6.00am: GREEKS STUNNED AS TROIKA TAKES POWER

Spearheaded by Berlin, the Troika engaged in overseeing Greek debt management effectively cut out the possibility of a disorderly default late yesterday. In a strongly-worded proposal circulated to EU finance ministers, a German proposal called for Greece to cede sovereignty while all Greek State income to go first to creditors – by law. This is, basically, the takeover of a sovereign EU member State in order to calm markets and protect exposed banks in the eurozone and elsewhere.

Judging by the Greek media I’ve been scanning so far this morning, the average Greek has no idea as yet that the Troika of credit managers is effectively taking over the country. Needless to say, the BBC hasn’t got it, neither has Sky News. But reports are firming up and beginning to appear in German media, where headlines like ‘Greece asked to give up sovereign control’ are running. The FT has also obtained a copy of the German ‘recommendation’.

The writing was on the wall yesterday when Christine Lagarde gave a pretty testy interview to Bloomberg, saying bluntly “Greek progress on budgets and reform is simply unsatisfactory”. She talked of “putting together a programme for the country” although there was no sign at this point that it would literally be done ‘for’ the Greeks, not by them.

Last night, Athens News had a piece saying that ‘the threat of disorderly default is now concentrating minds across the EU’, but again there was no specific mention of a sovereign handover. But when she spoke with Bloomberg, we can be almost certain that Lagarde knew what was coming: EU finance ministers had already seen Berlin’s proposal.

The text specifically says, ‘Budget consolidation has to be put under a strict steering and control system. Given the disappointing compliance so far, Greece has to accept shifting budgetary sovereignty to the European level for a certain period of time.’

Note the dictatorial ‘has to’ in there. The proposal even more controversially demands that Greece pass a law ‘committing all State income first and foremost to debt servicing and reduction’.

Three immediate issues spring to mind:

1. What legal power does the EU have to enforce this?

2. How will the Greek people react?

3. Who else was in the loop apart from Troika and Finance Ministers?

We can be fairly certain that Washington approved the move – it may even have suggested it via the IMF. And the Troika’s 15-pt reform plus action plan of Thursday was largely written by the IMF….a Washington-based concern.

This act sends a message to EU States both inside and outside the eurozone: defaults vill be orderly at all timess: disorderly actions vill not be tolerated.

Mind-boggling. It all needs thinking about.

 

77 thoughts on “6.00am: GREEKS STUNNED AS TROIKA TAKES POWER

  1. This comment is also to be found a little further down –

    “The things that we nightowls stumble upon – and Sloggers can have it with their breakfasts, possibly as an exclusive in the UK!!

    Germany blows a gasket: Ultimatum to Greece!

    Published: 28.01.12, 02:49 | Up-dated: 28.01.12, 03:06 |

    In the Greek crisis, Germany now wants to force Athens to surrender its fiscal sovereignty. All fiscal decisions should be approved by an EU budget commissioner. Otherwise, there will be no more money from Europe.

    The crisis over Greece has worsened dramatically in the night. (…)

    The paper is dated for the coming Monday. On Friday, the Troika negotiations with the Greek government concluded without result.

    There has not yet been a reaction from Greece to the draft document.

    ————–

    Original Document

    The German ultimatum to Greece in its wording

    Published: 28.01.12, 02:55 | Up-dated: 28.01.12, 02:57 |

    Such a paper has never been known before in the history of the EU: Germany demands from Greece the surrender fiscal sovereignty. The Deutschen Mittelstands Nachrichten presents the paper (in English)

    The content of the German ultimatum to Greece:

    Assurance of Compliance in the 2nd GRC Programme

    I. Background
    According to information from the Troika, Greece has most likely missed key programme objectives again in 2011. In particular, the budget deficit has not decreased compared to the previous year. Therefore Greece will have to significantly improve programme compliance in the future to honour its commitments to lenders. Otherwise the Eurozone will not be able to approve guarantees for GRC II.

    II. Proposal for the improvement of compliance
    To improve compliance in the 2nd programme, the new MoU will have to contain two innovative institutional elements on which Greece will have to commit itself. They will become further prior actions for the second programme. Only if and when they are implemented, the new programme can commence:

    1. Absolute priority to debt service
    Greece has to legally commit itself to giving absolute priority to future debt service. This commitment has to be legally enshrined by the Greek Parliament. State revenues are to be used first and foremost for debt service, only any remaining revenue may be used to finance primary expenditure. This will reassure public and private creditors that the Hellenic Republic will honour its comittments after PSI and will positively influence market access. De facto elimination of the possibility of a default would make the threat of a non-disbursement of a GRC II tranche much more credible. If a future tranche is not disbursed, Greece can not threaten its lenders with a default, but will instead have to accept further cuts in primary expenditures as the only possible consequence of any non-disbursement.

    2. Transfer of national budgetary sovereignty
    Budget consolidation has to be put under a strict steering and control system. Given the disappointing compliance so far, Greece has to accept shifting budgetary sovereignty to the European level for a certain period of time. A budget commissioner has to be appointed by the Eurogroup with the task of ensuring budgetary control. He must have the power a) to implement a centralized reporting and surveillance system covering all major blocks of expenditure in the Greek budget, b) to veto decisions not in line with the budgetary targets set by the Troika and c) will be tasked to ensure compliance with the above mentioned rule to prioritize debt service.

    The new surveillance and institutional approach should be formulated in the MoU as follows: “In the case of non-compliance, confirmed by the ECB, IMF and EU COM, a new budget commissioner appointed by the Eurogroup would help implementing reforms. The commissioner will have broad surveillance competences over public expenditure and a veto right against budget decisions not in line with the set budgetary targets and the rule giving priority to debt service.” Greece has to ensure that the new surveillance mechanism is fully enshrined in national law, preferably through constitutional amendment.

    In answer to a question to the editors about why it is in English –

    28.01.12 at 03:41

    editor says:

    This is the draft which is before us – it is in English only. Presumably, if it is really adopted on Monday, it will be translated into all EU languages. The editor

    http://www.deutsche-mittelstands-nachrichten.de/2012/01/37080/

    ————

    Monday should be fun in Belgium –

    Land, sea and railroads wikll be blocked
    General Strike: EU lchiefs only able to reach Brussels via a military aerodrome

    Brussels will be completely closed off for the EU summit. The entire public transport network as well as air traffic and Belgian ports will come to a standstill. The Government leaders have to travel through the military aerodrome at Beauvechain.

    (…)

    …So the military aerodrome at Beauvechain, 30 kilometers east of Brussels, is to be re-assigned to fly in the EU leaders. Problem: The aerodrome doesn’t offer the necessary capacity.

    (…)
    ———–

    So, the week is gonna kick off to a good start then!”

    • ‘In answer to a question to the editors about why it is in English -‘
      Simple: The Americans are running this, not the Germans.

    • Mebbe, but also mebbe not! Don’t forget, even in the days when the UK was not an inmate in this asylum, the two EU languages were French and English! German, mainly for historical reasons, never got a look in (even though pressure for a change is now mounting) nor Italian. So, you add the other three founder members (BENELUX), and apart from France none of them had a half-way lingua franca.

      How did King Louis whatever of Baden put it: “When I make love I speak French, when I talk to my dogs and horses, I speak German, but when I have to discuss trade and allied matters, then I speak English.”

      Just for interest, according to my Collins Almanack, English is the first/second language in 49 countries, Spanish is the first/second language in 29 countries, and French is the first/second language in 27 countries. This fact must piss the Institut Francáis off big time!

  2. And THE FOURTH REICH COMETH Fuhrer Merkel is seen in Hamburg to buy jackboots, in the same shop where the Alte Adolf obtained his supplies.
    Having lived through the war in Holland, it frightens the living dayling out of me. What on earth are these other Europeans thinking off. Before we know it we all have to stand to attention and shout Sieg Heil

  3. This is shocking, how can any Democratic country support the overthrow of a nation. Oops I forgot, most of them have done that several times before!
    I hope the citizens of Europe soon realize the political elite don´t give a damn about Mr and Mrs Bloggs.

  4. Am I missing something here John?
    To a simple soul like me, this proposal seems to guarantee a disorderly default by Greece.
    We Brits and our German cousins might be stoical about the insidious erosion of sovereignty by the EU, but we don’t have a Latin temperament.

  5. German Chancellors issuing ultimatums (ultimata?) to sovereign nations, alwasy a disconcerting sight, and the content of this one is shocking, truly shocking and a genuinely disturbing precedent, because as we have seen in the last few days, portugal is only a few months behind the greek curve, and Italy Spain and belgium all have debts which put them on a razor edge of likely default territory – not in normal circumstances perhaps but in the situation we have now been placed by our EU lords and Merkels – if this disgusting act of expropriation goes ahead then the rubicon has truly been crossed and we know that this can only finish very ugly indeed.

    For the first time in this I am now scared.

    Talk of firearms, and laying in supplies of tinned food, bottled water and diesel, which up to now had seemed like amusing and harmless semi-joking suddenly seems to start making sense.

    What are these people thinking of?

    I am sure we have all read about how Europe drifted into the first world war and how it seemed unthinkable until all of a sudden it was there, and civilization ended (effectively, since then socialism & cultural marxism have taken over Europe and now thanks to O’Bama also the US).

    • “Talk of firearms, and laying in supplies of tinned food, bottled water and diesel, which up to now had seemed like amusing and harmless semi-joking suddenly seems to start making sense.”

      Ah, the death of normalcy bias.

  6. I can’t help to think that this paper might be a fake. I mean, would anyone be so incompetent as to put stuff like this in writing? (apart from the fact that some of its content is plain stupid).

    I would, however, be interested to see what Greeks would say about that kind of a proposal (some form of strict EU-supervision) in a plebiscite. I spend about half the year in Greece. I witness so much being fed up with just about the entire current situation (politicians, public sector, regulations, etc. etc.) that I wouldn’t be surprised at all if the idea of having EU-guardians for a while got a fair amount of approval in a plebiscite. A very prominent businessman in Thessaloniki, a Greek, told me a few months ago: “There is only one solution for the public sector: there must be 2 persons for every position of authority – an EU-expert who teaches and a Greek who learns”. My response was “impossible, that would get you a revolution!” He told me I was wrong.

    One thing seems rather obvious: since Greece is an economy which for years to come will need external financing (structural current account deficit), foreign investment is the only solution to Greece’s economy. It would be naïve to think that this need for external financing can be financed entirely through debt. So whether Greeks like it or not, the solution to their financial problems can only come from abroad (unless they want to return to a living standard of the 1960s). So Greeks might as well learn to understand that not everything which comes from abroad is bad; or a threat to Greek identity; or an undercover coup to take over Greece; etc. The EU Task Force which is doing consulting work for Greece since last September is a tremendous resource for the country and yet, Greeks tend to think of it as an attempt by foreigners to take over Greece. That attitude has got to change!

    http://klauskastner.blogspot.com/2012/01/eureca-worth-another-look.html

    • @Klaus

      a very balanced view, thankyou. I would like to add a comment to your proposition “EU-expert who teaches and a Greek who learns”

      The “EU expert” will be a man, the “Greek” will have to be a woman. Women can learn, and men in my experience teach well but do not learn so easily.

      There is an old adage, and for Europeans it is as true today as when it was first dreamed up

      A woman always wants to change her man, the man always wants his woman to stay the same. The woman always changes and the man never does.

      Take this in the context we have here, means that women can learn, and men do not. After all, learning means changing. Indeed the trick is not to get the person to change at all, but make the man’s good points outshine his bad ones. If the good points are those that you like, you are onto a winner. In the general context of Greece, you need to take the good points of Greek culture and make Greece more Greek not less. The problem is that much of the good part of Greek culture now lives in Melbourne.

      It will not be easy.

      • @GEMZ

        This is a typical female fantasy ! Along the idea that they multitask when men do not.

        If men can teach but not learn – where do they get the knowledge to teach ? Sorry but I’m totally fed up with feminst piffle being spouted everywhere I go without any sort of challenge. The Bell curve on IQ displays a clear fact – that men generally are at both extremes (i.e. more intelligent and dumber than women) with the vast majority of women filling in the middle range. Obviously there are exceptions but that IS the way things are ! Though no doubt it will infuriate you to see it written down anywhere ‘mainstream’. This is why the old ‘IQ’ doen’t show anything view is a prevailing mantra by those with a lower or average IQ. (144 when last tested in case you wondered.)
        You might want to check how many ‘all women teams’ or even just women make it through the early rounds of ‘university challenge’ while you are at it – considering that we hear how so many girls over boys are heading off to uni in recent decades – and the triumph with which it is proclaimed – that this shows how much more intelligent women are than men !

      • Gemz, my sweetheart,

        What have you been smoking this morning? Or drinking, inhaling, shooting.up or whatever the current term may be!

        As the late, great James Brown sang not so many years ago, “It’s a man’s, man’s world.” For almost all of recorded history it has been so, and for the foreseeable future it is highly likely to remain so. Now, whether this is a good or a bad thing is something we can chew the cud over until Almabtrieb. But, when I think of all the ladies (to be polite) that I’ve known over the years (I used to be a touring coach driver), I sincerely hope things don’t change over much. I’m sure Mövenpick and Hewlett Packard, amongst many others, would be inclined to agree.

        Changes in philosophy/outlook/morals CAN be brought about in men, such a metamorphosis is most definitely not the prerogative of women! If you want to see how it can be done, mount your bike, toddle off down to the local video store and borrow a film with the title “An Officer and a Gentleman,” There, in about 2 hours, you can see in a somewhat compressed format something that I personally witnessed many times in the armed forces. Where are our present day Gunnery Sergeant Foley’s?

        In short, it comes down to one thing; discipline. Discipline itself comes in two varieties; self or imposed. Of the two, self in the preferred flavour – but unfortunately few people have it. So, if it has to be imposed discipline then a range of sanctions are necessary. Believe me, when figuratively the cat has landed on your back several times a week for several months (I’m now going a long way back in time, the award of 1,000 lashes in the Georgian/Victorian armies was by no means something exceptional, and they were administered at about 20 strokes per week – at the time of the American Revolution the British troops were nicknamed the “Bloodybacks”) then there is an inclination to change, respectively modify, your ways.

        The major question here is, to whom should the lashes be awarded. Of one thing I’m firmly convinced – it should not be the common or garden Greek populace. And there, in one fell swoop, we are down to just a few people – and they have been listed in my answer to Klaus Kastner.

    • @ Klaus

      Um die Glaubwürdigkeit des Papiers zu kontrollieren, bitte hier klicken

      http://www.deutsche-mittelstands-nachrichten.de/2012/01/37080/

      Danach, klicken Sie auf “Home” und dann herunter scrollen. Kommt Ihnen irgend etwas vor, das vielleicht ein bisschen Unglaublich oder Übertrieben erscheint? Nein, das Dachte ich mir auch nicht!

      Gestern Abend habe ich mit mehrere Leute in meine Lottoannahmestelle hier in der Westpfalz über Griechenland geredet. ALLESAMT waren Sie die Meinung, dass das Spiel der zur Zeit mit Griechenland gemacht wird – und vor allem mit die Bürger – eine absolut Obszönität ist.

      Sie schreiben – “since Greece is an economy which for years to come will need external financing”

      Err, Warum? Onassis, Theodorakis, Mouskori, Latsis, Boulis, Niarchos, und noch vielen mehr? Warum können diese Leute nicht endlich ordentliche Steuerzahlungen an Griechenland machen? Warum können Politiker a la Papaendreou u.v.m. allerlei Betrugerieien durchziehen – und kein Schwein sagt was! Oder unternimmt was!

      Was Griechenland braucht ist eine ordentliche Ausmistung – etwas wie Herkules und die Augiastall! Wenn’s sein muss, die Ausmistung konnte auch mit einem Strick durchgezogen werden – und mir ist es gleich ob griechische Poliker oder internationaler Bankier oder EU Apparatschick nachher hängen! Unsere Admiral Byng wäre eine superb Musterbeispiel.

      Für Grammatische und Syntax Fehler bitte ich um Verzeihung. Ich bin DE>EN Übersetzer, nicht EN>DE!

  7. I don’t really want to put the shits up anyone, but

    http: //www.dailymail.co.uk/news/article-1179902/Revealed-The-secret-report-shows-Nazis-planned-Fourth-Reich–EU.html

    http: //www.cuttingthroughthematrix.com/articles/Intelligence_Report_EW-Pa_128.html

    http: //www.newcriterion.com/posts.cfm/The-Red-House-Report-5863

    If you can read German –

    http://infokrieg.tv/wordpress/2011/07/22/nazi-grosen-planten-4-reich-das-der-struktur-der-eu-entspricht/

    Back to English –

    http: //www.redicecreations.com/article.php?id=6545

    If anyone now wails, “I was never told about this!”, then they can spend the next 3 months on the naughty step, wearing a dunce’s hat!

    As always, drop the // back to the http:

    The only thing I would like to add is, the MAJORITY of the German population, or at least the ones I meet every day ‘cos I live here, are also going to be horrified about this. The $64K question is, how many of them are likely to get off of there beer and sausage fatted arses and do something about it?

    Could be an interesting question, because back in ’33 they had nothing to lose, now they have more or less everything to lose. Will they prepared to lose it all because of a couple of headbangers in Berlin?

    • @VJ

      The $64K question is, how many of them are likely to get off of there beer and sausage fatted arses and do something about it?

      If the sedate Belgians are busy, you can bet the Germans won’t be that far behind. You have already mentioned the views expressed on the DMN, should that not be an indication that the average Hans is getting irked?

      What you need is a man of integrity to focus their attention.

      As to “headbangers in Berlin” look at what Louis Sallons says about supermarket managers. In many ways if you use this in the political context the same applies. The politicians are too focussed on the details of the problem to realize the greater faults these continual tweaks are causing. We are in the direst need of a person who has vision – and integrity. The two usually go together and are augmented in most cases by a problem-solving attitude.

      Put another way, the narrow, intellectual thinkers look to the hole in the road not the direction the road is taking.

      • @OAH

        … just like the inhabitants of that cold northern island off the French coast?

        Were it not so, there would be no need for the Slog. Would there?

    • @ OAH

      At the moment, yes. But the mumbles and grumbles of discontent are getting louder. As I’ve intimated in several past posts, the natives are not being told about the things that they need to, or should, know about. But one day they are going to twig on – then watch out!

      A bit OT, but what the hell. There is a storm brewing at the moment, and the Obrigkeit is having difficulty keeping it under wraps, about the boss-woman of the Greens, a certain Claudia FATIMA Roth. The Greens are adamant that no-one in Germany should possess a shooting iron, and those that need them for their work/hobby, such as my neighbour, who is a professional Jäger (hunter), should be subject to all manner of restrictions with their weapons.

      It turns out that our pop-eyed FATIMA (she has a sort of Marty Feldman look) – and she is a real champion of Islamism – one day got caught up in a police traffic control. The feds insisted on searching her car, and what did they find – a Walther PPK, loaded. Naturally, she had a licence for it, and it was in her car for “personal protection”.

      So, a standard Kartoffel (= Potato, Turkish slang for a Bio-German) should not be allowed to own a shooting iron for personal protection, but the bitch that heads the Green party – which wants to disarm everyone -may! I wonder if it will ever hit the MSM.

  8. It’s been mentioned before, perhaps here, that

    a)Germany doesn’t want pick up the Greek bailout bill
    b)Germany knows that Greece cannot get out of the hole it’s in
    c)Germany wants Greece to leave the Euro
    d)Germany doesn’t want to be seen kicking Greece out
    e)The Greek politicians don’t want to take the blame for leaving the €
    f)Ergo life has to become so unpleasant for the Greeks that they have ‘no choice’ but to leave

    • @Train Wreck

      the question now is not what, but how. The “what” was settled a long time ago. The problem for Europe is that there are too many “hows” and the best answers that the Greeks can give live in Australia.

  9. I know this is a silly question but I’ll ask it anyway.
    Just what is the ratio of the current Greek debt to the next proposed bailout. If it’s anywhere near ONE then should not this latest tranche (under the Troika plan) just effectively go straight back to the lenders without doing any good at all

  10. In May 2010, when they were bailed out, Greece had to pledge to the IMF, contractually, as collateral, every single asset in the entire country……Absolutely Everything……

    The Parthenon, the Islands, etc, Petroleum, Gas, all assets, absolutely everything…..
    So this nation have given up their sovereign rights over everything. Tangible and Intangible.
    Including the [future Labour of the] Human Beings.
    They are in fact, no longer a sovereign nation.

    Technically, it is accurate to say that
    ‘Greece’ no longer exists…….
    This country has been usurped.
    They have also had to agree to never attempt to borrow any money in the future from anywhere else except the IMF.
    It is also in the contract, that the IMF have the RIGHT, to enter Greece, and confiscate EVERYTHING they want, if that country falls back on payments.
    This is of course completely illegal, because the people of those nations, would never have agreed to it.
    But they are standard clauses of the IMF.
    In the 1930’s, the last time Greece was facing Default. They as a country went to the international court of Justice, and the Court agreed that to pay back the debt would cause unneccesary hardship for the people of Greece.
    [Hence a precedent was set]
    The International Court of Justice ruled in favour of Greece, and against the bankers, stating that it was the DUTY of Greece [and any country] to cover the needs of its own people, rather than pay back any debt at all.
    Greece defaulted on its debts and recovered. Then continued on, keeping its sovereignity.
    One difference between then and now, is that the politicians have been bought, and thats why they are putting ex bankers in the Key parliamentary/political positions in Greece. [And Italy]
    Greece has been hijacked.
    The bankers need to ensure that default is not an option.
    Personally I hope that the Free media in Greece portrays this, as being similar to occupation by the Germans again……

    Why occupy a country using arms, when you can enslave the population without the bloodshed?

    • @Anonymous

      if what you say comes to pass, the Greeks will still be Greek tomorrow, no matter who rules them. That is the problem: it must also be the solution, for there will be no effective solution until the Greeks themselves find a solution that suits their ways of doing things. As Klaus says above, they have the choice of returning to a lifestyle of the 1960s or toeing the line and keeping their modern fridges and plasma TVs.

      Oh, and their Porsches too.

      Remember that the Parthenon itself was used as an ammunition store in the late 17th century, when the Ottomans were fighting the Venetians. That is why there is a hole in the side.

      • John, judging from statements Chirac/Schroeder made later, they knew that Greece should never have been allowed to join the Euro but their logic was that one couldn’t leave the cradle of civilization out of it and, after all, such a small country couldn’t really do that much damage to the Eurozone. A small miscalculation, the latter…

        My first visit to Greece was in 1977. I was shocked that there could be such a poor country in Europe (even though the remittances of Greek guest-workers had already improved the lot quite a bit). After joining the EU, the benefits of EU-grants could begin to be seen. And with the avalanche of cheap Euros, Greeks in the diaspora must have felt that their greatest mistake ever was to leave Greece. In the circles where I moved, I saw a living standard which was far beyond my own living standard.

        Behind all that façade, behind all those superb villas, those yachts and SUVs, is the reality that, to a large extent, Greece is still more of a developing country than some of the countries which officially carry that title. A public administration which is unbelievably archaic (even land ownership cannot be accurately determined in parts of Greece). A state of law which is not functioning well. A society which is reminiscent of Middle Ages where the landed gentry took advantage of the masses. A society which has not been through the Period of Enlightenment (at least not since 2.500 years ago…). And so on…

        To many of us, the charme of Greece is exactly that. That there are people who are not as orderly, organized and controlled as we are. People who can let their emotions go and who don’t always think of the consequences of their actions. People who, like Zorbas, are thrilled when their life’s investment comes crashing down beautifully instead of worrying over material values. Zorbas called that “to be free”.

        In a letter exchange with his counterpart at the German Handelsblatt, the Deputy Editor of the Kathimerini wrote the following some months ago: “Maybe at the end of the day we will find that you, the Germans, have found the best model for production and we, the Greeks, have found the best model for living (albeit funded by others)”. I cannot think of a better description of what this is all about.

        So what are the options? I guess one could say “forget Greece” and leave that small country in the South-Eastern end of Europe up to its own travails. Or one could offer help but such help won’t work if it is only money. Actually, we would be talking about basic development aid to build a modern Greek society and economy. The EU Task Force for Greece would be an excellent starting point but it alone won’t do the trick. That would be a giant challenge for the EU but also a challenge which could make Europeans feel proud to have the EU.

        But one thing is certain: what has been called “help for Greece” so far is a joke (i. e. using the balance sheet of Greece to bail out one’s own banks). That charade better stop soon!

      • @JW

        not mine: even the busdrivers knew that Greece was a problem. It would not have been hard for a politician to take some notice. That they did not is now a problem that is being dealt with by looking at it the wrong way if what Mr Kastner says is correct.

  11. “3. Who else was in the loop apart from Troika and Finance Ministers?”

    You can bet the unelected/democratically unaccountable Greek PM is also involved in the shadows. He’s their man.

    This latest fascist nonsense is just a taster of what life will be like in the EZ when the Fiscal Union ‘treaty’ comes into being. It must be clear from recent events that the EU elites believe that the survival of the EZ is more important than national democoracy and accountability.

    Still very worrying is that neither Cameron and Osborne are condemning these fascist policies of the EU elites. In fact they appear to be supporting most of them…

    • If there is no money to repay does it actually make any difference it which law of contracts they were written

      I don’t know the small print of the differences or the legal implications. Would anyone care to explain please (in somewhat general terms) as I am sure the legalese is more complicated than anything I ever dealt with under UK procurement tendering

  12. Greece won’t be accepting this ‘conditional proposal’ from the EU diktat , so we are looking for a Greek exit within 3 months.
    Other EU sovereigns will be making notes and heading for the exits soon afterwards.
    Only then, will UK politicians be free to say what they really think.

  13. It’s easy to think in hindsight that this was all planned from the outset and is why the Goldman Sachs patsy was parachuted in to oversee the transition with minimal opposition.

  14. WIthin the world view of an EU politician or banker, this proposal actually makes alot of sense. Imagine if you or I owed this much money (proportional to our income), and numerous creditors had extended our payment plans, and actually lent us even more money at very low interest so we could keep financing our debt-based lifestyle.

    And then we lied, covered up the real extent of our debt, borrowed more, and tried every trick in the book to avoid paying…

    Of course the sheriff would come a knocking!? And we would be forced, legally, to turn over our income to the creditors, or arrested.

    Our world right now is based on a hierarchy of power, children and parent, individuals and governments, nation-states and international law. Each level has a monopoly of force and power on the level below it.

    Top down solutions will be used when the underlings do not comply, because we have supported and allowed (with our apathy) this system to infect everything.

    Having said all that, I do not like what is happening, and Greece has been completely pirated by G.Sachs and co.

    We should be angry, the greeks should be angry, but we should also be very very careful I think – our parents (the governments) are just waiting for us, the naughty children, to have a tantrum so they can take away our toys, and lock us in our rooms.

    How can we trust anyone who comes to power through violence?

    The coming war can only be one with love and intentful non-violence, or not at all…

    • If they restrict us that much do they not also inflict limits on themselves as it all seems to be down to the taxpayer paying money and “the majority”being sufficiently disinterested in changing the current state of the arrangements of “state”

    • Your analysis ignores that in any democracy, the people are supposed to be the ultimate power. Everything the government does is supposed to be approved by them, either by way of a manifesto/ad hoc referendum or, best of all, by a proper written constitution.

      We are now seeing German/EU fascists ride roughshod over all of this to protect themselves and their fantasy dream of a new socialist empire: The USE.

  15. The Greek people could never accept this.
    I agree if genuine it could be a ploy to get them to walk rather than face more EU enforced humiliation.

  16. Geez, I take a lie in on a Saturday and am faced with this! I wont call it a bombshell since it is the reductio ad absurdum of the previous path.

    The plan has Washington’s fingerprints all over it, meaning the IMF with ‘advice’ from the US Director who reports directly to the Treasury and indirectly to the White House. I sense the involvement of the National Security Council and the Director of Intel.

    Let the counter revolution begin. On your marks Greeks!

  17. An·schluss
    The annexation of Austria by Germany in 1938. Hitler had forced the resignation of the Austrian chancellor by demanding that he admit Nazis into his Cabinet. The new chancellor, a pro-Nazi, invited German troops to enter the country on the pretext of restoring law and order.

    • Thinking about the Anschluss…the exact same tactics have been used by Germany regarding Greece in recent months. So far, the appointed Greek PM hasn’t called in German troops to restore order…

  18. I went for a walk,logged on at 10.30,and read this. Is it April 1?Is this treatment going to be dished out to the Portugese as well?

    • “Is this treatment going to be dished out to the Portugese as well?”

      I very much hope so.
      Perhaps the EU appointed commissioner will instruct their state owned sh*tty airline TAP Portugal to comply with European law and refund the €1,500 it owes me which it promised to pay 18 months ago but never has. It ignores all correspondence on the matter. Their lies will be exposed in a website: http://www.TAP-Portugal-Sucks.com

      • @BT,
        Please don’t take it personally, Portuguese big business and TAP in particular are notorious, for treating everyone ( Portuguese included) the same way, indifferent arrogance, sums it up, there have been improvements over the past 5 years but still some way to go.

        Despite what the E.U. says about E.U. countries being opened up to competition, because the Portuguese market is relatively small (10 million population) and not particularly wealthy, real competition for the big Portuguese companies is virtually non-existent, so they know that they can get away with indifferent customer service.

        I personally can’t comment on TAP service because I’ve been warned never to use them, but for future reference remember what the Portuguese say about TAP; Take Any (other) Plane.

      • @Rui Ventura:. Thanks Rui, some interesting comments. That’s the first time I’ve heard that particular name for TAP :-)

        TAP are going to get a nasty reality shock because when I get that website up with the facts of my outstanding claim, I’m gonna flood it over every Portuguese/Brazillian forum I can find and expose them for the crooks and liars they are. TAP will lose business worth far more than the cost of refunding me. I will spare no one – not even their CEO, Sr Francisco Pinto – who has presided over a shambles airline and crookery for about 9 years. I think a personal letter to him with a URL link to the upcoming website will hurt him. My guess is that TAP are now technically insolvent and in theory should be grounded by law.

        Not sure which is worst: ALITALIA:
        Always Late In Take-off, Always Late In Arrival”

  19. One might suspect, that if this is all to be taken at face value, then perhaps there is another plan underneath.
    No-one in their right modern mind would overtly impose such colonisation from outside, especially Germany. They would do it using Quislings from inside Greece.
    So maybe Merkel at al are pushing Greece to default and get out of the Euro, and hang the hedge-funds and French banks. (oops, enschudigense-bitte)
    Where is G-Pap, and what does he say?

  20. Pingback: FT: Germany Calls EU to Control Greek Budget | Keep Talking Greece

  21. Now that the model to handle Greece has been fleshed out, we ca look forward to a roll-out to the other Eurozone members under stress!
    An example to encourage the others!!!!

  22. I’m a haven’t been able to put an actual figure on this rescue package because the more I read the more confused I get, Is the money going? Has it gone? Has it been held back until whatever is agreed ?.
    So can anyone help me out, if Greece says “No Thanks” we have a cunning plan and it doesn’t involve signing everything over to you lot and decides to take it’s orderly / disorderly defaulted exit of the E.U./ euro club, just how much bailout/ loan/cash, call it what you will has the E.U., E.C.B, IMF, or for that matter anyone else who is involved in this rescue operation actually handed over (not promised) to the Greeks up to now.

    i.e. If they don’t get another euro, ever, how much in round figures has been flushed into the Aegean.

  23. To quote from an old movie ” follow the money” – the banks were funded surreptitiously by the continuing (and necessary) QE from the World’s largest banks. The hope for growth failed and now the rates will climb and bankrupt all the weak nation states. The banks were never — ever– going to take a 50% haircut. If this is all true the end is nigh for the great experiment. The best articulation of today’s problems.
    U.S. debt === IOU–nothing
    E.U. debt=== WEOU-nothing

  24. Pingback: Greeks Stunned As Troika Takes Power | Sovereign Independent

  25. There is a historic parllel to this takeover. We have to go back to 1935 and the takeover of the Dominion of Newfoundland by the UK Treasury because the Dominion was unable to service its debts. Newfoundland only became free again in 1949 when it voted in a referendum to become a province of Canada, rather than an independent country, and forevever afterwards the butt of Canuck jokes as the country rubes.

  26. The European Commission has just announced an agreement whereby English will be the official language of the European Union rather than German, which was the other possibility. As part of the negotiations, the British Government conceded that English spelling had some room for improvement and has accepted a 5-year phase-in plan that would become known as ‘Euro-English’.

    In the first year, ‘s’ will replace the soft ‘c’. Sertainly, this will make the sivil servants jump with joy. The hard ‘c’ will be dropped in favour of ‘k’. This should klear up konfusion, and keyboards kan have one less letter.

    There will be growing publik enthusiasm in the sekond year when the troublesome ‘ph’ will be replaced with ‘f’. This will make words like fotograf 20% shorter.

    In the 3rd year, publik akseptanse of the new spelling kan be expekted to reach the stage where more komplikated changes are possible. Governments will enkourage the removal of double letters which have always ben a deterent to akurate speling. Also, al wil agre that the horibl mes of the silent ‘e’ in the languag is disgrasful and it should go away.

    By the 4th yer people wil be reseptiv to steps such as replasing ‘th’ with ‘z’ and ‘w’ with ‘v’.

    During ze fifz yer, ze unesesary ‘o’ kan be dropd from vords kontaining ‘ou’ and after ziz fifz yer, ve vil hav a reil sensibl riten styl. Zer vil be no mor trubl or difikultis and evrivun vil find it ezi tu understand ech oza. Ze drem of a united urop vil finali kum tru.Und efter ze fifz yer, ve vil al be speking German like zey vonted in ze furst plas.zis mad you smil, ja

    (many many thanks to who ever penned the above – it was not I)

  27. Could Greece become an Egypt?
    Possibly ,can the Greek security forces keep order, or would the EU send in reinforcements.
    This is a dangerous game the EU are playing here the stakes could get a lot higher.

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