Wednesday, July 15, 2015

Greece : The Straw that Breaks the Euro Area- Full Integration or an Amicable Split

I've been thinking about this for days now.. Knowing what I want to say and hoping it's understandable?

In a nutshell Greece (Tsipras) is the straw being used to break the camel’s back. The camels back being the European nations, their distinct histories and identities, being forced into a totally integrated union. (Like the United States of America? See references below
Or 2 "unions"

Oddly enough this has me thinking about all the phony Confederate flag hoopla- Erasing the history of people.... So despicable.

The idiom the straw that broke the camel's back, alluding to the proverb "it is the last straw that breaks the camel's back", describes the seemingly minor or routine action which causes an unpredictably large and sudden reaction, because of the cumulative effect of small actions.

This gives rise to the phrase "the last straw" or "the final straw", meaning the last in a line of unacceptable occurrences, provoking a seemingly sudden strong reaction.

The use of Greece as the straw that over burdens the EU harkens back to the taking out of DSK, who was on his way to meet Merkel. Apparently Dominic Strauss Kahn and Angela Merkel had worked out some sort of deal with regard to Greece that was unacceptable to the New York Federal Reserve. DSK never made that meeting.

 It appears to me that Tsipras is playing an important role in this scheme.
 Either the EU integrates completely. Or they help the weaker member states to exit, perhaps into the poor cousin version of the EU.  This is why I see Tsipras as a player. A willing participant and not a victim. He get’s a huge voter mandate from the Greeks and then runs back to Brussels?
 It makes zero sense unless one understand Tsipras is participating in and pushing a different agenda. Germany appears to be the most resistant state in this one world order bankster agenda.
That could be because they have the most to lose.

Brief Digression-
Recall the creation of NATO (the global military for the globalists) and this infamous quote? Hastings Lionel "Pug" Ismay: British Soldier/Diplomat and Churchill’s right hand man1st Secretary General of NATO
    On the purpose of NATO: "To keep the Americans in, the Russians out, and the Germans down."
        Presumably while Secretary General of NATO (1952-1957). See Nye, Joseph. The Paradox of American Power. London: Oxford University Press, 2002. p. 33
Is Germany resisting it’s complete subordination?  Is Germany choosing to oust the poor cousins starting with Greece in order to put off this total integration and subjugation to Brussels.

As Martin Schultz, president of the European Parliament tweeted this week: "The U.S. have one currency, one central bank and one government. Europe has one currency, one central bank and... 17 governments! It cannot go on like this," before adding: "We cannot live with 17 individual policies on the euro. We need one single euro governance."

DSK believed there were other issues that needed addressing. You can read that in the linked article.

Europe must integrate etc......
Unfortunately, it does nothing to address the fundamental issues that have repeatedly landed Europe in crisis since 2009. Former German economic minister Karl-Theodor zu Guttenberg quipped that Europe has not been kicking the can down the road, it has been kicking it up a hill and wondering why it keeps rolling back on its foot.
The core issue: Although the European Union (EU) can handle economies of widely varying types and levels of development, the euro area cannot. Greece’s gross domestic product (GDP) per person was about half of Germany’s when it joined the euro in 2001. Since then, Greece’s competitiveness relative to Germany’s has slid by about 40 per cent.
For a currency union to handle widely divergent economies, they must be deeply integrated across multiple dimensions. In the United States, the average citizen of Mississippi makes just $20,618 (Dh75,833) a year, compared with $37,892 in Connecticut — almost as big a gap as between Greece and Germany. Yet, the US does not worry about a “Missexit”, because the country has various mechanisms for smoothing over differences among its states. The recent problems of Puerto Rico show the danger of being locked to a currency without such buffers.
The mechanisms include large fiscal transfers — by necessity currency unions are transfer unions. Last year, 28 US states sent the equivalent of 2.3 per cent of their GDP through the federal budget to the other 22 states. The biggest donor, Delaware, gave 21 per cent. The biggest recipient, North Dakota, got 90 per cent. By contrast, in 2011, Germany made a net contribution of 0.2 per cent of its GDP to the EU budget, while Greece received 0.2 per cent. Would German voters really support a tenfold jump in their contributions from 210 euros (Dh812) to 2,100 euros per person?
Large-scale fiscal transfers are not the only mechanism needed. Mississippi has probably run the equivalent of a current account deficit with New York ever since the Civil War. Every April, the banks in the Federal Reserve system reallocate assets and smooth over such regional imbalances. By contrast, when Greece runs a deficit with Germany — for example, due to trade with Germany or capital flight from Greece — its central bank accumulates debts to the Bundesbank indefinitely. The Bundesbank currently holds more than 500 billion euros in credits against other euro zone central banks. Again, would German taxpayers be willing to see the Bundesbank regularly write off some portion of those liabilities?
Another reason US states do not pop out of the dollar area is that they (with the exception of Vermont) have to balance their operating budgets. Only the federal government can run a long-term deficit. Again, Germany and other EU states have explicitly rejected any kind of euro-area sovereign-bond arrangement that would pool deficits. Finally, the US has a deep single market for products, services and labour and a true national banking union, all of which in Europe are only partially completed projects. The lack of truly integrated markets allowed real interest rates and inflation to diverge across the euro zone, leading to a loss of competitiveness and a credit boom and bust in the south.
Thus, the euro area is stuck in a dysfunctional netherworld between a fully integrated union and a more flexible exchange rate mechanism. So Greece has to become a lot more like Germany (unlikely), the euro area needs to become a lot more like the US (also unlikely) or we will have another crisis (very likely)
The euro was never conceived as an end in itself. It was created as a means towards greater growth and unity. It has failed badly on both counts. If US-style integration is politically unrealistic, then the only hope for long-term stability is a slimmed-down euro area of more homogeneous countries.


Europe must get out of its halfway house of horrors. Repeated bailouts and austerity will not achieve that. Europe’s leaders may buy themselves a period of respite this week, but eventually they must choose: Either integrate far more deeply or help the euro area’s most troubled members escape.

Either integrate far more deeply or help the euro’s most troubled members escape. In other words to avoid further deeper integration Greece has to be cut loose. It appears to me Tsipras is pushing Germany and the European Union into a must choose situation. Deeply integrate or help the most troubled members to leave so the EU can continue to function.


Greek Crisis: Taking down Germany, Shoring up Oligarchs and Worse?

 I'm going to direct you back to this comment:

Yes Germany NSA scandals seem to be leaking fast and furious.
Per nyse, A400 crash was also a software glitch and occured days after the NSA Corp espionage allegations on airbus implicating Germany. Heck of a lot of russian and us fighter planes crashing lately.

Curiously the us backed the imf release of the haircuts for greece in what is a breach of bailout protocol. As you may remember days before DSK was arrested he allegedly advocated haircuts in Ireland and greece. At the time treasury felt the need to issue a statement on geithner behalf that the us did not intervene to block a haircut on the debt. So why would the us be backing a haircut now?
This commenter mentioned the 'scrutiny of Deutsche Bank'
Deutsche Bank Suffers From Litany of Reporting Problems, Regulators Said
Which reads like a pressure tactic- Cause let's face it all the banks are corrupt

Finally relinking

Banker vs Banker - Dominique Strauss Kahn vs Ben Bernanke?

 Was Strauss-Kahn biting the hand that feeds the IMF? Besides the SDR? By allowing the IMF to vocally express their disdain with the US?
I notice DSK is making a bit of a comeback. Has he been properly humbled? Not sure if the deal he had worked out with Merkel would have affected the present day bond bubble? Or if it would have made the present day situation the EU and Greece find themselves in an impossibility?
Can't be sure. However, I'm sticking with what I see at this time. Greece (Tsipras) is being used to put pressure on the EU to fully and completely integrate or split into two factions.
EU  & EU 2 the poor cousins
What do you think?

As I said yesterday to jo- I believe this deal was designed to fail

Hey jo!
I have an idea this won't pass because it wasn't designed to pass- but will see..

Greek MPs approve austerity package


  1. Hi Penny:

    There is no doubt much more to the recent Greek acceptance of the EU "bail out" proposal than we've been told. I must say I had trouble "following the bouncing ball"...of the tragedy of the last few days. My gut feeling is that it's not over. The Greeks are laying back for a while...allowing the banks to open, get the funding, etc. But they will then muster themselves up for another resistance action. I can't see them standing around working their prayer beads while the banksters loot and pillage their priceless culture and land resources.


    1. Hey GC!

      Was reading over at your place. Ganges BC? I had extended family members who lived there for a time and they described it exactly as you did

      As for Greece; It's not over. Not a way in heck is this over. If the goal is to move the Euro along to it's final destination, it can't be over

      And yes, it's terrible to witness the banker plunder of a nation.
      Really terrible :(

  2. Well, we are still left trying to figure out who brought Tsipras and Varoufakis to the ball. Syriza is full of guys in high places who seem to have spent most of their adult lives outside of Greece. My gut seems to say that we have an Anglo-American attempt to mess up Germany. Perhaps Germany has wanted a decently functioning Nordic Euro and the EU can continue with all the messy frauds and such that are normal in Greece. This doesn't make Germany a good guy, but perhaps not as unreasonable as the Anglo media make it appear. When they try to sound nice and reassuring, it comes across as creepy, and may be intended to get the message to Greece that they should leave the euro.

    If you are interested, Ian Crane had William Engdahl on his show a couple of times recently. They are on YouTube, and I found them to be worthwhile. It is hard to take Syriza at face value on much. There are so many places to start, but one might be the land holdings of the Greek military, and their spending. They spend too much and buy French and German weapons. Billions of euros could be raised from selling off some of their land. Why no discussion of this? Finally, if your one and only strategy is to plea for mercy with the troika, then why send a guy who annoys them? For that matter, why make transparently insincere moves with meeting Putin and bringing things like non-EU, non-NATO moves when you actually have no intention of doing anything? You can talk all you want about game theory, but everything was so transparent as to be useless as a bluff - a bluff that made no sense anyway as they emphasized every day that they loved the euro and EU.

    By the way, I have heard that Varoufakis is a well-to-do man, and that Tsipras's father's construction company is not exactly small. Do you have any details on this? I just smell a rat when you have way too many guys who went to school at places like Oxford.


    1. I knew Varoufakis was a virtual outsider- and that whole game theory thing is so absurd. Really.

      I have nothing on Tsipras. I just notice he is very persuasive and that is worrisome- he has been schooled very well in manipulative word use and speech that is for sure!

      I'll check out Ian Crane as I do like Mr Engdahl
      Thanks Paul!

    2. Penny,

      This mentions Varoufakis a bit in his earlier work of promoting austerity for Papandreou.


  3. Germany resist to one bankster world? Not so sure, in the 90s, the West Germany's companies had no resistance in destroying East Germany and making all German people to pay for it

    1. I believe Germany would be happier with a EU1 and an EU2 as opposed to the EU today- To keep that freak show going would be way to costly to German taxpayers-

      As for the reunification of east and west germany?
      That's a story for another day

      What I would actually like to see is every European nation leaving that cursed banker abomination

      The Europeans, each nation, have their own personality and history
      And they know it!
      None of that should be altered for the almighty dollar or for banker/corporate profits- This planet is for the real living- not the artificially created corpses masquerading as living entities (corporations and the like)

  4. From today:
    Deutsche Bank AG is now being investigated by the UK regulator the Financial Conduct Authority to see whether the bank breached any anti-money laundering laws for its Moscow clients

    1. Maybe the overlooked tidbit is that "Germany" is some homogeneous entity. Coalition, opposition, other...

      Now consider the massive push for the ttip against big push back against GMO across Europe. Inside of this consider the MON finding about carcinogens and the aggressive move to merge with SWISS /German legacy Syngenta?

      On that Syngenta history...

      Here is what the Polish opposition said of Merkel last year (the surviving Twin from the mysterious plane crash in Russia (no less, but more interesting in view of the Germanwings, A400 and Malaysia problems not to mention the recent bout of Russian bomber crashes (& fighters US and Russia) which resulted in Tusk assuming the Presidency in Poland only to be shuffled off to head the EU amidst a central banking scandal of QPQs.

      From 2011 article : Former Polish Prime Minister Jaroslaw Kaczynski is resorting to outlandish claims in his bid for election. In a new book, he suggests that Germany wants to annex part of Poland and that the East German secret police helped Angela Merkel win power. [clip] Most outlandishly, Kaczynski also insinuates in the book that the feared East German secret police, the Stasi, could have helped Merkel, who grew up in East Germany, gain power. "I don't think that the awarding of the chancellorship to Angela Merkel was pure chance," he writes -- conveniently ignoring the fact that Merkel became chancellor in 2005, some 15 years after the Stasi ceased to exist. [EMPHASIS]

      This makes the recent push to merge Romania (suffering its own scandals) and Moldova in view of the Odessa appointments and Russian disputed Oblast all the more curious especially in view of the BRICs warning over western WW2 revisionism.

    2. Germany's Schaeuble is a kohl man through and through - eg Atlanticist

      SPIEGEL: Aren't pro-European politicians like you and (former German Chancellor) Helmut Kohl partly to blame for this crisis, because you introduced a monetary union years ago without politically unifying the euro zone?

      Schäuble: A political union was not an option in the 1990s. It certainly would have made more sense to get the two things going at the same time, which is what we wanted. But there was simply too much resistance to the idea.

      SPIEGEL: In other words, you are secretly pleased about the crisis, because it forces the Europeans to close ranks politically?

      Schäuble: That's nonsense. I'm not pleased about the crisis. But in retrospect, it's certainly true that every great integration step in Europe came on the heels of a crisis. It's always been this way, and it could also be the solution today.

      Fnally the NYT homing in on paperclip and the role of Egypt and Syria in the ratlines

      A secret history of the United States government’s Nazi-hunting operation concludes that American intelligence officials created a “safe haven” in the United States for Nazis and their collaborators after World War II, and it details decades of clashes, often hidden, with other nations over war criminals here and abroad.

      The 600-page report, which the Justice Department has tried to keep secret for four years, provides new evidence about more than two dozen of the most notorious Nazi cases of the last three decades.

    3. And the latest Russian - German expansion in view of Putin comments about NSA tracking Schroeder - one of two leaders invited to the inauguration. The other: Berlusconi (considering that latest attack in Cairo on Italian interests after the Italian software company leak about surveil software alleged to be so sophisticated as to be a 'state' actor...)

      Russia's Gazprom to expand Nord Stream gas pipeline with E.ON, Shell, OMV

      Sidenote: Italian software company also alleged to provide the Syrian Assad regime with firewall..

    4. I noticed Donald Tusk's name over and over and over the last little while and I thought- how fortuitous for him that the Polish government went down in that plane crash- I mean he really benefited from that 'accident'
      I did a number of posts on that incident at the time.

      The Farrell piece is interesting... and I must read the rest
      Thank You :)

    5. and now I see there is even more to read :)

    6. Berlusconi: Germany Controls EU, While Being Under US Rule

    7. Berlusconi made clear he was taken down in a soft coup not dissimilar to maliki, tactics notwithstanding - sectarianism vs. Rate market decapitation

    8. The quoted statement by Berlusconi is interesting:

      "The EU acknowledges the hegemony of Germany, which in its turn recognizes the United States' dictate. Therefore, we are not far from the circumstances which sparked two bloody world wars in the XX century," the prominent Italian politician said"

      Berlusconi doesn't say "controls" he says the EU acknowledges the hegemony of Germany which means they are aware of or know that Germany's hegemony exists- but then it always has, to the consternation of France- then he rehashes the official history of ww1 and 2 history, both of which are highly questionable retellings
      I haven't a clue what Berlusconi actually meant by his statement.
      And have to ask if he is perpetuating the 'bad german' meme that is so prevalent the last little bit?
      It's curious for sure

    9. AnonymousJuly 17, 2015 at 5:18 AM

      "Berlusconi made clear he was taken down in a soft coup not dissimilar to maliki"

      He was definitely taken out and replaced with a technocrat, but, am not sure of the machinations behind that take down

  5. To be or not to be

    Exploiter or exploitee

    Germans as victims I think not

    Franfurter globalist bankster mafia is more on the spot

  6. The incumbent Minister of Finance for Syriza, the one that, along with Tsipras, completely and utterly ignored the democratic voice of the Greek people as expressed in the referendum, is Thrasyvoulos Tsakalotos. He was educated in Britain at the privileged St Pauls School, London, the same school at which George Osborne the UK's Chancellor of the Exchequer was educated!

    there is more them meet the eyes with this new finance minister, perhaps Penny can research more, look at the history of the Greek civil war, his family connection to it.

    1. Hi hans

      Tsakalotos had participated in earlier negotiations alongside Varoufakis, so, he was already an insider and fully aware of what had gone on at negotiations prior to his appointment