Behold The Greek Debt Slavery "To Do" Checklist Permitting It To Bail Out Europe's Insolvent Banks

Tyler Durden's picture

Yesterday, in our daily list of shocking discoveries of just how far forward Greece is willing to bend over, we realized that not only will Greece not receive a penny (or is that a drachma?) from Europe, but it itself will have to fund the European bank bailout via a Greek-funded Escrow account. In today's 'insult to rape' chronicles, we discover that before Greece is even given permission to bail out Europe's banks, its creditors first demand that the province of Bavaria Sachs, formerly known as Greece, satisfy a checklist of 38 specific conditions, which the now fully colonized nation will have to complete before the end of the month (so in about 5 days), before it is permitted to transfer taxpayer cash to French, German, Italian and Spanish banks. How anyone, even the world's most degraded debt slave, is willing to subject themselves to such humiliation is simply inconceivable.

The FT has the subhuman degradation details:

The reforms, spelt out in three separate memoranda of a combined 90 pages, are the price that Greece has agreed to pay to obtain a €130bn second bail-out and avoid a sovereign default that the government feared would throw Greek society into turmoil.


They range from the sweeping – overhauling judicial procedures, centralising health insurance, completing an accurate land registry – to the mundane – buying a new computer system for tax collectors, changing the way drugs are prescribed and setting minimum crude oil stocks.


The 38 measures are a mix of laws that must be passed by parliament, ministerial decisions and presidential decrees that affect a complete cross-section of Greek economic activity, from health spending to municipal administration to tax collection.


Only a handful of the measures are listed as passed or in the process of being implemented, including a highly publicised €300m in pension reductions and €325m in other spending cuts. The other reforms are grouped under six categories, though most of the changes fall under spending cuts, bank regulations, and economic reforms.


Among the measures that must be completed in the next seven days are reducing state spending on pharmaceuticals by €1.1bn; completing 75 full-scale audits and 225 value added tax audits of large taxpayers; and liberalising professions such as beauty salons, tour guides and diet centres.


Even the longer-term reforms must be completed quickly. A draft 49-page “memorandum of understanding on specific economic policy conditionality”, dated February 9, includes dozens of measures that must be completed in the first half of the year.

And so forth.

Sarcasm aside, that this is merely a strawman loophole for Germany to say on March 1 that Greece has not completed the measure is beyond glaringly obvious. Which explains why the idiot algos who have taken this development as good news have sent the EURUSD to nearly 3 month highs.

It also goes without saying that one should wait for Tom Stolper to go long the EURUSD before shorting the pair with infinite LTRO funded (in exchange for compressed methane as collateral) leverage.

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Waffen's picture

Default Bitchez?

slaughterer's picture

"Bavaria Sachs" cute.  How about "Goldman am Main"?

Manthong's picture

When do they deliver the women and young girls?

The Big Ching-aso's picture



How do they say Massa in Greek?

trav7777's picture

don't borrow money at interest.

This lesson was so ingrained that 2 of the west's major religions banned it for centuries.  The other significant major western religion has it as an affirmative commandment to use usury against members outside the ethnic clan.

The wisdom here is in both cases is that people of ordinary intelligence cannot understand compound interest.  They just can't.  They're incapable of it.  Therefore, it is consistent with public policy that it should be banned.

The lenders descended on "free" blacks like locusts and performed interest tricks that turned them right back into slaves.  Sharecroppers ended up working for a year or two straight just to pay a lender

Waffen's picture

The problem is not the lack of average intelligence.  The problem is that the unintelligent are duped into usery; that money inflates the costs of goods, causing the intelligent to also engage in usury to compete.


The problem is the evil scum parasitcally feed off of productive classes and then cry fowl when we name them.   talmudic jews for example



trav7777's picture

uh, yeah the problem is definitely that.  People don't get exponential growth.  This is precisely why all these interest schedules and disclosures are on lending docs.  They are trying to generate "informed consent."

TheSilverJournal's picture

Interest isn't the problem. Interest is a good thing because without it, nobody would lend. Being able to borrow is very beneficial to society if those resources are put to PRODUCTIVE use. The problem is that the risks of making bad loans aren't being born by the lender, therefore encouraging bad loans to be made that can never be paid back. Society, then, is the big loser for bailing out the lender and not benefiting from a productive allocation of resources.

john39's picture

the real problem is that immoral and amoral people constantly work themselves into a position to take advantage of others who are less sophisticated... through any and all means.

TheSilverJournal's picture

All you can do is stop people from committing fraud and stop bailing out people that make bad loans. Making incompetence illegal is impossible. But bailing out incompetence only perpetuates the incompetent behavior.

flacon's picture

Interest is a good thing because without it, nobody would lend


That's not true at all. Ever heard of a dividend? That isn't interest. A dividend is a payment as a reward for PRODUCTIVE enterprise that the loan was able to generate. 


Interest is payment REGARDLESS of productive enterprise. There is ZERO risk with demanding interest, but there is risk associated with dividend payments. 


Our problem is that some people want RISK FREE MONEY FOR NOTHING

TheSilverJournal's picture

The risk of making a loan is with not getting paid back. There's also a risk of the currency losing value. Be careful with using phrases like zero / never / always / etc. Be even more careful when it's bold and capitalized.

steve from virginia's picture

Sorry, compound interest has nothing to do with the current crisis.

- Sovereign or national level finance debts are always taken on to support/subsidize industrial firms, in this case industrial firms in Germany and France.

- Sovereign and national level finance debts are never to be paid off, this is the number one canard spread by finance analysts and salesmen. Sovereign debts are extinguished when both borrower and lender are on the same (sovereign) balance sheet (and can be canceled). Sovereigns are immortal and outlive the creditors. Sovereigns are also intended to lend on their own accounts in their own currencies, something that few European country can do, this includes Germany.

- The EU has changed the lending rules regarding sovereigns treating them as firms or individuals. This is simply extortion that can only take place when there are no effective sovereign governments. The Greeks have no government only stooges for the banks.

- The sovereign will repudiate the debts. Other than the extinguishment of dead-money debts as described above, this is the only way to remove sovereign debts.

- The current Greek government will not repudiate but a successor will.

- It is also possible that Greek and other terror groups will start attacking German and other EU interests. The euro will become unsupportably expensive under such circumstances.

Optimusprime's picture

Your points regarding sovereignty are well taken, and contribute to understanding. 

But your initial statement earned you a minus.

flacon's picture

I'll check with Ben Bernanke about those ZERO risk assets, thank you very much. 

..... told-ya-so... Bernanke guarantess ZERO RISK because he said in his speech that he had a helicopter that could print ZEROS and give them to me free of charge. 

Vagabond's picture

This isn't complicated.  Debt based currencies are a ponzi scheme.  They rely on perpetual growth.  The same goes for fractional reserve banking.  It also relies on perpetual growth to work and it has been institutionalized.  This system cannot be sustained over the long term.  Cheap oil allowed the growth necessary to last a century, and without a new cheap energy source we're approaching the end of the road.  Everybody should be talking about what's next rather than how to kick the can.

ExpendableOne's picture

There should be consequnces for both making bad loans and obtaining loans which you are obviously unquallifed to service.  

Teamtc321's picture

Banker's are so fucking crooked, they work to take down equity in business, farmer's land, account's, spin good companies to there crowny pet's. Interest maybe good in your view but the rot that control's the interest is the problem for society. The rot is in small town banking also not just central palnning.   

TheSilverJournal's picture

It's not the people that are bad, it's the system. Sure, there are some bad people in banking, but there's bad people in every industry. There's also good people too.

The banking system is fraudelent because it legalizes telling people that they can withdraw their money at any time, but in reality most of the money has been loaned out. So if a bunch of people want to withdraw their desposits at the same time, the entire thing collapses. And the FDIC only has a very small portion for insurance against a run. Of course, that's not the only exampe, but it's the core of the issue.

rlouis's picture


Carlo Boroni should have seen the writing on the wall before he put his hand in the till.  During one of their initial confrontations, Sindona had shouted at him, “You will never be a real banker because not only are you unable to lie, you are also a man with principles.  You would never know how to use the valid weapon of blackmail!”

Michelle Sindona, the man quoted above, was the Vatican's Banker.  Pg 112 'In God's Name' by David Yallop


BigJim's picture

 The banking system is fraudelent because it legalizes telling people that they can withdraw their money at any time, but in reality most of the money has been loaned out. So if a bunch of people want to withdraw their desposits at the same time, the entire thing collapses.

It's worse than that. The money that's been deposited hasn't been loaned out, per se; it's become collateral for leveraged money creation. So, for instance, you deposit $100 in the bank; if someone wants to borrow $1000, the bank basically just lends them $1000 (which was literally created specifically for the loan out of thin air by the central bank), and $50 of your deposit is now collateral against that $1000.

Ceteris paribus's picture

The Greeks will throw some stones, burn somthing and then go home , the police are that dumb that they have no clue as to what is going on . The army only know how to take orders as they cannot  think for themselves and the bankers will move on to the next country. I say way to go bankers keep making me money on my gold going up .Just keep farming your livestock, and if they get out of line shoot a few to remind them who is boss.

New World Chaos's picture

Whenever an interest-bearing loan is made, a parasite wins and the system becomes more unstable.  Especially in a fractional reserve system.  Loan paid pack?  Lender got something from nothing.  Loan defaulted but collateral not taken?  Borrower got something for nothing, plus lender gets a bailout if he bought politicians as a hedge.  Loan defaulted and collateral taken?  Lender bought a real asset with money he created from nothing.  Interest-bearing loans lead to exponential growth of the money supply and systemic instability, both of which scew the savers.  And during the inevitable crashes, bankers grab real assets for very little (printed) money.  The whole system was designed to transfer real wealth from honest people to parasites and encourage corruption at all levels of society. 

We could have PMs lent out without interest.  We could have them lent out in exchange for a share of the profits from whatever business they are financing.  Those with spare metal may want to keep it spread around to avoid risk from thieves (legal or otherwise).  The lender can be protected because the borrower can provide him an income stream if he gets cleaned out.  The borrower's business can be protected from confiscation because it is encumbered.  All this would require a legal system that isn't owned by the bankers, but it could work.  It would be similar to most of our history.

BigJim's picture

No, the scheme you've described is not 'similar to most of our history', unless by 'our' you are demarcating a very unusual group of people.

There's nothing wrong with lending money for interest; the problem arises when non-existent money is lent.

Max Fischer's picture



Regulation Z does NOT require interest schedules to be on loan docs.  

You're just simply wrong. 

Max Fischer, Civis Mundi

bdc63's picture


ptoemmes's picture

I assume you are directing this at the general populace, cause I can pretty much assure you the unelected technocrats running that joint aren't listening no matter hwo loud you - or any one else - scream.

bdc63's picture

Maybe another Greek non-confidence vote ... or a revolution ... or both ...

PhilB's picture

The INCONCEIVABLE humiliation of the Greeks is quite understandable when taken from the politicians point of view. Politicians dont care about the people, they want to remain in power and milk the system for as long as possible. It is in their interest alone to try and meet Ze Germans demands.


However, as you correctly point out..the Greek people should indeed demand a default. As tough as it will be in the short term, it would be a fairer way to go, forcing the power structures to fold, fat cats to default, and forcing some chaos so that change may take place in a quicken enough time to save them from imminent slavery.

BigJim's picture

Frankly, most of what the troika are demanding are reasonable steps to get the Greek economy on a better footing.

The Greek government should pass them into law - and then immediately default on their € debts and go back on the Drachma, but without (for instance) all the ridiculous anti-competitive hairdresser cartels and non-existent tax collecting.

Likstane's picture

"The problem is that the unintelligent are duped into usury."  That's what Trav just said!  The rest of your post is horseshit.

LongBallsShortBrains's picture

One problem of lending comes when a borrower can sell his "word" even though it is worthless. If some fool wishes to "give" the borrower money in exchange for his useless "promise" to repay, then in the borrower's eyes, the foolish lender gets what he deserves. Of course if you wont lend to this type of borrower because of his history in repaying, you must be a bigot.

When enough lenders run out of good credit risks and still have money to lend, rates drop and risk must be taken on to stay competitive. All goes back to too much currency in the system.

The Big Ching-aso's picture



Hey, it's tuff to watch your neighbor buy nice new shiny motorized things with borrowed money while you're still riding a bike to work, asshole.

Waffen's picture

good luck keeping a job, trying to ride your bike to work while everyone else has gotten a car.

good luck buying a house when everyone has inflated the costs of homes by buying on credit

good luck etc etc

The Big Ching-aso's picture



Ya, he thinks cash grows out the wazoo or something.

trav7777's picture

how is that a statement endorsing going into debt?  There are a lot of people who are nigga rich, and?

john39's picture

same issue with education.  wildly inflated.

metastar's picture

I wrote the below over a year ago. It is even more true today:

I am a simple man with basic skills. I can add, subtract, multiply, and divide. I even know something about compounding interest. With these basic skills I could tell that something was not right in the housing market.

The banks, insurance companies, fed, etc. have MBAs. They have an army of MBAs. They employ teams of financial Einsteins to monitor every aspect of our economy. They have access to Googlebytes of economic data lighting up screens in control rooms which make Nasa’s mission control look like an elementary school computer lab. The computational power these systems possess is awesome. They have the WOPR. They play financial war games all day running scenario after scenario in less time than it takes to blink an eye.

Am I really supposed to believe that the leaders of banks, insurance companies, and government did not see something serious like the housing bubble coming?

I am one of those homeowners who lived a very modest life in a very modest home. I watched the economy. I studied. I planned and saved. I played by the rules as an honest, hard working, tax paying citizen. I waited patiently for the day that the bubble would burst so that I could pick up the pieces. Meanwhile, I personally know several people who lived large on credit, had a good time, and owned huge houses with huge mortgages. They laughed that I lived so conservatively. They sneered as though they were somehow better than me because of all the material possessions they had amassed (on credit).

Now they are underwater and I AM BAILING THEM OUT AGAINST MY WILL! They are keeping their houses (which are much more luxurious than mine) and so they still laugh at me. To add insult to injury, it is us tax payers who bail out banks and insurance companies whose management walk away from all this with staggering amounts of cash still in their pockets.

The moral hazard here is that responsible, good natured people will begin to realize that crime really does pay and will start looking for ways to game our corrupt system.

It is no longer about losing confidence. It is about losing hope in the legitimacy of our system.

I do not believe we can just let everything fail outright. But we do need a controlled demolition of our insolvent institutions and those responsible must be made to pay.

donsluck's picture

Moral Hazard is such a soft term for a very dangerous, unjust and corrupting affliction.

merizobeach's picture

On the surface, I can sympathize your 'honest man's plight'.  However, if you are actually not the max-sheeple that you infer that you are not, then you must also recognize that you are paying your tax dollars into the system with full fore-knowledge of how that money will be used: specifically, for the abuses you mention, and also to fund the war machine, as one in five of your tax dollars provides material support for genocide and other inexcusable atrocities.

So you were sold a bill of goods.  You bought it, and now you're the bloody-handed bag-holder.  I'm sorry, but my sympathy is only surface-deep.

malek's picture

That first statement in its absoluteness is just dumb.

It makes very much sense to borrow money if
1.) you will use it for investment not for consumption
2.) you see a clear and highly probable way to earn (more) money through it, to pay it back as soon as possible
3.) you have a short-term exit plan if 2 doesn't work out

And you forgot to mention which of those religions came out on top - not that I care about religions.

I also see some other people who believe they understood compound population growth, and that is would inevitably lead to mass starvation... they forgot food production can grow at a compound rate too AND NOT ONLY BY INCREASING ACREAGE, as more people means more heads and more hands, after a few years grow-up lag

Jim in MN's picture

Isn't it funny Trav, you used to enrage people here (not really me though), but it's like the collective has adapted to you. 

Maybe if you raised the other middle finger in your avatar...

Ancona's picture

That's OK Waffen, the Greeks can escape to within their own minds by staring at the nice rack in your avatar [like I'm doing]

Careless Whisper's picture

Where do these banksters get their ideas from?

September 1, 1939

Rationing, which allowed for only bare sustenance of food and medicine was quickly set up.

The Polish language was forbidden. Only the German language was allowed.  





Sudden Debt's picture

Just put in a paypal claim and ask for a tracking number

Larry Dallas's picture

Beautiful Greek Woman and girls are far and few between. Haven't you see the movie "my big fat Greek wedding"?

Seriously though, I've been to Athens, Greece and go to Astoria all the time for dinner. They are not the best looking bunch out there. Perhaps with a sole exception being Maria Menunous.