BERLIN OUTRIGHT REJECTION OF SYRIZA LOAN EXTENSION PROPOSAL

merkyanisAthens sources: Greeks plan to default inside Eurozone, Merkel seen as having “fallen into bear trap”

Whichever way you cut it, the only thing the Greek Government has done is to reveal an insoluble split at the heart of the European Union.

The view this afternoon among the Athens cognoscenti is that Syriza’s long-foreseen game plan alternatives are playing out pretty much according to expectations: that is, the Franco-German divide on federal futures and fiscal discipline is there for all to see….and becoming increasingly obvious.

The Slog first posted about this in November 2011, and predicted that, ultimately, it would lead to a fracture bad enough to destroy the EU. Earlier this week we saw Varoufakis ready to sign a French-inspired deal, and then the German Panzers rolling over it within hours. In the Parliament later, Tsipras did not seem surprised – and indeed, joked about it.

It’s time some of the commentators on this saga re-read the Lisbon Treaty. Under that agreement, there is no legal provision or framework in EU Treaties for a country to leave the euro; a decision to join the single currency was deliberately designed as an irreversible move.

Nor is there any possibility of Greece being “forced” to leave: whatever Germany, Draghi or Dieselboom threatens, the Greek antidote is simple: default within the eurozone.

That will implode markets around the world, encourage the likes of Italy, Portugal and Spain to do the same…and vastly increase the cost of all sovereign borrowing.

The Greeks could go the way of the Brits – and decide to leave the EU. But as article 50 of the Lisbon Treaty asserts, even that would require two years notice from the State to Brussels. And again, there is no way under that article that a jumper can be ‘pushed’.

Berlin posturing and Frankfurt threats will not cut any ice with Athens. Indeed, in behaving in this Mobster way, all they’re doing is shooting off their metatarsals.

Think about all this….and then ignore the drivel you’re being fed by West European media.

50 thoughts on “BERLIN OUTRIGHT REJECTION OF SYRIZA LOAN EXTENSION PROPOSAL

  1. We’re on our way to victory . We’ ll hammerdrill the Hellenics back into their own self created dungheap , overthrow this excuse for a Govt. and bring back the Coloneks if necessary . Then we ‘ ll re impose every joyful condition the olive growers had had foisted upon them in the days of the fat man whose name I ve forgotten but who went around “Evagelizing” everyone until it was claimed he had a Swiss account .

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  2. Ah, Frau Merkel, I am afraid your frothy beer is going to go very flat waiting for Greece to go away. Worse yet, the other austerity victims are going to take note and either default or ask you to pay their bar tab too. You might want to start considering an orderly retreat – but nein, you will push forward in your own beautifully hard-headed teutonic way pissing everyone off with each word you say.

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  3. Lisbon Treaty? Since when did anything written there have any real value? They have ignored any and every part of it that suited them when it suited them. Not worth the paper it’s written on.

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  4. I believe the name of the person you refer to is Evaginating Venisonsausage. The forename indicates his predilection for turning people’s pockets inside out. It also contains a word within a word, which is how most of us will remember him.

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  5. JW….they haf vays to push us overboard. They have their B and C plan. Ausgang or Rausgang…
    What will be the course of the ship and the rest of the crew, will be of little matter to us then…

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  6. O/T for this essay but, very much in keeping with JW’s recent offerings.
    I have been reading the Flashgun memoirs and I am at the Indian Mutiny at present and he writes that: ‘ England contains this great crowd of noisy know-alls that are forever defending our enemies’ behaviour and crying out in pious horror against our own’.
    That was in 1857. Not much has changed eh?

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  7. “The Greeks could go the way of the Brits – and decide to leave the EU” Has the UK decided to leave the EU?

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  8. Meanwhile, the Swiss are being bullied by the Sprouts to change the way they have run their affairs, in peace for 150 years-or else…. As if the midgets in Brussels even come half way up to the probity and democracy of the Swiss,( oh, except for a few foreign bankers)

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  9. Merkel can bang on about the Lisbon treaty until she is blue in the face, but the treaty that counts is called Cantpaywontpay. As a 27 percent shareholder in the ECB, the German taxpayer may be about to discover the joys of Target 2 and 400 billion Euros vanishing into thin air.The joys of unsecured lending…..

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  10. I think the economic doom claimed if Greece implodes is exaggerated. There is such a lot of political credibility laying on the EU “working”. America needs it intact and on its side to exert economic sanctions against America’s enemies.

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  11. John, Σε Ευχαριστούμε Όλοι, for your efforts to provide a ray of truth within the Göbbelian darkness that has overshadowed not only Europe, but, almost all the so-called Western world.
    This EU nightmare has nothing to do with democracy, truth, solidarity, equality. To hell with it and all that comes with it. Even quite moderate (i.e. conservative) Greeks cannot stand this neo-nazi-fourth-reich attitude of Germany and of its’ afficionados (i.e. the Samararses and the Veryzealouses Gauleiters here and their fellow puppets such as Ra-soy sauce etc.).
    It’s high time to put an end to this lunacy even if it means to experience extreme poverty. Enough is enough.

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  12. Ahh mein sehr gehrte freund Shannon , but you know I spoke by telephone to Mr Tsypras for 50 minutes tiday.
    However as neither of us speak a common language I doubt much was achieved . In desperation I started reading from my German recipe book on how to bake Wienerschnitzel . I hope he took it all in and tries it for his supper tonight … after all we ‘ ll be paying !

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  13. By reminding Germany forcefully how much they are resented, not to say loathed, it seems to me that Greece is ensuring that Germany’s attitude will remain as hard as stone. Surely, if you want to negotiate, you shouldn’t insult the other party in a very public way, however justified you feel your comments are. Therefore, I believe Greece is influencing the outcome it wants by alienating Germany, which is behaving predictably and sleepwalking into the trap. As you say, payback time, by the Greek master game players.

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  14. Yea but the rulers of America meaning the IMF have not lifted a finger to stop this default. It seems like rather than give up their sacred principle that debts are non negotiable and every scrap of material wealth must be sacrificed on the altar of debt service.

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  15. I watched the Britich Buggery Corporation “Breakfast” this morning for the first time in ages. Couldn’t believe how militaristic it reports shit nowadays, as if the British Army is being sent to Latvia for “defence” purps. We are as America a warmongering nation.

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  16. John ole sport…you like a lot of pple are wrong..dead wrong on the law of partnership within the EU, any partnership can be broken simple by a partner saying he/she no linger wants to be in a partnership, or I dont like your face, Im off, in cases where there is a written partnership agreement..and here we have a flowery name for it ***the treaty of ****, and under what ever terms a split can be made, that can always be usurped for what ever reasons.
    Now let me be very clear to you on this….My ex partners are several HIGH COURT JUDGES of England, they hated being in partnership with me, they even deny it, and no journalist will even bother to check the land registry to see our names locked together in property partnership. Partnership lw is something I know about.

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  17. they are prepared to let the Euro collapse. (sorry should finish sentences. before i press post button) I wonder if they are prepared to let Putin step in and finance Greece? and If this is not a well thought out plan to helpRussia acquire another financial burden, After all with the Greeks still in the EU what can they give Russia in return for its aid? Fish? no!! A naval base? Not if Tsiparis wants to live to see old age Oil? Russia needs more oil glut like India needs more man eating tigers.
    Something tells me that despite the rhetoric The EU is going to have to take complete stock and reinvent itself, and all the Nein!! Nein!! noise coming from Frankfurt will have no effect whatsoever

    We certainly do live in interesting times

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  18. Pingback: John Ward – Berlin Outright Rejection Of Syriza Loan Extension Proposal – 19 February 2015 | Lucas 2012 Infos

  19. +1 The average Greek on the street will not worry at all if their banks go belly up….either they have no money in them or the bank is trying to reposess their primary homes. The Greek people who I know are all for pulling down the temple pillars on the whole lot of them….the theory is stunningly simple….if all your money,has been taken and you have nothing to loose…who is gonna get hurt most in taking down the Euro ?

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  20. The harsh truth is that it makes little difference what Athens thinks. The Greeks handed over control of their economy to the Frankfurt when they joined the euro. The Greeks have realised too late what monetary union means. Now, they will either have to put up with Brussels-approved handouts or leave the euro.
    My guess is that they will stay, and that Syriza will be deposed.

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  21. At the end of the day it will be as it will. If we had the ability to look back, say in 25yrs from now, what would we say? Truth is, we don’t know. Truth is, we don’t know what is going to happen tomorrow.

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  22. Would could ask if the Varoufakis is schizophrenic..the voices he hears are always telling him hes got a deal…on his terms..now Im dyslectic whos going to believe me

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  23. Target 2 , that’s the indicator at the moment. A bit like the KFC posts indicator.

    Anyway I am more preoccupied with the protocols and market factors of the UK dump, sorry recycling centre. And that’s were the future really is, when you get down to ground zero it is another world of local markets, community controls, policing in the sense of keeping the rules and the ultimate outcome of client and worker satisfaction and clean and tidy local Communities.

    Now yes where does this post fit in, well as the man in charge at the dump said, ” f… europe,let them come and work here”. A listening statement but full of good advice.
    Because that’s the one thing you and I (JW) haven’t discussed, the people in charge don’t do any work.

    Merkel rejecting or otherwise loans for Greece has become academic. ( for even the hard grafting UK workers )

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  24. The European Central Bank did a very thorough study about three years ago and came to the conclusion that there was no way of expelling a delinquent member from the eurozone. They also looked at the possibility of a state wishing to leave the EU and came to the conclusion that there was no way of stopping a country which was politically determined to leave because the EU lacked the means of coercion.

    Whilst the euro project is nominally irreversible, I think that a state still has the right to serve notice to quit under Article 50 of the Lisbon Treaty but membership of the eurozone would make such a move rather more complicated than for a non euro state.

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  25. Pingback: John Ward – Greece Exclusive: EC/ECB Dirty Tricks At Eurobank – 20 February 2015 | Lucas 2012 Infos

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