Sometimes I wish that politicians would wake up to the fact that their own rhetoric stinks.
First and foremost Yanis Varoufakis, it was he that sounded the death knell for his ‘bankrupt’ country, by stating that the Government would not look at more loans, as it could not afford to repay these loans, or words to that effect.
I was actually applauding from the sidelines and congratulated him on his blog (comments never published). The reason that they were not published, was to do with the fact that I suggested that the Euro was doomed to fail from the start and also the question on when does Greece seek to exit the Euro. I also proffered some advice on default and possible double currency, drachma internally and Euro for international transactions, taxation yadayadayada… Yes I must get boring!
Plus Yanis was a man of morals, now he is a politician, so it is game on.
The party line for Tsipras’ Government was to stay ‘in the Euro’ amongst other things.
Then the Greek Government started to seek handouts to ‘survive’ financial catastrophe.
Okay, all well and good but where is the money coming from?
Cancelled austerity and then the asset sales and then the word ‘Troika’ was scrubbed from the Greek dictionary.
Yanis then sought to legally redress ‘odious and illegal’ loans with Tsipras seeking WW2 reparations from Germany.
And then behold, after a trip to Russia EU 5 billion to be available to Greece to construct a gas pipeline through the Country. Mind you if I was Putin/Medvedev I would keep a very close eye on this money…
Well for a starters they are bankrupt and one must bare in mind that the Government cannot default on the IMF loans (otherwise all Countries will apparently ignore you), so they have to meet interest and principal payments when they fall due. In order to do this they have ransacked treasury, pensions and grabbed all spare monies from all tiers of Government… Wages in IOU’s?
Mamma Mia … Oops that is Italian … Mind you they do have the Mamma Mia island at Skiathos… So it will do….
If all said and done to date, if that is not blackmailing the EU then how about this…
(Reuters) – Greece’s Finance Minister Yanis Varoufakis said in an interview broadcast on Sunday that if Greece were to leave the euro zone, there would be an inevitable contagion effect.
Now is that his last card?
It was a pretty strong message to Brussels.
The problem with Yanis’ comment is that he seems to have forgotten, that the EU has in fact taken on the full burden of debts and distributed these debts to all Countries in the EU. Basically, this action is covering a number of Banks problems and spreading the costs across all taxpayers. Please refer to the graph below, double click to explode… (Joke)..
So Yanis, the contagion will if anything be mild. It will create a hick-up in the scheme of things, but at least those in power anticipated these type of tactics, antics and dummy spitting.
It still amazes me that Greece has not defaulted. If they had, then maybe Yanis would not be in the spotlight and more than likely sales of his new book (due 2016) would be non existent. Further it would mean that Yanis would have to introduce policies to address what is wrong within Greece itself… God forbid!
If the Greek Government had the balls and defaulted then all of this crap would be well and truly over. The people of Greece would not have to put up with the Alexis and Yanis “Days of our Lives” weekly dribble. The people would not be displaying displeasure and the Country could rebuild.
One must not forget that a default would hit Brussels fair in the balls on day one, all of the posturing since this Government was elected can best be described as a circus.
As blackmail does not work, what other cards do they have up their sleeves?
I hope none…. as it is getting a tad boring and if they are not careful a civil war. You all know what Greeks are like ….
Edit: Definition of ‘hick-up’ and ‘mild’ contagion. Ripple effects will hit all European Countries and debt confidence. Timing however is everything, confidence in the system is everything. So if the ripple hits another ripple from Spain, Austria or Finland then we will have more serious problem. Greece’s exit from the EU can be done with minimum of fuss financially if, and only if they follow Martin Armstrong’s Solution.