It's Official: German Economy Minister Demands Surrender Of Greek Budget Policy, Says It Is First Of Many Such Sovereign "Requests"

Tyler Durden's picture

While over the past 2 days there may have been some confusion as to who, what, how or where is demanding that Greece abdicate fiscal sovereignty (with some of our German readers supposedly insulted by the suggestion that this idea originated in Berlin, and specifically with politicians elected by a majority of the German population), today's quotefest from German Economy Minister Philipp Roesler appearing in Germany's Bild should put any such questions to bed. And from this point on, Greece would be advised to not play dumb anymore vis-a-vis German annexation demands. So from Reuters, "Greece must surrender control of its budget policy to outside institutions if it cannot implement reforms attached to euro zone rescue measures, the German economy minister was quoted as saying on Sunday. Philipp Roesler became the first German cabinet member to openly endorse a proposal for Greece to surrender budget control after Reuters quoted a European source on Friday as saying Berlin wants Athens to give up budget control." And some bad news for our Portuguese (and then Spanish) readers: you are next.


"We need more leadership and monitoring when it comes to implementing the reform course," Roesler, also vice chancellor, told Bild newspaper, according to an advance of an interview to be published on Monday.


"If the Greeks aren't able to succeed themselves with this, then there must be stronger leadership and monitoring from abroad, for example through the EU," added Roesler, chairman of the Free Democrats (FDP) who share power with Chancellor Angela Merkel.


Reuters reported on Friday that Germany wants Greece to give up control of budget policy to European institutions as part of discussions over a second rescue package.


Greece, which has repeatedly failed to meet the fiscal targets set out by its international lenders, is in talks to finalise a second 130 billion-euro ($172 billion) package.


With many Greeks blaming Germans for the austerity medicine their country has been forced to swallow, officials in Athens dismissed the idea of relinquishing budget control as out of the question.


Finance Minister Evangelos Venizelos said on Sunday Greece was perfectly capable of making good on its promises.


"Anyone who puts a nation before the dilemma of 'economic assistance or national dignity' ignores some key historical lessons," he said in a statement before heading to Brussels for a European Union summit on Monday.

And by the way, this is just the beginning:

A government source in Berlin said Germany's proposal was aimed not just at Greece but also at other struggling euro zone members that receive aid and are unable to make good on their obligations.

So yes, it is true, and Germany is dead serious. Ball is in the Greek court now: just how far will the new technocrat PM go to sell its people in exchange for a few banker smiles?

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hooligan2009's picture

whats greek for "GHANDI"!

akak's picture


hooligan2009's picture

ok you got me..i got lost after kojak's brother got hit on the head with a lollipop :)

Atomizer's picture

Beating a dead horse has become EU's main circus attraction.

whaletail's picture

Behold the concept: Sovereign Receivership

Catullus's picture

Vassalage, Mein Technocrat.

hooligan2009's picture

more like the new technocrat  is baron von vaseleine der derriere

Heroic Couplet's picture

Or the Greeks could just review Iceland's solution and get everyone in the lower and middle classes to do a gigantic search and replace and call themselves Iceland. Problem solved.

No Greek in his right mind would think a silo full of Greek olives would magically double overnight, and yet that's exactly what central bankers thought empty houses would do: a $75,000 suburban house magically becomes $575,000.

The cental bank "wealth" is imaginary wealth and therefore doesn't exist.  The debt doesn't exist except to screw central bankers and expose them as worthless morons. The primary economy and secondary economy in Greese, er, Iceland, is fine. The more bankers, hedge fund managers, and day traders destitute, broke, unemployed, and on food stamps, the better off the world will be. Collateralized Debt Obligations indeed.

ThisIsBob's picture

Here's how you figure it out:

Just because they use a common coin would the citizens of the "country" of New Hampshire dig into their pockets for dough to give to inept politicians in the "country" of Mississippi so they could pay interest to vampire squid bankers in the "country" of New York?

hooligan2009's picture

true...but nonetheless an inconvenient truth...oops whatver happened to the red dress..maybe we could make it a national flag with knights of the round table led by sir cumspect!!! (apologies, i know it was gore(ing) with his version and clinto who got stuck with the dry cleaning bill heh)

847328_3527's picture

"debt deal near"....?....again?

Atomizer's picture

The playbook on how to ransack and pillage the peasants.

On May 23, 1933, Congressman, Louis T. McFadden, brought formal charges against the Board of Governors of the Federal Reserve Bank system, The Comptroller of the Currency and the Secretary of United States Treasury for numerous criminal acts, including but not limited to, CONSPIRACY,FRAUD, UNLAWFUL CONVERSION, AND TREASON. The petition for Articles of Impeachment was thereafter referred to the Judiciary Committee and has YET TO BE ACTED ON.



Struan's picture

Economy is the same as Religion. It is first mentioned in Bible in the money parabola1. Look it up, it is with coins2

In the hunter-gatherer age there was no money, there was honey and stuff. Bible came and after that, money. We do have a part of the brain which deals with religion, but I guess we evolved. That is  man interfering in society's organization from the beginning of society. I think there are better systems.

From the subnotes you can draw a hole hell of a conclusion.


Jesus often told a story to teach a lesson. Hear the story of the talents:

  • 1. This man went to work at once using his money until he had doubled it. He now had ten talents instead of five.
  • 2. The master gave the second man two talents
ThisIsBob's picture

Q:  How many tablets did the man have left?

A:  198, as he had levered 40-1 in a synthetic off balance sheet swap.

earleflorida's picture

Moses, brother Aron, would be proud

as the goden calf took on monumental character in moral, and monetary meaning

Struan's picture

This is freaky. That really means money is our god:))

skistroni's picture

If the rate of decrease in Greek politician's acceptance by the people keeps on like it is currently, don't be surprised to see a German running for Prime Minister next year, and getting the full majority vote.

Especially if he would promise to prosecute previous deputies, ministers and prime ministers for what they did to the country. Boom !!!  - more than 50% in the elections.

You might laugh about it now, but just wait a little bit more.  

To be clear, I'm not supporting such a future for Greece, I'm just reading the signs of what people feel like here. 

Jacks Cold Sweat's picture

the rate of acceptance is plunging yet Greeks are only rage posting in FB and other news blogs maintaining their passive aggresive stance they have been keeping for years.

Ghordius's picture

Not laughing, a few Greek friends make similar comments

supermaxedout's picture

I can imagine that, because the Greeks have a very good experience with a German during the last ten years. Dont laugh. Its about the former coach of the National soccer team of Greece. His name is Otto Rehagel and he manged the impossible. He was able to form an excellent Greek National team despite all the corruption and difficulties and despite the fact that the Greek National team had a terrible performance since ever.

What nobody in Greece expected happened. Greece became European Champion this was seen somehow as a miracle and all of Greece knows, that it was only the merits of Otto Rehagel who disciplined the players and formed a real team. The Greeks had in principle only average players but as a team they were unbeatable. This was a realy big thing in Greece and is mattering till now.

The Greeks love Otto Rehagel and call him Rehakles. He did more for the good relations between Greece and Germany than any other person alive.



WhiteCap's picture

In addition to Tyler's headlines, more Greek PM quotes are hitting my newswires; 

Lukas Papadimos  
"Greece won't be able make the 14.5b Eur bond payment due on March 20, unless the new aid package and the PSI talks are finalized  by Wednesday. This in turn will mean that we've missed the train and such a development would mean the bankruptcy of Greece."  


kanenas's picture

1) If GReece gets a "stronger leadership and monitoring" from EU or abroad, who will be doing the tax collections and policing on the roads? A "stronger  police and authority" from EU or abroad?

2) Who on earth is setting the targets on these programmes? Troika can blame it on weak greek leadership, but do they honestly belive they would be more successful?

Under a single hard currency, with no import duties, no protection against transfer pricing, and without real local economy subsidies allowed, no country can 'spring' back to competitiveness.

earleflorida's picture

the greek's need a 'bear hug' - a bloated bureaucracy is a great feast for a czar's exit from a long, long-enough hibernation to satiate its growing pains on frozen carrion - no questions asked,...  

long_life_euro's picture

Willkommen to the United States of Germany

itsonlymoney's picture

Bild is the equivalent of the National Enqiurer (check it out at - If the story appears in Handelsblatt or Frankfurter Allgemeine Zeitung then at least it will have credibility.  Not to say that the events are not happening, just think they should be reported free from sensationalism and embellishment.  They are sensational enough without that.

Meta Fundamentalist's picture


Fellow ZH readers, im looking for a good read on Fabian Society/ Fabianism, maybe someone can share his knowledge with me, and provide me with a good link on Fabianism.

Thanks in advance.

hooligan2009's picture

whatever rocks your can try this..

or this


be well!


JR's picture

The men who drafted the IMF/World Bank’s manipulated paper standard—their monetary unit called the SDR or Special Drawing Rights -- were Fabian Socialist from England, John Maynard Keynes, and the Assistant Secretary of the U.S. Treasury, Communist Harry Dexter White.

The most revealing component of the Fabian crest is a wolf in sheep’s clothing.

“One of the early American advocates of socialism on a global scale – including the draining of wealth away from the ‘rich’ United States—was John F. Kennedy.  He undoubtedly learned the concept while attending the Fabian London School of Economics in 1935-36 just prior to his father’s appointment as Ambassador to England.” – G. Edward Griffin, The Creature from Jekyll Island: A Second Look at the Federal Reserve.

(Kennedy was the first president to impose income taxes on all earnings of cooperatives (private savings and lending institutions) and their patrons, as requested by the banking industry. Kennedy would apply the withholding principle to patron dividends. The President called for withholding on interest and dividends, saying it was “unfortunate.”)

Here are some comments with names regarding the Fabians to get you started on you internet research (and it would be wise to get Griffin's book):

“The Fabians were an elite group of intellectuals who formed a semi-secret society for the purpose of bringing socialism to the world.  Whereas Communists wanted to establish socialism quickly through violence and revolution, the Fabians preferred to do it slowly through propaganda and legislation.  The word socialism was not to be used.  Instead, they would speak of benefits for the people such as welfare, medical care, higher wages, and better working conditions.  In this way, they planned to accomplish their objective without bloodshed and even without serious opposition.  They scorned Communists, not because they disliked their goals, but because they disagreed with their methods.  To emphasize the importance of gradualism, they adopted the turtle as the symbol of the movement. The three most prominent leaders in the early days were Sidney and Beatrice Webb and George Bernard Shaw. A stained-glass window in the Beatrice Webb House in Surrey, England is especially enlightening. Across the top appears the last line from Omar  Khayyan:

Dear love, couldst thou and I with fate conspire / To grasp this sorry scheme of things entire, /  Would we not shatter it to bits, and then / Remould it nearer to the heart’s desire.

Beneath the line Remould it nearer to the heart’s desire, the mural depicts Shaw and Webb striking the earth with hammers. Across the bottom the masses kneel in worship of a stack of books advocating the theories of socialism.  Thumbing his nose at the docile masses is H.G. Wells, who after quitting the Fabians, denounced them as ‘the new Machiavellians.’ The most revealing component, however, is the Fabian crest with appears between Shaw and Webb. It is a wolf in sheep’s clothing.”* – G. Edward Griffin, The Creature from Jekyll Island: A Second Look at the Federal Reserve.


*See Zygmund Dobbs, The Great Deceit: Social Pseudo-Sciences (West Sayville, New York Veritas Foundation, 1964), opposite p. 1. Also Rose L. Martin, Fabian Freeweay: High Road to Socialism in the U.S.A. (Boston: Western Islands, 1966), pp.30, 31.

Meta Fundamentalist's picture

The Thought of capitalism for the Elite, poverty and marxism to the people, seem to describes the situation we are in.

It struck my G.Orwell/Huxley cort.

George Bernard Shaw, the first to come up with gasing your fellow citizen.

Ixquick it.

djsmps's picture

A trip down memory lane:

Fed Spending Will Create 3 Million Jobs: Yellen

 Saturday, 8 Jan 2011 | 5:04 PM ET

U.S. Federal Reserve Vice Chair Janet Yellen on Saturday defended the central bank's asset buying, citing an internal study showing the economy will gain 3 million jobs as a result of all of the Fed's purchases.

"It will not be a panacea, but I believe it will be effective in fostering maximum employment and price stability," Yellen said in remarks prepared for delivery to the American Economics Conference.

Yellen said a simulation approximating the Fed's most recent asset-buying program was shown to generate about 700,000 new jobs.

The study goes on to suggest that inflation is currently a percentage point higher than would have been the case, implying that if the Fed had not bought longer-term securities after cutting interest rates to near zero in December 2008, the economy would now be close to a damaging deflationary spiral.

Yellen said longer term interest rates are currently lower than they would otherwise have been. Concerns about the Fed's controversial $600 billion bond-buying program—that it will cause inflation, imbalances, and trigger a damaging competitive currency devaluation—are misplaced, she said.


Atomizer's picture

How will these alledged jobs contribute to GDP?

hooligan2009's picture

oops ignore the last comment..i didnt turn the calendar over and read 2011 as 2012! still applies tho!



that's easy then...just buy back another 10 trillion of treasuries out of the 16 tirllion and we have full is soooooooo easy when you have never had to do a day of real work in your life! leep printing 2 trillion a year and we never even have to pay taxes! simples...(sarc off...effing meerkats)

chindit13's picture

Apologies for the multiple butcheries of the words of Santayana, but those who fail to learn from their mistakes (of historical proportions) are condemned to repeat them.

q99x2's picture

China and Russia could offer Greece a nuke to hold for them. They could offer Greece the yaun to use as currency. Every country needs leverage against bankster occupation.

Joseph Jones's picture

As reported, did the ECB agree to forgive 1/2 the Greek debt?  Also, did Greece not agree to said forgiveness, apparently desiring/requesting/demanded more forgiveness than 1/2? 

What does this mean to readers?  What should it mean to a reasonable person?  What is a reasonable conclusion to draw? 

PORTA PORTA's picture

I have a suggestion to all the friends commenting on this post.

Erase the word DEMORCACY from your dictionary. Use anither one....

What they wish to do to my country, is a working execrise for the rest of the world.

The Shock Doctrine is working perfectly so far. 

Before jumping to colclusions think how needless is it to condemn a nation and its citizens from tha safety of your - so called- security.

US lost its freedom right after 911. They didnt fight for their freedom. They are still afraid to travel abroad. They lost their personal dignity by allowing their Gov to capitalize on the "terrorist" threat.

In our case the terrosist is the DEBT and the Greek citizens. The bad guys down south of Europe.

All politicians are a tragic waste of skin. Worthless.

For people like myself - who know 1-2 things in detail ( financial and political ) - its is a nightmare. Honestly.

Not only for us the Greeks, but i foresee the worst for all of you. How? When? Who? you know who.., the guy who will decide one day that YOU ARE DISPOSABLE as a person. Today you are.. since you alny live with/on personal DEBT. DEBT creates THEIR MONEY.. so YOU are the MEANS to their END. You will be the next terrosist in line, to by sucked to the last drain of your life. They will make you feel GUILY.. and melacholic since you are guilty.

After they have arranged that YOU FEEL GUILTY.. then they will tell you... you US guys you owe 40K a head to the Gov the minute you come to life. We need that money back.AND THEY WILL GET IT.


I can answer to ANY QUESTION you may have.. in any Global Financial Issue.... country.. whatever...




PS.. have a llok at this report..

Who do you think will be the next to lose their DEMOCRACY ? like in 40-60 days..!









PORTA PORTA's picture

Plz read


October 4, 1936

Attacks on Congressman McFadden's Life Reported

....Commenting on Former Congressman Louis T. McFaddens's "heart-failure sudden-death" on Oct. 3, 1936, after a "dose" of "intestinal flu," "Pelley's Weekly" of Oct. 14 said:

....."Now that this sterling American patriot has made the Passing, it can be revealed that not long after his public utterance against the encroaching powers of Judah, it became known among his intimates that he had suffered two attacks against his life. The first attack came in the form of two revolver shots fired at him from ambush as he was alighting from a cab in front of one of the Capital hotels. Fortunately both shots missed him, the bullets burying themselves in the structure of the cab."

"He became violently ill after partaking of food at a political banquet at Washington. His life was only saved from what was subsequently announced as a poisoning by the presence of a physician friend at the banquet, who at once procured a stomach pump and subjected the Congressman to emergency treatment." /s/ Robert Edward Edmondson (Publicist-Economist)

President Andrew Jackson stated in reference to the bankers at the state of his administration:

"You are a den of vipers and thieves. I intend to rout you out, and by the Eternal God, I will rout you out."



PORTA PORTA's picture

L Mc Fadden 1934

Roosevelt Seizes the Gold

"By his action in closing the banks of the United States, Roosevelt seized the gold value of forty billions or more of bank deposits in the United States banks. Those deposits were deposits of gold values. By his action he has rendered them payable to the depositors in paper only, if payable at all, and the paper money he proposes to pay out to bank depositors and to the people generally in lieu of their hard earned gold values in itself, and being based on nothing into which the people can convert it the said paper money is of negligible value altogether.

"It is the money of slaves, not of free men. If the people of the United States permit it to be imposed upon them at the will of their credit masters, the next step in their downward progress will be their acceptance of orders on company stores for what they eat and wear. Their case will be similar to that of starving coal miners. They, too, will be paid with orders on Company stores for food and clothing, both of indifferent quality and be forced to live in Company-owned houses from which they may be evicted at the drop of a hat. More of them will be forced into conscript labor camps under supervision.

"At noon on the 4th of March, 1933, FDR with his hand on the Bible, took an oath to preserve, protect and defend the Constitution of the U.S. At midnight on the 5th of March, 1933, he confiscated the property of American citizens. He took the currency of the United States standard of value. He repudiated the internal debt of the Government to its own citizens. He destroyed the value of the American dollar. He released, or endeavored to release, the Fed from their contractual liability to redeem Fed currency in gold or lawful money on a parity with gold. He depreciated the value of the national currency.

"The people of the U.S. are now using unredeemable paper slips for money. The Treasury cannot redeem that paper in gold or silver. The gold and silver of the Treasury has unlawfully been given to the corrupt and dishonest Fed. And the Administration has since had the effrontery to raid the country for more gold for the private interests by telling our patriotic citizens that their gold is needed to protect the currency.

"It is not being used to protect the currency! It is being used to protect the corrupt and dishonest Fed. "The directors of these institutions have committed criminal offense against the United States Government, including the offense of making false entries on their books, and the still more serious offense of unlawfully abstracting funds from the United States Treasury! "Roosevelt's gold raid is intended to help them out of the pit they dug for themselves when they gambled away the wealth and savings of the American people."



PORTA PORTA's picture
New York City,  December 17, 1913 


"'My Dear Senator Weeks:  

"'Throughout my public life I have supported all measures designed to take the Government out of the banking business. This bill puts the Government into the banking business as never before in our history. "'The powers vested in the Federal Reserve Board seen to me highly dangerous especially where there is political control of the Board. I should be sorry to hold stock in a bank subject to such dominations. The bill as it stands seems to me to open the way to a vast inflation of the currency. "'I had hoped to support this bill, but I cannot vote for it cause it seems to me to contain features and to rest upon principles in the highest degree menacing to our prosperity, to stability in business, and to the general welfare of the people of the United States.  

Very Truly Yours, 

Henry Cabot Lodge.'"


hooligan2009's picture

and he believed in the superiority of the anglo-saxons..hmmm..

PORTA PORTA's picture

whatever... this is not the case in his remark.. dont forget it was 1913... 100 ago !


Richard Whitney's picture

surrender control of budget to outside institutions = no longer a sovereign = no longer has a seat in the U.N.

When are the consequences of this surrender going to be discussed?

PORTA PORTA's picture

discussed by who?

all citizens around the world should discuss this new fascist order.-


Joseph Jones's picture

This question is admittedly very aggresive, but that should not discount its legitmacy.

When the EU formed the overwhelming reports were this union signlaled the end of USD hegemony.  A few decades later the EU appears destined for the dust heap of history.

Now the underground media (this blog, for instance) says the entire world economy is just ripe for Armegeddon. 

What/why/how should any reasonable person put any more stock in the former vs. the later?


MsCreant's picture

You need to ask more questions. I think you have some assumptions that not all would agree upon.

"When the EU formed the overwhelming reports were this union signlaled the end of USD hegemony."

Most on this blog thought the whole Euro experiment was a bad idea. You get lots of differing opinions about why it was a bad idea. Conspiracy folks saw it as a step towards one world currency/govt. Others thought that the cultures and resources of the countries involved were too different from one another for them to succeed as a union.

"A few decades later the EU appears destined for the dust heap of history."


"Now the underground media (this blog, for instance) says the entire world economy is just ripe for Armegeddon."

I fear you have set up a false if/then statement. Your first proposition would be viewed as wrong by many here. 

You have been reading here for a while. You should know the following:

Goldman Sachs and others helped Italy, Spain, Greece, and probably more hide bad debt so that they could get into the EU.

The United States Banking system has been accepting payments for insurance (CDS) against default on those bonds. If they default, the US banking system must pay out to the bondholders.

The US banking system does not have enough in reserves to do this.

Meanwhile, the US has been selling bonds that few except Primary Dealers have bought. In fact, many other countries are selling the bonds of ours that they are holding. The market is flooded with soverign debt with few buyers. Meanwhile, the Primary Dealers representing the Treasury sell these to the Fed in a few days to three weeks. The PDs make billions of dollars doing this for the Treasury and Fed. To say this differently, we are printing, buying our own debt, or kiting checks to keep funds flowing throughout our various entities. The Fed is also "swapping currencies" with other countries CBs and allowing soverigns to "borrow" printed dollars while the Fed takes on their bad assets as "collateral." If they default, the US taxpayer is backstopping the Feds balance sheet. These kinds of swaps, exchanges, and "borrowing entities" with lots of fancy initials are the only thing keeping the house of cards up.

In my opinion, these facts are why a reasonable person would believe that financial armegeddon is here and those who run the system are trying desperately to scam the world with stories we will accept so that we will keep on with business as usual.

(my spell check is not working, apologies)



Joseph Jones's picture

Many thanks for your time well spent at the keyboard.

chindit13's picture

Armageddon is nice this time of year. When dining, try The Four Horsemen Bistro, where the specialty is the stir fried locusts with chili and tamarind paste, or wander aimlessly over to the Wormwood Cafe and sample the poached Sea Beast, quick-seared over fire and brimstone, then poached in a Lake of Fire before being served in a balsamic and red wine reduction (I prefer a Barbarous-co).  A Bloody Moon cocktail (7 parts gin, 7 parts grapefruit, 7 parts grenadine, 7 parts Michael's Dragon bile) should Seal the deal.  Legend has it this libation is an aphrodisiac, which should prime you for the Second Coming.

MsCreant's picture

Naughty funny, Mr.Chindit13, sir. 

I did not know Sea Beast was a protected species.

hooligan2009's picture