GREECE CONCLUSIONS: The country has been sold off to a Schauble-Juncker consortium – but the blame goes far beyond Tripras

The Jam-on-it professionals and BoG fifth columnists did for Greece in the end

After all the raised expectations of recent weeks, the Hellenic flag appears to have been lowered…and replaced with the white flag of surrender. Nothing is ever entirely as it seems, but ranging across all the issues brought into focus by this cynical exercise in Might-is-Right diplomacy, the best one can do at this stage is offer some mind-concentrating conclusions about what the outcome has really been.

1. Effectively, the eurogroupies (and we must include Draghi in their number, however rarely he appears onstage) have demanded nothing less than the surrender of Greek sovereignty in return for more bailout monies which will not, of course, bail them out. The medium by which the EU will ensure value for money is the straightforward introduction of a secured loan process: the setting up of an asset-filled bank account. The bank involved, KfW, is owned entirely by the German government; it operates out of Luxembourg – a blatant tax-evasion regime controlled by EC boss Jean-Claude Juncker. Thus  both factions in the egroupe v EC squabble have obtained equal pounds of Hellenic flesh.

2. Like Luxembourg itself, the KfW bank has a somewhat cloudy horizon of financial history. On October 22nd 2008, the bank transferred €319m of funds to US bank Lehman Brothers in what many have since characterised as a Washington plea to help help save Lehman, and thus avoid the meltdown that swiftly followed. Like the dutiful American vassal it is, the Bundesgovernment sent the cash…but it was too little too late. Police raided the KfW bank at the time, but charges
were never brought.

3. The KfW lack-of-trust fund was set up jointly by the Troika and BoG boss Yannis Stournaras during his disastrously spineless spell as Finance Minister under the ND/PASOK coalition of collaboration. Thus Syriza’s freedom of movement has been curtailed by the Greek Central Bank, in the same way that the European Parliament has been usurped by Draghi’s
all-powerfully unelected ECB.

4. Like every peacetime politician in history, Syriza leader Alexis Tsipras overpromised and paid the price. He thought a bluff would work with Troika2, and it didn’t. My view has never differed: from the moment he was ambushed last February by the Draghischauble mafia, the polite retreat of Varoufakis – under orders, it seems, from Tsipras – was all the data the Troikanauts needed to conclude that Syriza was piss and wind. Had Yanis Varoufakis arrived at the meeting with a mandate to play the “f**k you, I’m walking out” card, the bullies would’ve been found out.

5. Do we therefore blame Syriza’s failure on a lack of guts by Tsipras? Perhaps, but the realities of Greek society were in his mind at all times: Tsipras never had a mandate to quit the eurozone – and he knew it.

6. Somebody – or bodies – on the EU side were shrewd enough to see that the smug professional classes in Greece had done well out of the euro, and thus (as usual) wanted jam and cream on the bread and butter: “yes, by all means resistance, but keep us in the eurozone”. Two years ago, The Slog berated Tsipras for dropping his commitment to euro-exit; but his own
polls told him he would never gain power without doing just that. In the end, it has come back to first haunt and then destroy him. The Syriza leader simply didn’t have the voter support he needed to walk away. The second you don’t walk away from the unacceptable, you are sleepwalking into control by the merciless.

7. The very well-heeled smuggies who wouldn’t give Syriza the silver bullets will of course now have a field day giving all of us who had faith in Tsipras what-for on the grounds of believing in the ‘gutless Left’. I’ve been trolled by these insufferably cheerful Charlies for the last six days. But as a veteran observer of Greek haut-bourgeois double standards (and having once been on the emotional receiving end of its ruthless materialism) I know well enough who to blame for the
failure to face out Brussels-am-Berlin. And that’s the same bunch of whores who – come Ottomans, Nazis and Draghis – take the brown envelopes while looking the other way….to ensure nobody is watching their treason.

At  the start of this marathon circular journey, Varoufakis boasted that his Party was “going to take down and destroy the privileged élites who really hold Greece back”. Troika2 ensured that, from Day 1, Syriza would be far too busy with its homework ever to achieve that goal. Corrupt to the end, the EU prefers to do business with the corrupt.

We can only hope that enough neutrals will take that conclusion away from this mess, and remember the truth when their turn comes.

Yesterday at The Slog: Varoufartacus & the Triumph of Goldmanicum

61 thoughts on “GREECE CONCLUSIONS: The country has been sold off to a Schauble-Juncker consortium – but the blame goes far beyond Tripras

  1. Yes, the decision to stay in the euro at all costs has cost dearly. The only hope for Greece now is revolution, and even if one begins, the outcome woukd be far from certain. I also agree that neutral observers can learn from this. There’s no point whatsoever winning an election if all power to effect meaningful change resides in distant central and other banks. Plan your first days and weeks in office accordingly, and meticulously.

    Dark days indeed.

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  2. Regarding point 1) Mr Wardship i can clarify that the meetings had to be all night affairs
    as Mr Draghi s “emotional clock ” only permits prolonged exposuree to the elements during
    the hours of darkness.

    His daylight exposures last for a maximum of one hour before he must repair to his Frankfurt garret to imbue himself with further doses of ultraviolet gamma rays created from the freshly taken blood of pristine
    German virgins. His contract stipulates that if this supply of ( ever younger ) teutonic Loreleis exhausts he can immediately resign and head to Scandinavia for a continuing supply of semi Aryan beauties who prove acceptable if not ideal as continuing blood sources for said ultraviolet transmissions.

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  3. What i don,t understand is why the Greeks want to remain in the the eu other than they can not get of the tit re free money,that day as we know is coming !

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  4. They obviously trust the corrupt EU bureaucracy to run their affairs more so than their historically corrupt government officials and the alternative is a return of the junta?

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  5. For sure Tspiras has lost the battle, but this is a war against the bankers and financiers who dwell in the shadows and pull the strings. This has not gone unnoticed by the youth of Europe. All faith in the European project has been lost.
    It has been exposed as a ruthless, vicious and Mafia style mobster extortioner. This war is not finished by a long shot. The scales have fallen from the eyes of even the dimmest.

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  6. The problem with Tspiras and Varoufakis is that ultimately they are scions of the same smug bourgeoisie. I knew they’d fold when they didn’t get the GD members out of prison as soon as they could. They didn’t need them as allies because they were never going to fight. You can read it in Tspiras’ speech this afternoon. He never thought the OXI vote would win, he had no contingency plan for being pushed out, no countermeasures against sabotage – he doesn’t want to run his own country.

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  7. ‘The scales have fallen from the eyes of even the dimmest.’
    With respect I think this is wishful thinking. And they care not a jot about ‘faith’ in the European Project, it will continue come Hell or High Water.
    What we have witnessed here is a mere scratch compared the the savage cuts they will inflict when the time comes.
    I said a long time ago now, ‘You Ain’t Seen Nothin’ Yet’.

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  8. Well, if the shenanigans of last few weeks haven’t woken people up, I fear nothing will. Trouble is, I do fear that nothing will, until it’s far, far, too late, to reclaim some form of meaningful democracy back.

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  9. This particular merry go round, will play out over and over again over the course of the years.

    The International PonziOpoly scheme staves of collapse once more………

    For now the Troika has managed to kick the can further down the road, and more money is created out of thin air.

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  10. I agree. Washington says ‘JUMP!’, and Merkel, Hollande, Rajoy, Cameron, Renzi – the whole useless lot of’em ask ‘how high?’

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  11. What was it Orwell said about a boot eternally stamping on the human face ? Looks as thought the Greeks are the first modern Europeans introduced to this new reality. The flaccid blob that represents the majority of the human race meanwhile waffles on & on about Greek tax dodging, while ignoring the corporate doing of the same which runs into trillions. Why not put the unter-mensch into a concentration camp, but hell, no need – just make their country into one. We are a mighty race of beings who prefer or perhaps enjoy looking down on whole peoples, or segments of our own societies by gladly gobbling up the stereotypes handed to us by those well used to herding sheep – we then of course re-gurgitate & spit this filth onto the unfortunate, while feeling somehow superior. A superiority gained from the moral high ground of a cow pat as we continue to stuff our stupid self satisfied faces, secure in the knowledge that we are not like those lazy fat Greeks but are way above it all.

    The only cheerful thought I have in regards to the way things are going, is that there are very many out there who will deserve all they get, when it is their turn to receive the triangles.

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  12. You know John, around 18 months ago I made the comment that political leaders don’t make the decisions passed through parliament, that their job is to only justify the decisions made by people behind the scenes. After that comment you told me that there were some good eggs out there (I think you used Austin Mitchell as an example) – I don’t know if at that time you still had faith in the political system. What we are seeing now is, in spite of a clear message from the Greek people, is that their message was the wrong one so the prime minister has to justify the decision made to ignore them anyway. Everybody knows that the decision made will not work and that a handful of people will be the proud owners of half of Greece’s infrastructure in three years time.

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  13. DN, a bastion of the right, is pessimistic about the outcome, both for Greece and other euro countries. See http://www.dn.se/ekonomi/chefsekonom-inte-saker-pa-att-grekland-kommer-att-klara-det-har/ (use google translate for the ending comment, below:

    Robert Bergqvist (chief economist at SEB) menar också att den senaste tidens turer kring Grekland öppnat upp möjligheten för ett euro-utträde även för andra länder, även om Grekland tills vidare ser ut att stanna kvar. Det som tidigare sågs som en omöjlighet har plötsligt blivit tänkbar politik.

    – Det är som att öppna Pandoras ask.

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  14. As others above, I am at a loss to see how this is going to convince the voters of Portugal and Spain later this year and then latterly France and Italy in due course, that the Eurozone, (…..Particularly if a debtor nation), is anything other than something to vote to get the hell out of, as fast as possible. Anyone who ever thought that EU Fiscal Union without Political Union was fatally flawed, can see that the last 48 hours have remarkably demonstrated that viewpoint. Far from holding the Eurozone together, I believe that history might write the rifts of the last two days down as the very ‘beginning of the end’.

    Similarly, I doubt that many citizens of the UK who had parents or grandparents that fought to prevent German domination of Europe, are going to be encouraged to stay under the yoke of Merkel, Wolfie and The Sprouts, in what the EU monster has now become. I think that this present display of angst and bullying to the point of removal of Greek sovereign rites, has done the British Euro-skeptics a massive favour for our UK Referendum here. Whatever Cameron comes back with….a few more months of headlines like this week and no one in their right mind will want to stay in the EU by 2016-17.

    While not belittling the tragic Greek situation at all… Isn’t it interesting that all hell is breaking loose in Ukraine with the Right Sector Nationalists ready to send ‘19 battalions’ to ‘sort out the Kiev government’ (rather than sending them off to the Eastern front)……and there is not a mention of any of it in UK MSM at all ? Check out RT or Vineyard for more.on that one….but Merkel, Chrissie and the Sprouts seem to totally have their ‘eye off the ball’ as to the likelihood of a Maidan II there and a new Junta with nasty jagged patterns on their flags.

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  15. Robert from far away it is easy ask people to make stands for you!He got more than what wasn’t on offer & more of what was on offer & the damage done to the EU reputation is immense, i have always believed in the European project,That with Asian,Russian & Chinese markets competing fairly against US had some merit in it!,however i will never buy EU except British goods again & will be voting No whatever Cameron brings back from Brussels,all this because of the brave Greeks but Tspiras doesn’t want his people destroying,time will pass & Europe will pay !

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  16. “…I am at a loss to see how this is going to convince the voters of Portugal and Spain later this year and then latterly France and Italy in due course,…”

    Voters? If you can learn only one thing from this disaster, it is that voters don’t count under the existing political structure.

    You take that to the bank.

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  17. Were any Nation to leave the € then their currency would immediately be
    devalued by the markets (without the strength of the German economy to
    bolster it’s value) but their debts would still be denominated in €s, so
    they would effectively owe far more than before. This worked in reverse when
    the debts of all €Z countries were €’ised on entry and then the € doubled
    against the $US. Neither of these things did or would affect Germany though.

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  18. I entirely agree, Graham. I’m also watching events in Ukraine with a sort of fascinated horror. Reading RT and Russia Insider as well as Fort-russ, while all Europe is transfixed by the goings on in Brussels, will have far-reaching consequences, as Dagens Nyheter wrote this morning “although Greece remains in the EZ so far, what used to be considered an impossibility (an exit from the EU) becomes suddenly politically thinkable, opening up a pandora’s box.”

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  19. ‘no one in their right mind will want to stay in the EU by 2016-17’
    It’s got nothing to do with us, or the govt. come to that, it’s what Washington wants that matters. We are just another vassal state who does as it’s told. They used to call it the ‘special relationship’, they don’t bother to call it that any longer..

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  20. Meine Liebe Geli-Schnitzel
    I love it when you talk Transylvanian….all that Blut…mein Gott! It goes straight to my head.

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  21. Alan voters do count ! informed voters who are willing to do what is necessary to reclaim their country’s sovereignty. The Greek people were clearly not ready to be free. Their desire to be part of this banking cabal was their downfall. As was mentioned earlier the unemployed youth of the EU have just learned a lesson. My advice if you are thinking of buying a new BMW and are going to drive it to southern Europe you better think again and if you are a German tourist planning a warm weather holiday you better try another continent.

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  22. DN was referring to exiting the EU (thinking of UK perhaps?) not existing the EZ. Though it must have sharpened the mind of Finland and the Netherlands, not to mention Hungary and Sweden…

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  23. “The Syriza leader simply didn’t have the voter support he needed to walk away.”

    But, even assuming the polls were accurate, it must be remembered that Tsipras himself had a hand in influencing voters against exit from the euro. When asked prior to elections and after elections about a possible exit, he did not merely say that it would not be his choice. Rather, he painted it out to be a total catastrophe. Varoufakis said it would mean a return to neolithic times. This coming from the anti-austerity “Left”! If Tsipras had so wanted, he could have influenced popular opinion the other way. He was practically deified at the OXI rally. He could have said, “Let’s outlaw chocolate with peanut butter,” and I think that idea would have gained support. Tsipras himself seems to have the ignoble tendency to blame the Greek people for his failings, as shown by the referendum which was planned to get him off the hook.

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  24. Varoufakis interviewed about what his plans were:

    “He said he spent the past month warning the Greek cabinet that the ECB would close Greece’s banks to force a deal. When they did, he was prepared to do three things: issue euro-denominated IOUs; apply a “haircut” to the bonds Greek issued to the ECB in 2012, reducing Greece’s debt; and seize control of the Bank of Greece from the ECB.”

    http://www.newstatesman.com/world-affairs/2015/07/exclusive-yanis-varoufakis-opens-about-his-five-month-battle-save-greece

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  25. Varoufakis interviewed about what his plans were:

    “He said he spent the past month warning the Greek cabinet that the ECB would close Greece’s banks to force a deal. When they did, he was prepared to do three things: issue euro-denominated IOUs; apply a “haircut” to the bonds Greek issued to the ECB in 2012, reducing Greece’s debt; and seize control of the Bank of Greece from the ECB.”

    KJH has already posted the link above

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  26. “Tsipras never had a mandate to quit the eurozone – and he knew it”

    I suspect he has a mandate to quit now. Opinion has been moving in Greece and we should bear in mind that Greek opinion polls are worth about as much as the old Drachma.

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  27. I have no inside knowledge, but the current occupant of the White House seems far too inept to be pulling these strings. Perhaps the FED? It just seems the U.S. Is too weak these days to have others jumping at their wishes.

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  28. Many years ago on the Jimmy Young show on Radio 2 Mrs Thatcher issued the following statement, “profit without risk is an obscenity Jimmy” , so these banks took a risk and lost , get over it guys , thats capitalism for you there is risk and reward.
    Sack the fools who made the loans not the country which borrowed foolishly.
    What ever the out come democracy is dying before our eye’s , if the money men win we all lose. It’s turned me from a staunch EU man into a time to leave this farce, type of man.
    Micheal Hudson has some interesting thoughts @
    http://michael-hudson.com/2015/07/why-greeces-debt-is-illegal/

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  29. My suspicions about Mr. Tsipras were initially aroused when I saw his face in the EU “parliament” as Nigel Farage praised him to the skies and urged him to tell the EU generally and Germany in particular to bugger off (I paraphrase here). My heart sank … this was not the face of a warrior, it was that of a double-dealing politician – I thought then that the Greek people were going to be sold down the river, I just didn’t realise how quickly.

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  30. We’ll agree to disagree on the voting bit….’if elections changed anything, they’d be banned’ comes to mind.

    My advice is don’t buy a BMW or any other German car….it only encourages them.

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  31. THE GREEK PEOPLE VOTED 62% AFTER BEING TOLD THAT A NO WOULD MEAN EXIT FROM EUROZONE, NOONE WANTS TO STAY IN THE EZ EXCEPT INDIVIDUALS, POLITICIANS ETC THAT ARE CORRUPTED AND ARE AFRAID OF BEING JUDGED AND SENTENCED TO PRISON!

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  32. ‘He never thought the OXI vote would win, he had no contingency plan for being pushed out, no countermeasures against sabotage’

    Robert- that was pretty much the Evans-Pritchard line last week, I’d like to know how reliable his sources were for that judgement

    ‘ I suspect he has a mandate to quit now’

    Domestic Extremist- perhaps, if getting the pension cuts part of the package accepted in the Greek parliament fails, that could be put to the test in a second referendum. Some form of Grexit would then have to be acknowledged as the consequences of a second Oxi.

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  33. Varoufakis was a friend of Steve Keen while in Australia and Steve says “Banks print money out of thin air by extending credit and then worry about reserves later” and has models that demonstrate this. This either makes him a heretic or a truth teller depending on your point of view. So it may well have been that Varoufakis has a totally different “world view” and these guys just end up talking past each other, as seems to be the case in the New Statesman interview

    “HL: You’ve said creditors objected to you because “I try and talk economics in the Eurogroup, which nobody does.” What happened when you did?

    YV: It’s not that it didn’t go down well – it’s that there was point blank refusal to engage in economic arguments. Point blank. … You put forward an argument that you’ve really worked on – to make sure it’s logically coherent – and you’re just faced with blank stares. It is as if you haven’t spoken. What you say is independent of what they say. You might as well have sung the Swedish national anthem – you’d have got the same reply. And that’s startling, for somebody who’s used to academic debate. … The other side always engages. Well there was no engagement at all. It was not even annoyance, it was as if one had not spoken.”

    It’s interesting though, that Varoufakis is able to snipe from the sidelines after having left the table, with extensive interviews op-eds and a blog.

    Contrast this with the third condition at this website http://www.esm.europa.eu/index.htm though, I thought they were the masters of the universe. Entering that site is internet version of checking in at the Hotel California.

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  34. The bad news is that the elites still have solid control. The good news was the vote of the Greek people. They are the first electorate to wake up and, I hope, realize that voting in a pretend democracy won’t get the job done.

    It’s frightening. Here in the States, the politicians and their lackeys in the media pretend to tell us the truth while we now pretend to believe them. That’s progress of a sort; but, the people of the Soviet Union went decades stalled at that point before anything changed.

    Do we have decades to act? I don’t believe that the elites will allow us that much time. They will pull the plug on this episode of human history long before we are desperate enough to act.

    I disagree with those who believe that the U.S. is pulling the strings behind the curtain. The level of incompetence over here has become a vacuum of impotence. The elites are taking advantage.

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  35. John, your analysis is faultless, except for one minor thing. Holding the referendum was a brilliant move to bypass all that, but in the end, Tsipras couldn’t pull the trigger.

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  36. So ‘Y’ once met a guy called ‘S’, who said some stuff -without reference to ‘Y. Do you think we should judge ‘Y’ on what ‘S’ said?

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  37. I agree, Spain is the real test. If the Germans have Deutsche Bank then the Spanish have Santander. If the ECB withdraws ELA from the Spanish banks then Houston we have a problem.

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  38. KJH The point being that looting overcomes matters of principle and well thought through theories, see “Confessions of an Economic Hitman”. Maybe they didn’t discuss economics, and just fired up the barbie, drank beer and talked about footy.

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  39. @KFC
    I think you are on the money (sorry Very Bad Pun).
    The sheeple don’t give a damn about the European Project.
    It is the power elite who have come out of this OK not the poor silly bug*ers feeding at the bottom of the lake. I said this in a post last week for which I was (ever so gently) rebuked by His Slogness.
    Tsipras was only ever there as long as he was useful to them all, now he can go, the people have spoken, and everyone will continue to be ‘managed’ by those with the real power who lurk near dimly lit bank vaults and work the system of power.
    Meh, whatever, might as well have a drink or three.

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