The Return Of Varoufakis

When we posted a tribute to former Greek finance Minister Yannis Varoufakis after his shock resignation in the wake of last week’s referendum victory for the anti – austerity movement in Greece (Varoufakis is strongly anti – austerity but was effectively sacked by the Brussels bureaucratic dictatorship who said they would not talk to Greek negotiators if he was part of the team) we told you he’d be back.

And he is.

Zero Hedge informs us V-Fak penned an editorial for The Guardian in which he makes the stunnung accusation that “the German finance minister [Wolfgang Schauble] wants Greece to be pushed out of the single currency to put the fear of God into the French and have them accept his model of a disciplinarian eurozone …”

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With Our Hero Varoufakis Fallen On His Sword Who Will The EU Ledership Sacrifice

Will he be back? – EU’s Terminator Yanis Varoufakis (image source)

Now that our hero of recent weeks Yanis Varoufakis has resigned, accepting that he is persona non grata at the negotiating tables of Europe after thwarting the Troika’s attempts to suppress an IMF report that confirmed the Greek government assertion that bail out terms on offer were unfair and unworkable, what next.

Varoufakis’ resignation, in the style and with the impeccable timing that shows us who the real men are, we must now ask whom the smooth faced girlie – men formerly on the other other side of the table will throw to the lions.

Greece’s new finance minister, Euclid Tsakalotos, should not have to face the same petulant, unreasoning dogmatists as were truly responsible for Europe’s painful hammering Greek voters handed out in yesterday’s referendum.

That would be an utter disgrace, and the EU would not survive it (not that the EU is likely to survive a Grexit, which will certainly prompt other Eurozone awkward squad members to rebel.

So we now call on Juncker, Lagarde, Schäuble, Dijsselbloem, Draghi, Merkel and Gauleiter Schulz, if not to do pull a Coriolanus stunt by falling on their swords, to at least do the decent thing and fuck off.

It cannot be right that the winner leaves and all the losers get to stay in the game (or more accurately at the trough, with their snouts immersed.

The attempts to suppress the IMF debt sustainability analysis were a shameful attempt to mislead the people of Greece and of Europe as a whole and displayed the utter contempt of the unelected bureaucrats who now run the world for democracy and for the people they want to control.

It cannot be that after this mockery of democracy, these same people can just remain in their jobs, drawing their inflated salaries and roaming the world scoffing the finest foods, drinking the most expensive wines and being waited on hand and foot, all at our expense.

It’s time for Europe’s ‘inner party’ to show the same democratic spirit that Yanis Varoufakis has shown. And if that doesn’t happen, we European voters should ignore the Euronazi and USSA globalist propaganda and support parties pledged leave the European Union as quickly as they can.

That would prove once and for all that the EU is no more than a cheap facade, a thin veil behind which something pretty disgusting along the lines of what the likes of Hitler and Stalin had in mind for the world is hiding its true face.

Here is Yanis’ explanation behind his surprising resignation after the Greek referendum returned the vote he wanted:

The referendum of 5th July will stay in history as a unique moment when a small European nation rose up against debt-bondage. Like all struggles for democratic rights, so too this historic rejection of the Eurogroup’s 25th June ultimatum comes with a large price tag attached. It is, therefore, essential that the great capital bestowed upon our government by the splendid NO vote be invested immediately into a YES to a proper resolution – to an agreement that involves debt restructuring, less austerity, redistribution in favour of the needy, and real reforms.

Soon after the announcement of the referendum results, I was made aware of a certain preference by some Eurogroup participants, and assorted ‘partners’, for my… ‘absence’ from its meetings; an idea that the Prime Minister judged to be potentially helpful to him in reaching an agreement. For this reason I am leaving the Ministry of Finance today. I consider it my duty to help Alexis Tsipras exploit, as he sees fit, the capital that the Greek people granted us through yesterday’s referendum. And I shall wear the creditors’ loathing with pride.

We of the Left know how to act collectively with no care for the privileges of office. I shall support fully Prime Minister Tsipras, the new Minister of Finance, and our government. The superhuman effort to honour the brave people of Greece, and the famous OXI (NO) that they granted to democrats the world over, is just beginning.

Minister No More! (Yanis Varoufakis)

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The Whackiest Opinion Ever

Reading an Information Clearing House post on likely knock on effects of the Greek crisis (my perdictions on how the debt problems in Greece would eventually play out having been proved close to 100% accurate once again), somewhere in the comment thread I came across what must be one of the most bizarre comments ever encountered, and bear in mind I spend a bit of time on US religious right and Islamic English language sites)

Before checking out the comment though you need to know the main article,

Greek Crisis Awaits Other NATO Partners

dealt with the economic knock on effects for other small EU nations should the Greeks vote to leave the Euro single currency.

Somebody posting as sima said:

“Greece is NOT an independent country. It cannot do what it wants.
Greece too like almost all other countries is under imperial power of the British establishment / Anglo-Saxon establishmen which is in power even in the USA, Australia, New Zealand, Israel, Turkey, Iran, Mexico, Latin America.

Even those countries who appear to be independent are under the Anglo-Saxon establishment control on a voluntary basis, due to the fascination of the ruling class in almost all countries of the world with the British and their blood-thirsty arrogant condescending Anglo-Saxon establishment.

No country, neither nor ruling class is free from the deadly and killer influences of the Anglo-Saxon establishment. And that is why all countries are losers. Losers to the Anglo-Saxon establishment which is in power in all countries either physically, by proxy or by the desire of the self in the natives or nationals of the country.

We are all doomed because of this desire to submit oneself to the wish and will of the Anglo-Saxon establishment. ”

Huh? WTF? What planet does this person live on?

Ah well, the upside is we still live in a society that permits people to publish their opinions, no matter how whacky those opinions may be.

Troika Is Manoeuvering To Rig The Greek Referendum

Uncle Joe knew a thing or two (image source)

According to Greece’s finance minister Yanis Varoufakis, the troika, the IMF, European Central Bank and EU Commission is planning to rig the outcome of the Greek referendum on whether to accept further austerity measures in return for bail out cash and an extension of the debt relief programme.

In a TV interview, Mr. Varoufakis said unequivocally, “This is a very dark moment for Europe. They have closed our banks for the sole purpose of blackmailing what? Getting a ‘Yes’ vote on a non-sustainable solution that would be bad for Europe.”

Most politicians go anywhere near telling the truth, but Varoufakis seems refreshingly honest and is the ONLY finance minister who appears to understand the demands of the Troika are not plausible for Greece (or any other nation) amounting as they do to a total surrender of sovereignty to the unlected bureaucrats of Brussels.

Mr. Varoufakis also said Germany’s Angela Merkel has tried to skirt any responsibility by saying this is a Troika decision.

“One must seriously ask, are those in the Troika just totally brain-dead?” he added, “Their blackmail and economic war against Greece will be evidence to ensure that Britain leaves the EU. The ONLY thing that saved Britain was Maggie Thatcher’s effort to keep Britain out of the euro for she knew far too well where it would lead. The view in Poland is also now anti-euro. Any Brit who now does not vote to get out of the EU and the grips of the Troika is ignorant of world events and the political power play going on.”

The EU leaders are due to travel to Athens after the referendum. Varoufakis claims only then will they realize that their powers are so off the wall that they dare not expose their own schemes. Hollande of France wants a resolution for he fears Marine Le Pen’s campaign for a Frexit is gaining momentum. Obama wants a resolution that will keep Greece in the EU, fearing Greece will be forced into the arms of Russia, thus breaking down NATO.

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IsThe IMF Profoundly In Love With Pandora

Germany so far held its negotiating position with Greece because the German government knows that if it agrees to a sovereign debt cancellation (rather than a ‘haircut’ on privately held debt held which would affect mostly banks, financial institutions and hedge funds as happened in 2012), then more of the PIIGS nations (Portugal Italy, Ireland, Greece, Spain,) will demand the same.

It is the IMF that has finally opened Pandora’s box and let all the troubles previously contained within the European Union’s secretive governance mechanisms escape into the public domain.

While the Greek crisis has been containable, the problem posed by the other PIIGS is on a different scale, it took the EU 5 years to transfer around €200 billion in Greek debt exposure to the public balance sheet but in the end it looks as if Greece’s debt problem has overwhelmed both the EU’s ability to kick the can down the road and the faith of German taxpayers in “ever closer union” has been exhausted.

Should the first victim of the common currency pass through the exit door as early as next week however, nobody in Europe believes that the same exercise can be repeated with Italy, or Spain, or even Portugal. Their economies are too big (and their at-risk loans run to €hundreds of billions). Today, we saw the first public evidence of the schism within the IMF/ECB/EU Commission Troika, when the IMF in a press release explicitly stated that Greece is no longer viable unless there is both additional funding provided to the country, which can only happen if there is another massive debt haircut. Here’s the tasty bit:

” Even with concessional financing through 2018, debt would remain very high for decades and highly vulnerable to shocks. Assuming official (concessional) financing through end–2018, the debt-to-GDP ratio is projected at about 150 percent in 2020, and close to 140 percent in 2022 (see Figure 4ii). Using the thresholds agreed in November 2012, a haircut that yields a reduction in debt of over 30 percent of GDP would be required to meet the November 2012 debt targets. With debt remaining very high, any further deterioration in growth rates or in the medium term primary surplus relative to the revised baseline scenario discussed here would result in significant increases in debt and gross financing needs (see robustness tests in the next section below). This points to the high vulnerability of the debt dynamics.” [ … ] “”these new financing needs render the debt dynamics unsustainable.” (Read what the IMF said in full:)

That is precisely what Tsipras and Varoufakis have been claiming since day one. Unsurprisingly Greek government officials promptly said that the IMF report is in line with the Greek government’s views on debt. What makes the IMF report even more odd is its timing; three days before the Sunday referendum, Tsipras now has prima facie evidence to present to Greek voters as he tells them “see, we were right all along.”

Looking forward to the next Eurozone crisis, what the IMF’s “debt sustainability analysis” has just done is open the door for every single other comparably insolvent peripheral European nation (and it goes way beyond the PIIGS) to knock on the IMF’s door and say: “Mme Lagarde, if Greece is unsustainable, then why aren’t we?”

Greece’s route out of Europe

Financial web sites are reporting that the Greek government have caved in to EU bullying and accepted all the austerity demands in return for a few more months of economic chaos before the stricken country is finally forced out of the EU. These reports are not true.

Earlier this morning as Alexis Tipras was again urging voters to reject more austerity in the referendum to be held this coming weekend, finance minister Varoufakis said he would cut off his right arm before accepting a “Yes” vote. Doesn’t sound much like a cave in to us.

As we have reported several times recently, while the Syriza bosses have been playing mind games with the Eurorats of Brussels they have also been spending a lot of time cosying up to Moscow. And nothing would suit the Russians better than to prise Greece out of the EU.

There is a very simple way for Greece and Russia to win here and tell Washington along with Brussels to go to hell. First Greece quits the Euro and starts issuing Drachmas. Then Russia announces that it will peg the Drachma to the Rouble and make them convertable. Greece agrees to credit any fees from the south stream pipeline targeted to terminate in Greece back to any Rouble debt they incur.

Its a safe bet that the other PIIGS countries, Portugal, Ireland, Italy and Spain countries would follow suit and both NATO and the EU will start to unwind.

Europe would be pushed into the Russian orbit and without the political cover of NATO the wars the USA is running in the middle east would have to end immediately. Check and mate for the fools in Washington who thought they could control the world. Greece and eventually Britain and Europe can at last be completely free of the Washington warmonger’s malign influence for good.

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Juncker the back stabbing traitor feels betrayed

Jean Claude Drunkard – brandy for breakfast (image source)

You have to be impressed by the sheer arrogance of the smooth faced fixers who run the EU by stitching up European taxpayers in deals made behind closed doors. As Greece descends into chaos with a full blown humanitarian crisis already on its hands, EU Commission President Jean – Claude Juncker (aka Jean Claude Drunkard) has said he feels betrayed that the Greek government, elected with a mandate to oppose further austerity by any means at their disposal, have chosen to follow the wishes of of Greek voters rather than the diktat of the unelected bureaucrats who run the EU.

Betrayed? Juncker, a long term E U insider has been one of the main architects of Greece’s current economic mayhem. Since the folly of dragging Greece’s basket case economy into the Eurozone made the current colapse inevitable, junckers has been one of the main players in the game of stabbing Greece in the back while simultaneously shafting Greek voters up the arse.

The sooner Greece is out of the Eurozone, the sooner they can start to repair the damage done by the atrocity that is monetary union. And the sooner British voters will start to understand than no matter what that globalist twat Cameron promises, for us the only way is OUT.

The danger now is of course that some fudge will be worked out to keep Greece in the Euro to prevent the whole E U falling apart, thus ensuring this useless pisshead continues to have some influence over Britain’s international dealings.

The End? Eurozone Rejects Greek Bailout Extension: All Bailout Programs Expire On June 30

from Zero Hedge

First thing this morning, when summarizing the flurry of overnight events, we focused on today’s final gambit by Greece:

“… moments ago Varoufakis was quoted as saying he would ask the Eurogroup for a bailout extension of a few weeks to accommodate the referendum.

And the punchline: if the Eurogroup says “Oxi”, then the entire Greek gambit, which has been a bet that to Europe the opportunity cost of a Grexit is higher than folding to Greek demands, collapses.

If the Eurogroup declines Varoufakis’ request, there simply can not be a referendum, as the “institutions proposal” will no longer be on the table. As such, the only question is whether the ECB will also end the ELA at midnight on June 30, adding insult to injury, and causing the collapse of the Greek banking system days ahead of a referendum whose purpose would now be moot.”

And, as expected, with the Eurozone meeting on Greece having just ended after a brief hour of deliberations, AFP reports that the answer, was indeed, no.

In effect, and very symbolically, Greece is already out of the Eurogroup. Worse: the referendum is now moot as the programs will expire on Tuesday night and Greece won’t have anything actionable to vote on next Sunday.

What happens next: Eurogroup makes it official that the Greek proposal ends on June 30 making the referendum moot as the institutions proposal will no longer be on the table, the ECB pulls a “Cyprus” on Greek ELA, and a Greek bank system which is put on indefinite hiatus, leading to a “soft” Greek default if not outright Grexit, paving the way for even more ECB QE.

In the meantime, here is the live feed from the Euro-ex-Greece-Group where now only 18 countries are allowed to opine on the future of the costliest, and most artificial monetary experiment in history.

Read full article …

For what it’s worth, we think the EU will cobble together some kind of economic bodge up to prevent Greece leaving the European Monetary System because the Euronazi bureaucrats in Brussels know if Greece goes, a few others are likelt to follow.

Grexit: What’s really going on

Although mainstream news sources are reporting only positive stuff about the latest chapter in the saga of the Eurozone collapse, if you read Boggart Blog you will have learned yesterday that the latest ‘austerity’ proposals offered by the Greek government are about as substantial as a set of hen’s teeth or a bucket of rocking horse shit.

Today the media spin is even worse, we are on the verge of a ground breaking deal that will keep Greece in the Euro and hold the EU together all the TV channels and newspapers tell us. In reality, having failed to offer any realistic proposals, Alexis Tsiparis now has as many problems at home in Greece as he has in Brussels.

Late on Monday evening European news channels were leading on a “Greece Capitulates: Tsipras Will Accept Bailout Extension,” headline, offering the narrative that Greece’s non-cuts would enable a new bailout to go ahead. Not only was this not true, while the French, fearing that they are next maybe, are keen to grab anything Germany’s ruling coalition parties are in open revolt against Hausfrau Merkel’s efforts to dum another pile of Greek debt on the shoulders of German taxpayers.

On top of that Alexis Tsipras now faces a political battle at home in the wake of his move to make a deal with creditors that includes higher taxes and restrictions on early retirements.

The agreement, which accepts the necessity of extending the country’s second bailout in order to bridge the gap between payments due to creditors over the coming weeks and final discussions around a third program, has not been received well by Syriza party members.

In fact no agreement will satisfy the more radical wing of the party, many of whom believe the best option for Greece is to default and return to the drachma — these lawmakers contend redenomination would not be as economically catastrophic as the EU would have them believe. If Tsipras cannot rally enough support for the new proposal, we could be looking at a new Greek government as well as a new currency before long.

Here’s Reuter’s report on the Greek Political situation

This Is Why You Gotta Love Alexis Tsipras

Greece Told To Have A Proposal For More Welfare Cuts Ready Before Monday Meeting; Tsipras Submits Revised Plan With No Pension Cuts At All.

According to the Financial Times website, before the Greek cabinet meeting on Sunday to consider compromise proposals on further austerity measures, François Hollande and Angela Merkel both telephoned Greek Prime Minister Alexis Tsipras to remind him he needed a “staff level” agreement with the European Commission, IMF and ECB ahead of the summit.

As a result, the Greek cabinet met yesterday (Sunday) at Tsipras’ official residence to thrash out a government’s strategy that would enable Mr Tsipras to bridge his two seemingly irreconcilable electoral mandates: to end austerity and block further cuts in spending while also satisfying creditors’ demands for reform to keep Greece in the Eurozone.

And while the Greek negotiating position is one where acceptance of any further spending cuts will be seen as a defeat for Tsipras, the Minister of State Nikos Pappas used an interview with the country’s Ethnos newspaper to reiterate the government’s firm opposition to cuts to pension plans or wages. – Earlier this morning we learned from Reuters news feed that Tsipras had presented Greece’s proposal for a deal during phone talks on Sunday with German Chancellor Angela Merkel, French President Francois Hollande and EU Commission President Jean-Claude Juncker.

In summary it promises to achieve deficit reduction through higher tax revenues (which is problematic considering the Greek track record of economic contraction and falling incomes since 2008 and the fact that the Syriza government just spent 5 months haggling with the Troika instead of implementing even one actual reform) and includes none of the spending cuts demanded by the Troika.

Greece just played its final bluff. And now, as Yanis Varoufakis also wrote in in Germany’s Frankfurter Allgemeine Zeitung, Angela Merkel faces “a stark choice” ahead of the crucial summit of European leaders in Brussels on today (22 June).

In other words the Greek parliament has washed its hands of the Greek fate, and a Grexit – if it happens – will be blamed on Angela Merkel and Germany, if only in Greece.