
Jan Kees de Jager "Money is the thing we can control Greece with." (photo: josvanzetten, flickr)
This a.m. Atrios highlights an op ed at the Financial Times by Wolfgang Münchau pointing out that Greece now faces the bitter choice of defaulting if it wants to preserve any pretense of democracy and national sovereignty.
That follows a week or more of intimidating and insulting comments by German financial minister Wolfgang Schäuble and others suggesting that it would be better for everyone if Greece just left, but if they insist on staying, they effectively have to surrender their fiscal sovereignty to the Troika representing outside creditors and even postpone elections to satisfy the Germans that a new government will honor the current government’s pledges.
All of these insults were happening while Angela Merkel and Troika officials were insisting that a Greek default and leaving the Euro were out of the question, while demanding more and more austerity concessions as a condition for providing the loan funds they promised months ago. The goalposts have been moving almost daily.
Everyone’s been playing bad cop/bullying cop, and there’s not a sensible voice among the entire Euro leadership. As one might expect, this has infuriated the Greek government and more importantly, the Greek people, who turned out in the hundreds of thousands to protest not only the strangling austerity measures but also the bulling and insults that came with them. And yet the government keeps promising to meet each set of new demands.
Today, as the Euro ministers are meeting supposedly to reach final agreement, we get yet more insults and bullying. From the FT’s live crisis blog at that meeting:
15.21: Jan Kees de Jager, the Dutch finance minister, has roiled the markets with his latest comments outside the Brussels meeting. This via Reuters:
“Greece wants the money and so far we haven’t given them anything. We have said no over the past weeks. We can afford to say to no until Greece has met all the demands. It’s up to Greece and the troika (of the ECB, the IMF and the European Commission) to say whether this has been done and for us it is a no until Greece has done so. If Greece lives up to all its obligations, then the Netherlands will also do its part.
. . . it’s probably necessary that there is some kind of permanent presence of the troika in Athens not every three months but on a permanent basis.. . .“I am in favour of more control, more supervision … Money is the thing we can control Greece with.”
“Money is the thing we can control Greece with.” That pretty well sums up the bankster mentality, and they say this because they know it usually works.
Throughout the Euro/Greek crisis, the Euro leaders have focused on making sure future creditors were protected, even as current private creditors were getting a 70% haircut, never mind what the consequences were for the Greek economy or the Greek people. At no time has anyone every offered Greece a way out of its depression or a way to relieve the suffering of the Greek people while they reformed their economy.
So everything else — pensions, wages, assets, services, their future — had to be sacrificed to protect the new creditors, primarily northern Euro banks. And now the banksters’ governments are openly declaring that if you don’t protect the creditors, you can’t have democracy.



31 Comments

The problem is this. The right, left, OWS etc. all want to keep playing the same fraudulent, oppressive, corrupt capitalistic game.
And the only difference between them all is that each one wants to play it by “Their™” rules rather than the other guy’s rules. It’s not the rules that suck, it’s the game itself that sucks.
or some reason the Greeks have not yet agreed to a Troika permanently in Athens controlling every dime spent, or on an escrow set up in Holland where the Greek income tax monies would be sent, or whatever new insult Germany is using to force Greece to bow down.
Or at least that is what the Italian press is saying as they predict a long night that ends with only the privately held bond swap being approved and the bail out decision put off until March 1.
How the heck did they get their hands on the script the Germans wrote?
As I understand it, the banks have lent money to the Greek government in the past. If I were lending to Greece and they decided not to pay me back, I would probably not lend them anymore in the future.
It is only if Greece wants more money that they have to go along with the austerity rules. Otherwise, they can do as they please.
You cannot both castigate the banks and also ask for their help.
Weird fact – after default – paying a few cents on the dollar on old loans to close them out gets you new loans.
History teaches us the above – its called risk taking and chasing a higher return.
The folks running the show in Greece need to go home and watch “The Mouse That Roared”.
The Duchy of Grand Fenwick decides that the only way to get out of their economic woes is to declare war on the United States, lose and accept foreign aid.
http://www.imdb.com/title/tt0053084/
Then come into work tomorrow and declare war Germany, France and the US. The result couldn’t be any worse than where they are headed now.
These fuckers are really starting to piss me off. And I ain’t even Greek.
If you don’t take the loans, you don’t get to trade.
If you don’t play IMF ball, you are shunned. Perhaps its better to be shunned.
Of course, if you have any resources and you thumb your nose at World Bank, you might just become Desert Storm or Enduring Freedom.
Took you longer than most. ;-)
Time for Greece to leave the Eurozone, print its own currency to restart its local economy and create confidence by making it clear that it will not overinflate its economy. Invest in education and infrastructure, small business loans, and health care. Renationalize assets that the EZ folks have forced sales of. Compensate in Greek currency.
Also pay off Euro creditors in a limited amount of Greek-currency-denominated funds.
Whatever is done has to provide incentives to end corruption in the way economic transactions are handled and government decisions are made. And put people to work creating goods and services for each other.
Finance entirely internally for two years. And watch out for meddling in internal politics by other countries.
There no doubt will be trading partners that could adopt the same strategy.
Looks like the banksters are fine tuning their template on how to take over country. Look for the banksters to do the same thing to Italy, Spain, and Portugal next.
At least in Portugal you buy a little pot to get you through the upcoming slavery era.
It seems that the Greeks have a similar problem that we do. Their leaders are absolutley determined to bow down and serve the one percenters no matter what the people say or do.
Since the banks started forcing austerity on Greece, the economic conditions have dramatically deteriorated.
If the banks want to be paid back, it is not unreasonable to ask them to stop destroying Greece’s economy.
Greece should just default and tell the Troika to take a leap. Pass a wealth tax on those who have been avoiding their taxes (causing this problem)and tell the bond holders the Greek government will tell them about how the banks manipulated the requirements to make the loans in the first place. The fraud committed to make these loans should get the CDS’s off the hook and give the bond holders the ammunition they need to sue the banks for fraud.
Please correct me if I am wrong in this, but it seems to me that the stick the Germans and the Dutch are beating the Greeks with is that if they default, they not only have to leave the EMU, but will be kicked out of then EU as well. I believe that this is a murky legal area, as no one envisaged the possibility of a nation leaving the EMU, and therefore the treaty instituting it contains no provisions for what happens if it does (unlike the case of the UK, which is in the EU, but refused the EMU). If this is the case, then the Germans have a pretty big stick.
Ah but the banks don’t care about the Greek economy, just getting their money. The old
poundkilogram of flesh.Probably wondering why they haven’t tried to know over some
bankbar somewhere.You have to give this guy credit for overtly declaring that debt is the means by which the Banksters seek to rule the world. It’s somehow refreshing that one of them finally told the truth. Now, if Greece only had the resolve to declare bankruptcy and tell the IMF to fuck off, they might have a chance to become a functioning democracy again. It worked for Argentina.
Why not?
I don’t know how this comment wound up here.
If the Greeks default and are starved for hard currency,
I know a ton of Scandinavians that would be happy to spend euros
in Greece. They take over several islands in August.
Hell, I might emigrate there myself altho I was considering Iceland
I’m seriously considering the ex-pat route myself, but budget constraints and government policies make Ecuador more appealing for me.
The problem is that “Greece” never signed on to the debt; foreign banks placed puppets at the top of Greek government through pseudo-democracy of the kind practiced here in America who signed on to the debt while lying about it to their people.
So now the Greek people must pay for debts that the Greek people didn’t sign on to, or else they may have to have get out of the EU and have a more locally accountable democratic government that controls its own currency and doesn’t lie to them (as much)?
What’s in it for Greece again?
That is a pretty tall order. I agree with your motivating, but I am not at all sure they can pull it off. Like,it or not the Greeks have a corrupt economy. Think they can fix it while building their economy? I am not at all sure.
Greeks need another Ohi Day. Repeat what they told/did to
the Italians in World War II
This is the way the Milton Friedman disciples, who’ve been running the global money game, have treated 3rd world countries for decades. Now they hope to loot the national assets of the first world, and on the cheap.
We bail them out, and then they use the fiscal weakness which results from the financial bailout, to fleece us.
What a short memory Germany has. Didn’t we bail them out financially via the Marshal Plan, after they had terrorized the entire world to the tune of 60 million lost lives and trillions in destroyed infrastructure? And now they feast on Greece’s fiscal weakness?
Keeping all the compradors safe and snug.
Hey, who’s left in the capitalist dugout?
Good on them. !!!
Why Ecuador?
I was thinking Mozambique or Namibia…
Well the Greeks got the second bailout – 53.5% write down of privately held Greek debt – but no real details or even a statement as yet.
They project 121% debt to GDP ration in 2020.
The only good would be if the Greeks learn how to do taxation – because once they do dropping out of the euro makes a lot of sense.
The Greeks supposedly has a large Communist Party. They have been flirting with Communism since before WW2. I think this is their grand opportunity to try a different system. If successful, Ireland and other Southern European Nations could fall like dominoes, creating a new Communist block. Public agitation is global. Such an event could spread broader than the Eurozone, south to Africa and the Middle-East. Of course, this is my socialist dream, but giving the present conditions, it is a possibility.