Greece Politely Declines German Annexation Demands

Tyler Durden's picture

Following yesterday's frankly stunning news that the Troika politely requests that Greece hand over its first fiscal, then pretty much all other, sovereignty to "Europe", here is the Greek just as polite response to the Troika's foray into outright colonialism:


What is interesting here is that unlike the highly irrelevant IIF negotiations which will end in a Greek default one way or another, the real plotline that should be followed is this one: because unless Germany, pardon the Troika, gets the one condition it demands, namely "absolute priority to debt service" and "transfer of national budgetary sovereignty", as well as a "constitutional amendment" thereto. there is no Troika funding deal. Furthermore, since as a reminder the PSI talks are just the beginning, the next step is ensuring compliance, as was noted yesterday ("[ceding sovereignty] will reassure public and private creditors that the Hellenic Republic will  honour its comittments after PSI and will positively influence market access"), any refusal to implement such demands is an automatic dealbreaker. Which means anything Dallara and the IIF say, as representatives of a steering committee that at this point probably constitutes of one bondholder, with the bulk having shifted to the ad hoc committee, is irrelevant. Germany just got its answer. And the next step is, as Zero Hedge first suggested, an epic LTRO in precisely one month, whose sole purpose will be to prefund European banks ahead of the Greek default with enough cash to withstand Europe's Bear Stearns. Although as a reminder, in the US, Bear Stearns only led to Lehman and the global "all in" gambit to preserve the financial system by shifting bank insolvency risk to the sovereigns (a chart showing bank assets as a percentage of host countries' GDP can be found here). But who will bailout the world's central banks which already collectively hold over 30% of global GDP in the form of "assets", or as this term is better known these days, debt?

And for those who missed it the first time, here was the Troika's declaration of bloodless war:


Some more local perspectives from Keep Talking Greece:

Athens categorically rejected the German proposal to cede control over its budget to the European Union as a precognition for the second bailout, the rescue package for Greece. “We can never accept this. A similar proposal was made in the past by a  Dutch minister. We do not even discuss about it” senior governmental sources told Athens News Agency (quoted via


AFP  quotes another (?) Greek government source, saying that ”There is effectively a ‘non-paper’ that was presented to the Eurogroup,” said the source and stressed that “Greece will not discuss such a possibility. It is out of the question that we would accept it, these are matters of national sovereignty.” At the same time the source told AFP that such a move would “require a change in (EU) treaties.”


The proposal as published by newspaper Financial Times triggered strong reactions in Greece. Education Minister Anna Diamantopoulou (PASOK) described it as the product of a sick imagination. “Tt’s an issue of sick imagination, whoever thought it” Diamantopoulou told private Mega TV on Saturday morning.


So far there has been no reacton by the other two coalition government partners conservative Nea Dimokratia and far-right LAOS.

Greek Communist Party (KKE) said “f the Commissioner be necessary for the plutocracy, it will accept him. But with or without a commissioner, crime against the people is predetermined by the co-ruling of the EU the ECB and the plutocracy in general. ”


Alexis Tsipras, chairman of left-wing SYRIZA asked the Greek government to resing immediately and general elections to be held in February. He describeed the transefer of budget control as “a plan beyond any reason. “It is a plan to loot the country and the transfer of its sovereignty to the Eruopean banks and the international usury” Tsipras said (via Proto Thema)

Finally, to anyone who is still confused by the sequence of events, here is a reminder of how it would all transpire, back from July 21, 2011:

The Fatal Flaw In Europe's Second "Bazooka" Bailout: 82 Million Soon To Be Very Angry Germans, Or How Euro Bailout #2 Could Cost Up To 56% Of German GDP

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kato's picture

What a mess. Germany gets blamed no matter what.

hourglass86's picture

Hitler would be proud anyway.

misterc's picture

Nazi military used to take a lot of local hostages to make sure demands were met 110%.

Guten Tag, Herr Kommandant!

Nobody special's picture

Germany's actions are understandable, and it's good that they're both understanding this isn't a gift. It's not going to happen and it's not supposed to. Funding a perpetual debtor is a bad decision in any situation.

Personally, I think Greece should become the next Iceland. Then Portugal, Spain... and pretty soon banksters will realize they need to play a bit more fair, or lose everything.

Comay Mierda's picture

Understandable? You have bought into the illusion. The euro was designed to fail. That way all sovereignty is consolidated into the hands of a few unelected technocrat dictators. Stop being a sheep

OttoMBMP's picture

This is an attack on Greeces independence not for the sake of German interests but for the sake of EUSSR power and NWO which Merkel is an agent of.
The anti- German propaganda is the only thing I do not like at ZH.
Germans don't gain anything in this game. So don't blame them. Thisnis unfair.

smlbizman's picture

you have to admire their style....ask for the surrender first...kinda like the biggest dude in the joint saying please before he rapes you ......

JW n FL's picture



Meanwhile Germany is at odds with the rest of the world over its proposals for tackling the eurozone crisis, he added.

"What applied to Germany in the 1990s does not work for Europe in 2012. So there has to be a second phase. I think it is important they should start thinking about it because without it, the situation is hopeless. And without hope, people do not act the right way.

"It is not that difficult to recognise that once you have got austerity and these labour reforms that you need and so on, you then still need a stimulus and you must find some way of stimulating the economy because there is a deficiency of demand in the world," he added.

Asked whether today's unsustainable situation can be viewed as an opportunity, Soros replied he is not playing the eurozone crisis.

"Opportunities are dangerous. I am no longer speculating on the market. I am now in a sort of a game piece trying to keep the system together because I really think it matters for all of us, for humanity, for hedge fund managers as human beings that our civilisation should survive," he said.

"So right now I am sort of on the side of the angels, not a player along to play."

Read more:


PROOF! That Soro's is NOT! ONLY!! doing Gods Work on Wall Street (via the White House in Washington DC).. BUT! as well, in Europe!

I feel better already!

We are ALL! Saved!


Uploaded by RussiaToday on Jan 28, 2012

In this episode, Max Keiser and co-host, Stacy Herbert, discuss the State of the Banana Republic, the blowout at Apple with its profits 'trapped' overseas and the gloomy State of the Stiff Upper Lip as UK family debts soar by nearly 50%. And, finally, Max and Stacy examine a proposal that bankers, like Goldman Sachs' Lloyd Blankfein and JP Morgan's Jamie Dimon, should compete like strippers on the open job market.




zaphod's picture

What the German (and EU) elites seem to fail to grasp is the old saying "when you owe the bank one million it is your problem, but when you owe the bank one billion it is the bank's problem"

All the previous bailouts to Greece did was give them even more power over the EU, because unless they are willing to pay it back, the pain will be borne by other EU countries.

Unless Germany is willing to march into Greece with tanks and enslave the population, they are never getting anything back that they put into Greece. Same goes for any new funds/bailouts.

In the end Greece is going to walk away from 100% of their obligations, it is the Greek way. The bonds are not going to be cut 50% or 80%, they are just not getting paid at all.

It seems this is what the EU elites are trying to avoid, because a full Greek walk away will trigger CDS....

Vampyroteuthis infernalis's picture

Prepare for Greek bank holiday. The free money to keep Greek cronies in power has evaporated.

He_Who Carried The Sun's picture

Just throw Greece out of the window and done...!

The Big Ching-aso's picture



" magnificent slut, I read your book!"

George S. Papandreou

Oracle of Kypseli's picture

The funny thing is that the Greek banks are holding large amounts of credit default insurance and if Greece defaults the Greek banks will then be solvent again.

It looks like the ECB is snookered by a modern Odysseus. 

James-Morrison's picture

I'm sure a few well placed bribes by the alphabet-soup European bureaucracy will coerce the Greek leaders to change the Greek law permitting the bloodless takeover of Greece.  

The real question is what happens next.   Will the rioting Greek populace find any western allies to support them after they pitch fork their leaders. 

They may have to turn to Iran...

waylon153's picture

Agree.  It will be sold as "The needs of the many outweigh the few."  But, the irony is that by saving the banks it's really "The need needs of the 1% outweigh the needs of the 99%".


How does that line from Margin Call go? 'No matter what happens, these guys DO NOT lose money.'

Freddie's picture

The other thing is there is nothing to get in Greece.  It is like foreclosing on Detroit or Haiti.  Greece will always be poor.   I agree the whole EU EUSSR is designed to enslave.  Notice how they ramped this shit up right after the fall of the iron curtain.   Same european family with their agents like soros and the rockefeller plus oligarchs and the tribe.

BlackholeDivestment's picture

JW, lol, that Soros is a funny nutball. ''sort of'' ''on the side with the angels'' ''right now''. Blaa haa haa haaa.

So lets get this reverse speech straight. ''right now'' and ''sort of'' = ''Fallen Angels'' 

This asshole is not even lukewarm, he is a pathetic nutball attempting to hide his contempt with his dark deceptive words. He offered an invocation with fallen angels that can easily been seen in the light of reality this sick bastard's market moves and political puke represent. 

...this boy is hot hot ...burning haaaaaaot.



Doña K's picture


This is not about German people. this is about elites & globalists controling EU politics. The German people have already raise their voices. Maybe they should speak louder.

redpill's picture

Despite having some German ancestry myself, let's just say the German people don't have the best track record when it comes to speaking up when they should.

I wonder if Lucas Schuschnigg, er I mean Papademos would agree.


OttoMBMP's picture

Dear redpill, that may be true.

But this is probably true for most of the other peoples on earth.

Germans have been put in very particular situations over the last 150 years and I wonder how the US people will behave when it will be faced with  so far unnknown challenges in the coming years.

And even now, when it is almost riskless: Where is the overwhelming support for Ron Paul? Where is the opposition to worldwide US aggression ongoing since 1898?

Freddie's picture

As compared to American sheep brainwashed by TV and Hollywood with their love for the muslim?  You sound like a serf/sheep who watches TV.

Michael's picture

My plan all along was to get the private central banks to be the bag holders and watch them blow themselves up.

Bunga Bunga's picture

I don't think Merkel is a volonteer agent, she has no other choice to say what she says. I always wondered why the elites are picking political leaders with questionable background (IM Erika). They can fully control them.

steve from virginia's picture

First of all, the Germans would have a lot more credibility if they were speaking as the United States of Eurozone rather than as Germans.

Why is there no United States of Eurozone? Because the Germans don't want one. Yes, we can pick on the Germans who want their cakes and to eat them at the same time.

To solve this 'matter' the Europeans have to get real about fiscal counterparty to the central bank. They can then buy some time (with their euros) and use it wisely ... to de-industrialize.  If they don't do anything or continue as they are Europe will be de-industrialized, without any say in the matter.

Second, the bankers obviously don't get out very much. They assume the Greeks are sitting on piles of cash money and that punishment will force them to turn it over. The bankers are acting like (stupid) band of robbers who don't understand their own business. Greece is indebted to France (etc.) which is indebted to Germany (etc.) which is indebted to the UK (etc.) which is indebted to the United States (etc.) and back again. It isn't just Greece that is bankrupt, everyone is. Everything that stands as a claim against Mr Bankruptcy is worthless, that includes debt which also includes the system's money.

There is nothing left to buy. You have your industrial money, what do you buy with it?  Increasingly, the answer is ruin.

AnAnonymous's picture

That is the reason why Europeans want to blob.

By the way, it is false to tell that everyone is in the same situation.

A number of countries can grow out of their debt or in a sustainable scheme.

But the very existence of unsustainable growers, of big major insolvent players pushes everyone in the same condition.

Even somebody who has no debt at all is in the same situation because the resources to be allocated to debts that can not be repaid crushes the possibility.

Still some people live in a sustainable way of life, stone age like. But due to US citizens impact on the world scale, those people share the same no future fate as US citizens.

US citizens consume so many resources they have tied everybody else to their destiny.

Useless to make a human thing.

It is just US citizens diluting their responsibility once again.

Prairie Fire's picture

What the fuck are you saying here? It makes no sense at all--what do you mean by 'even somebody with no debt is in the same situation...' Are you inbred or just a typical ignorant fuckface socialist?

Greece DESERVES what its about to get. The civil (pigs at the trough) servants, bloated social programs, ridiculous entitlements, the list goes on and on--clearly this is a great lesson for ALL socialist/communist idiot scumbags out there--Greece IS the end result of the overspending governments take on to win power and votes. Socialism is cancer, it makes people lazy, dissolves ambition, erases any sense of self-determination and self respect. Instead of 'what can I do to improve my life' people start to demand the government to do something to improve their lives. Greece is the end game for all socialized/unionized countries. I encourage you all to take note of this 'free lunch syndrome' and begin to see it as the evil it is.

Greeks are nothing more than a pack of nanny state crybabies wetting the bed--they are facing the fact that they will have to work for a living, past age 50, and learn to stand on their on two feet without the communist handout machine to feed them and satisfy their want of luxury and reward without sacrifice.

I for one applaud the Germans for taking the initiative here--it will be a monstorous task to teach these brainwashed Greek liberals how a budget is supposed to function, but as they obviously don't want to do the dirty work themselves, let the Germans--known for their productive, hard working society--do it for them. Loss of soverignty doesn't really matter to the Greeks, they would trade it for a new swimming pool in a heartbeat.

palmereldritch's picture

Socialism is just domestication of the individuals in the herd to become docile collectivists within the statist corral.


Evidence indicates that domestication occurred approximately 10,000 years ago in many parts of the world, as a direct result of wild cattle being attracted to the fields of grain being cultivated by early farmers.

During the long process of domestication, the keeping different types of wild cattle in pens resulted in a reduction in the size of the animals through cross mating. Not only did they gradually become smaller, but their temperaments become more docile

AnAnonymous's picture

what do you mean by 'even somebody with no debt is in the same situation...' Are you inbred or just a typical ignorant fuckface socialist?


If it is what it takes to admit certain obvious facts, then it is what I am.

Even though, straightlier, it makes me an admitter of obvious facts. Something beyond the reach of your typical US citizen.

With the world being global now, if one agent reaches the point of unsustainable debt on the global scale, as US citizens have done, it no longer matters if the others are on a course of sustainable debt or even debt free.

Tunga's picture

"... Europeans want to blob" - anAnonitizensisum


Stop trying to make blob happen.

Stupid git.


SMG's picture

Germans don't gain anything in this game. So don't blame them. Thisnis unfair.


I agree.  The elite love to play the useless eaters against each other, laughing at us while we claw at each others throats.

This is all about creation of a new Global Luciferian Empire.

caconhma's picture

Very often, ZH behaves as a provocateur. Similar to Wikileaks before or the John Burch Society financed by Rockefellers.

So, who is paying ZH bills? CIA or HLS?


disabledvet's picture

the Film Actor's Guild (FAG) actually.

agent default's picture

ZH is funded by Tyler who makes millions by selling rich fat women their asses back.

Ghordius's picture

Mmmmh... How to top this? The FED for "psychological market operations to increase general inflation expectations". What I mean is rumors and facts speak an independent language from their funding...

Reese Bobby's picture

The only thing "I do not like at ZH" is the assumption that you Godless Krauts have no sense of humor based solely on cultural differences.  Just because Americans wince at jokes like, "...and then the Jew bitch begged for the lives of her children, HA, HA, HA," doesn't mean it isn't funny to you Rhine monkeys.

hourglass86's picture

Where did you see Zero Hedge blaming the German citizens or the Greek citizens? Zero Hedge is doin a great job and you should consider urself lucky that a blog like this exist because otherwise you would read bloomberg.

Dcheeth2's picture

And therein lies the answer to all of Europe. 


Its the sole reason why the commission is unelected and the actual elected MEPs do not decide or vote on any of the Commissions decisions. 

Power in the hands of a few. How Hitler would indeed have been proud. Well, actually, he wouldn't. 


Lenin is the one who has thrown bunting all over his mausoleum. 

Element's picture

Understandable? You have bought into the illusion. The euro was designed to fail. That way all sovereignty is consolidated into the hands of a few unelected technocrat dictators. Stop being a sheep


The system Merkel wants implemented, with deficits maintained below REAL GDP at all times, will never be permitted to survive, because the banks then would not be able to increase public debt, and so easily steal (force sales of) public assets. 

So the Red Shield must throw fuel on Merkel and put a match to any political moves to implement that sort of Federal legal or constitutional arrangement.

She and Germany will be mulshed to prevent that, as the last thing Red Sheild want is responsible political leaders ... like ... Ron Paul.

e-recep's picture

you think TPTB are semi-gods who plan and control anything and everything? naah, i don't buy that. history is full of examples of excessive greed and eventually expulsion of usurers. when all falls apart they pay a huge bill, too.

knukles's picture

It's not a gift?
What in the world is it called when one loans funds to another with no expectation of being paid back?
Oh, that's right; Fraudulent Conveyance 

No, it's not a gift.


Lost Wages's picture

As much as I'd like to see some Greece'd Lightning lighting up the Eurozone, I can't see them doing the right thing with an unelected banking kleptocrat for a Prime Minister. Didn't Europe already take away their sovereignty when they installed Lucifer Papa Demons?

Dedicated to Greece:

Have some balls. Default on the debt, bitchez.

Comay Mierda's picture

Like I said before - hitler is laughing in hell right now. What he couldn't accomplish with tanks, the NWO will accomplish with banks. Not one shot fired and they will conquer all sovereignty of euro countries. The sheeple better wake up and do something about it.

BlackholeDivestment's picture

...kinda looks prophetic now don't it? You know why? ...because it is.

sunny's picture

Not one shot fired and they will conquer all sovereignty of euro countries. 

This actually has surprised me a wee bit.  So far the only physical violence has been between pissed-off citizens and the cadre of policy hired to protect TPTB.  I wonder how long this more or less civil rape of the 99% will continue before someone goes postal. 


Michael's picture

Occupy has all the names and addresses of the perps.

Prairie Fire's picture

Sure Occupy has a case about the banksters getting the bailout, I'm on board with that.

But as a whole, they are a bunch of lazy backassward nannystaters that should be sent off to work camps in order to repay their debt to the productive elements of society. That's the nicest thing I can say about them.

You should see a doctor about curing up that nasty case of socialism you've contracted.