Trump's EU Ambassador Says Greece Likely To "Sever Ties With Germany & Exit The Euro"

Tyler Durden's picture

Amid a more prolonged economic doldrums than The Great Depression, Greece is heading towards its 4th bailout/deal with creditors. Adding to Grexit fears (voiced by many in and out of Greece), Ted Malloch, President Trump's proposed US ambassador to the EU, casts doubt on survival of eurozone and says Athens should return to drachma.

As we noted previously, for the umpteenth time, the IMF has warned that Greece cannot meet fiscal targets set by its creditors. And once again, the IMF insists that it will not be a part of the “Troika” unless the goals on Greece are realistic. History suggests the IMF will cave in to Germany and agree to some half-baked plan (make that 1/8th baked plan) that will supposedly put Greece back on track. Such nonsense has been going on for years. Mercy, Please!

[It's worse than the Great Depression...]

A view President Trump's proposed ambassador to EU holds...

Days after being accused of “outrageous malevolence” towards the EU for publicly declaring that it “needs a little taming”, The Guardian reports that Trump's nominee, Ted Malloch, said on Wednesday that the euro currency area in its present form was unlikely to last longer than 18 months.

“Whether the eurozone survives I think is very much a question that is on the agenda,” he told Greek Skai TV’s late-night chat show Istories. “We have had the exit of the UK, there are elections in other European countries, so I think it is something that will be determined over the course of the next year, year-and-a half.

 

“Why is Greece again on the brink? It seems like a deja vu, will it ever end? I think this time I would have to say that the odds are higher that Greece itself will break out of the euro.”

The stridently Brexit-supporting businessman, who has yet to be confirmed as the US president’s EU ambassador, said he wholeheartedly agreed with Trump’s tweet from 2012 saying Greece should return to the drachma, its former currency.

"I personally think [Trump] was right. I would also say that this probably should have been instigated four years ago, and probably it would have been easier or simpler to do,” Malloch said in the interview with the show’s chief anchor, Alexis Papahelas.

Malloch said: “I have travelled to Greece, met lots of Greek people, I have academic friends in Greece and they say that these austerity plans are really deeply hurting the Greek people, and that the situation is simply unsustainable. So you might have to ask the question if what comes next could possibly be worse than what’s happening now.”

The biggest unknown was not a euro exit, but the chaos it would likely engender as Greece moved to a new currency, he said.

 

“If the [IMF] will not participate in a new bailout that does not include substantial debt relief, and that’s what they are saying, then that, more or less, ensures a collision course with eurozone creditors,” Malloch added, saying it was imperative that EU member states forgave a substantial part of Greece’s mountainous public debt.

 

“Now we all know that primarily [puts pressure on] Germany, which remains opposed to any such actions, so I think it suggests that Greece might have to sever ties and do Grexit and exit the euro,” he said.

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Troy Ounce's picture

But but but Varoufakis said that loading on debt to do nice green things will make everybody happy?

Haus-Targaryen's picture

Over the past few years the Greeks have proven to themselves and the world they are incapable of governing themselves.  Give it back to Turkey. 

Herodotus's picture

Most of the geo-political trouble in the world today relates to the decline and collapse of the Turkish Empire.  The various ethnic and religious groups in the Middle East, Balkans, and North Africa were forced to be peaceful and get along with each other when they were under the rule of the Sultan.  Now instead, we have chaos in Palestine, Syria, Lebannon, Iraq, Kurdistan, Egypt, Yeman, Libya, Kosovo, Serbia, Bosnia, etc. 

Whoa Dammit's picture

Nothing like waiting until after the mooselims and the debt vultures come in to roost before leaving.....They are just a day late and a Drachma short.

Joe A's picture

Yeah, things were so much better under the Ottomans. NOT. You said it well: "forced to be peaceful". These countries were forced into submission. And the Ottomans were brutal. But that is not real peace. That is just postponed struggle which eventually will follow because people and countries want to be free. Erdogan btw. wants to restore that Ottoman Empire.

 

I Feel a little Qeasy's picture

Have you got any clue about what's going on in the world?

Syria wanted to be free.

Ukraine wanted to be free

Palestine wanted to be free

Vietnam wanted to be free

Iran wanted to be free

Iraq wanted to be free... and on and on.

Do you see some sort of pattern here? Hypocritical fuck-wit.

fleur de lis's picture

Yes, the destruction of the Ottoman Empire and the wars that followed were all the handiwork of the filthy Rothschilds.

Everything they touch rots.

They tried to buy Palestine at the end of the 19th century -- yes, the Rothshcilds had that much money but it is all stolen.

The Sultan said no and the Rothschilds and their Swiss based Zionists went to work to destroy the whole Middle East.

At that point WW1 was in the planning stages so they had to make the most of every minute, every bought-off pawn, every malcontent.

 

"With my watch in hand do I await this terrible moment." Theodore Herzl, 1897 discussing the world war that would change the map and take control of the Ottoman regions.

 

 

Déjà view's picture

Déjà vu..."All Over Again"...

Joe A's picture

"Over the past few years, Germany has proven to themselves and the rest of the world that they can't help it and are again trying to dominate the rest of Europe. Let's rebuild the Berlin wall and let others govern the place". There, I fixed it for you.

Haus-Targaryen's picture

How about we just breakup the EU? 

Sandmann's picture

Go ahead and tell us how you do that in legal steps......love to read your Position Paper

Joe A's picture

How about Germany leaving the Euro and going back to the D-Mark? D-Mark will skyrocket because many people would want them. That would price German products out of the market and make the rest of Europe competitive again.

Haus-Targaryen's picture

It would also make import of natural resources into Germany stupid cheap, energy prices here stupid cheap and as long as there are border controls and the flow of goods between Germany and the rest of Europe is restricted, that is completely fine with me. 

Oldwood's picture

Greece deliberately shit the bed so as to be ejected from the EU and it's immigration policies???

Sandmann's picture

Germany cannot govern itself. Whenever it is run from Berlin it is a basket case. It blew itself up in 1914, almost went Communist 1919, did go Communist in parts 1923, blew itself up in 1939. Was divided in 1945 and the GDR ruled from East Berlin blew itself up by going bankrupt in 1972 and was only saved by OPEC jacking up oil prices so USSR could subsidise it until oil prices crashed 1986 and the USSR went into meltdown

Oldwood's picture

Germany, like ALL liberals, is better at telling OTHERS how to live than fixing its own crap. Ruthless German engineering can only SOCIALLY get you so far.

BigWillyStyle87's picture
BigWillyStyle87 (not verified) Joe A Feb 9, 2017 8:26 AM

Humans gonna be humans in the end bitchezz. All the wonderful words in the world wont stop us from doing what were designed to do, kill and rule over others!

Joe A's picture

As as species were are still stuck on the Serengeti.

peddling-fiction's picture

"As as species were are still stuck on the Serengeti."

Most humans are. And the Principalities like it that way.

bh2's picture

What Greece has demonstrated is that the EU isn't suited for all countries simply because they are part of Europe. Believing they are is a political fantasy and a practical fallacy.

Turkey has never ruled Greece, although there were many Greek cities in what is now modern Turkey. The Ottoman Empire did rule Greece, but was not the modern state of Turkey, which is all that remains of that former Empire after it disintegrated.

The Ottomans were not exactly gentle rulers, but better compared to conquering Europeans who were the only alternative:

"Though subjugation by any power is a bitter pill to swallow the Ottomans are preferable to the Venetians. As long as you pay your ridiculously high taxes they let their subjects live their lives, which is mostly working to make enough to pay your taxes and maybe eat. But the Venetians treat their subjects as slaves with no rights." https://www.ahistoryofgreece.com/turkish.htm

The EU apparently drew its inspiration from the Venetian model.

Kalymnian's picture

You are a Triglodyte.

Greeks dont want the nazis stupid loans and voted accordingly but wrre denyed by the occupational government.

Germany owers Greece 279 billion in war reperations for theft and damage ranging from emptying the bank volts, agricultira theftl and deaths destruction.

The Greeks faught valiantly and kicked the nazi and musoluni occupation to hell.

They did the same to the mongol Turks in 1919.The Greeks smashed through the Turks defences untill they were betrayed by the international forces.

That part you wont read in history books.

Following the wars and due to the wests interference Greece was still in turmoil.

Assinations and a Eukrain type civil unrest ensued.

There has been a puppet led government inplace ever since.

Put in place to TRY and subjugate Greece and continue the theft

The west has and those perverted germans are the architects and ruiners of Greece for their geopolitucal and greedy sick needs

So dont come here with your bigoted  ignorance and uneducated views and insult Greece MFr

 

Vegetius's picture

“When you get in debt you become a slave.”
-Andrew Jackson

Between the Devil and the deep blue sea, it is hard to see what Greece can do now. Yes, they should have left 8-9 years ago but they did not. What are their options now,

New money, tell the Germans they will not pay a cent back. Odious debt and arrest the political parties who landed them in this position and hang them.

“The second vice is lying, the first is running in debt.”
-Benjamin Franklin

eekastar's picture

Who cares, everybody is in debt. So who are we indebted to? It's a trick, a make believe.

Most debt is CB created money, blow up CB and its digits are in smithereens.

Stop believing, the system is rigged.

new game's picture

greece is a symntom(like a boil on humanities face) of what the world cabal of banksters have done to the world. so the real war is the 99.9 percent of humanity against the banksters. easy win, right? take back our society, right?

but, no no, distractions like left vs right, greens vs oil, on and on.

distract, divide and moar war under the falsest flag ever, pariotism...

BritBob's picture

Good for Greece -They can dump the Euro, deal with their own finances and attract inward investment.

The UK has opted for a hard Brexit especially when one country (or part of a country in Belgium) can stall negotiations for so long. Spain could act in a similar fashion over Gibraltar and has the cheek to maintain its Gibraltar sovereignty claim. Claim?

Gibraltar - Some Relevant International Law: https://www.academia.edu/10575180/Gibraltar_-_Some_Relevant_Internationa...

So it looks like a quick hasta luego !

 

Oldwood's picture

Attract investment....Ha,ha,ha.

Investment looks for the fast buck, opportunity. Where is that in Greece with even more profligate spending and debt. Greece is where it is because it borrowed and spent for that which it was unwilling to WORK. Has that changed? Are we seeing street protests for JOBS or entitlements? That is the o ly thing important to their recovery. Not only will debts not be repaid but more debt will be created....Just like it has been for decades. The Greeks aren't stupid and neither are the bankers. It is the people making the debt available to the bankers.

BruntFCA's picture

Greece elected to stay in the Euro so as their pensions would be paid in Euros. They just could not seem to understand the concept that their government is not sovereign over the Euro currency. Thus all protests outside the Parliament were meaningless, the people inside had no power to do anything.

Now they are still paid in Euros for the pension, the amount being zero.

androkles's picture

Before the euro the southern european countries could devalue their currencies when needed. With the euro the southern countries have a currency that is too strong, and the northern countries a currency that is weak.  Perhaps Germany has profited most from increased exports.

The euro always was a political project, and I suspect Greece was never allowed to leave. Now the UK is doing Brexit and the eurocrats cannot bully the UK because UK is still a large military power.

There is a system called Tarp 2 for payments between european countries. Greece has run up an awful lot of debt there, mainly to Germany. Greece leaving may have quite an effect in the financial world.

 

Sandmann's picture

TARP is Lemon Socialism for Banks in USA

TARGET2 is EuroZone payments clearing

Zorrohodge's picture

Cut your losses greece. You are like the worst trader ever holding on to hope trying to recoup.

south40_dreams's picture

Are the clintons really moving in and taking over Greece?  King Chelsea and  Whatisname

Bill Melater's picture

Greek politicians are not stupid. Brexit will help them getting a substantial debt relief. Europe will have to pay for the EU elites to survive.

Sandmann's picture

How does BreXit help Greece ?  The UK is a mjaor IMF Shareholder. It is also No3 Shareholder in ECB. How does UK taking its 11 bn Euro annual payment away help the others give Greece more money ? The EU has a Shadow Budget with a 60 bn Euro black hole.

Dien Bien Poo's picture

youre about as smart as my cat. 

Joe A's picture

Has Trump replaced US ambassador to Greece yet? And man called Pyat. Former US ambassador to Ukraine. Famous for that "Fuck the EU" telephone conversation with Victoria Nuland and forco- deciding who will be in Ukraine's new government.

indygo55's picture

And who, oh why, is Victoria Nuland still working at the State Depertment? Someone please tell me. 

StychoKiller's picture

Every now and then, I have this dream where I'm back at work (in a company that laid me off over 20 years ago), running around dealing with paperwork, etc.  Yet, no one ever questions why I haven't filled out a time card or why I'm not wearing my Employee badge.  Disturbing!

Joe A's picture

I think is no longer working there. That doesn't mean she is not up to something.

Last of the Middle Class's picture

raped and pillaged by the banker class, they now consider leaving the EU.  The choice seems kind of obvious to me.

Fireman's picture

Tsipras still has no balls, Schaüble still has no legs and Varoufakis is'nt as scary as he used to be.

When Italy and France jump there will be a mad dash for the lifeboats that were never there.

 

Onward to the co££ap$€ of worthless Pentacon protected fiat filth and the execution of the banksters and political whores that peddle it!

 

https://www.youtube.com/watch?v=Afl9WFGJE0M

The Gray Man's picture

It is important to build ties with major powers overseas, but we've got to clean up our own situation here. We can start by rolling back some ridiculous anti-gun laws and regulations! Have a look at this white paper released by the number two ranking ATF official.

https://freeamericannational.blogspot.com/2017/02/leaked-atf-white-paper...

Is it possible that someone actually has some sense over at the ATF...?

Sandmann's picture

IMF does not "cave in" unless US Treasury tells it to. After all it is US that will have to inject more capital into IMF unless it agrees voting reform to give India and China a bigger say

caesium's picture

Iceland was out of the EU (and still is) when it got hit by the bankers so leaving the EU is not the panacea it might first appear. I suspect that the Drachma would appreciate in value if left isolated as Greece is now running a budget surplus and has huge gold reserves. It would be a nice bet for speculators following departure.

TeaClipper's picture

Iceland was never in the EU. They applied for membership in 2009, but a new government in 2013 put negotiations on hold. Lets hope for their sake it stays that way, because for sure, if they had been members of the EU they would never have resolved their banking issues as effectively as they have as an independent nation.

caesium's picture

I agree but being outside the EU doesn't protect a country from its own corrupt and incompetent government officials as the Icelanders discovered.

Sandmann's picture

It was still corrupt and crooked bankers at Landsbanki and Kaupthing borrowing on interbank market that borrowed short and loaned long with an overvalued exchange rate

quasi_verbatim's picture

About bloody time. We're looking for new trading partners.