Monday, February 23, 2015

Nein! Nein! Nein! Nien!

If the reports are accurate as to what Greek finance minister Yanis Varoufakis is about to submit in the way of an "economic reforms" package to the banksters, Germany is about to explode.

From Zero Hedge:
For those keeping tabs on the Greek tragicomedy, now in its 5th season, today before midnight Yanis Varoufakis will submit a list of "reform measures" it plans to undertake to the Troika, pardon, Institutions. But while we patiently await the reveal of the full list of proposed Greek reforms, we can fast forward to the German reaction, because we already know what it will be:


Why? Because as Bloomberg reported earlier today, citing government spokesman Gabriel Sakellaridis says in interview broadcast live on Skai TV today, the Greek government will implement legislation allowing taxpayers to repay overdue taxes in 100 installments. This not new: in fact, it was proposed back in November, when Greek Enikos said "the country's international lenders are not pleased with the new law voted by the government, which allows tax payers to pay off their debts towards the State in 100 installments."

So while the Troika will ask why nothing has been done on this until now, Greece will have no retort but instead will say that the easier repayment terms for overdue taxes will boost liquidity in state coffers especially since the cash situation “is not easy.”...

But what is sure to make Schauble go berserk with rage is that Greece is now openly tearing apart the "existing programme" with its firm demand that the protection of primary residences from foreclosure will be upheld, saying that it creates no burden for banking system or the state budget: a state budget which as a reminder will be out of cash some time this week!

Needless to say Germany will cross this proposal out with a very bright, very red pen.... as well as then next: "Minimum wage will be raised gradually until 2016, to allow businesses to adapt to labor cost increase."...

At this point Germany will point out the deflationary vortex in which Greece has been stuck in the past 5 years and say "what labor cost increases", and cross that "reform" as well.

We also learn the Greek government plans to restore labor relations, labor law, collective bargaining saying the current regime resembles “dark age" (it does - thank the common currency for putting you there) which is incompatible with European labor culture, and will assesses proposals to secure liquidity of pension system, aim is not to cut pensions further. The German response to the latter? You guessed it.

The punchline: "Red lines still apply and government will respect popular mandate.

And... cue Germany's reply:


What will then be the result? Here's ZH again:
 tomorrow's "emergency" Eurogroup meeting is assured, in which the Troika throws back the proposal in Greece's face and demands that it strip all its "reforms" to comply with whatever was in the original memorandum, in the process making the Tsipras government nothing more than an extension of the hated Samaras administration.

Because Greece bluffed... and lost, and now it no longer has any leverage in negotiations with Europe...
A few notes of caution with regard to this scenario outlined by ZH. First, these are just leaks as to the Yaroufakis package and they might not be accurate, Second, Greece may just see the submitting of this proposal as a further negotiating step, in the hopes of getting some of what they want in tomorrow's emergency meeting, if indeed there is one.

Finally, there is a minor possibility that Greece is prepared now to leave the euro and return to the drachma--and stiff the banksters, but there is no indication Greece has been planning for this scenario. Thus, the German hammer is likely what we indeed are about to see.



  1. This is the best show in world at the moment

  2. This could be a great learning moment for the rest of the planet as they get to see what happens when socialists run out of other peoples money. Unfortunately it will spun with the Greeks being made the victims of those tight fisted Germans.

  3. umm... it's also a great learning moment on how to spell NEIN.