by system failure

The Greek drama is close to end. Yesterday, we had another proof that the lenders do not care really about the Greek recovery, but only to punish Greeks very hard, in order to send a signal to the rest of the eurozone members: Don’t even think to abandon catastrophic austerity.

Greece’s lenders propagate, through their mechanisms, the misleading perception that they don’t care about what measures Greece should take as long as the country could meet fiscal targets that have been set. After the breakdown of yesterday’s talks, the Deputy Prime Minister of Greece, Yannis Dragasakis, made an announcement that exposes one more time lenders’ sadistic obsessions.

As Dragasakis noted: “The proposals by the Greek government completely cover the fiscal gap as specified by the representatives of institutions. However, they persist that the gap coverage should be exclusively done through pension cuts by 1% of GDP and through the VAT increase also by 1% of GDP.” (fa.ev/eurocrats-play-with-fire)

Sooner or later, the truth will come out. Various sources, even among the biggest media, admit what is already obvious. As Wolfgang Münchau points through his article in FT: “… accept the creditors’ final offer or leave the eurozone. By accepting the offer, he [Tsipras] would have to agree to a fiscal adjustment of 1.7 per cent of gross domestic product within six months. My colleague Martin Sandbu calculated how an adjustment of such scale would affect the Greek growth rate. I have now extended that calculation to incorporate the entire four-year fiscal adjustment programme, as demanded by the creditors. Based on the same assumptions he makes about how fiscal policy and GDP interact, a two-way process, I come to a figure of a cumulative hit on the level of GDP of 12.6 per cent over four years. The Greek debt-to-GDP ratio would start approaching 200 per cent. My conclusion is that the acceptance of the troika’s programme would constitute a dual suicide — for the Greek economy, and for the political career of the Greek prime minister.” (

Obviously, the European neoliberal sadists seek to deepen recession in Greece, completely destroy the economy and lead the country to a default inside euro, in order to grab public property and complete the Greek experiment as they planned. Then, they could proceed in a European “Treuhand“.

And obviously, they didn’t expect such a resistance from the new Greek government, as the leader of the French Left, Jean-Luc Mélenchon, recently revealed: “… when the Greeks came, they said: ‘They will do what the others did’. When they saw a young and polite Greek (Tsipras) with a nice smile, they said that we will ‘swallow’ him at once. But they messed things up. Months later, we are on the same spot. The polite Greek refuses to back down.” (fa.ev/melenchon-schauble-wanted-to-humiliate)

Now, they seem to sink inside the trap that they have set. And as the time passes, they will be running out of options. Indeed, if they retreat, it would be a clear defeat of their policies and their plans. If they insist on the catastrophic policies to crush Greek resistance they are risking unprecedented consequences because no one in reality can predict what will happen in case of Grexit.

Everything points to what has been mentioned already by this blog: “All these developments certainly bring further panic to the Western economic oligarchy which sees that the balance could change rapidly in the European battlefield. With these puppets in power, Europe has no chance to compromise with Greece, find a real solution and change course for the benefit of the people. The only perspective for the moment is a big ‘collision’ after the end of the truce period, or, maybe earlier. The battle outcome always depends on how the European people will react …” (fa.ev/increasing-probability-for-big-european)


Alexis, you can’t trust the euro-hyenas!

source – the unbalanced evolution of homo sapiens