Latest Rumor: Greece To Hold Referendum On EUR Membership, i.e. Much Hated Austerity

Tyler Durden's picture

While we have heard rumors of a possible Greek referendum vis-a-vis IMF bailouts (i.e., Euro membership) in the past (as long ago as April 2010, or before the first Greek bailout, when life was actually acceptable and the retirement age was in the 50s) we have promptly dismissed such rumors: after all the EU/IMF/Troica/Status QuoTM what have you would never leave the fate of its existence in such a democratic construct as a majority vote, especially with what would be a near unanimous vote to secede. Well, it may be time to start taking these rumors seriously. Actually no, never mind.

Kathimerini reports: "As pressure from Greece’s foreign creditors and austerity-weary citizens mounts on the government, Prime Minister George Papandreou is considering calling for a referendum on whether Greece should continue to tackle its debt crisis within the eurozone or by exiting the single currency." Obviously, this is nothing but yet another political ploy. The probability of a referendum proposal actually passing and democracy reestablishing itslef in the so called cradle of democracy are sllim to nil, especially with hundreds of trillions at stake. But we'll play along with it for the time being.

Kathimerini with more on this latest idiocy:

According to sources, Papandreou hopes that the outcome of such a vote would constitute a fresh mandate for his Socialist government to continue with an austerity drive backed by Greece’s international lenders -- the European Commission, the European Central Bank and the International Monetary Fund.


A bill submitted in Parliament, paving the way for a referendum to be carried out, is to be discussed in coming days.


Sources told Kathimerini that many of Papandreou’s close aides had proposed the idea of a referendum to the premier earlier this summer. Since then, pressure has mounted on the government from all sides with Greece’s foreign creditors pushing for quicker and more effective reforms, citizens reacting to the cuts and even members of PASOK’s political council objecting to plans to slash the public sector.


During an emergency cabinet meeting on Sunday, several ministers are said to have pressed for drastic action, with some of them calling for early elections.

We pretty much stopped at "fresh mandate" for G-Pap.

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mayhem_korner's picture

A referendum on austerity?  That's the economic equivalent of handing out condoms to 5 year olds.

LawsofPhysics's picture

I agree.  

I can see it now;

Political puppets; "Do you want austerity measures to be enacted?"

Sheeple; "NO!  Pass the Ouzo!"

Let them default and let the Greeks deal with one another.  Their massive shipping fleet is screwed until world consumption picks up again anyway, so let the Greeks solve the Greek problem.  It will be good for all.  Junk away sheep, cause I like mutton!


j0nx's picture

Why would anyone junk you? Your advice is sound and shouldn't be disputed.

max2205's picture

They should have a bake sale.

The election' will be fixed anyway. Who cares, they are still not gonna pay back anything

sushi's picture

They can afford elections??


How is this possible? Do the Greek people have no consideration for French and German banks?

jmc8888's picture

Well sort of.  The debts which are fraudulent should be canceled. Not just in Greece, but worldwide.  Here in America, that's the vast majority of our 'national debt'.

The difference might seem like semantics, but it's a bit like allowing oneself to blame themselves for rape, as opposed to arresting the perpetrator that did the rape.

In one, it's YOUR fault, supposedly, in the other it's THEIR fault.

There is a big difference.

If the debts of the world are defaulted upon, it appears that the people didn't pay their rightful bills.

If the debts of the world are canceled as the fraud that they are, it shows the people were a victim of a crime.


Which is better going forward? The answer is clear.

Glass-Steagall the fraud. Worldwide.


So is it sound advice to default? Not really.  It's not far from the truth, but that difference is oh but a doozy.


It's not the people's fault they were a victim of a crime.  But default blames the rape victim.


ambrosiac's picture


As Talleyrand did not say, "This is worse than idiotic, it's unconstitutional"


Someone is sure to make a case in Court that such a referendum is within the ambit of Greece's constitutional prohibition of matters financial, fiscal or monetary policy -related being put to direct vote.  G-Pap is just blowing smoke.


What do you think this is?  California?

Freddie's picture

Is there a referendum for Greece staying in the EU?  Let the Greeks vote on it.  Shit the EU did not let Ireland vote on it.   They had to vote twice because they did not get it right the first time.    The EU Stalinesque fascists in Brussells made the Irish vote until they got it right.  Didn't the EU do the same thing to Holland? 

Comay Mierda's picture

cue riots in 3... 2... 1...

SheepDog-One's picture

Apparently theyve looked at every possible scenario, and settled on molotov cocktail riots and burning parliament buildings are the best route to take.

Bwahaha WAGFDSMB's picture

Default -> exit Euro -> inflation -> riots

No default -> austerity -> riots

Why not put it to a vote?  Let them choose their own misery.  Maybe they will be less inclined to protest the consequences if they think they made the decision.

Or, maybe since default is inevitable they're putting on the democracy show to maintain respectability.

Freddie's picture

LOL!  The country that created Democracy too.   Let em vote. I agree. 

The EU made Ireland "vote" until they got it right.

spiral_eyes's picture


Let's get this default on the road!

HpDeskjet's picture

The September tranche will be paid, politicians need more time to prepare their (anyway insolvent) banks. Greece's default will happen in December at the next tranche. In the meantime, ECB will be the only buyer of PIIGS debt since both the EFSF and the ESM will NEVER be loaded with money (although TIMMAAAHHHHH thinks differently). Within the EU-commission there are soooo many utterly frustrated/irritated people that it is impossible something good will come out of it. Only when (not if) bigger countries like Italy/Spain/France will be at the brink of collapse, the political pressure will be there to start seriously discussing Eurobonds + fiscal unity.

SheepDog-One's picture

Right it will happen in December, of course by December there will be many other reasons why the can will have to get kicked yet again Im sure. Whatever, place yer bets on the loaded wheel.

Spirit Of Truth's picture

If so, then Greece defaults.  Markets will anticipate this of course.

unky's picture

This way, At least the politicians can blame the default and the exit of the Euro (which will lead to economic chaos in Europe) on the greek people.

IQ 145's picture

I don't care who they blame it on, as long they get it done; it's inevitable. The "Payers" in the system can't send Greece their monthly welfare check anymore; it's impossible.

X.inf.capt's picture

great point unky

i think this whole thing ( revolutions,regime changes) around the MENA is just a ploy by the globalist to resolidify TPTB's power on these poor people.and thier resources.

i would exspect more of these 'revolutions' to expand to south america and then go north. just too much 'support' for the rebels from europe and N,A, on these resource rich nations.

nothing ever happens positive for the little guys in these armed revolutions.

just a different fox in the henhouse,

 all just get co-op'ed by the rich, these movements.

even here...

DonnieD's picture

Nice negotiating ploy.

Lord Welligton's picture

Won't happen.

If it were confirmed the €8bn would have to be put on hold until the result was known.

Let them eat iPads's picture

For the love of Hermes, just default already!

malikai's picture

Ever since Brown talked about TEOTW in Europe, I've started considering this might be the turn around point. We may be surprised by this, or, maybe not.

kito's picture

and in other news, the sun will set tonight, and rise tomorrow morning.......and then set again...and then rise......

robertocarlos's picture

Aren't you worried about being wrong one of these days?

kito's picture

my statement is NOT a prediction, its representative of my frustration that this never seems to boil over. my stored food is getting spoiled and i think i detected some rust on my gold coins.......


Crisismode's picture

Oh, you bought those Chinese counterfeits, did you?

kito's picture

those chinese panda were sooo nice.....

NotApplicable's picture

You have to make the stored food part of your regular diet. Cycle out the old, restock with the new.

Calmyourself's picture

The tools in their box (tptb) are legion.  They have known of systemic weaknesses and tipping points for quite some time, this is going to take a while and we will not be allowed a reset unless and until we demand it.  That demand will take different forms in different places.  What form it will take in your locale who knows, in the U.S., it will need to be widespread and unfortunately for us very insistent.

Long-John-Silver's picture

Currently the only way a country can leave the union is to ask to leave. They can't be forced. Perhaps someone is pushing a gun in Papandreou's back and whispering in his ear.

unky's picture

Yes, and actually currently there is also a no-bailout-clause in the agreement between € member states and they also give a fuck about it. The laws will be changed as needed (by creating exceptions).

kito's picture

hey long john, whats your current take on silver?

scatterbrains's picture

I don't know if he has to be forced, isn't he and his brother load up on cds ?  This is just a way for himself and the ECB leaders to save face by claiming it's what the Greek people wanted

NotApplicable's picture

Secede from a union? Unpossible!

falak pema's picture

Maybe the colonel's junta is waiting in the wings as in 1967...

LookingWithAmazement's picture

Greece default will not happen. Because there's too much at stake. They will get the money, Germany will vote in favor of EFSF and the July 21 agreement, like all other europarliaments. The next tranche for October will be paid soon and in a few weeks the eurocrisis-ritual will be over for a few months. Then a rehearsal, but again no Armageddon. Merry Christmas.

HpDeskjet's picture

Wrong. This tranche will be paid to buy time but the EFSF won't be approved. Greece will default in December (you can and should bet on it).

jdelano's picture

don't bother.  That guy's just a prototype algo with an AI component.  The engineers are using ZH as a test environment.  

taraxias's picture

Fuck, does anyone else find this fucktard's "Boring world we live in" incessant trolling annoying, or is it just me?

SheepDog-One's picture

Yea, this troll and the other one 'No armageddon today!' ....well their moms could have made wiser abortion choices lets just say.

NotApplicable's picture

If you find trolls annoying, you should learn to ignore them, as it's your response that amuses them.

Otherwise, learn to sit back and enjoy their craft (the better ones, that is, as they work on perfecting the concept of reductio ad absurdum while promoting the beliefs of others).

LookingWithAmazement's picture

Greece default now sounds like "Comex crash": never happens, no matter how the game changes.

SheepDog-One's picture

Yea right LookingWithAmazement, the bankrupt Western World is simply 'Too Big To Fail'...uh huh. Oh and because it hasnt announced failure yet, thats proof it will not. Oh ok.

LookingWithAmazement's picture

Indeed, look at Japan. No collapse and a national debt going through the roof. Japan still exists. Even that Fukushima-thing is over. Yaaaaaaaaaaaawn.

Crisismode's picture

Yep, that Fukushima-thing is completely over for all the thousands of Japanese with radioactive exposure.


Well, over until all those diseases and mutations start showing up starting . . . . right . . . about . . .

Maxter's picture

The Fukushima disaster is far from over.  It's just that the media stopped reporting it. (Yeah you really though that building this big tent over the reactor would cure the problem?  Guess what, they are only building it to spread the radiation further away from the plant to make their command post a bit safer.  Meanwhile, the corium is slowly falling into the ground)

SheepDog-One's picture

'The western world will not cave in on its own insurmountable debt....because theres too much at stake' yea sure.

Hedgetard55's picture

And the Germans would not surrender at Stalingrad. Too much at stake.

There is No Spoon's picture

Socialist austerity drive - pretty much sums it up.