Wall Street (Corzine and buddies) up, Greased Street down?
There seem to be lots of plans that the voters don't get to know.
Until the next election perhaps? (If then.) Don't miss the commenters, many of whom live in Greece and are seeing this attack on the ground (and yes you'll need more than one drink). From Zero Hedge, Penny for your Thoughts, and Coyote-Prime:
WaLL STReeT KiNG PiN EL CHaPo CoRZiNe ESCaPeS EVeRY TiMe!
Tsipras & Bankers, Esp. the IMF, Enslaved the Greek People. It Was Not Germany
"Bankers Get Away With It Again"
_ _ _ _ _ _ _
Tyler Durden on 07/12/2015
For those who missed today's festivities in Brussels, here is the 30,000 foot summary - Europe has given Greece a "choice": hand over sovereignty to Germany Europe or undergo a 5 year Grexit "time out", which is a polite euphemism for get the hell out.
As noted earlier, here are the 12 conditions laid out as a result of the latest Eurogroup meeting, which are far more draconian than anything presented to Greece yet and which effectively require that Greece cede sovereignty to Europe, this time even without the implementation of a technocratic government.
One alternative, generously presented to Greece, is for the country to put some €50 billion of assets - the best ones - in escrow to creditors. A more polite was of putting would be a Greek secured loan. This is how the Luxembourg FinMin Pierre Gramegna laid it out:
- Streamlining VAT
- Broadening the tax base
- Sustainability of pension system
- Adopt a code of civil procedure
- Safeguarding of legal independence for Greece ELSTAT - the statistics office
- Full implementation of autmatic spending cuts
- Meet bank recovery and resolution directive
- Privatize electricity transmission grid
- Take decisive action on non-performing loans
- Ensure independence of privatization body TAIPED
- De-Politicize the Greek administration
- Return of the Troika to Athens (the paper calls them the institutions... for now)
"A few new ideas were added to the table, especially one which is very important for some member states, which is that Greece would put a portion of its assets into a company that would be more independent from Greece.""More independent" from Greece and "more dependent" to Berlin.
Greece would place about €50 billion of state assets into an independent company. Those assets could serve as collateral against aid loans, Gramegna says. "It would act as a kind of guarantee. There is great hesitation from the Greek side and now the heads of state and government have to choose."
"It would be a company structure based in Luxembourg, which would be managed from Greece with supervision by the European Commission and by the European Investment Bank. It would remain in Greek hands but it would create more assurances if it was known that a lot of assets were in this company."
"If one knows that the third bailout package would cost more than EU80B, one understands that countries are urging for some guarantees from Greece."
In other words, Greece is told to set aside a quarter of its GDP for Europe to do as it sees fit, and which can be "seized" if Greece is seen as veering away from its third bailout promises again.
And since Greece has no option but to promise everything and the moon, it will surely comply hoping that it is once again allowed to promptly forget all the promises as soon as it pockets some of that €86 billion in new bailout funds just to unlock the €120 billion in deposits held hostage in Greek banks by the ECB, even if the resulting debt will push Greek debt/GDP well above 200%.
Because the alternative is, and we quote...
"In case no agreement could be reached, Greece should be offered swift negotiations on a time-out from the euro area, with possibly debt restructuring."... from the Eurogroup document:
No wonder Tsipras looks like this at the moment:
Somehow we think that if the only "alternative" is ceding sovereignty to Merkel and the rest of the northern European state, the vast majority of the population - which now clearly understands there is little further upside from remaining in Europe - may just opt for the aptly named "time out" from the most destructive experiment in Greek history. And even beg to make it permanent.
Sun, 07/12/2015 | 6302820 AlaricBalth
The right of self determination among a culturally autonomous people to determine their own destiny within the international community must be inalienable.
My friends in Greece, George Orwell said, "If you want a vision of the future, imagine a boot stomping on a human face...forever". That boot is the Troika. If you don't shed the shackles of debt slavery now, the opportunity may never arise again.
No one knows what the future may hold, but be assured, history will remember when Greece stood up to its oppressors and rekindled the fire of democracy once more.
European Union Morphs Into The ‘3rd Reich’ Using Germany As The Enforcer
Sun, 07/12/2015 - 14:57 | 6303048 tlnzz
Greece would be better treated if they belonged to the Mafia. At least there, they put you out of your misery when they would be done with you.
Sun, 07/12/2015 - 15:11 | 6303093
Eurocrats better be careful, Dump a little debt, import some cheap Russian gas, and Greece might. go all Iceland on their asses... Now what kind of example would that be for the rest of the Euro debt slaves??
Sun, 07/12/2015 - 17:51 | 6303661 TruthInSunshine
Snap elections in Greece according to RanSquawk reports?
Anyways, Greece is setting up like the European Union equivalent of the Lehman failure circa-2009, especially if reports in financial press as of an hour ago are true (there's no way Greece will be able to stay in EU no matter what it agrees to at this late juncture, and Portugal is on deck, as northern EU block has done the math and decided neither can pay even 30% of existing debt back, let all e new credit extended, under any scenario - watch for Spain to be interrogated next).
But that's not the biggest global worry from a macroeconomic viewpoint - China's meltdown (which the Chinese Central Planners can't arrest, even halting 50% of stock market liquidity) is, coupled with sickness in Italy, Spain, France, and the Asian "Tigers" plus Brazil and India.
All accumulated debts of past 6 years in sovereigns plus record debt on books of publicly traded corporations (issued to buy back stock and fuel acquisitions), plus record private/household debt is now rearing its ugly, monstrous debt at the most inopportune time.
Sun, 07/12/2015 - 23:35 | 6304685 Save_America1st
It's not just a Greek thing...handing over sovereignty to the elitist, sociopaths of the NWO scum is their demand against the entire world.
Fight back. And don't ever forget it.
Sun, 07/12/2015 - 15:24 | 6303162 Oh regional Indian
I read recently, with some trepedition, how Germany/Berlin were once again becoming a center of power.
The game is quite clear.
The US gets crushed, CaAmexico is one giant war material producer (material and living), EU will take on Russ-Asia, Israel will attempt to wolf down arab territory while the ME burns, Pacific and South China area keep bubbling with NOK/Tiwan/Senkaku/Reef island shit....
Iran is the pivot...
The 4th Reich is on, but it looks nothing like what one expected..
Sun, 07/12/2015 - 15:56 | 6303248 Skateboarder
It's going to be a nauseating next few years seeing the words "democracy", "freedom", "human rights", etc. bandied around as the drivers of the upcoming sovereign nation M&A as people are further impoverished and enslaved. Secession is a neat concept, but the motherfuckers would sooner genocide everyone than let a group of people live free from centralized opression on this rock.
Sun, 07/12/2015 - 16:09 | 6303294 Oh regional Indian
Very Dune-ish scenarios playing out is how I see it at some point (perhaps getting "seriously weird" in 2019ish), once India and China have had their ridiculous booms to be followed by general, all around busting.
Only increasingly tangential solutions can untangle this mess...
Sun, 07/12/2015 - 19:08 | 6303985 Skateboarder
At some point, people have to say fuck you to odious debt. What are they gonna do, send in the guns, and turn the people into prisoners?
There is no way to stop this clusterfuck of exponentiation and growing indedebtedness of the people through the government to private banks owned by private individuals. If enough people band togther and say fuck you to the banks and banking altogether, we might make some progress.
For fuck's sake, there is absolutely no reason why a man should go hungry on this planet. So much food is simply thrown away, it's disgusting. Changes start from the heart, on how you treat people. There were indeed societies (India had some) in which basic necessities like foods were made free for everyone as a basic principle of living and working together. We can do it again, but it requires disconnecting from the rat race. Regardless, the one thing that binds all transactions is money, and that is the $IMFS (Dollar-based International Monetary-Financial System) as FOFOA calls it. Barter of physical goods, or exchange of labor is the only other option, because as you know, making your own money is "UHH-LLEEE-GULL."
A planet full of programmed to be "me-me-me" apes indebted to a bunch of dark lord motherfuckers via the channels known as "bank" and "government". God, what have we gotten ourselves into?
I think I need a beer.
Sun, 07/12/2015 - 14:57 | 6303049 weburke
the elites are buying up greece then italy and spain on the cheap. evict the rabble.
Sun, 07/12/2015 - 15:33 | 6303189 layman_please
"Privatize electricity transmission grid"
that's what it's all about. blatant asset stripping. at least from the financial point of view.
the best thing about the state companies is that they are monopolies. with that move they are buying an entire industry (or market).
Sun, 07/12/2015 - 16:22 | 6303327 Spitzer
Just imagine being Greek and getting your electicty bill from Blackstone in a couple years.
Sun, 07/12/2015 - 16:43 | 6303399 Dapper Dan
I wonder who will get Greece’s merchant fleet...
Greek Merchant Fleet Tops World Tonnage Ranking
Sun, 07/12/2015 - 18:10 | 6303731 SHRAGS
Simple, the EU Investment bank will tax sunshine, just like the attempt to outlaw the collection of "private" water that fell from the sky in Bolivia
(2000 Cochabamba protests https://en.wikipedia.org/wiki/2000_Cochabamba_protests)
Of course, that comes in the next phase when when once again, *ANOTHER* loan is required. The best part is they will wait until the Greeks have installed the panels - the EU bankers don't even have the CAPEX, cash from the sun! Imagine the ROI.
Sun, 07/12/2015 - 21:58 | 6304501 Ouagadoudou
Look who's already biggest private shareholder of Greece telecom and electricity......
Sun, 07/12/2015 - 13:50 | 6302765 somecallmetimmah
Sun, 07/12/2015 - 14:07 | 6302822 Lea
"Can’t it produce a dozen, a handful, or at least ONE PERSON who can be called “The Great”?"
I'm European. We have plenty of great guys, great thinkers, experts of all kinds and good, sensible, smart blokes galore.
They are not in power anymore than they are in the USA, where you also have your good guys. Who are NOT in power because they are not corruptible.
Trouble with the good people being you can't buy them.
Sun, 07/12/2015 - 19:06 | 6303980 Elliott Eldrich
"What happened to Europe? Can’t it produce a dozen, a handful, or at least ONE PERSON who can be called “The Great”?"
Be very careful about what you wish for.
"Power tends to corrupt, and absolute power corrupts absolutely. Great men are almost always bad men." - Lord Acton
Sun, 07/12/2015 - 21:40 | 6304451 Augustus
What happened to Europe?
Can’t it produce a dozen, a handful, or at least ONE PERSON who can be called “The Great”?
Perhaps Europe can again produce a great leader.
But it sure won't be Tzipass.
He appears to have that look of a child who just found out that there is not really a Santa Claus. He sure seems quite old to have just found that out.
Sun, 07/12/2015 - 17:19 | 6303548 QQQBall
. . . They are turning off the liquidity and showing Grease the stick. At this point, any "payment," asset collateral or sale, etc., is throwing good money after bad euros. Greece cannot pay the loans back - depending on the covenants, Grease has no choice than to default in whatever garbled name it is called...
I suppose EU can stop accepting Euros printed in Grease to blow them up, but EU banks likely hold hem. This is "Sky Fall" w/o the James Bond savior. Instead of a criminal syndicate, it is a corptocractic-facist financial coup.
Make sure to read our "How To [Read/Tip Off] Zero Hedge Without Attracting The Interest Of [Human Resources/The Treasury/Black Helicopters]" Guide
By John Pilger
Global Research, July 13, 2015
An historic betrayal has consumed Greece. Having set aside the mandate of the Greek electorate, the Syriza government has willfully ignored last week’s landslide “No” vote and secretly agreed a raft of repressive, impoverishing measures in return for a “bailout” that means sinister foreign control and a warning to the world.
Prime Minister Alexis Tsipras has pushed through parliament a proposal to cut at least 13 billion euros from the public purse – 4 billion euros more than the “austerity” figure rejected overwhelmingly by the majority of the Greek population in a referendum on 5 July.
These reportedly include a 50 per cent increase in the cost of healthcare for pensioners, almost 40 per cent of whom live in poverty; deep cuts in public sector wages; the complete privatization of public facilities such as airports and ports; a rise in value added tax to 23 per cent, now applied to the Greek islands where people struggle to eke out a living. There is more to come.
“Anti-austerity party sweeps to stunning victory”, declared a "Guardian" headline on January 25. “Radical leftists” the paper called Tsipras and his impressively-educated comrades. They wore open neck shirts, and the finance minister rode a motorbike and was described as a “rock star of economics”. It was a façade. They were not radical in any sense of that cliched label, neither were they “anti austerity”.
For six months Tsipras and the recently discarded finance minister, Yanis Varoufakis, shuttled between Athens and Brussels, Berlin and the other centres of European money power. Instead of social justice for Greece, they achieved a new indebtedness, a deeper impoverishment that would merely replace a systemic rottenness based on the theft of tax revenue by the Greek super-wealthy – in accordance with European “neo-liberal” values — and cheap, highly profitable loans from those now seeking Greece’s scalp.
Greece’s debt, reports an audit by the Greek parliament, “is illegal, illegitimate and odious”. Proportionally, it is less than 30 per cent that of the debit of Germany, its major creditor. It is less than the debt of European banks whose “bailout” in 2007-8 was barely controversial and unpunished.
For a small country such as Greece, the euro is a colonial currency: a tether to a capitalist ideology so extreme that even the Pope pronounces it “intolerable” and “the dung of the devil”. The euro is to Greece what the US dollar is to remote territories in the Pacific, whose poverty and servility is guaranteed by their dependency.
In their travels to the court of the mighty in Brussels and Berlin, Tsipras and Varoufakis presented themselves neither as radicals nor “leftists” nor even honest social democrats, but as two slightly upstart supplicants in their pleas and demands. Without underestimating the hostility they faced, it is fair to say they displayed no political courage. More than once, the Greek people found out about their “secret austerity plans” in leaks to the media: such as a 30 June letter published in the Financial Times, in which Tsipras promised the heads of the EU, the European Central Bank and the IMF to accept their basic, most vicious demands – which he has now accepted.
When the Greek electorate voted “no” on 5 July to this very kind of rotten deal, Tsipras said,
“Come Monday and the Greek government will be at the negotiating table after the referendum with better terms for the Greek people”. Greeks had not voted for “better terms”. They had voted for justice and for sovereignty, as they had done on January 25.The day after the January election a truly democratic and, yes, radical government would have stopped every euro leaving the country, repudiated the “illegal and odious” debt – as Argentina did successfully — and expedited a plan to leave the crippling Eurozone. But there was no plan. There was only a willingness to be “at the table” seeking “better terms”.
The true nature of Syriza has been seldom examined and explained. To the foreign media it is no more than “leftist” or “far left” or “hardline” – the usual misleading spray. Some of Syriza’s international supporters have reached, at times, levels of cheer leading reminiscent of the rise of Barack Obama. Few have asked: Who are these “radicals”? What do they believe in?
In 2013, Yanis Varoufakis wrote:
“Should we welcome this crisis of European capitalism as an opportunity to replace it with a better system? Or should we be so worried about it as to embark upon a campaign for stabilising capitalism? To me, the answer is clear. Europe’s crisis is far less likely to give birth to a better alternative to capitalism …“I bow to the criticism that I have campaigned on an agenda founded on the assumption that the left was, and remains, squarely defeated …. Yes, I would love to put forward [a] radical agenda. But, no, I am not prepared to commit the [error of the British Labour Party following Thatcher’s victory].“What good did we achieve in Britain in the early 1980s by promoting an agenda of socialist change that British society scorned while falling headlong into Thatcher’s neoliberal trip? Precisely none. What good will it do today to call for a dismantling of the Eurozone, of the European Union itself …?”Varoufakis omits all mention of the Social Democratic Party that split the Labour vote and led to Blairism. In suggesting people in Britain “scorned socialist change” – when they were given no real opportunity to bring about that change – he echoes Blair.
The leaders of Syriza are revolutionaries of a kind – but their revolution is the perverse, familiar appropriation of social democratic and parliamentary movements by liberals groomed to comply with neo-liberal drivel and a social engineering whose authentic face is that of Wolfgang Schauble, Germany’s finance minister, an imperial thug. Like the Labour Party in Britain and its equivalents among those former social democratic parties still describing themselves as “liberal” or even “left”, Syriza is the product of an affluent, highly privileged, educated middle class, “schooled in postmodernism”, as Alex Lantier wrote.
For them, class is the unmentionable, let alone an enduring struggle, regardless of the reality of the lives of most human beings. Syriza’s luminaries are well-groomed; they lead not the resistance that ordinary people crave, as the Greek electorate has so bravely demonstrated, but “better terms” of a venal status quo that corrals and punishes the poor. When merged with “identity politics” and its insidious distractions, the consequence is not resistance, but subservience. “Mainstream” political life in Britain exemplifies this.
This is not inevitable, a done deal, if we wake up from the long, postmodern coma and reject the myths and deceptions of those who claim to represent us, and fight.