Germany Speaks: Not So Fast On The Greek "Deal"

Tyler Durden's picture


Europe's now painfully transparent policy of demanding that Greece decide to default on its own is becoming so glaringly obvious, we truly fear for the intellectual capacity of everyone who ramps the EURUSD on any incremental "europe is saved" rumor. As a reminder, yesterday we said, in parallel with the Greek irrelevant MoU vote: "The only real questions are i) what the Greek population may do in response to this latest selling out of a population "led" by an unelected banker, which if history is any precedent, the answer is not much, and ii) how Germany will subvert this latest event, and put the bail [sic] back in Greece's court once again." We documented on i) earlier today - a couple of burned down buildings, a few vandalized store fronts, lots of tear gas and that's about it, as people still either don't believe or can't grasp the seriousness of the situation. As for ii) we now get the first indication that not all may be well on Wednesday. From the FT: "European officials rushed to finalise details of a €130bn Greek bail-out on Monday amid signs Germany and its eurozone allies may not be prepared to approve the deal at a finance minsters’ meeting on Wednesday, despite Athens backing new austerity measures." And so the bail [sic] is once again back in Greece's court, where however since the last such occurrence, the parliament has 43 MPs less. Quite soon, the only person left in "charge" of the country will be the ECB apparatchick and unelected banker Lucas Papademos.

Germany's ulterior motives are so bright, we gotta wear shares:

One eurozone official said the group had come up with a list of at least a half-dozen items that Greece must accept before the deal will be moved to finance ministers for final approval on Wednesday.


The items on the list include, according to several officials, proof of the €325m in cuts, clarification on how Greece intends to reduce labour costs 15 per cent, and reassurance that all Greek leaders will back the deal – especially after Antonis Samaras, head of the centre-right New Democracy party and Greece’s presumptive next prime minister, indicated that he may try to renegotiate the pact after April elections.

But the biggest weakness? The very item we noted earlier this morning, namely that "Samaras Pledges To "Renegotiate" Bailout Pact After April Elections"

The parliamentary vote is important, but it’s not the be all and end all,” said another eurozone official. “Samaras’s explanations are shifty.”

So what is next up on deck: a "conditional" bailout of Greece.

If the German-led group of creditor countries emerges unconvinced, officials said lenders may turn to a plan B, where the bail-out is given “conditional approval” and is reassessed at the next scheduled meeting of eurozone finance ministers next week.


In that case, ministers would only give the go-ahead for a critical part of the new bail-out, a €200bn restructuring of privately held debt which must begin in a matter of days in order to be completed before Greece’s next bond comes due – a €14.5bn redemption on March 20.


To complete the voluntary restructuring, where private debt holders have agreed to cut their bonds in half, eurozone lenders must approve €30bn in new cash to serve as a “sweetener” for bondholders to participate.

So even as the fallback plan continues to be "baffle them with bullshit" literally every day, and delay, delay, delay, while America's seasonal adjustments somehow make it a self-contained economy in its own right, which no longer needs the benefit of the world's largest economy (and judging by the EURUSD traders out there, this just may pass), while slowly but surely everyone becomes convinced that it will be in everyone best interest just to let Greece go, and that everyone is sufficiently prepared for just that "contingency."

As was the case with Lehman... At least, until the Fed had to step in with a $20 trillion bailout to preserve the Western way of life of course.

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Mon, 02/13/2012 - 18:02 | 2155352 lolmao500
lolmao500's picture

Man up already and ask total control of Greek's finances. We know you want that, they know you want that... so say it's that or nothing bitchez!

Mon, 02/13/2012 - 18:05 | 2155360 Silver Bug
Silver Bug's picture

The German people know that Greece is a sinking ship. Save yourself Germany. Don't go down with the boat. It is a lost cause.

Mon, 02/13/2012 - 18:19 | 2155406 lolmao500
lolmao500's picture

It's not about money. It's about banksters control. They don't give a fuck about money, they print it.

Banksters : Give me total control over your economy and I give you this nice paper money.

Greece : Eh wait a second... it's just paper money you printed! Why would I become a slave and work in exchange for paper?

Banksters : that's how it works sheeple! Now shut up and pay me with interest!

Greece : Yeah but you only give me 230 billion! How can I pay you with interest if I don't own a printing press?

Banksters : Well you can't and that's the point!! Mwahahahahaha

Mon, 02/13/2012 - 18:37 | 2155464 toothpicker
toothpicker's picture

Crete (and maybe Lesbos) would do just fine for me

Mon, 02/13/2012 - 19:25 | 2155676 MarketWatchTerrorist
MarketWatchTerrorist's picture

Keyesian economics and fiat currency and blah blah...wait...


Isle of Lesbos?....


4 minutes later...what were we talking about?

Mon, 02/13/2012 - 19:30 | 2155696 trav7777
trav7777's picture

yeah no shit...Greece clearly doesn't at all grasp that their days of lounging in cafes and getting paid for it are over.  They are facing total economic collapse and having to live on what they can produce.

The EU should tell them to just fuck off.

Mon, 02/13/2012 - 19:55 | 2155779 trebuchet
trebuchet's picture

When it emerges that greece sent out €8/9bn(?) in fines for unpaid taxes, troika were happy, only later they found out that less than 1% were collected. 


Greece has ZERO trust with its partners, heck in their position they have EVERY incentive to squeeze as much out of the deal as possible and squirm as much out of their end of the bargain as possible. 


The Germans/EU are just learning the greek way of negotiating, and smartened up: Greeks have a saying "siga siga" which means literally "slowly, slowly" which also means take it easy, one step at a time..... 

the 20 MArch deadline, is not a hard deadline if someone puts 14 bn on the table, and then we kick the can down the road a bit more.... 

THIS IS EUROPE that is how the politics of business and business of politics is done. 

Why would EU and Greece want to sign up to a 130/150/160/+ + + ..... bailout now when you can convince people you are doing stuff with 30bn? and promises? and get some of those banks to take the first hit? 

and get everyone else running for the hills scared so they start coughing up money to the IMF? 

in 3-6 months, US "decoupling" + China "mild stimulus" + euro devaluation brings net exports back up, LTRO 1, 2, 3 have "fixed" liquidity problems,  EU data show its not in recession, downgrades look unnecessary, EFSF is up and running, playing ping pong with private sector holdouts plus there is a financial tax and so on to bring "banksters" into line. 

All they got to do is kick the can down the road till then, equity can wobble all it likes, gold can wobble all it likes, oil can wobble all it likes.



Mon, 02/13/2012 - 19:55 | 2155780 walküre
walküre's picture

Total economic collapse? Not really. They will have to adjust and downsize and all that but there's no total collapse of anything.

Iceland hasn't collapsed into anarchy either.

The truth of the matter is that when you show the banksters what you're made of, they come crawling back to the table and offer to make you a deal.

THEIR lives depend on US accepting THEIR paper for OUR hard work and products.

THEY contribute NOTHING OF VALUE. WE work day after day, so WE may be able to afford us a car, a house, a vacation typically paid with loans THEY give US from OUR efforts.

The term "bankster" describes perfectly well the true state of these parasites.


Mon, 02/13/2012 - 20:18 | 2155852 trebuchet
trebuchet's picture

@walkure   (im too lazy to but the umlaut..... ) you speak for Merkel and Schauble I think  

[edit] what i was trying to say is that you expressed very clear insight and was trying to pay you a compliment but expressed it in the wrong way

This is the sentiment governing the moment of the day in Europe.... post Davos..... now who said that cocktail party is a waste of space?

Mon, 02/13/2012 - 22:45 | 2156234 walküre
walküre's picture

It's all on the table. People are paying attention and understanding that indeed, all is relative.

Banksters wealth, the elite, debt. It's all relative.


Mon, 02/13/2012 - 20:14 | 2155850 Eally Ucked
Eally Ucked's picture

you're realy fucked  as me with your brain a bit screwed

Mon, 02/13/2012 - 18:37 | 2155466 fourchan
fourchan's picture

the system is working perfectly all around the world.

Mon, 02/13/2012 - 19:26 | 2155682 MarketWatchTerrorist
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You're right, so long as you understand that the system is designed to destroy national sovereignty and bring about the New World Order.

Mon, 02/13/2012 - 18:40 | 2155476 aleph0
aleph0's picture

VERY ACCURATE & CLEAR ... well said.

Mon, 02/13/2012 - 18:55 | 2155539 ChrisFromMorningside
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Those who haven't done so yet need to read up on the various historical forms of debt bondage and so-called 'peonage.' Individuals right here in the good ole U.S. of A were trapped into prolonged contractual relationships wherein they provided years and years of labor yet never managed to pay off their "debts," which were perpetually augmented by their "employer." Example: share-cropper tenant farmers who farmed land for 20+ years but never got out of debt because they had to purchase seed and other inputs from the company store at inflated prices that just so happened to coincidentally add up to more than the return from selling off the crops that were grown (sale of which was usually mediated by the company or landowner, leaving the laborer in the dark about the true market value). Think "pay day loans" and some forms of consumer credit.

This is the system that the financier elites are dragging the Western world back into. Except now they're placing entire nations into this perpetual debt bondage (Greece, soon Portugal). And the "consumerist lifestyle" that so many aspire to has brainwashed millions of others into *voluntarily* acceding into this relationship.

Meanwhile, deindustrialization and the rise of agribusiness has asset-stripped the U.S. and made it that much more difficult to opt out of these schemes and live independently (not impossible, I know many many here do it, but we're in the stark minority).

Mon, 02/13/2012 - 21:24 | 2156061 lolmao500
lolmao500's picture

Those who haven't done so yet need to read up on the various historical forms of debt bondage and so-called 'peonage.'

I like pownage instead!

Mon, 02/13/2012 - 18:23 | 2155427 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

They can't bail Greece out because then they have to bail everyone out, but they have to do a bailout or else the Europonzi collapses. 

Catch-22 at its best.

Mon, 02/13/2012 - 20:26 | 2155886 TonyCoitus
TonyCoitus's picture

Then don't do a bailout, call it a stimulus!  Problem solved.

Mon, 02/13/2012 - 18:37 | 2155465 Piranhanoia
Piranhanoia's picture

The people of Greece know that Germany is sinking in it's own shit.  Save yourself Greece,  don't get on a boat that needs to be bailed out.  Fixed it for you.


Mon, 02/13/2012 - 19:57 | 2155790 walküre
walküre's picture

Correct. Germans will soon learn that their wealth is really very short term and that the banksters will come for them when they've bled everyone else dry.

Mon, 02/13/2012 - 19:18 | 2155655 MarketWatchTerrorist
MarketWatchTerrorist's picture

You still don't get it.  Greece is exhibit A in the E.U. power grab and its ultimate goal of destroying national sovereignty for all E.U. member states.

Mon, 02/13/2012 - 22:53 | 2156253 Buck Johnson
Buck Johnson's picture

Your correct, Germany knows it and have already put a moat (as far as they think) around their banks when Greece defaults.  In the Lehman case, if the Fed knew how much it would cause to let Lehman fail the US maybe wouldn't have allowed Lehman to fail.  We know that the dominoes will start to fall when Greece fails and the amount of CDS's that are outstanding is increadible.

Mon, 02/13/2012 - 18:27 | 2155436 ACP
ACP's picture

It's not a question of who's dump enough to ramp; the question is moot. It's who has a bunch of money that's not his and who has a giant ego with a chip on his shoulder:
Madman Bernanke.

Mon, 02/13/2012 - 19:22 | 2155667 MarketWatchTerrorist
MarketWatchTerrorist's picture



It's actually not a very complex process, yet so few seem to "get it."


1. Lend money (fiat currency, of which you have infinite supply) to nations that you know will squander it.

2. Entangle those nations in your European Union/Euro zone

3. Eventually those nations have managed their economies so poorly, with your "free money" to help them along the way, that they come to the point of default

4. Drama

5. Offer to save them, if only they give up national sovereignty


What you people don't seem to understand, beyond even what I've just explained, is that how this Greece situation is resolved will likely decide the fate of the European Union and the New World Order itself.  As goes Greece, go all European Union nations...eventually.


So which is it, Europeans?  National sovereignty, preservation of national identity, and Democracy; or sacrifice of sovereignty, economic slavery, and subservience to the supranational European Union and New World Order - forever?


Make your choice, but this choice, once made, is quite permanent.

Mon, 02/13/2012 - 20:00 | 2155797 walküre
walküre's picture

How about making mortgage loans to illiterate people who can't even sign their own names?

You think there's a pattern there... ?

I know people who have PERFECT credit scores but they won't get loans unless they put up massive collateral. No rhym or reason.

Banks know FULL WELL who the most lucrative VICTIMS are!

Banks are no different than drug pushers roaming your local high schools.

Mon, 02/13/2012 - 20:15 | 2155853 MarketWatchTerrorist
MarketWatchTerrorist's picture

The banks are quite benign in the grand scheme of things.  It's the people using them as a weapon against Democracy and national sovereignty that are at issue.

Mon, 02/13/2012 - 18:05 | 2155359 Zola
Zola's picture

Europe is like an angry girlfriend who doesnt want to be the one to break up with you and makes your life more and more difficult until you dump her.

Mon, 02/13/2012 - 18:17 | 2155413 lolmao500
lolmao500's picture

Except the girlfriend is mind controlling you with a chip so you don't leave her and instead become her slave. (you know, like the unelected bankster running Greece now?)

Mon, 02/13/2012 - 18:40 | 2155478 maxmad
maxmad's picture

Except that your girlfriend is pregnant with your kid and you know she's got you by the ballz!

Mon, 02/13/2012 - 22:57 | 2156258 StychoKiller
StychoKiller's picture

"There must be 50 ways to leave your lover..."

Tue, 02/14/2012 - 04:38 | 2156718 The Navigator
The Navigator's picture

Like a Vampire Squid???? Where have I seen that before? Oh yeah, 2008! AIG, GM, GMAC (now Ally Bank, WTF???), GS Brokerage (now GS Bank,WTF??????).

Just take the WT out of WTF and now you know what you got, FUCKED.

Mon, 02/13/2012 - 18:05 | 2155363 cossack55
cossack55's picture

Yeah, USSA, USSA, we gots us at least 6 bankers in charge of the USSA. Take THAT Greece.

Mon, 02/13/2012 - 18:07 | 2155366 IdioTsincracY
IdioTsincracY's picture

This is what Greece gets after having been forced for years to spend 3%+ of their budget on military acqisitions coming mainly from France and Germany.


F@ck 'em all!!

Mon, 02/13/2012 - 19:28 | 2155687 MarketWatchTerrorist
MarketWatchTerrorist's picture

It was for protection.  Against sie Germans.  Oh wait...

Mon, 02/13/2012 - 20:03 | 2155813 walküre
walküre's picture

barely makes a dent in anyone's pocket.

but fooling a nation into endless wars and a constant state of panic with a false flag attack, billions in war spending and countless new alphabet organisations to spy on your own people, now that's worth considering.

Mon, 02/13/2012 - 18:06 | 2155367 francis_sawyer
francis_sawyer's picture

Lee Corso moment

Mon, 02/13/2012 - 18:27 | 2155438 maxmad
maxmad's picture

<as Lee puts on the Hitler bobble head>  Not so fast Greece!

Mon, 02/13/2012 - 18:06 | 2155369 ttown
ttown's picture

LMAO, extend and pretend. Hopium + QE to infinity and beyond. This market is a complete farce and a joke full of rampant fraud in compaines like CRM, PCLN, and AZO. Goodluck with that crap bagholders, ill keep my phsyical sivler!

Mon, 02/13/2012 - 19:17 | 2155652 ChrisFromMorningside
ChrisFromMorningside's picture

The bagholders will be ... whoever is depending on a 401K or a CALPERS-type pension to finance their retirement, along with the public treasury of the U.S. of A. These institutional players are the only ones still in the market. The retail investors have all either left the building or have nothing left to rob.

Mon, 02/13/2012 - 18:07 | 2155372 mayhem_korner
mayhem_korner's picture



They're just buying time for either (i) ISDA to ink a statement saying it would not be a "credit event", or (ii) the CDS-underwriting banks give them the thumbs up they've got it "covered."

Mon, 02/13/2012 - 18:12 | 2155387 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

$20 trillion will look like peanuts during the next round of collapse.

Mon, 02/13/2012 - 18:15 | 2155397 mayhem_korner
mayhem_korner's picture



$20 trillion will barely buy peanuts soon enough...

Mon, 02/13/2012 - 19:04 | 2155577 francis_sawyer
francis_sawyer's picture

Eat your PEAnutS...

Mon, 02/13/2012 - 22:32 | 2156217 BigJim
BigJim's picture

A trillion here, a trillion there... and pretty soon, you're talking real money.

Tue, 02/14/2012 - 04:43 | 2156721 The Navigator
The Navigator's picture

Yeah, like Quadrillions or Centillions - get used to THOSE numbers, we may be using them, or.................

Mon, 02/13/2012 - 18:15 | 2155401 falak pema
falak pema's picture

Even VGE, ex french President who promoted greek adhesion to Eu, also fathered the blueprint of the EU Constituion (which was never adopted), now says that it may be too difficult to keep Greece in Euro zone. So Greece loses its best advocate as member of Euro... bad sign.

Mon, 02/13/2012 - 18:37 | 2155462 Escrava Isaura
Escrava Isaura's picture

Falak, at least one in Germany knew what to do:

“Once the printing press stoppedthe prerequisite for the stabilization of the markthe swindle

would be at once brought to light…., the State itself was the biggest swindler and crook”

Adolph Hitler – Dying of Money page 14.

Mon, 02/13/2012 - 19:53 | 2155775 Babushka
Babushka's picture

good book 100%. Although Adolf was a bit of a kant and I don't mean philosopher ...

Mon, 02/13/2012 - 18:17 | 2155411 carbonmutant
carbonmutant's picture

DRYS is skyrocketing on the news of a bailout... and a positive BDI.

Mon, 02/13/2012 - 18:19 | 2155418 fonzannoon
fonzannoon's picture

Whats up with the BDI lately? Is everything fixed?

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