GREECE: French assembly in dramatic appeal for Hollande to “stand at the side of the Greeks”

Bloomberg was last night giving prominence to a story that’s also covered in tthe French press here this morning. It confirms that President Francois Hollande received an appeal from a range of Deupties (including some from the ruling Socialist Party and other political figures) to end the “financial blackmail” of Greece by its European creditors.

The ‘open letter’ to Hollande asserts that France “cannot be a docile reminder of the rules at a time when the house is burning..We are asking you to take the initiative to unblock the talks between the euro group and the Greek political authorities…we must give open support to the healthy measures taken by the Greek authorities, notably those addressing the humanitarian crisis in the country, and accept the principle of a restructuring of Greek debt, of which a large part is notoriously illegitimate….France’s place is at the side of the people of Greece.”

Although the appeal has been driven by the French Communist Party, French foreign minister Michel Sapin lobbied hard for a compromise last Thursday during eurogroupe sessions, and it does reflect a growing unease in Western Europe with both the legitimacy of the debt, and the tactics being employed by the Schãuble/Draghi/Dijesslebleom axis. Yesterday, Tory politician John Redwood published an explicit piece along these lines. And earlier last week, Der Spiegel in Germany argued the Greek case cogently.

The intriguing thing here is that both Bloomberg and Spiegel are favoured media for Angela Merkel leaks….and the former gives more prominence to the story than one would expect. Indeed, Schãuble himself remained uncharacteristically silent during Sapin’s cri de coeur at the eurogroupe. And the German Chancellor and French President spent a long time on the phone last Friday.

My own gut instinct remains that Germany especially fears bank failures in the event of Greek default (this is based not on direct exposure to debt, but bad derivative bets on Greek default – especially in the case of Deutsche Bank). I know this to be also true of one major French institution, but reporting restrictions in France forbid me to go further on that one.

Another factor to my mind is that, now we’re down to the short strokes in this idiotic and tiresome game of bluff, the rules surrounding Grexit are becoming better known – that is, even if Greece requested it, such a process requires two years notice on either side.

The Troika hasn’t blinked, but the top wallies are perhaps increasingly of the opinion that its occupants may be mad. That said, a compromise now would put both France and Germany on the naughty step in the place where the seating arrangements are limited to rocks and hard places. From here on, the eunatics are damned if they do, and screwed if they don’t.

I was discussing with two contacts yesterday afternoon CET about the likelihood of one last-minute attempt by the hobgoblins to “do a Rosneft” on Greece’s leaders and institutions. We all agreed it would be ineffective and therefore pointless. So stand by for it to happen.

Enjoy your Sunday. I’m off to cut some decking.

32 thoughts on “GREECE: French assembly in dramatic appeal for Hollande to “stand at the side of the Greeks”

  1. Better to go broke bailing out Greece and then be bailed out in turn than go broke when Greece defaults and default in turn

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  2. “…but reporting restrictions in France forbid me to go further on that one.” What?! Are you an homme or a souris?

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  3. Trust me…
    the jackbooted jackasses would love nothing more than to march in and kick down the sandcastle. I’ve seen it myself with my own eyes.

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  4. The ideologically driven hegemons drunk on their self regard and worshiping the magnificence of the structures they create embark on their mission but fail to allow for any contingencies or dissent.

    WIth their leviathan project committed to its course the only course left is to forge onward throwing every last resource into the endeavour despite logic dictating that all is lost.

    With the smashed hulk of their vehicle spinning lifeless in the void the precious few make good their escape leaving the masses to perish.

    EU policy or Hollywood plot?

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  5. To Julian*
    I’m talking bout the one that everyone knows is on the edge. The others are also-rans in comparison. But this one is deep in the farm manure hint-hint gerritt?

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  6. The method to deal with a Financial crisis caused by insolvency is well known. It goes back over 3000 years to the reign of the Babylonian King, Hammurabai, and still applies in modern times.
    His Law stated; ‘ Debts that cannot be repaid , will not be paid and are forgiven’.
    The common sense reason for the Law was because, farmers who had borrowed from money lenders, to buy seed and oxen to cultivate their land , suffered a failed harvest for reasons of drought or other weather conditions.
    The State would have suffered starvation and lack of tax revenue because of this failure . The resulting famine would have decimated the able bodied to serve in the military and defend the State, eventually causing chaos and collapse.
    The situation with Greece is that the State leader has lost his Monetary authority to an outside Force, the Money creatures of the EU, the ECB/IMF.
    This outside force ECB/IMF has no stake or interest in the Sovereignity of Greece and the welfare of its citizens and is willing to bankrupt and loot it without repercussion.
    This is a slow motion coup d’etat using Financial Shylock maneouvers to strip the Greek State, by Privatisation means.
    There is a legal term labelled , ODIOUS DEBT, which is a term for a debt foisted on a Nation, without its citizens consent and used for nefarious purposes, such as aggressive military expenditure.
    If a debt can be proven Odious and thus illegal, it can be deemed forgiven in a Court of Law.
    A great deal of Greeece liabilities can be apportioned to this ruling.
    There is hope for Greece and they hold several strong options to clear themselves and re-structure their Economy for the benefit of their people and not succumb to the greed of the Financiers.

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  7. Unfortunately the rule of law is not as it was, so nothing is a given any more with the chances that there are even people above the law,who,d have thought eh!

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  8. Great link Julian. Thanks.

    All that is being argued about is whether the IMF will or will not, in effect, pay itself, but that this is being used to seek to destroy a legitimate government and its people.
    It is a game bankers are playing to show who us who is in control.
    It is a ruse to show that debt is above democracy.
    It is a device to show that states must bow to banks.
    It is contrived to show people matter less than money.
    Remember all that, whatever the outcome.
    http://www.taxresearch.org.uk/Blog/2015/06/20/the-tragedy-of-greek-debt/?

    Where the bail out money actually went:
    Since March 2010, the European Union (EU) and the International Monetary Fund (IMF) have applied 23 tranches comprising €206,9 billion to the so-called “Greek bail-out”.
    At least 77% of the bail-out money can directly or indirectly be attributed to the financial sector.
    €58,2 billion (28,13%) were used to recapitalise Greek banks – instead of restructuring the too big and moribund sector in a sustainable way and letting the banks’ owners pay for their losses.
    €101,331 billion (48,98%) went to creditors of the Greek state. €55,44 billion of these were used to repay maturing government bonds – instead of letting the creditors bear the risk for which they had received interest payments before. Another €34,6 billion served as incentive to make creditors agree to the so-called “haircut” in March 2012. €11,3 billion were used in a debt buyback in December 2012, when the Greek state bought back almost worthless bonds from its creditors.
    €43,7 billion (22,46%) went into the national budget or couldn’t be definitively attributed.
    €0,9 billion (0,43%) were used as Greek contribution to the new bail-out fund ESM.
    http://www.attac.org/en/Stories/greek-bail-out-77-went-financial-sector

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  9. I stumbled across this the other day, I thought it summed things up nicely for me…

    But as you work on yourself and you overcome the maya, the illusion you do not become a person that does nothing. For you’re not a person any longer.

    The personality has been transcended, transmuted. You have become the nothingness in which the world is a superimposition. You have become the screen instead of the players on the screen. As the screen there is absolutely nothing for you to do but observe and watch the players in action…

    … So how do you get out of all of this?

    First you’ve got to be tired of the whole game. You got to be sick and tired of the whole game of good and bad, up and down, happy and sad, rich or poor, sick or healthy. You’ve got to be tired of everything. The whole game. The whole universe. The whole world.

    Then when you’re tired of it, really tired of it, you keep still. You stop talking so much, trying to prove points, trying to win debates, trying to explain to somebody what truth is, or what it isn’t. You learn to keep still…

    … The more realized you become the more you see you know nothing. There is nothing for you to know anymore… Yet by just being, people appear to be helped when they are around you. Things change…Robert Adams

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  10. Should one assume that Germany’s post-WWII reparation debt to Greece was conveniently defined as an ‘Odious Debt’, hence it was never repaid. Not even converted into submarine orders, apparently.

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  11. @Salford Lad

    Superb summary +100 John Perkins laid it all out in black and white with respect to the banker’s strategy for looting real assets in developing countries. Now the financial vultures have moved closer to home. I really hope the members of Greek government avoid small planes, modern Mecedes and hot tubs with lids in the coming months.

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  12. There are 2 camps formed now as the deadline approaches …

    Those that refuse to budge on this primarily because they would be the ones with the most to lose AKA the banksters. In the other camp those with a conscience, realising way to late that how Greece has been treated should never have been.

    Then watch if Greece defaults how all UK elites (who control political parties) will renage on the one promise at the last election an IN / OUT vote for the EU as you sit their watching Greece burn.

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  13. This is a bit like a virginal girl , will I or won’t I , lose the virginity and driving everyone mad while she decides. Just go , close down Greece and start up as Greece 2 , transfer all the national assets to Greece 2, and nationalize everything thing else you had to fire sale dispose off to get your loans and then collect all the taxes due in the future from those due to pay them.
    Finally sent a copy of the Eagles “already gone” to all your creditors.

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  14. What is a Rosneft? I realise that I have arrived late at this party but I do appreciate any attempts to explain what is going on before you all turn out the lights and go home. Also John I’m planning to cycle and camp next month from the Loire to Nice, do you think it will be too hot for a sleeping bag? I’m trying to cut down on weight carried.

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  15. John and his air conditioned camper van are going that way. Fancy a daytime kitchenette with chef and a berth for the night?

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  16. In case you are genuinely asking, Rosneft is a Russian company which owns vast oil reserves and is mainly owned by the Russian State – or perhaps more likely, the Oligarchs thereof.

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  17. Hi John

    RE: “Grexit….such a process requires two years notice on either side.”

    Someone already posted this on your site – to leave the EU using Article 50 TEU (ToL) has a default period of 2 years. However this is not set in stone, and can be lengthened or shortened by agreement.

    Finally – there is of course the concept of treaty breach in international law…. but following that through would be messy!

    All the best, Brian

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  18. There is no mechanism for exit from either the EU or the Eurozone, this was a deliberate act because if there was such a mechanism it would be an admission that either institution could fail (and failure is not an option).

    A country could leave simply by saying ‘goodbye’ although from the perspective of the other members it would still be in.

    Any fines levied for treaty breaches on the exiting country would simply be stored as a negative balance on their membership account.

    It is the Hotel California.

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  19. @bob rocket

    I think you should clarify that post by saying that there is no way to FORCE a country to leave ! There are ways out if a country chooses to leave of its own accord !

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  20. Hopes faded that Greece and its creditors would strike a definitive deal on Monday to unlock €7.2bn of desperately needed bailout funds and save the country from default.
    A meeting of eurozone finance ministers in Brussels broke up after two hours without agreement after Greece submitted its compromise proposals late on Sunday only to present a different document on Monday morning.

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