News is coming in from Athens that, in a sudden decision, the Syriza Cabinet Council meeting scheduled for 7pm Greek time has been moved forward to 4pm – roughly one hour from now CET.

There is no shortage of clues as to why this has happened.

Eighteen ‘reform’ proposals were dispatched to Troika2 last Friday, at which time Syriza’s international economic affairs minister, Euclid Tsakalotos warned that –  while Greece wanted an accord –  it was prepared to go it alone “in the event of a bad scenario”. Tsakalotos told the UK’s Guardian newspaper that “We are working in the spirit of compromise, we want a solution, but if things don’t go well you have to bear the bad scenario in mind as well. That is the nature of negotiations.”

But within hours of the submission – designed to release €8bn to Greece – the Eurogoupe was leaking like an ocean-going sieve….all of it negative. First eight, then ten, and finally Saturday late afternoon fourteen of the Leftist Syriza proposals were dubbed variously unsatisfactory and irrelevant. Initial feedback from Athens this lunchtime suggests the Syriza Cabinet Council timing change is in response to a negative communication from Brussels relating to the Greek Government’s latest ‘reform’ proposals.

Two days ago, ratings agency Fitch downgraded Greece’s sovereign rating from B to CCC, blaming uncertainty over the EC provision of bailout loan payments to avoid default. That’s beneath accepted ‘safe investment grades’ and not much up from junk. It is hard to see such a swingeing cut as anything other than a Draghi-orchestrated ploy to push Syriza further into a corner.

Equally, it is probably significant that world-leading investment fund PIMCO chose this moment to assert that the eurozone is “untenable” in its current form and cannot survive unless countries are prepared to cede sovereignty and become a “United States of Europe”. Or put another way, become a USE subservient to the USA by replacing the euro with a ‘Dolleuro’ – not to be confused with the eurodollar that already exists….but a real currency backed by the world’s greatest power.

PIMCO added ‘the rise of populist parties demonstrates how uneasy some people have become about the euro’. If I may make so bold, that is utter rot: popular national Parties of both Left and Right have arisen because their citizens are sick to death of Brussels-am-Berlin ordering them about while driving them into an austerity that makes no sense whatsoever.

NB>> The $US is now at 92% of the euro. I have posted several times previously to say I think Draghi is working towards a Dolleuro at parity.

Stay tuned.

Earlier at The Slog: The Mammoth Debt in the UK Election room


  1. Endgame. The Troikanauts strategy of fingers in ears, chanting ‘wah wah we’re not listening’ to alternatives to permanent austerity is set to bring about Grexit, and in domino fashion Spain or Portugal – next up for the Troikanaut bullyboys treatment – will see after a year of pain as Greece with its own bank and currency emerges from the mess bequeathed it by past governments fitter and better, whilst they slop around in austerity 2017. At which point Spexit and Pexit will occur, and with it, the whole Euro debacle comes to a bitter and deserved end.


  2. getting to parity would save all the printing costs and dealings in currency fluctuations (& all the Chinese pronunciation jokes) but surely lines up all sorts of problems with what must surely have to be wider standardisation of Economic Policy & taxation (just where we all came in with the Euro)


  3. Greek Energy Minister Lafazanis off to Russia tomorrow just over a week before Tsipras meets Putin.

    And this piece gives an interesting slant on things. The Greeks will have to hold a referendum whatever the outcome of the ‘negotiations’. If they can show that they have tried everything and that the Troika is determined to squeeze Greeze still further can they build up enough antipathy in Greece for the people to vote for Grexit?!


  4. From Pimco’s assertion I would assume that that’s the direction that they would all like to go in. I’m sure the current shower in Westminster would be only too happy to cede sovereignty, and continue getting paid and claiming vast amounts in expense for doing even less than they do now whilst they can lay the blame for all ills on Brussels.
    I said before, I don’t think collapse is likely, more so the EU will ‘shape shift’, morph into a different entity, no less malignant but, very much mirroring the US in its format.
    As for Greece? Well, as usual it will blow over, how many times has it blown over before? If anybody thinks that Greece cold be The Four Horsemen of the Apocalypse all rolled into one, and bring mayhem and destruction to the world as we know it, is severely mistaken, if needs be they will invade Greece and take over. Greece is not going to be allowed to bring The Dream to an end.
    Greece is gone, it’s finished, all that will be left is what Berlin-am-Brussels allows. Things have moved a lot further on than most realise.
    One reason why our GE is so irrelevant is, Brussels in charge regardless of whoever is in power here, it really doesn’t matter who the public elect for they are powerless when it comes down to it, Brussels rules, not the Tories, Labour, Liberals or even UKIP.


  5. TTIP is to be signed like pronto so that europe can become a state of the good ‘ol US of A. Get out while you can. Go anywhere do anything but get away from the usa….


  6. I’ve rarely read such a load of nonsense. Maybe Drag-knuckles would like the idea of a Eurodollar, Douleuro, or whatever but I don’t think you’ll find more than a handful of EU citizens who would even be prepared to contemplate the idea. Then there’s your hated Germany which most definitely doesn’t want fiscal union with the US.

    Just plain daft.


  7. The’ll do as they are told, just like Germany did over the request for the return of it’s gold, did it get it? No. Europe is just a vassal state these days. The Fed holds all the power.


  8. All good right up to the point where you said Greece will be invaded. By whom? Greece is a member of Nato so how’s it going to look if one Nato member invades another (article 5 would play out well with that). As much as they would like the sprouts are a long way off of having their own euro army. I remember watching a documentary that was aired @ 15-20 years ago about what the populace of Greece would do if ever anybody tried it on like the Nazis did, lots of shotguns etc, how relevant that is today, hard to say.


  9. Maybe ‘invade’ is not the correct term, maybe I should have said they will subordinate the Greek govt. Just ‘parachute’ their own men in, after all, they have form in that direction eh?


  10. Were the citizens asked if they wanted a federal Europe? The Lisbon Treaty? Juncker as President? No exit from the Euro?
    Ever heard of ‘Our gal’ atop the IMF? Of DSK being stung? Of Geithner intro-ing her to South American IMF members a year before?
    I don’t hate Germany, I hate the neurotic ambitions of its elite: my 2nd father-in-law was German. But Merkel’s old man is a key figure in
    US Intelligence.
    Wake up, pal: this isn’t Over the Rainbow.


  11. They could try to parachute their own people in but I think the time for that has passed, the electorate have rejected the sprouts plan in the last election, unless there is a complete collapse of the government…………


  12. Who stands to benefit then, George Soros? Goldman Sachs? The Fed? I don’t think so. Meanwhile, the Germans have to hand in 17% (euro stared at $1.17). So I can’t actually see anyone significant benefitting. To me it makes no sense.


  13. ” a USE subservient to the USA by replacing the euro with a ‘Dolleuro’ – not to be confused with the eurodollar that already exists….but a real currency backed by the world’s greatest power.”

    I always wondered why the French chose to call the union the European Union and not L’Union Européen. Now we can see how seamless a change as proposed by PIMCO would be. EU is Etats Uni and European Union. Is there a level of global engrenage of which we are unaware?


  14. @F. U. Bar; “Who benefits then?” For me, my first stab in the dark for a name would be: Rothschild. But what do I know? I’m just an NVE…Apparently I could be illegal in France soon as, I do have a tendency to imagine that some conspiracy theories just might have an inkling of truth about them. Imagine….


  15. Either you create a united states of europe or collapse the project. This is what it was all about as we drew nearer and nearer together so that we … dah,dah … revealed … BECOME 1. On the path provided you never step back then you could always argue progress but … like it or not the EZ is the start of the united states of europe and look at how it treats one of its member states. You could also point out the EZ elites are not Greek elites so one set has to go.

    That dangling lure of money to the leaders of Syriza … you must stay and have another glass in the end their days are numbered under unification. Hmmmmmmmm … doughnuts as the 10 ton EU tank crushes Homer Simpson.

    People are starting to realise you either have a united states of europe or remain as sovereigns and the only middle ground are simple trade agreements after that it is all for unification purposes..

    To keep it all going even if you cannot reach the unification will stops the edifice collapsing but if you take one step back not workable the illusion ends, Will beleive it when I see it but I do not expect the UK to be allowed a referendum on europe at any stage… it could provide the needed step back.


  16. This is all very amusing. Democracy is completely irrelevant in the fascist EU. The Syriza government is a bit of a nuisance and it will be removed. They can call a referendum or whatever they please – it will matter absolutely naught. The supra-market-economy capitalists and their governments call the shots. They have all the money and all the power. If you own or control less than, say, £100M you have no voice, directly or through your ‘elected representatives’. We live in a post-democratic 100% totalitarian era (like, in fact, through most of history – read Arrighi’s book “The Long Twentieth Century” for fun).

    With regard to abstaining form voting I disagree with Mr. Ward. You should vote for maximum chaos and disruption. The current global political scenario will, I think, result in a very bloody WW III quite soon – unless local revolutions can stop the people in power sooner.


  17. I’m afraid the reality is that the USE or FSE (Federated States of Europe) has always been the target and still is. The likes of Cameron may pose and posture claiming to preserve British sovereignty, opt-outs etc. but he is as fully signed up to the dream as the rest, he just cannot admit it politically and is busy doing what all politicians do, being all things to all men.

    And do not forget, U or FSE is but a step on the road to One World Government, which is the overall neoliberal dream. Like the EU is not all bad (think of the benefits of EU consumer regulation for example), a OWG does have the potential to be a good thing. That said, like the EU, on balance it is likely to do more harm than good, benefiting the privileged and political classes at the expense of the ordinary citizen, and would therefore be a bad thing. Sadly it is the privileged and political classes that run the game.


  18. The austerity which makes no sense is the endgame. 4 years ago, 388 billionaires owned as much wealth as 3.5 billion people.
    Now, 80 billionaires own the same wealth as 3.5 billion people. And 8 families own the 80 billionaires: the Brit Royals; the Dutch Royals; the big 4 bankster families. Upwards towards the .0001%s, that’s the wealth (& power) redistribution that Christina Figueres now claims the global warming/climate change scam is all about.

    The future is feudal if the globalists get their way.
    The Hunger Games is what’s ahead.
    And the Greeks have woken up to this.

    When they cut their deal with Putin, & I wish them well, then things get interesting.


  19. Pingback: John Ward – Greece : Syriza Calls Emergency Parliament Debate For Tomorrow – 30 March 2015 | Lucas 2012 Infos

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