A large number of high net-worth individuals in Athens received telephone calls from Eurobank in Athens yesterday, advising them to withdraw any cash and savings they have with the institution immediately.
The whole canvas behind this utterly improper move smells. A few days after gaining power, the deputy prime minister in Greece’s new left-wing Syriza government, Yannis Dragasakis, met the bank’s shareholders “to discuss the bank’s future”. The next working day both the Chairman and Chief Executive abruptly resigned. Why Dragasakis felt the need to move so swiftly can’t be ascertained as yet, but this latest move looks like a counter-attack by the shareholders who represent the EC bailout fund….aka, Troika2.
At the same time, Syriza went out of its way to announce that it would not appoint party members at key management positions in top banks. “We will not do anything that would hurt the share value of banks,” Gavriil Sakellaridis told Skai TV at the time, “Whatever we do in the banking system will be done in cooperation with private investors. We will not appoint party officials to manage banks.”
Three days ago, the Barclay twin owned Telegraph offered the following as a special ‘explanation’ of the Greece/Troika showdown:
‘Should no extension of a bail-out agreement be reached before Friday, the plug may well be pulled at the end of the month, effectively dumping Greece out of the euro….Any decision to withdraw ELA would however require a two-thirds majority in the 23-man [ECB] governing council….A more explicit statement around when and how ELA usage would be capped by the ECB would be an additional means of raising the pressure on the Greek government….It is this kind of signalling that is likely to help tighten the screws on both sides, and the ECB will hope, prompt them into ceding some ground in order to prevent Greece from becoming the first member to leave the euro.’
This is rubbish. But it’s everywhere in today’s edition:
Alistair Heath: ‘Don’t panic: The sky won’t fall in if Greece decides to leave the euro. There will be no global rout nor all-out crash if Greece leaves the euro – it is too small to matter’. Pure EU propaganda and absolute codswallop.
Mehreen Khan: ‘Germany and Athens ready for showdown in Brussels today to thrash out last-minute deal and avert a ‘Grexit”. Again, a fantasy. But no mention of illegality.
Ambrose Evans-Pritchard: ‘If Greece is forced out of the euro in acrimonious circumstances – a 50/50 risk given the continued refusal of the creditor core to acknowledge their own guilt and strategic errors – the country will not only default on its EMU rescue packages, but also on its “Target2” liabilities to the European Central Bank.’ It’s not a 50/50 risk: legally, it’s a zero risk.
But at least AEP stays true to himself, and observes realistically, ‘[after] A Greek default – unavoidable in a Grexit scenario….The German people would discover instantly that a large sum of money committed without their knowledge and without a vote in the Bundestag had vanished.’
Precisely so: and this is a big motivation behind what’s going on both in the MSM generally, and Berlin in particular.
When is any British newspaper going to point out that this is not “applying pressure” it is an attempt to illegally crush one member State? That without illegality, there can be no Grexit?
Don’t hold your breath: as with the corporatisation of the political processes in the West, so too the media print what the gargoyles want, not the Truth.
And where is the great self-styled Europe Liberator when all this is happening? Wriggle Farage has been a study in silence since this blew up. But then, it’s one step at a time with Nigel Nimblefeet: rich unelected donors one week, letting Greece die without a fight the next. Farage is in the Vanguard of news management, not on the barricades with ordinary People. Ordinary People who vote Labour and hear not a peep from the Labour Party about Czechoslovakia2.
Disgraceful and pathetic. I am this morning ashamed to be British.