big3Three Blind Mice

Try and unravel this twisted mindset if you can. The steps go like this:

  1. Having lied to the IMF’s Christine Lagarde about aiming to make Greek debt sustainable by 2020, Berlin (aka Wolfgang Schäuble) suddenly realises Ms Lagarde is awake.
  2. She says, “No debt forgiveness, no IMF involvement in Bailout3”.
  3. Berlin ( Schäuble & Merkel) adopt irrational position, viz: IMF may be right that Greek cannot repay debt, but there will still be no debt forgiveness.
  4. Yet somehow, vague promises from Berlin (Merkel) of debt ‘restructuring’ seem to mollify Frufru Lagarde. The Slog has his doubts, engages in friendly Twitter debate on subject.
  5. 4.30 am this morning, Die Zeit publishes a piece saying that Berlin is considering AN EU guarantee to the IMF about Greek debt in return for Lagarde DROPPING DEBT FORGIVENESS demand. First up, it’s important to know that Zeit is unser geliebte Geli’s favourite leak-hole, if you’ll pardon the expression. But equally important, whoTF do the Germans think they are thinking of an EU guarantee rather than a eurozone guarantee? Third, since when is it the European taxpayers’ job to protect American risk? And last but not least, how can Berlin sustain its claim to be ‘helping’ Greece, when it will clearly try on any scam in order to keep Athens in debt ad infinitum?
  6. Hat-tip to Fred Walton, who pointed out the re-reportage of the Zeit piece at Reuters.
  7. 13.45 CET, Bloomberg (arch neolib apologist site) runs a piece naming an obscure German FinMin official saying the Reuters/Die Zeit pieces are untrue. Well naturally, of course they are: Die Zeit does as we know have a long history of tabloid gutter bollocks. Not.

If ever there was a case of running up a flag and waiting for a salute, this was it. I understand the reaction from London was swift. But be in no doubt: when the dust has settled, this issue will come back – in a slightly altered form perhaps, and probably when minds are focused on something else….like the outbreak of Sino-Japanese war, for example.

Two final points here: this is an EU run by a few unconstituted cowboys, from whom David Cameron insists he can extract real reform. And this is a Germany reborn, once more convinced that it has the right to make the running, the rules, and obscene profits….but then whinge long enough to extract cost overheads from other member countries.

Consider: as the main shareholder in the ECB, Berlin stands to make imaginary losses that will never come home to roost, because as a central bank, Draghidosh Inc can park it forever in the negative assets column. But as such a shareholder, the Reich will get cash on the nail every quarter for the usury that has been inflicted upon ClubMed. Since 2010, this has amounted to €130m euros. And – given an eternal basket-case ClubMed – the debt market flight to safety means that German debt has never been cheaper to manage. And – given the low valuation of the euro in this maelstrom of Mammon – Germany can export in volumes unimaginable had it stayed with the Mark.

The problem with German foreign policy at the minute is that it is being dictated by a sociopathic desire for advantage. Berlin is taking advantage of the misfortune of others and giving the proceeds to itself…. while at the same time demanding that others share in its costs – but not in its profits.

One could summarise as follows: MerkeSchäuble sanctimony leads it down the path of parsimony. It wants a divorce from ClubMed, but insists the rest of us share in the alimony. Sooner rather than later, this can only lead to acrimony.

Or in soundbite form, “As always, it’s all about the money”.

Is there anyone out there with a larger readership than mine that can expand awareness of these realities?

Connected at The Slog: Why the world’s economists think eurogrope is mad

This analysis was not brought to you by UKip


  1. There are two topics that I can’t discuss with my friends: cricket and the Euro. They understand neither.


  2. Someone needs to calculate what this alimony is costing member states that don’t even have the euro as currency. Do we have any idea at all? It seems not. The whole exercise is a book-keeping manipulation designed to keep it secret. Cameron may swear blind that the UK won’t be paying into this fraud but like so much else this could just be the usual Cameron bluster. The Swedish prime minister didn’t have any idea but dismissed it as a minor point, not much money to be worth bothering about.

    All this smacks of a cover up. All the Germans need to do is make a book entry and whether it is denied (UK) or dismissed as trivial (Sweden) the end result is the same. It is also the thin edge of what could be a hefty wedge being driven into making the non-EZ countries share a larger and larger burden of the cost.

    Does anyone know what sums are at stake here? It needs to be brought into the open – NOW!


  3. All I know is : wish Blighty had a Kanzler and Finmin like MerkeSchaub…… think of the burgeoning coffers that would prevail …….instead of the puke-inducing 6 percent deficit and incalculable public/private debt to gdp ratio.


  4. Re Draghidosh parking the debt forever , I guess that would not be possible if a new currency ie new Drachmas, was adopted by Greece.


  5. to make Greek debt sustainable by 2020

    That all Greeks need to recognise is not going to happen and while you choose to remain in your position you will bend over and over and over to that paedohpile POLITICAL MEMBER) in a childrens home comes to mind. YOU WERE THE WEAKEST link and until you leave you will always be the weakest link. Reverti ng to the drachma shoud have occured 5 years ago because all you have done is wasted 5 years of your childrens youth that recovery time needs to happen you got no way round it.

    For me the IMF should be made to pay all excessive debt over the sustainable part in full so in 2020 because in a DEMOCRACY that needs to be upheld. Failure to do so is to lock the population into an unsustainable economic postion to support the position of elites. Now if the IMF want to go after all the previous liars in the Greek government I don’t mind but this is not the responsibility of the population. The UK government lies to us and then we are blamed for it? F**k off remove the government for being liars and how many promiese have the UK renaged on since being recently elected? A few for sure.


  6. Greece is to surrender €50 billion of state assets to a man wearing wheels instead of jackboots who will oversee their sale.

    The country’s national lottery has already been bought and the airports are expected to go to a German operator. The port of Pireus to a Chinese shipping company and a US private equity fund has snapped up 120 acres of Corfu beaches for €23m.


  7. I’m trying to remember exactly when Catatonia became part of Europe and how it allowed itself to become the instrument of German foreign policy. But hush, the babes are sleeping..


  8. Is there anyone out there with a larger readership than mine that can expand awareness of these realities?

    Isn’t this the sort of thing UKIP should be broadcasting far and wide?


  9. The question to be asked is why the IMF is flip-flopping over explicit debt relief. Why did the IMF initially demand debt relief when the basis of an agreement emerged post-referendum? What deal was then done so that the IMF withdrew its demand?


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