EUROPE GETTING OUT OF HAND: Austria refuses to bail out Carinthia, Varoufakis makes the referendum threat before today’s eurogroup.

lionfire

Herr Schäuble reacts calmly to the news from Austria and Greece

Ahead of any European MSM title, The Slog posted about HETA bad-bank goings on in Austria a week ago today. Yesterday, Frances Coppola wrote this piece at Forbes. These are some key points from her column:

‘Moody’s has downgraded the rating of the Austrian province of Carinthia [where HETA is based] with a negative outlook….The rationale for the downgrade is Carinthia’s liability for Heta’s debts because of the guarantees it issued during HAA’s pre-2008 lending spree. The scale of Carinthia’s exposure is eye-watering….[it] could exceed Carinthia’s liquidity resources, likely leading to increased financial leverage, and could require some form of extraordinary central government support….’

Coppola then posits a worrying scenario. Austria having already legalised its bail-in rules….

‘…..clearly, if losses rebound to the sub-sovereign via the guarantees, taxpayers cannot be said to have been protected…. Federal Finance Minister Schelling says that the Austrian federal government will not take responsibility for Carinthia’s guarantees….’

Given that the Bayernische Landesbank is already sueing Carinthia for $800m, what Frances is describing here is national units retreating back behind their stockades, and responsibility bouncing around all over the place when it comes to honouring guarantees. Whichever way you cut it, this is going to turn into both a bailout and a bailin…because bondholders and creditors alone aren’t equal to the enormous sums involved.

The day George Osborne stood up in the Commons to announce the bail in concept as a means of “protecting taxpayers”, I said forcefully that it would provide no protection at all. The Hypo/HETA farce proves the point. But equally, it both increases market nervousness about the euro, and suggests that events are moving beyond the control of the soi-disant ‘elite’ of the EU. Bloomberg notes that ‘Austria’s decision to wind down Heta Asset Resolution AG sent ripples through the financial system, causing credit rating downgrades in Austria and bank losses in Germany’.

Frances Coppola calls this “Europe’s Argentina”. Clearly – from the Troika downwards – the Eunatics have no more idea what to do than the Argentinians.

In Greece, on the other hand – although a tiny anarchist group has occupied Syriza’s offices – there are one or two signs that Varoufakis may well be regaining the initiative. Today is Eurogroupe day (again) and now Game Man is warning that Syriza may well call for a referendum or early elections if the eurozone rejects its debt plans.

In an interview with the Italian daily Corriere della Sera,Varoufakis said eurozone partners had not yet responded to Greece’s proposals to replace its current debt with bonds linked to nominal growth. There’s a very good reason for this: most members of the eurogroupe either haven’t read it, or have…but aren’t remotely interested in its contents. Troika2 is not about to take new ideas on board, because it can’t afford to let Greece escape to a better financial position.

This is all about power, and the expression of it. Wolfgang Schauble will run his Fiskalunion with a rod of steel, and Mario Dragula will take a cosh to anyone who gets in his way. Yanis Varoufakis is merely upping the ante by repeating the threat that got Papandreou stabbed in the front by Venizelos during 2010. This was the memorable occasion when Wolfie’s mask dropped to reveal an even nastier one behind it.”I forbid this referendum!” he screamed, following which Sarkozy took him to one side and suggested he shut up.

It’s going to be really interesting to see what trap the Blue Meanies leave for Red Yanis this time. Let’s hope he’s more awake than he appeared to be a fortnight ago.

Yesterday: Has Yanis been Varoufaked?

18 thoughts on “EUROPE GETTING OUT OF HAND: Austria refuses to bail out Carinthia, Varoufakis makes the referendum threat before today’s eurogroup.

  1. I think you said it all here: “what Frances is describing here is national units retreating back behind their stockades, and responsibility bouncing around all over the place when it comes to honouring guarantees”.

    There are several elements one can look at here: “national units retreating back behind their stockades” being the first. It is, after all, why the EU was set up in the way it was, in that countries could easily be set up against each other in order that certain powerful groups could have their way whilst it appears that it was the result of a dispute between two countries. They struck it lucky with a guy like Schauble who has the mind of a steel rat trap and like all Germans, puts German interests first. Whilst this may look like Germany wanting to dominate, it is Germany wanting its own way in its own country. Again, misinterpretations of this are what those behind the EU are more than willing to promote.

    As to “honouring guarantees” wasn’t this where the entire problem started? With the US banks saying “Umm… well, you see, we only told you these toxic assets were AAA rated, and there were enough people stupid enough to believe us”. It was a the most intricately designed scam. What a pity that the money did nothing to improve the US economy, but the US banks were only thinking of the munnee.

    What the US banks never considered was this: what is it that generates the economic figures that flow from government statistics departments?

    This is in stark contrast to the German government funding in the form of their Stadtsanierung. This pumped a little life into the moribund economy of the DDR; It was a calculated risk, and cost money – and what would alarm an American or a Brit is that it looked like they were giving the money away! That would never do, it would be like having free university tuition and free healthcare! After all, the American way is for everyone to pay their own way and defend themselves.

    Except of course when…

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  2. John

    Off topic on the EU I know but it appears that the late Leon Brittan has has his home searched following the Westminster abuse investigation. I know that you have been on the scent of him for some time so I thought it a good time to revisit this. I posted a while back following his death that it was likely that he committed suicide knowing that the net was closing in on him.

    I’ll repeat my rationale despite the official ‘cancer’ and ‘died in his sleep’ cover story at the time. I am a retired DC from the met and can state that, with the right connections it is very easy to bypass the Coroner’s office following a suicide (or any unnatural death). Provided that the physician and the family are on board, a death certificate can be issued and no post mortem will take place. There is no other pathway of investigation unless a whislteblower alerts the authorities and even then the Coroner can over rule a request for an autopsy.

    The funeral can then take place and body cremated (I don’t know if he was cremated) and hey presto, all physical evidence is gone.

    The ‘died in his sleep’ is also suspicious. Most degenerative diseases occur slowly and there is usually some warning that the end is near. In those circumstances what you hear is “His/her family was at his/her bedside when he/she died”.

    I admit this is all conjecture but the alternatives for him and his family would be unfathomable shame for them and possibly prison for him. Given that, my scenario isn’t that far-fetched.

    Liked by 1 person

  3. Or the inhabitants of an exclusive Tel Aviv suburb have a new neighbour that they’ve been asked not to talk about.
    It’s been claimed that the Jewish guy who killed Lee Harvey Oswald was seen out & about in Jerusalem years after his alleged death by cancer.

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  4. I used to greatly enjoy Inspector Gadget’s blog, before he was forced off the net. His book “Perverting the Course of Justice”, which I have on my Kindle is a must-read. It shows how our police are hobbled by bureaucracy, both front desk & up top, & by crazy politically correct policies & targets. & ridiculously mountainous heaps of paperwork. The incompetent CPS (Couldn’t Prosecute Satan) Crown Prosecution Service is a further barrier to justice, & the ACPO top nobs are bunged by the backdoor through the private limited company Secured By Design. Luvvly Jubbly. Persistent offenders are put in front of weak magistrates time after time after time by police, only to walk time after time after time. & we are told that crime figures are down in this country. Yeah, right. We could do with some police truth. Gadget paints a picture of the front line stretched to bursting point while ‘the force’ abounds with 9 to 5 officers looking to set up & run office bound initiatives to gain browny points & promotions. How accurate is this now, I wonder?

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  5. I firmly believe that child sex abuse is the cement that binds the dark establishment together.
    Look into the Holly Gregg case on ukcolumn.org & the many others.
    Look into how Robert Green has been falsely imprisoned for his efforts to bring the abuse of this downs girl by her father & others high in the Scottish legal & police establishment to justice. Look, in ukcolumn’s children’s section how Melanie Shaw has been falsely convicted for trying to air the abuse she suffered.

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  6. A very interesting piece. At the end it says:

    “Heydorn agrees with Van Bemmelen that issuing debt-free money, purely or mainly for public works, is a start but it tends to empower the central state with too much spending discretion, falling short of consumer empowerment”

    No doubt in this instance the term ‘consumer’ means the private banks? Said with a wink, of course! After all, this is Canada not the US. The politicians still have some notion of what it is to serve their countrymen.

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  7. Here’s a most interesting 59 minute interview with Paul Craig Roberts, Gemma. He attempts to cover economic & political history post Reagan to the present Greek crisis, with particular reference to the anti- Putin demonisation being drummed up by our corporate slave main stream media. Of huge interest is the banking system in North Dakota. where money issued bears minimal interest. A must listen. He advises Greece to default its Euro debt, which is unrepayable now, & which austerity is making ever less repayable, & join with Russia. Hopefully, Italy & Spain would soon follow, & this would collapse the mad US/UK/EU/NATO central bankster empire.
    We live in the most interesting times.

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  8. I’d just read that Robert Green had been ‘gagged’ for life about the Holly Gregg case. Anything like this tells me that there is something really sinister going on. Ditto reports being kept secret for seventy years. Everything to hide – everything to fear!

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  9. Pingback: John Ward – Europe Getting Out Of Hand : Austria Refuses To Bail Out Carinthia, Varoufakis Makes The Referendum Threat Before Today’s Eurogroup – 9 March 2015 | Lucas 2012 Infos

  10. Precisely right, Bernard. Christopher Booker has been working on this for years at the Telegraph. Hampered by the secrecy rules of the Family Courts.
    Tony Blair incentivised this abomination, rewarding social services for the number of kids taken from their families.
    Booker is also aware of the climate change scam. A good man.
    ukcolumn is a fine site.

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  11. Pingback: John Ward – Life Imitates Satire As The MSM Finally Gives Up Even The Pretence Of Analysis Or Objectivity – 10 March 2015 | Lucas 2012 Infos

  12. Pingback: John Ward – Analysis : Why Troika2 Would Have You Believe Greece Is Running Out Of Time And Money – 11 March 2015 | Lucas 2012 Infos

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