Greece is only the beginning. But, which European nation will be next? Spain?
Portugal? Ireland? How about in the end, the crown jewel of Europe- Germany?
Let's get back briefly to the arrest of Dominque Strauss Kahn, which took place May 14/2011 hitting the news massively May 15 2011.
I am wondering if his sudden ouster had anything to do with this private meeting of certain powerful central bankers and a possible move to restructure Greek debt to avoid default?
Just prior to DSK's arrest, on May 6/2011, there was a secret meeting in Europe of some the European Central bankers. Not all of the bankers were included. I find that odd. Is it significant?
I think so.
The nations whose central bankers were in attendance are as follows Germany, France, Italy and Spain. The meeting was convened by Jean-Claude Juncker, Luxembourg's prime minister and the chairman of the eurogroup of single currency members.
Four top central bankers and the Chairman of the Eurogroup?
Top of the agenda was the fate of Greece, after the International Monetary Fund (IMF) – on the hook for €30bn of the original €110bn rescue – demanded that the EU come up with a new strategy as the Mediterranean country continued to plunge into debt and recession.
Recap- The IMF wanted the EU to come up with a new strategy to ensure Greece repays it's debt.
Recall- that DSK was set to meet Angela Merkel, they were to discuss the Greek crisis.
That meeting never took place. Dominique Strauss Kahn was imprisoned at Rikers Island.
Back to the May 6th meeting-
"As news of the meeting leaked out, financial markets went into spasm sending the euro into a nosedive. In a desperate bid to end the turmoil, Mr Juncker, who had not informed other eurozone finance ministers of the meeting, chose to lie. "I totally deny there is a meeting"
An aside, and an unsurprising on at that, Mr Juncker (suitable name) had already horrified many of his counterparts by openly bragging last month that he often "had to lie" to suppress public debate over eurozone economic policies which, he claimed, were too important for open contemplation.
"I am for secret, dark debates," he said. "When the going gets tough, you have to lie."
You gotta love the honesty.
It may have horrified his counterparts that he said it publicly but hell , it's pretty dam obvious!
But back to the subject at hand - What I am wondering here is if some of the European bankers were going to attempt to restructure Greece's debt and that the IMF and Mr. Kahn were amenable to that happening?
BUT- but! Some other bankers had other ideas?
Recalling the US banks role in precipitating the Greek crisis?
I had a couple of articles linked in the comments section, relinked here and here
""Six major Wall Street banks" being investigated for misleading investors on Greece."
After the May 6/11 meeting and DSK's arrest there was yet another meeting.
Greek debt restructuring: Junckers says yes, ECB says “Hell, no!
May 16th and 17th/2011 as DSK sits in prison....
The blow-up happened at a crucial two day meeting of European finance ministers on Monday and Tuesday May 16-17.
And the new acting head of the IMF, John Lipsky, is in charge.
(This meeting may explain the prompt replacement of DSK by a JP Morgan man)
Unsurprisingly, the French broke ranks.
The French delegation broke ranks. Ensuring a Greek default. Denying a restructuring.
The French delegation, broke ranks by openly admitting that he and his colleagues were squaring up to what the markets have for some time now been regarding as an inevitability, namely a Greek default
Why I find that unsurprising is France has been aligning its interests more often then not with that of the US. Not at all with the interests the French citizens or the other European nations.
Sarkozy is continually cuddling up to the Americans.
I wonder if this has to do with the long rivalry between Germany and France?
Would the US bankers be playing into that historic competition for supremacy?
A quick aside- If a European comes to lead the IMF, which is still very much up in the air at this time the anointed one will be the French woman who has thrown her hat into the ring, Christine Lagarde.
Getting back to Greece, if Greece defaults rather then restructures.
Everything will be up for grabs, dirt cheap. Everything!
Papandreou has put Greece up for sale under restructuring
"Greek state assets, wants to sell stakes in Hellenic Telecommunications, Public Power Corp., Postbank, the ports of Piraeus and Thessaloniki and their local water company. All supposedly worth $70 billion"
Under default it will be a plunder!
You can bet the banks will swoop in like the vultures they are, to pick apart the carcass of a nation.
The bankers, of course, say they are worth far less. They want to buy them for 10% to 20% of what they are worth – so what else is new.The bankers that are pushing for the pillage of Greece wouldn't be the same American banks that brought on the whole crisis??
Lots of questions for sure!
For some background you may need to refresh your memory with this one
post, in particular the article Gallier brought to attention
The main Anglo-Saxon hedge funds (4) decided at a dinner Feb. 8, 2010 in New York, bet a concerted manner on the decline of the euro and the deterioration of European debt. He was admitted only after the Greek crisis triggered the domino effect would be a winning move, a real strike against the euro. "
The arrest of Dominique Strauss-Kahn is primarily intended to discredit the IMF, and by extension to amplify the crisis of the euro. The consequences will be direct and important, especially for Greece.