru-en.en/colonelcassad.livejournal.com/22...
http://www.ibtimes.com/france-russia-mistral-deal-13-billion-settlement-...
Russia and France have reached a tentative agreement on compensation payable to Moscow as a result of Paris' decision to cancel the delivery of two Mistral helicopter carriers. The cancellation of the Mistral deal reportedly will cost France about $1.3 billion. The agreement still must be signed by both Russian President Vladimir Putin and French President Francois Hollande, according to media reports...
...Since the cancellation of the deal about eight months ago, Moscow and Paris have been negotiating how much France would owe Russia in compensation. Putin had suggested that this amount would have to pay not only for the costs of the ships but also for the additional costs incurred, such as the training of sailors. The tentative agreement in the area of $1.3 billion would represent a compromise between the parties.
France may be able to sell the ships to the U.S. or another NATO ally, although no buyer yet has been identified. Maintenance of the ships could be costing French taxpayers millions of euros a month, leading some to suggest that the cheapest option would be to sink them.
always surprised at how many bible-thumping fuckin' mouth breathers linger around ZH.
Don't you idiots understand that what *you* believe is myth and that the only true gods are those of certain tribes in Papua?
I KNOW this is true
BECAUSE
I BELIEVE it is true.
And believing that something is true makes it true!
[unless yer a mooslim or catholic or something, obviously]
"mouth breathers linger around ZH"
Says ZH's own poster boy for the Dunning–Kruger effect.
"The fool says in his heart, "There is no God." They are corrupt, their deeds are vile; there is no one who does good." - Psalm 14:1
ROFL, "The Delicate Genius":
"Let someone else praise you, and not your own mouth; an outsider, and not your own lips." - Proverbs 27:2
Blame no blame its a basket case for the banksters and there is no hiding of that fact.
No haircut, no deal, GREXIT.
Here comes the PIGS!