Spiegel: "It's Time To End The Greek Rescue Farce"

Tyler Durden's picture

Back in July of 2011, when we first predicted the demise of the second Greek bailout package, even before the details were fully known in "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" we asked, "what happens tomorrow when every German (in a population of 82 very efficient million) wakes up to newspaper headlines screaming that their country is now on the hook to 32% of its GDP in order to keep insolvent Greece, with its 50-some year old retirement age, not to mention Ireland, Portugal, and soon Italy and Spain, as part of the Eurozone? What happens when these same 82 million realize that they are on the hook to sacrificing hundreds of years of welfare state entitlements (recall that Otto von Bismark was the original welfare state progentior) just so a few peripheral national can continue to lie about their deficits (the 6 month Greek deficit already is missing Its full year benchmark target by about 20%) and enjoy generous socialist benefits up to an including guaranteed pensions? What happens when an already mortally wounded in the polls Angela Merkel finds herself in the next general election and experiences an epic electoral loss? We will find out very, very shortly." Alas, it has not been all that very "shortly", as once again we underestimated people's stupidity and willingness to pay the piper of a crumbling economic and monetary system. But our prediction is finally starting to come true. Spiegel has just released an article, which encapsulates what well over 50% of Germans think, who say that the time to let Greece loose, has come.

Greeks burning a German flag:

From Der Spiegel

It's Time To End the Greek Rescue Farce

Whether it be an escrow account or a budget commissioner, the latest demands by Germany show just how absurd negotiations over Greece's future have become. It is high time to bring an end to this tragicomedy.

For the past two years, Greece has wrangled with the euro-zone states and the International Monetary Fund (IMF) over its so-called "rescue." Austerity measures have been agreed to, aid has been paid and private creditors have been forced to accept "voluntary" debt haircuts. Despite all this, Greece is in even worse shape today than it was then. Its economy is shrinking, the debt ratio is rising and the country and its banks have been cut off from capital markets. There isn't even the slightest sign that the situation might improve. Something has gone very wrong with this rescue.

But none of the protagonists seem to have grasped this. They continue to negotiate as if things are business as usual, they let one "final ultimatum" after the other pass and they persistently fail to realize that their discussions have started to verge on the absurd. It would be a lot better to end this farce.

For weeks now, the Greek government has been negotiating with private creditors and the troika comprised of the IMF, European Union and European Central Bank (ECB) over a second bailout package. But it is already clear that this aid package will not save the country. It appears it will only delay a Greek insolvency -- and it will serve to create new hardships for the country's population.

It is time for politicians to admit that their carrot and stick strategy has failed. The idea that the country can be freed from its debt quagmire though austerity programs and aid pledges tied to conditions just isn't going to work. It won't even work if private creditors forgive part of the country's debt.

Broken Promises

For months, Greek government politicians as well as the so-called rescuers in Berlin, Paris and Brussels have all been deceiving themselves. Each supposedly final rescue package is followed by yet another, and austerity pledges aren't being adhered to.

That has a lot to do with domestic political considerations. German Chancellor Angela Merkel and French President Nicolas Sarkozy must convey to their voters that they have the situation and, especially the Greeks, under control. Meanwhile, the government in Athens must, out of self-preservation, limit the burdens to its own people as much as possible.

That's why both sides repeatedly agree to promises that everyone knows they will not be able to keep. The current rescue package, for example, officially agreed at the euro summit at the end of October, already has to be improved because it has become too small.

The Greek economy is shrinking faster than assumed. And the austerity plan Greece approved last summer under pressure from its euro-zone partners is also failing to live up to expectations. That's no wonder, either, because €50 billion of the €78 billion in total savings pledged was tied to proceeds from privatizations that, not surprisingly, have failed to generate the profits expected.

Out of Thin Air

The truth is that it must have been obvious to all parties concerned, including the Germans, that the figures were pulled out of thin air. What kind of investor would invest so much money in a country that, for the foreseeable future, will be stuck in a serious economic depression?

The supposed rescue efforts have culminated in the latest German proposals. The German government would like to send a "budget commissioner" to Athens to keep an eye on the Greeks. If that doesn't work, then the Germans also want, at the very least, to be able to impound Greek accounts if they don't pay back their debts through an escrow account.

The suggestions have justifiably provoked outrage. Quite apart from the humiliation these measures would entail for the Greeks, Athens would almost certainly find a way to circumvent them. In the end, Germany would wind up turning an entire nation into its enemy without even gaining anything.

Greece Must Go Bankrupt

Perhaps, the Greece rescuers on both sides of the negotiating table should try being honest for a change. Here's the truth: If the country is to lastingly reduce its mountain of debt and, at some point, be able to borrow money on the capital markets again, then it needs a comprehensive debt haircut. In other words, it needs to go bankrupt.

And it's not just private creditors who will have to forego a large part of their outstanding Greek debts. It is also other European countries and the European Central Bank. That would be expensive for taxpayers across Europe, and it would also be economically risky. Indeed, no one knows what consequences a Greek bankruptcy would have for other crisis-ridden countries like Portugal, Ireland or Italy. But at least it would be an honest solution.

Of course, things wouldn't stop there. The euro-zone states would also have to build a bigger firewall around the remaining crisis countries in order to prevent contagion. They would have to help some banks that get into trouble as a result of a debt cut. And they would have to provide Greece with a real opportunity to get back on its feet and start growing under its own steam -- in other words, a kind of Marshall Plan.

All this would be very expensive, and German taxpayers would also be forced to do what they have feared from Day One -- which is to pay for Greece. But this solution has two major advantages. The payments would be limited, and they would actually help Greece.

And unlike everything that has been negotiated up until now, the solution would also be worthy of being called a rescue package.

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redpill's picture

Replace "Greek Rescue" with "EU"

jcia's picture

"It's time to end the paper ponzi."

trav7777's picture

Greece needs to be cut loose and left to its own spendthrift devices.  And the banks that foolishly lent them money must take losses and heads of their executives must roll.

LawsofPhysics's picture

Yes, I would only add, that the fraud should be prosecuted on all levels.  Hhmm, greeks buring a german flag.  Let's see, I wonder how they would feel about germans burning greeks?  Wake up sheeple of greece, get your politicos before they get you!

Mr Lennon Hendrix's picture

If the Germans are at all concerned about their purchasing power they would buy silver.  Oh, hey there Trav.

Chris Jusset's picture

As ugly and distasteful as a Greek bailout is, it must happen, otherwise the house-of-cards will collapse.  It will happen no matter what.  And it will keep happening in Greece, Portugal, Spain, Ireland, Italy, etc.  It doesn't matter how foolish bailouts are ... they will happen ...

This is what happens when a financial system is on its last leg: the focus becomes putting out one fire after the next . . . .  anything to keep the house of cards intact.

LawsofPhysics's picture

The only people who fear a collapse are those who know that their labor isn't worth shit.  I say bring on the collapse, restore the rule of law.  Bailouts without prosecuting the fraud simply allows the moral hazard to continue.  I can guarantee you one thing, in the well-armed societies that rise from the ashes people will be polite and compensation will find its way to people who are actually worth a shit.  The paper-pushers have forgotten that there is a very real cost for creating capital without creating real value, time to pay the piper.

JW n FL's picture

A Rothschild Speaks - Listen Closely

1 World Currency!

We must de-construct to be able to capitalize on the Crisis!


The Sheep LOVE a Hero!! who will be the 1 World Currency Hero?


High unemployment implies the failure of the welfare state. In Sweden, unemployment

increased strongly in conjunction with the crisis of the 1990s, following which it has never

fallen below 6 per cent. In this situation, it is important to use every means to improve

conditions on the labour market and also to debate the role that could be played by monetary

policy in the fight against unemployment. But it is equally important that this debate is

realistic. From time to time, we have to remind ourselves that the possibilities monetary

policy has in this area have their limits. This is primarily a matter of influencing the more

short-term area of unemployment, which depends on economic activity, via effects on total

demand in the economy. The area of unemployment that also exists in balanced economic

cycles is harder to deal with. This unemployment is usually called long-term unemployment

or equilibrium unemployment. The degree of equilibrium unemployment is highly dependent

on how well the labour market is functioning, which is affected by policy areas other than

monetary policy. Placing an excessive focus on monetary policy in this context could easily

lead to the underlying problems on the labour market – and the solutions to them – not

receiving the discussion they deserve.


Henry Ford-

"It is well enough that people of the nation do not understand
our banking and monetary system, for if they did,
I believe there would be a revolution before tomorrow morning."


well.. it looks like the polite blue blooded, blood suckers have voted Death for Greece.

That would be the presbyterian's NOT! the Jews that they bank roll.

Portfolio: Eurozone Prepares To Eject Greece by Stratfor


Eat the Rich!

The Reserve Banks are not operated for profit, and ownership of a certain amount of stock is, by law, a condition of membership in the System. The stock may not be sold, traded, or pledged as security for a loan; dividends are, by law, 6 percent per year.

They have been eating You! and Yours!! for GENERATIONS!!!

Article I, Section 8, Clause 5, of the United States Constitution says

"Congress shall have the power to coin money and regulate the value thereof and of any foreign coins".

But that is not the case.

The United States government has no power to issue money, control the flow of money, or to even distribute it - that belongs to a private corporation registered in the State of Delaware - the Federal Reserve Bank.

Keiser Report: It's All Legal, Folks! (E246)

Uploaded by RussiaToday on Feb 7, 2012

In this episode, Max Keiser and co-host, Stacy Herbert, discuss the supercommittee that runs America, the perils of Draghi's "blitz" and the IMF turnaround on austerity for Greece. In the second half of the show, Max talks to Gonzalo Lira about austerity, printing and running.

KR on FB:


Signed, Christian Constitutionalist

P.S. Don't forget!! “See Something? Say Something!” and here is the link for you ---- >


DHS Home Grown Christians Trying to Protect the Constitution are now Terrorists Propaganda


lincolnsteffens's picture

In spite of the fact that you tar entire religious, ethnic and philosophical groups with the same debasing brush, the flip side being equally distasteful "Death to America" (meaning you too, you filthy hegemonic infidel baby killer) you are right about the one world currency and the one world government. This however is prohibited by the Constitution ( I know, big fu.... deal) of the United States of America. It is bad enough the US is rapidly becoming totalitarian with central control of all. Allowing a united world government to give us orders is unthinkable. You would be assigned your work, your compensation, where you may live and number of children you are allowed. I don't think even the sheeple would let this happen.

New American Revolution's picture

Bingo!   Go back to Article I, Sec 8

Eat the Rich!

The Reserve Banks are not operated for profit, and ownership of a certain amount of stock is, by law, a condition of membership in the System. The stock may not be sold, traded, or pledged as security for a loan; dividends are, by law, 6 percent per year.

They have been eating You! and Yours!! for GENERATIONS!!!

Article I, Section 8, Clause 5, of the United States Constitution says

"Congress shall have the power to coin money and regulate the value thereof and of any foreign coins".

But that is not the case.

The United States government has no power to issue money, control the flow of money, or to even distribute it - that belongs to a private corporation registered in the State of Delaware - the Federal Reserve Bank.

    President George Washington* called this "usurpation" of Constitutional Powers, "the customary weapon by which free governments are destroyed."   But how does this happen you ask, what is the trigger?  

    AND THE ANSWER IS:  By removing (usurpation) of the Constitutional Powers/Duties of the Congress (see Article I, Sec. 8), these powers are not only taken over by "cunning, ambitious, and unprincipled men*", but what has happened in the transfer (usurpation) of said powers, is that the PUBLIC FORUM, the foundation of our Constitution and the means by which the people exercise their power and authority over their government and rule said government, is now gone.   And not only gone, but reversed, and those "unprincipled men" who now control these Constitutional Powers/Duties, conduct their business in private well out of the PUBLIC FORUM, and now they exercise the power, not only over the government, but over the people.

   This is both the definition and difference between LIBERTY and TYRANNY.   And tyranny, a failed economic system, drains the wealth of the Nation in order to survive and maintain that segment of the population that supports this tyrannical government that sustains it.   This is the problem in America today.   And if we want to change it, we must force the Congress to restore and perform its Constitutional Powers/Duties, by returning all specified Powers/Duties, back to the Congress and back into the PUBLIC FORUM, where the people may once again rule and direct their government, rather than being ruled.

   See for a full explaination and the book, "New American Revolution: The Constitutional Overthrow of the United States Government", designed to empower all Americans to take back the Congress in 2012. 

trav7777's picture

No.  Greece MUST be cut loose.  Greece WILL NOT CHANGE.  And it sure as shit won't if there are no real consequences.

The banks can be saved and the bankers imprisoned even if Greece is cut loose.

trav7777's picture

nobody in the rest of the world who is a not a getrichquick speculator would EVER be interested in silver. 

Indians are typically do THEY "protect" their purchasing power?  GOLD.

Silver is loose change. 

walküre's picture

Greeks are reacting exactly as they are programmed to do by the banksters propaganda.

walküre's picture

LTRO is the firewall that article mentions. Why else would the banks have gobbled up the cheap ECB credit and parked the money with the ECB?

eatthebanksters's picture

But wait, you can't cut the welfare off to people who just don't know how to work, pay taxes and take care of themselves.  How can you blame Greeks for the value system of their culture...their demands are no different form the 99%'ers.  There is an old saying, "eat what you kill"'s not the most pleasant way to do things but it sure keeps things simple.  Stop the favors, stop the manipulation, write laws that create a level playing field and ENFORCE them.  Shoot the lobbyists and the corrupt banksters and politicians and maybe we'll have a chance... 

JLee2027's picture

I agree with you Trav.

And of course you realize that will destory the paper ponzi worldwide and then Silver will be accepted as money again...sending the price past Pluto. I'm glad we agree for once.


trav7777's picture


Tally sticks are more likely than silver.  Fiat is here to stay.

disabledvet's picture

If I'm from Bavaria I'm telling Chancellor Miracle to take a hike. "turning Germany into a country of 62 million" is the solution. Move along!

_ConanTheLibertarian_'s picture

Greece will be cut loose. It may (likely) take a revolution. The citizens will not accept it.

JPM Hater001's picture

"And the banks that foolishly lent them money must take losses and heads of their executives must roll."

Wow, a cogent statment from trav I can get behind.  Party on Wayne! Party on Garth!

boogerbently's picture

Cut them loose and pay for it ONCE.


Bail them out now, and every time their bill is due, because they have no desire or infrastructure to pay their own debt.

They don't work and they don't collect taxes.

Germany KNOWS about austerity, they just went through it when they "reunified."

They KNOW it can be done, they KNOW it's painful, they have NO desire to pay for some other countries mistakes.....and I don't blame them.

Their problem, and the problem with the EU, is that the ONLY way out of this problem is to print money.

If you can't print your own money, then, everyone has to pay for the moneyprinting needed to offset the laggard nations. In previous decades they have enjoyed the benefits of "the union", now they are faced with it's shortcomings.

I think this is a "microcosm" of the global financial meltdown. My cure is to "wipe the slate clean", YES, forgive all debts, start over, square one....reset. The only ones to lose, then, are the banks and agencies that CAUSED this problem, and if they can't survive.......(see Greece).

trav7777's picture

JFC, dude, eliminate all the debts?

So if I lent you money, I'm fucked?  I'd have to come kill you.

You cannot just say clean the slate because there are REAL PEOPLE who are owed REAL MONEY, even if they are bondholders of greek debt.  A lot of pensions would be wiped completely out by jubilee.  Usually only silverbugz are misanthropic enough to want something like this to happen, as they are by nature losers whose only chance to be tall is to have everyone else chopped off at the knees.

I say print and let the chips fall over time.

boogerbently's picture

The other option is my brother lent me money that I can't pay back, so YOU have're STILL fucked!

I go to Vegas and put it all on red, it comes up black, that's SOMEONE ELSES fault?

And the "real people owed real money", Whose "pensions would be wiped out" are the clowns burning down Athens, retired at 45, that never paid taxes. We have our own problems. It has never been properly explained to me why WE need to pay for the bad investments of bankers. On that note......where did the money go?

Money doesn't disappear.

In this recession,if TRILLION$$$ were "lost" then trillion$$ were "made". Where did the TRILLION$$$ go?

These paper losses were paper profits SOMEWHERE, or they never really existed. Wiping the slate clean would only have a negative impact on the businesses shuffling them. (If the blame is properly placed)

My "global" cure follows the same logic as the Greek cure, let the guilty party pay more now, instead of EVERYONE paying for generations.



Or Greeks, rescued by the EU, rescued by the fed, rescued by American tax payers?


"...rescued by the aliens." So the annunaki again return to earth to swap our gold for a bailout?  Sounds more plausible than the constant propaganda out of the EU..

francis_sawyer's picture

That was the plan all along... Didn't you hear?

But this time around... the "Kardashians" get to be the chosen people

urbanelf's picture

Or Greeks, rescued by the EU, rescued by the fed, rescued by American tax payers?

You mean American tax prayers.

Get it?  Get it?  GET IT?!?!?!

boogerbently's picture

My greatest fear!


The US bails out EVERY nation ALL their sovereign debt. We just have Uncle Ben print the world to a ZERO balance.....then WE declare bankruptcy!

No, wait, what am I thinking, we are all at ZERO, if no one owes anyone, how could you need bankruptcy?

Problem solved, I'm going to bed. Wake me if you need any more help.

nope-1004's picture

Replace "EU" with "global central banking cartel ponzinomics".


kaiserhoff's picture

Exactly, as soon as one domino falls, they all do ;)

walküre's picture

Why didn't they fall when Argentina hit the brick wall? Or when Asia's debt crisis crippled those nations? The Ponzi Masters have had 2000 years to perfect their game.

11b40's picture

Actually, over the last decade or so, the Ponzi Masters have made more progress and become more sophisticated than the past 2000 years combined.  They have many more exotic "instruments" to play with, unbelievable leverage, and warp speed vehicles.  Wheeee!

NotApplicable's picture

Derivatives, the world's most efficient wealth extraction device.

As for the Ponzi Masters, well, this too is their doing. Even they understand sustainability and mathematical certainty. So, they set up things to fail in a method to their benefit.

Sharks with laser beams's picture

I am waiting for a final move higher in EURUSD and then I am gonna call my broker at Armada Markets and tell the guy to go all in and short euro with my FX account. This euro is a major fiasco. 

fonzannoon's picture

If they let Greece go and kick them out of the EU does that not strengthen the Euro? Then when they do it again does it not strengthen it again? Won't the end result be having a euro that is based on the strong remaining countries?

walküre's picture

The Euro is not going to tank because the USD is worse. The haydays of Dollar hegemony are over and the world is looking for alternatives. Don't matter how much debt the Europeans have when their trading with Asia, Africa and South America is worth more than the US trade combined.

TruthInSunshine's picture

Der Spiegel used the phase 'tragicomedy,' bitchez!

That can only mean one thing: It's almost over.

Just file bankruptcy already, Greece+Portugal+Ireland+Spain+Italy+France.

Britain won't be far behind, especially if the British banking/financial sector upon which it's so reliant (courtesy of the House of Red Shield) can't get more many trillions of euros via a bailout of the EU, because neither German nor Greek (or PIIGS+France) politicians want to be burned at the stake, in the wake of said bailout, with purchasing power falling at a rapid and precipitous rate across Europe as the ECB-CERN printer pushes beyond the boundaries of BernanCommodus Ponzinomics.

Then again, bakers won't have this, as they do own the 'sovereign states' and their 'sovereign citizens,' in reality. Can't let old man Mayer Amschel & his progeny down. He had the knack for enslaving peoples' children and telling them it was for their own good, as he stuffed his gout-sticken face with even more of the finest meats & cheeses.

So print away, bitchez!

I can see it now:  European so-called leaders/Central bankers telling the populace that 'tis merely a flesh wound (akin to The Black Knight in The Holy Grail) as petrol/diesel soar beyond the €5 per liter level (or 19 per gallon), foods and energy prices quadruple,  and a whole new slew of taxes and fees take the remaining pound of flesh out European backsides.

walküre's picture

And then they complain that nobody loves them. Go figure.

arcos's picture

Replace "Greek Rescue" with "US"

Newsboy's picture

The moment approaches (and approaches, and approaches...)

When does the gold standard get reinstituted?

JLee2027's picture

By the people first obviously. Do you think any of these assclowns will do it voluntarily?

redpill's picture

Is this like one of those exponential curves in geometry that approaches a line but never actually gets to it?  I never wuz 2 gud wit teh maths

valley chick's picture

since they like their drama in the EU I look at it like a soap opera...first one to come to mind.."Days of Our Lives...which is in its 47th year.

Instant Wealth's picture

... infinitesimals, invented by Archimedes. Damn' Greeks.

HardlyZero's picture

That's it !  Hire some non-Greek negotiators to do the deal. 

The problem all along is the Greeks are caught in their own Zeno Paradox.

Break the mold.

StychoKiller's picture

Legend has it that Alexander used his sword to cut the Gordian knot...