GREEK CRISIS UPDATE: BEWARE OF GREEKS SUFFERING RIFTS

Greek Anarkik Konfusion Theatre Group’s production of ‘Krisis’ not a huge hit, baffles audience

George Papandreou will not be resigning as Prime Minister until such time as a new ‘interim’ Government has been sworn in. He has been asked by both senior PASOK MPs and the Conservative Opposition New Democracy to continue as a ‘caretaker’ PM until the ‘interim’ chaps are chosen.

The idea, it seems, is to choose  the interim folks (not elect, at this stage) because an election would be far too slow and disruptive. President Karolos Papoulias, poor sad fellow, will be doing the choosing. I understand that  New Democracy will only support the Chosen Interims if they are, and I quote, “a Government of technocrat experts whose narrow remit will be to ratify the Brussels agreement, and ensure the payment of the 8bn euro bailout tranche”.

There will then be new elections before Christmas, and the lucky winners of that bunfight will take over in the New Year. This is the final, last version of what’s going to happen. Until the next twist in the plot, when it won’t be. I am getting too old for this nonsense.

The unprecedented brutal humiliation of Greece by German Chancellor Angela Merkel and French President Nicolas Sarkozy, following Papandreou’s ill-fated referendum idea, meant his fall from the premiership was a dead cert, according to Athens newspapers this morning. Then, in the 30 minutes after ‘news’ of Papaendreou’s ‘imminent resignation’ broke just after midday, German stock markets rose dramatically.
The Prime Minister’s referendum proposal had been described by some journalists as ‘dead on arrival’ when Papandreou returned from his talks in Cannes. They asserted that Finance Minister Evangelos Venizelos had decided to shaft the Prime Minister before he (Venizelos) landed in Athens from Cannes. This Angelo did by immediately opposing the referendum put forward by his boss.
That move was viewed by the Greek media as a leadership bid by Papandreou’s arch-rival Venizelos. Significantly I think, from late morning onwards the Venizelos camp began putting out releases saying a large majority of Pasok MPs opposed the referendum, that this made it certain that the referendum could not attract the parliamentary majority required, and that Evangelo Venizelos’s opposition to the referendum had been decisive.
“The two men are enemies politically, and the simmering resentment has never been entirely absent,” said one source close to the finance minister. There was even specific talk of Papandreou having phone the Greek President to warn him of his impending resignation.
But then, around 1.30 pm, came the fightback from Papandreou. He is obviously going to have to go, but the Venizelos wishful thinking appears to have been stamped upon. The full text of Papa’s version has just been uploaded to his official website. So if you can read Greek, have a look.

And also breaking: Mario Draghi of the ECB moved quickly to cut eurozone interest rates this afternoon. Downgrading the outlook for european growth, the EU’s central banker signalled clearly to the markets that he will make the encouragement of economic growth in the EU his main focus. But he did not specifically mention any QE/liquidity moves at this stage.

The Slog is now going for a lie-down.

78 thoughts on “GREEK CRISIS UPDATE: BEWARE OF GREEKS SUFFERING RIFTS

  1. Astonishing. Only ~24 hours ago he got unanimous support for his referendum plan from his cabinet!

    “Greece in Meltdown”.

  2. One wonders what strings were pulled in the Greek government to achieve this.

    It was something that the EU certainly did not like. With Paps gone, which EU lover will take his place?

    Perhaps the Greeks will take the referendum into their own hands? If an election ensues where all parties support the EU plan will it be a case of the leading party gaining a majority with three votes, and the others with two between them? (= a voter strike?)

  3. So……I wonder how this may play out. Assuming his resignation is accepted then Greece would accept the bailout package and we are back to where we were. Plus it would give a bit more resilience to the Eurocrat agenda for Greece.

    Is Papandreou being a bit of a drama queen? Or is he planning a comeback in 2015 when German tanks are on the streets of Athens? And he can say “I told you so…..”.

    Or will the situation on the streets of Athens determine things in the next few weeks? How is it looking?

    • Cronshd.
      I suppose much will depend on how the “Streets of Athens” feel about it, doesn’t it?
      They (the Greeks) might well feel they have been shafted by Brussels, this could end worse than they imagined, unintended consequecies and all that!

  4. This made me smile after the interest rate cut:

    Channel 4′s Faisal Islam highlights how fast events are moving today:
    @faisalislam: Simultaneous draghi bazooka and GPap resignation… In 11 mins time? The ultimate superbazooka?

    Is the ECB moving to a new agenda on inflation vs growth? Probably won’t make a huge difference.

  5. Looks like Merkel is installing a puppet government in Athens. Lucas Papademos, if he really is the chosen man, should remember the fate of an earlier incumbent, General Georgios Tsolakoglu.

    • Well this has the makings of a Euro political thriller………
      ……in the denouement, to the rescue comes………………………

      …………………….JW and his Merry Band of Sloggers!

    • and of the US Fed Reserve Bank (based in London), the Trilateral Commission, Columbia and Harvard Univ, breeding grounds of the neo-fascist (Neocon) cult. Apparently, Papdemos is who took over Greece’s sovereign currency in 1985, replacing it with the counterfeit draxhmae of the hidden central banking interests,.

  6. JW do you suppose that GPaps has done it again? It seems to be something of a characteristic to wrongfoot everyone – that is not intended as criticism, you of all people can learn from all this. But the poor old MSM does not.

  7. it seems generally agreed that the French banks are a bit of a mess … and the woman who was in charge is now head of the IMF

    it seems generally agreed that the Italian economy is a bit of a mess … and the man who was in charge is now head of the ECB

    not exactly confidence inspiring….

  8. Everyone
    I am staying very close to this, because complete confusion has broken out in Athens.
    Papa is now saying he hasn’t resigned, and refused to do so at this morning’s Cabinet. The President’s office has confirmed that he hasn’t received any request for a meeting with Papandreou.
    I do have confirmation, however, that Panok & New DEmocacy are meeting about an interim unity Government

    • JW
      could you perhaps put a short explanation of the various “what if’s” please.

      I for one am more than a little lost as to which outcome the EU wants, which the Greek governments (currently) wants and which the Greek people might think they want

  9. maybe Greece should hold a referendum to ask the people whether they should have a referendum about staying in the the Eu etc, etc

    • Excellent. But first we’d need a steering committee to ask the election authorities about legality, and then have a referendum as to the legality of their opinion on legality.
      This IS the massive danger of plebiscites: don’t ask the opinion of anyone who doesn’t have the information or IQ to decide.

      • And the problem is John, those who have the IQ and information to hand MUST report to the PLEBICITES for… well you know,to be knocked back.

        However. I am prepared to offer myself as the Chairperson of such a steering committee here are my requirements to fulfill the remit of the position.
        1 a great big comfy chair
        2 Expensive bottled water- bottled by hand by Greek eunics
        3 a proficient scribe: who looks exactly like Billy Zane.
        4 Tea breaks ever hour on the hour for the boys and ‘Diet coke break for , well me..
        5 my working day will be 3 hours Max every 5 weeks and committee meeting to take place in various places around the world- this would be our claim for diversity and inclusion. You know meeting different races of people.

        let the voting commence.

  10. No resignation today the Greek President has gone home…

    I don’t think G-Pap is going to go quietly, good for him and the Greek people.

    • Greece is facing a hard road whichever option it chooses. If G-Pap is forced out and the referendum is withdrawn he will become the hero of the Greek people, those who force him out will be considered traitors. He will be re-elected at the next election they won´t be. If there is a referendum the Greek people may well choose to stay in the Union but the sting will have been taken out of the protests. G-Pap is a smart man.

  11. “No resignation today the Greek President has gone home…

    I don’t think G-Pap is going to go quietly, good for him and the Greek people.”

    Now we know why the threats from Merkel and Sarkozy are getting more and more desperate, the referendum is really going to happen I think.

    I have been keeping my eye on Zerohedge and it seems the next domino to fall may have been found…

    http://www.zerohedge.com/news/jefferies-17-all

    P.S Reposted as I can’t edit my posts…

      • We will see BT as rumour and counter rumour are flying all over the place.

        It was reported earlier today that he was definately going to resign @ 1pm UK time and that did not happen, until we here from him everything is a rumour.

      • @MG: my comment was based upon a Sky News report who claim Papa spoke to them personally in Athens. Of course it might change but Sky are still saying he refuses to resign.

  12. So, to summarise,Greece has definitely run out of money,and may or may not have a prime minister.The ESF also has no money to save Greece or anybody else.Germany has plenty of money,a constitutional court,informed voters and a leader out of her depth.France has plenty of insolvent banks,not much money and a leader comparable with Germany’s.The US can still borrow plenty of money and is the largest contributor to the IMF.The IMF has lots of money, couldn’t give a toss about Greece,but is sh+t scared about Italy and Spain.

  13. The bankers are desperate. Goldman Sachs and JP Morgan are exposed to trillions of derivatives. Once Greece formally defaults (though defining that is a fudgde) , the Ponzi scheme of unregulated CDS (insurance) collapses. MF Global was a tremor of the Big One. Then system collapse. Bank Holidays for all (and I don’t mean Boxing Day).

    That’s why GS have people everywhere. Tentacles.

    War in Iran to distract and to close down communication.

    Suggest topping up ones cash in the hand position. Alarmist? Moi? Maybe but it’s looks a possibility. Hope for the best and prepare for the worst.

  14. Good work John. Perhaps papo was ‘invited’ to resign and some people got a wee bit over excited? Either way, it will be very interesting to see one man and his weary people take on the might of the EU. This could be the David v Goliath match of the century. Phony Tony may be called in to ‘mediate’ with his consultancy company. If this is the case I would buy shares in the munitions industry. The thing is the Greeks, who have the upper hand because they ‘invented’ Democracy, and still know how to use it will come out of this with a better deal than they could hope. DEMOCRACY A word hated,despised in the corridors of EU. There is something conforting about watching someone leading horses to water, and be inspired when they refuse to drink on demand. The person doing the leading feels in control, due to the grooming, But a weary thirsty horse can break- way and gallop onto his chosen water trough anytime. Now that is worth remebering.

  15. What is going on? This was supposed to be a wily fox outwitting the dumkopf EU. But he does appear not to have got his ducks in a row. Lose the confidence vote tomorrow, new government buys the EC line? Greece staggers on, we know not how long and market focus shifts to Italy?

    • He is just playing for time until the vote tomorrow, that will be the real decider. He is keeping his Greek and Eurozone opponents guessing, this ensures that the goal posts keep moving and noone can get any momentum going to remove him.

      It is well played if you ask me, he is still there after all when many said he would not be.

      • You’re probably right, MG. But I feel a lot of pressure has built up behind the scenes for the referendum to be cancelled and for Greek democracy to be brushed aside. We already know some of that pressure is from Merky & Sarky for their own motives, but I wonder if the US is also pulling strings from the shadows?

        Recall that JW says above according to his sources the main opposition party will only support the ‘interim govt’ appointed tomorrow IF it fully agrees to sign-up for the EU bailout and next €8 billion tranche.

  16. Does anyone know what the Greek People have to say about this farce of a government.
    I mean they may now demand their referendum by force??

  17. Anyhow just to sum up.

    The Greeks are not going to get a referendum
    The Greeks will not be allowed a General Election
    A new quisling Government will be formed. All ministers will be subject to approval by Merkozy and the EU.
    Greece will not be allowed to leave the Euro.

    Democracy in Greece has been destroyede by the EU
    There is very little prospect of this being resolved peacefully!!

    • Yes they are kfc1404 and have been from the start…

      This is far from over, I still think the referendum is on he is playing for time…

      He would not have chosen the nuclear referendum option on a whim nor can he withdraw the referendum just like that either, I think he knows exactly what he is doing.

      Unless he states outright that there will be no referendum it is still on, this is all just to keep his own party off balance, he wants the referendum and to keep his job and he may just get it. If his own parliament goes against it he will be seen as a hero of sorts for at least trying to give the people a say.

      It suggests to me that the Greek parliaments opposition to the referendum may be waivering somewhat, as a politican you have to be able to judge which way the wind is blowing, right now it is blowing in his direction.

      All he has to do is keep everyone off balance for long enough and the currently united opposition against him will crumble, as they dislike each other more than him.

      He threatened to resign but that would be just as damaging and time consuming as a referendum, some high stakes poker going down in Greece…

      • According to the TeleG @5.03pm:

        ‘Greek finance minister Evangelos Venizelos has reportedly put the matter to rest: there will not be a referendum’.

  18. Well the last time the European powers acted in concert to condemn a nation to years of penury (see: Versailles) it certainly worked out well. The Greeks are a proud people, and humiliating even an unpopular leader is only going to stoke the fires of nationalism.

  19. I hope somebody informs the G20 clowns that Greece has a formidable cultural first XI-Pythagorus,Archimedes,Herodotus,Thucydides,Homer,Aeschylus,Sophocles,Euripides,Plato,Socrates and Aristotle,with plenty more on the bench.Paul C’s point is well made.Ancient Greek was and is a rich,precise language.Tragomaskalos means’with armpits smelling like a he-goat’.How do you say that in French or German?

  20. WHAT’S A GREEK URN ?
    About 30% less than he earned about three years ago. (With apologies to Arthur Askey).

    For all of us dizzied (verb?) by the speed of events, here’s some immutable information to gaze upon and steady yourselves. You’ve heard (some of) it before, but that’s not necessarily a bad thing.

    “No event in history has happened BY ACCIDENT. Every event, every war, every boom and every bust, has been anticipated and carefully planned in advance”.

    Everything that you see involving Merkel, Sarkozy, Papandreu and Cameron has been planned, rehearsed and choreographed down to the last handshake.
    For the sake of any doubters, here’s what WON’T happen:-
    1. Germany leaving the euro
    2. France, Italy and Spain likewise
    3. Greece voting to leave the EU
    4. Greece actually getting a referendum on the issue
    5. The UK likewise
    6. UK interest rates increasing

    Here’s what WILL happen:-
    6. Greater integration of members of the EU
    7. Proposals touted for a central EU government
    8. Quantities of EU-held gold sold to Rothschild, Rockefeller and Blankfein
    9. EU banks recapitalised by EU taxpayers
    10. Bank mergers & acquisitions planning nearing completion.

    Meanwhile, off-camera…. a few more democratic liberties are under threat.
    11. Julian Assange starts to pack his winter woolies for a sojourn in Sweden and onwards to Guantanamo.
    12. Crooked “regulator” OFCOM prepares to justify its attempt to close down troublesome Press TV.

    Oddly enough, these last two items are linked. One of Assange’s WikiLeaks cables exposed the connivance of the US and British governments in searching for a pretext to shut Press TV.
    I’d guess that the lack of enthusiasm by the Murdochs in this plot to take down this Sky-platform TV station was just one more reason for the Empire to throw News International to the wolves.
    Anyway…it makes for a good conspiracy !!!
    Kennyboy

    • You forgot to add that at precisely 12 midnight on 5th November, the EU-cratcocracy morph into reptiles.
      .
      .
      .
      Ooh wait a minute
      .
      .
      .
      Barosso’s already morphed!

  21. Looks increasingly as if the whole referendum thing was planned between M&S and Papa (not il Papa!) as a means of pressuring the Greek parliament, government and opposition into early submission. Well that’s one possibility, there are others! Not clear what finance minister is up to, was he part of the plan or not? Presumably the clear-out of armed forces top brass was another element of the M&S plan. Coups are not part of the EU thinking at all.

  22. Saw this in an article by Michael Krieger on Zerohedge…

    “Remember, there is a very good reason that no “definitive solution” has been announced. There is none.”

    Nuff said really…

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