Greece Prepares To Leave
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Wyland Stanley Pedestrians ascending steep grade, San Francisco 1935 Speculation and expert comments are thrown around once more – or still – like can
[See the full post at: Greece Prepares To Leave]I have been in a similar situation, albeit on a very tiny scale. All you can do is wait until the screws are tightened, until it becomes obvious to others what is really going on, that they don’t matter. Tsipras knows this but, as you say, has to keep quiet.
“Tsipras cannot afford to be seen by the Greek population as the man who hasn’t done all he could to keep the country in the eurozone while negotiating an end to austerity.”
Yep. First, they bring it to the population’s attention. Second, they wait until the play becomes obvious.
Syriza only promised the Greek voters to negotiate with the troika from the position that the policies of austerity were unacceptable. Once it is uncontrovertibly shown by that troika or any comprising that troika that no negotiations will take place in an acceptable manner, and further that assistance is not forthcoming in any form until compliance to the will of the troika is guaranteed, to the point of collapse of the basic social currency (that one will really hurt and open eyes to the economic fraud being perpetrated upon the Greeks). Only then, once the Greek population has been ‘economically educated’ can a way be found for exit a defunct banking system and reestablishment of the country’s sovereign monetary authority. Not much politically will be effective until that river is crossed – just the way of the world that education always has its costs.
@ Formerly T-Bear
Yes, agree completely.
Varoufakis and Tsipras are not stupid or naive; they know what is what.
What I see going on, is a very masterful uncloaking of the troika and their methods and motives, for all the world to see. Point, counterpoint, and information is revealed.
Podamos (sp) is in the wings and the great unravelling may be about to begin.
One can only hope, no?If they are going to default, why did they first borrow from the pension system in order to pay back the IMF? Won’t that money be missing for paying out pensions in the future?
@voice_of_reason
Tsipras, Varoufakis, the Troika, and Greek bankers are all in the position of having to each do something they really don’t want, almost daily, to keep the Euro system from collapsing.
They must all be retching each morning when they get out of bed.
Greeks have pulled 15% of their assets out of Greek banks, and the bankers across Europe know those funds are not going back until things are settled. The outflow continues, and the ECB has to provide the funds, and is averse to that, but bound to do it, but just moment by moment, drop by drop.
German, Dutch and Italian governments are massively committed to backing their banks, as Austria is, but that’s awkward at this moment. They can’t really back their banks to the degree they say, so they are sweating bullets through all this, smiling with clenched teeth and blaming Greeks. Everybody knows all of this at the ruling levels, but part of ruling is standing up there day after day and saying your lines.
Not only was money borrowed for short term pension payments this month, hopefully to be paid out almost on time, but pensions in general, and across the world, have been gutted. They just have not widely defaulted quite yet.
There will be a huge global choosing of who gets resources like food, water and fuel.
Africans are getting dealt out of survival by neo-colonialism from Europe, China, global multinationals, Bill Gates, Monsanto, and not just for oil and uranium, it’s for their farms and the biodiversity of their seeds. The African farmers are being genocided, and so are their crops, nurtured for thousands of years, like corn was in Mexico.> Syriza insists on needing a mandate from its voters for everything it does, whether that may be kowtowing to Greece’s EU overlords or walking away from them.
Is that something they have actually pledged, or just good politics? A mandate from the people only applies until the circumstances change. Once they have exhausted the possibilities of how to please the Troika and also not implement more Austerity, I should have thought the old mandate falls by the wayside, leaving the Government to do whatever it feels is necessary.
To exit the Euro would need preparations lasting at least a month, (printing new, or more likely overprinting old, banknotes). If they have to win a referendum first, that extends to 2 months. Capital controls would have to be used to stop bank runs, and having those on for 2 months would be impracticial.
On the other hand, if the decision is made by Government secretly, capital controls are only needed on redenomination day. In the paper “Leaving the Euro: A Practical Guide”,
https://www.policyexchange.org.uk/images/WolfsonPrize/wolfson%20economics%20prize%20winning%20entry.pdf
by Roger Bootle and his team from Capital Economics, which won the Wolfson Economics Prize, they look at the constitutional legalities and come to the conclusion that the secretive way is the way to go.It may already be happening, and the grovelling to the Troika for just a few more days of lenience, is just a necessary charade for the time being.
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