DEATH OF THE EURO: vindictive eurocrats, a happy Mario Draghi, a predictably exposed Christine Lagarde, and a wise but powerless DSK

draghisO Lucky Man


It hasn’t taken long today for the strutting “We can handle a Greek default” faux-confidence to evaporate among the engorged egos of the euroélite. On the whole it is becoming hourly more obvious what small, mean-minded and vindictive goblins the eurocrats all are. Juncker’s petty little address – laced with self-pity, riddled with fantasy but devoid of remorse – reveals this rubber-spined brothel-creeping bitch as a man with neither dignity nor style.

Dijesslbleom’s response was made of similarly flimsy dissembling: the classic over-promoted prefect blamestorming his way from topic to topic, condemning an elected Member State government for having spotted the game plan – humiliation piled on top of debt slavery – and proclaiming the Great Offer “removed from the table” in a pathetic tone of how very dare they.

But what we’ve seen today is precisely what would’ve happened had Varoufakis walked out of the ambush set for him, three weeks in on February 19th, after the Muscovici solution had been de-tabled by the Draghi/Schäuble/Drizzleloon axis of Wehrmacht diplomacy.

On February 19th, The Slog opined (  ) that a Greek walkout would’ve ‘vastly increased the cost of sovereign borrowing’. So far today, Portugal’s 5-year bond yields have leapt by 17%, default insurance rates in Europe have careered off the scale, Eurobank stocks fell 5%, and the euro has zoomed back down to 1.40 versus Sterling.

The usual suspects – notably Reuters and the WSJ – put a brave face on this, showing that German Bund yields fell and there was a flight to US Treasuries. No shit, Sherlock? What the Hell else did they expect to happen? No doubt egged on by Yannis Stournaras and his bumboy Hugo Nixon  Dixon, Reuters in particular talked of Greek stocks and bond yields in meltdown and liftoff respectively. No shit Sherlock? What the Hell else did they expect to happen? But none of that matters to the real Greeks, whose concerns now involve how to make the meagre amounts of cash available to them buy enough food for the week. If you’re skint already, markets and borrowing rates come very low down in the importance hierarchy.

However, one person tonight is, I suspect, a happy man….for he is not a politician, bureaucrat, nervous derivatives player, ordinary citizen or health practitioner, but a central banker.

As I’ve been saying for eight months now, Mario Draghi has all the bases covered. Greece may be proving truculent and using some silly plebeian ruse to give Brussels-am-Berlin the finger, but so what? He has a cheap currency, oodles of not yet dry QE euros to make it cheaper still and bail out exposed eurobanks, and more ability than any other European to do WTF he wants without fear of electorates, Brussels or Jens Weidmann. Mario has what every psychopath craves: absolute power and zero responsibility.

The flight back to US Treasury bonds ticks all the Wall Street boxes for the time being, and keeps him in good odour with Washington. So too does a euro still edging steadily towards $ parity…. and thus in line with the Dolleuro scenario. That working title for the buck-in-Europe strategy may have ghastly onomatopaeic echoes of Delorean, but this is of little concern to Supermario: even if that never comes off, as of tomorrow morning Greece becomes Europe’s Argentina, and he has lots of ways to wield further the baseball bat in order to make life even more unbearable in a nation for which he has little fondness anyway. True, he is ‘owed’ some €120bn by the Greek government, but what is that other than an entry in the ledger, to be transferred to the ‘negative assets’ column available to all those living in the Swiftian land of Oxymoronia, aka the Central Banking system?

In short, whether the euro implodes or succeeds against impossible odds, to Draghi’s mind he is the laughing sandboy: quids in, on the crest of a wave, on the up and in the pink.

In and to his mind, that is. But Mario had an unpleasant reminder last month of how radicals can penetrate security and then jump on his desk. He did look very scared indeed when that happened.

That said, he is way ahead of Lagarde the Lowgrade lawyer, another over-promoted chancer who now finds herself staring forlornly at the glaring blot on her IMF copy book. For the IMF is an instrument of American foreign policy, not a central bank; and the very first default write-off in its history is about to happen on Fifi’s watch.

Perhaps Dominique Strauss-Kahn can gain a certain contentment in the autumn of his largely destroyed career from Chrissie the airhead’s dénouement as the engineless aeroplane. We cannot be certain about that: but going back to another Slog obsession from 2011, as time passes it becomes clearer and clearer exactly why DSK was moved out of the game by the corporatocracy.

Think about it: DSK wasn’t only an IMF boss unimpressed by the idea of collaboration in US hegemony, he was also a shoe-in French Socialist Party candidate about to be handed the falling off a log job of defeating Nicolas Sarkozy. Without the invented New York hotel maid sex-assault smear, M. Strauss-Kahn would’ve gone from being a pain in the State Department arse at the IMF to being a cancer in the Eunatic/US imperialism, and a man who would without question have resisted the siren calls of the Draghischäuble on pretty much every issue.

Cynics may wish to shout me down on this one, but Google DSK News, and you will be rewarded with more sagesse in half an hour than has emanated from the Troika over the last five years. The latest of these can be found at where the silly sex pest but brilliant economist can be heard appealing for a temporary end to Greek debt repayments.

Régime change has for many decades been the MO of choice for the United States. Over and over again – in Europe, the Middle East, Russia and Asia – for more than half a century now, America has meddled in, muddled the realities of, and then left behind a trail of dysfunctional destruction for the citizens in, pretty much everywhere from Andalucia to Zaire.

At long last, new alternatives to this hegemoni horribilus are emerging. But the world desperately needs contrarian US politicians to start educating the American populace on the subject of how a once all-powerfully missionary Church needs to withdraw peacefully into more benign and less interventionist role. There is, after all, no percentage in gaining control of a world ruined by GM lunacy, energy blindness, unsustainable inequity, and nuclear exchange.

59 thoughts on “DEATH OF THE EURO: vindictive eurocrats, a happy Mario Draghi, a predictably exposed Christine Lagarde, and a wise but powerless DSK

  1. The ECB, the so called central bank of the Eurozone, has been found out. Legally speaking, its obligation to provide liquidity to banks in EZ member states, come hell or high water, has evaporated, whilst Greece is still an EZ member. Think the Bank of England, RBS and HBOS, and the financial burden imposed on the English taxpayer, 85 percent of the population of the UK. Whether you like it or not, the UK is a true union and the Scottish banks were bailed out by the English taxpayer, with barely a murmur.In the EZ, however, different rules apply, whereby the Central Bank can force banks under its aegis into insolvency by NOT providing liquidity because the politicians of the banks’ domicile are pursuing policies opposed by the politicians of the dominant country of their so called Union .Leaving immigration, red tape, Brussels corruption aside, I can think of no greater reason why a UK voter should vote to leave the EU than the shoddy treatment dished out to the Greeks, for all their faults, by the EU/ ECB dirigiste system of unelected Juncker types riding roughshod over a democracy.


  2. Wasn’t going to comment, then listened to the BBC radio 2 news, a full 12 words on Greece….. And we pay for this!
    Trump’s rantings and negative reaction in the USA got 70/80 words…
    “Peace and Prosperity” that’s what the EU / EURO creates for us all… Don’t you know !


  3. Because of the stupid stitch up in 1993 called the European Union we (in the US) had NAFTA shoved down our throats in 1994. This job killer was justified due to the fact that we were going have to competed this gargantuan European trading block. So if you want to talk about hegemony look to your own backyard and your home grown globalist. The United States makes a good whipping boy and is certainly part of this global lash up but in the end it’s a concerted effort


  4. JW & william.

    Amen to that, it’s no less than they deserve. It’s a two horse race – the vibrant five year old BollocksIdon’tgiveashitanymore out of We’vehadenough against the wrinkly Nemesis out of Hubris – which, in some very important respects, the Tricyclists would appear to have already lost by taking their old nag home. The beginning of the end of some beautiful relationships? I do hope so.


  5. @Des
    But as JW rightly pointed out, DSK is indeed a silly sex pervert and was heading for the skip anyway (in my view), no matter how gifted an “economist” he is/was…


  6. I happened to catch The World at One and was appalled and outraged in equal measure by the Politbeuro sentiments lavishly slavishly trotted out by the likes of Robert Peston, who pressed on whining as usual. The BBC are guilty of lying by omission.


  7. Hat tip to you John for spotting Reuters’ HUGO DIXON.
    This little twerp is definitely a eurocrat stooge with big ego, big german car, little prick, solemn expression and lack of vision to match. Reuters can and should do better than that.


  8. I am about as polar opposite to the europhobe as you can get. Deeper union held no fear for me. I am Irish and my mother country has been through this mill. Still, for me, until this weekend, the answer was always going to be that the UK must stay in the EU. My job, hede in the UK, in many ways, depends upon it.

    And yet, I agree entirely with you and now question whether I would after all vote to stay in. If the referendum was today I would be very temoted to tell the EU to go screw itself.


  9. The Greeks have one more hurdle to ford before this farrago with the EU is resolved. They must vote NO in the referendum to reject the Troika and the policy of forced austerity .
    It will be a blessing for Greece if they are thrown out of the EU, but there is a considerable section of the population who still wish to remain. This even though the fangs of the Eurocrats have been exposed for all to see.
    The Eurocrats have no interest in the welfare of European citizens, but in the preserving the status of their oligarchic bankster Masters and their own positions at the trough.
    The Eurocrats will resort to any means to destroy Syriza and the hopes of the Greek citizens to throw off the debt yoke slung around their necks
    I expect the media propaganda machine to go into overdrive with fear mongering and Armageddon stories to whip the serfs into line. Voting fraud cannot be discounted , these are desperate times and there are evil people attempting to control the programme.
    If Greece is not whipped into line, the whole fraudulent Western financial Ponzi scheme will collapse.
    We have a repeat of Thermopylae. With the dark forces of neo-liberalism verses democratic freedom
    Either way a major reset in the world financial system is about to begin.


  10. Tom, the Fed is the decision maker on the Euro issue, and the EU as a whole come to that. Whatever they wish to happen will happen, the rest of them are just useful twats which, I suspect, they will come to realise but, by then it will be much too late.


  11. ‘I expect the media propaganda machine to go into overdrive with fear mongering ‘
    I’d go for twin turbo mode myself, overdrive these days is the norm, they need to up their game now so much might be a stake, though I suspect they have all the bases covered, I don’t think for one minute that any of them are not sleeping soundly in their beds at night, after all, the US has their back right?


  12. Morning .. Ah DSK , very over-rated economist , even if he does talk more sense than the Eurocrats ( which , lets face it is not hard ) . Don’t be fooled by what he says from the side-lines , he’d change his tune just as soon as he got back into power .
    Regarding market unease , I still don’t think Greek default is now that big a deal for the Eurozone banks : the real problem if the Greeks were to exit ( now they claim they don’t want to ) would be the questions asked in Italy and Spain .

    Coeurés’ comments this morningin the the French Press are quite interesting .. a re-iteration of the ‘whatever it takes’ theme , but adding that the ECB may look at expanding the products they could buy . Its quite a bullish statement this one for the markets .


  13. I think that is why Syrisa threatened Eu institutions with legal action on EZ eviction to nullify the non existent eviction capability that the greek on the street might fall for.


  14. why would the greek people vote yes? i can,t see any reasoning for that,i understand why the politicians in opposition will be shouting from the rooftops as they just want the power!


  15. Apparently 66% of Greeks will vote yes because they want to stay in the EZ more than they want to avoid greater “austerity – but I also think it’s because they think they won’t be able to use thier Euros after a “no” result at the the referendum.
    But like any shit-poor country uses the $USD as their currency of reality they will be able to continue using the Euro.
    They’ll have no control over it but at least they’ll know it’s “value” unlike a NewDrachma which will be a totally unknown quantity.
    Methinks their ONLY sensible solution is to say “No” but it’s a frightening step for the Greeks and Tsipras has a hell of a lot of work to do explaining the advantages in terms other than “pride”, “dignity” and “I’ll resign if you don’t say No”.


  16. Congrats JW for the excellent expose on this unseemly state of affairs. It all leaves one with a dirty taste in the mouth. I only hope the Greek people offer an emphatic vote of NO in the referendum.


  17. Breaking news:
    There might actually be a deal of some sort (kicking the International Mother F….s out) by midnight tonight – oops… a tautology – sorry HB :)
    I have become uncomfortably numb…


  18. Methinks I sense the guiding hand of Putin.
    Has Tsipras been advised to call the EUnatics bluff? Will a Russia via Turkey via Greece oil/gas pipeline transform Greece into the energy hub of Europe? Does Putin hope for the break up of NATO, Washington’s mercenary arm? Huge stakes, endless possibilities. I hope Tsipras & Varoufakis are well guarded, they are brave men.

    I had some thoughts on the predatory EUnatic attitude to Greece: it’s a variation on “Would you like some sweeties little girl?”
    Definition of Bankster: The ultra rich 8 families, their cronies in the major banks, corporations & media, and above all the Rothschilds.
    Definition of politicians: Punch & Judy muppets. Playing to the crowd, lying their wooden heads off, lining their pockets, keeping on the right side of Banksters, hoping desperately for a sinecure, such as a non-executive directorship, somewhere in Banksterdom, on retirement. There are all too few honourable exceptions.

    Bankster to muppet: “Want a loan for XYZ? No problemo. Taxpayer will repay. Very low rates. Easy Peasy”
    Muppet to populace: “Promise, promise, promise… bread & circuses…peace in our time…sunshine forever,,,put your X marks the spot there. Luvvly jubbly, Rodney”
    Muppet delivers SH!TE instead of XYZ, it doesn’t work, costs 3 times the estimate, & populace gets fed up, elects other colour muppets.

    Who repeat the process: promise ABC, borrow bundles, deliver slightly different colour SH1TE, people get fed up & elect the first colour muppets.

    Spot the constant? Yep, the borrowing. This obligation for the serfs to pay their Lords & Masters debts has been enshrined in Brit law since about 1688, just before the inception of the Bank of England. And the National debt has just grown & grown.
    & all the serfs do is moan & groan.

    OK, so the formula is simple: greedy banksters, families been at it for centuries, entice dim & short term muppets, serfs pay the bills.

    Greece has had a wrinkle added to this jolly jape: Voraciously greedy Banksters entice dim & greedy Greek Muppets into unrepayable loans & into the undemocratic EU. Banksters have sold on said debts to Hedge Funds, at cents in the Euro, having magically cured their balance sheets via vast QE. Thank you very much Mr Central Bankster printer of toilet paper money.


  19. So the reality is that the Bankster investors in the Hedge Funds, if the EUnatic Banksters & muppets have their way, buy real Greek assets, airports, land, etc for cents on the Euro of a fiat worthless currency, & full repayment is demanded, while “austerity”, whereby serfs pay for the sins of muppets & Banksters, ensures this is physically & mathematically impossible.

    While in the Greek cities, the middle class dive dumpsters for food & young teenagers offer themselves as prostitutes.

    It’s a con so vast & vicious…. my brain hurts.
    But, at bottom, that’s all it is: a con.
    “Want some sweeties, little muppet?”


  20. PS: That National Debt? The “Conservative” coalition have borrowed more in 5 years than Gorgon Brooon did in 13.
    UK is Greece with its own printing press,
    & immigration is back to Labour time heights.
    This is not sustainable.
    Our Muppets serve the Banksters & are traitors to us serfs.


  21. @jdseanjd – Good summary of the international con that has wrecked countless ordinary lives, enslaved nations and run virtually uninterrupted for hundreds of years. One of the revelations that hit me like a train this year was the copious funding of Trotsky and the Bolshevics provided by Wall St’s Jacob Schiff. Could it have had anything to do with the Czar’s consistent refusal to allow a central bank to loot Russia’s vast resources? Surely not :) Although I remain suspicious of Putin’s motives, (what can one believe in a world of lies?), the Saker has an excellent article discussing the link between Greece and Europe’s need for gas pipelines.


  22. I see no redundant words there, Phaedrus ;) As far as a self-reinforcing pretense of significant truth is concerned, well I think they’ve probably got us on the run. Hard not to feel numb with the number of numpties at large and the use of pins and needles by the Politbeuro..


  23. + 1 too
    Plus I would like to see the UK state openly. “No more payments to the EUSSR, till the accounts are fully audited”.


  24. I’m a fan of Zero Hedge and have used it a lot over the years for info… but comments regarding the current situation in Greece go beyond ignorant and totally uninformed. Most are still at the “big fat lazy Greek” level. And these people like to think they’ve a finger on the financial pulse… God help us!


  25. Greece may default – though there are mechanisms that mean non-payment today does not necessarily mean default.

    Greece may vote No on Sunday.

    But there is no way to “kick” Greece out of the EZ, and no way currently for Greece to leave EZ without leaving EU. So it won’t happen.

    Now Wolfie seems to have cottoned onto this and says even if Greece votes no there won’t necessarily be Grexit.

    Of course, Greece needs Grexit and loan forgiveness. But this isn’t about what Greece needs, is it?


  26. I know exactly what you mean Dax. This video suggests that such a response is the one deliberately engineered by TPTB.


  27. When is a default not a default.. ?

    When TBTB decide it isn’t..

    Haven’t we been here before… ?

    I await the ‘non’ default.


  28. Christine Lagarde is obviously nothing more than a figurehead. She doesn’t answer ‘technical’, i.e. financial, questions at press conferences. However let’s stop eulogising over DSK. His treatment of women displays his contempt for people outside of the small elite, of which he and his even more horrible wife were members. The trap was set for DSK, because he was known to sexually harass young women. (BTW I have no problem with a head of state having consensual sexual relations outside of marriage). Whatever DSK currently says, now that his political career is over, I am sure that as President he would have served the interests of his crony friends with a bit of extra public expenditure serving to enhance his ‘Socialist’ credentials. There is a good reason why the Communists are still an electoral force in France, despite the presence of a ‘Socialist’ party. The French Socialist Party is even less representative of working people than the British Labour Party. The life and death of Pierre Beregovoy is a study in what happens when a genuine working class person gets to the top of the French Socialist Party. Its leaders are arguably even more greedy, as the likes of Edith Cresson show. (‘Arguably’ because there is always Tony Blair as a dishonourable exception).


  29. Will Lefeurve, I’ve noticed that too and I’m suspicious of Zero Hedge’s obsession with Greece. I think Tyler Durden may well be trolling for the US government at the moment, which is trying to break the euro (whatever it says in public).


  30. Just to add that DSK was in charge of the IMF in 2010, when the initial decision not to write off part of Greece’s debts was made. Instead he committed a huge proportion of IMF funds, some of which are provided by the poorest countries in the world, to prop up the euro, the political fantasy of politicians in some of the richest countries in the world.


  31. Seriously good website & article, muchos gratias, Canexpat.
    I hadn’t previously understood the Macedonia mischief.
    That part of the world is so complicated.

    & yes the Banksters founded & funded both Nazism & Communism & plan an anti-Muslim WWIII,
    which is why ISIL & Al-Qaeda have been manufactured & now demonised.

    Book: Pawns in the Game, William Guy Carr.


  32. Bill, you’re dead right about that bloody NAFTA! I wasn’t long in Canada then, things were great, jobs plentiful; then NAFTA arrived with a fanfare about how great it was going to be for all of us on the North American continent. Within a very short space of time, all the jobs went to Mexico (cheap wages, more profit for the big boys), our salaries bombed and anyone lucky enough to have a job were grateful just to be working – and that was just where TPTB wanted us!


  33. Heartily agree. If they do, first thing I’m doing is booking a holiday in Greece with my pockets stuffed full of drachmas to spend, spend, spend in support. Good on you, Greece, you’ve more balls than every other EU country put together standing up to the shits!


  34. Pingback: Kick Off | Gabriel Vents

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