Teutonic Arrogance

ATHENS/BERLIN (Own report) – German politicians are reacting to the Greek government’s call for a partial remission of its debts and its throwing the EU-Troika out of the country, with ultimatums. “Tsipras had better cease his attacks on Angela Merkel,” threatened the European Parliament’s President Martin Schulz (SPD). “Beating up on the Germans” is “shortsighted.” State-financed German media organs are castigating Greece’s newly elected head of state as “obstinate” and complaining that he “is jeering,” “Germany is only one country among others.” US experts warn that in the EU’s crisis countries, the German austerity dictate has resulted in “a level of misery” “that surpasses the limits of tolerance for a democratic society,” and suggest that Greece be dealt with pragmatically – a partial debt remission along the lines of the London Debt Conference 1952/1953 model. Two years ago, Greece’s new Minister of Finance Giannis Varoufakis had already called on Germany to shift from an “authoritarian” to a “hegemonic policy” that would not use its economic power to hold the EU countries down, but to allow them to participate in the hegemonic benefits, as Washington had once done for the Federal Republic of Germany with its Marshall Plan. Varoufakis wrote explicitly, “Europe” does not need an “authoritarian” but “a hegemonic Germany.”

Greece Begins The Great Pivot Toward Russia

One shouldn’t be shocked to see Communist leaders doing Communist things.

Ten days ago, before the smashing success of Greece’s anti-austerity party, Syriza, we noted that Russia gave Greece a modest proposal: turn your back on Europe, whom you despise so much anyway, and we will assist your farmers by lifting the food import ban. And, sure enough, Greece’s new premier Tsipras did hint with his initial actions that Greece may indeed pivot quite aggressively away from Europe and toward Russia in general and the Eurasian Economic Union in particular (as a tangent recall “Russia’s “Startling” Proposal To Europe: Dump The US, Join The Eurasian Economic Union“).

World braces as deflation tremors hit Eurozone bond markets

‘The forces of monetary deflation are gathering. Global liquidity is declining and central banks are not doing enough, either in the West or the East to offset the decline,’ warns CrossBorderCapital

Eurozone fears have returned with a vengeance as deepening deflation across Southern Europe and fresh turmoil in Greece set off wild moves on the European bond markets.

Yields on 10-year German Bund plummeted to an all-time low on 0.72pc on flight to safety, touching levels never seen before in any major European country in recorded history. “This is not going to stop until the European Central Bank steps up to the plate. If it does not act in the next few days, this could snowball,” said Andrew Roberts, credit chief at RBS.

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Calls for action came as James Bullard, the once hawkish head of St Louis Federal Reserve, said the Fed may have to back-track on bond tapering in the US, hinting at yet further QE to fight deflationary pressures and shore up defences against a eurozone relapse.