Varoufakis’ “Strategy”: “No Grexit, But Default Inside The Euro, And Stick The Middle Finger To Germany”

 

Following several minutes of tortured logic, Varoufakis explains that devaluation is, drumroll, bad for a country that is on the verge of doing so and seems not quite clear with the concept of currency controls (he applauds Argentina for “sticking the finger to the IMF” and says Greece unlike Buenos Aires doesn’t have a Chinese export market ready: perhaps he should read up on the whole Dry Bulk shipper thing) yet completely ignoring the the very reason why a country devalues in the first place: to implement an external rebalancing – something it should have done years ago – the reason for which is that Greece will soon be if not already is, on the verge of outright social conflict as there is no further room for internal rebalancing, i.e., wages and welfare cuts. Just wait until the people realize their pensions are being used to repay the IMF… Continue reading

Greek Election: Syriza Party Leads Exit Polls

The straw that could break the EU’s back. Germany, the powerhouse that runs Europe, is no doubt watching this closely.

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Polls have closed in the Greek elections which could see the radical leftist Syriza party take power, that has pledged to ditch painful austerity measures imposed during the economic crisis.

It is leading exit polls ahead of the official election result with between 35.5% and 39.5% of the vote, compared to between 23% and 27% for the New Democracy party, led by incumbent Prime Minister Antonis Samaras. Continue reading

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.

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.

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Samaras proposes joint navy warship patrols with Chinese

As China’s presence on the international stage grows, it can rely on its ‘strategic partnership’ with Greece, Prime Minister Antonis Samaras tells Chinese President Xi Jinping on Rhodes

Crete could serve as a regional node for the support, maintenance and repair of the Chinese Navy and the possibility exists for joint naval operations between Greece and China’s People’s Liberation Army Navy, the prime minister told the visiting Chinese president on Rhodes on Sunday.

“On Crete there is all the appropriate infrastructure for refuelling, maintenance and repairs for all your country’s navy units. There is a possibility of cooperation, for example, in joint patrols of war ships. And another example, in the area of fighting piracy, where the interests of our two peoples coincide,” Antonis Samaras told Xi Jinping.

Crete is also home to a Nato miltary and navy base at Souda bay.  Continue reading

China hails Greece as “gateway to Europe”

China’s Prime Minister Li Keqiang has begun a three-day visit to Greece to sign trade and investment deals.

Accompanied by his Greek counterpart Antonis Samaras, Li visited the country’s largest port of Piraeus to inaugurate a rail link that will transport goods to central Europe. Continue reading

Greece Wants Turkey Out of Cyprus

In a statement certain to be ignored, Greece has urged Turkey to comply with international law and to withdraw its occupying forces from Cyprus, where they have had a presence since seizing the territory in 1974. Continue reading

Trans Adriatic Pipeline to bring Azeri gas to Europe

In a long-awaited decision to bring Azeri gas resources to Europe, the Shah Deniz II consortium opted for a pipeline running through Greece and Albania instead of a rival northwestern route, Nabucco West, running from Bulgaria to Austria.

The Trans Adriatic Pipeline (TAP) will stretch 870 kilometres from the Greek-Turkish border. Moving west, TAP is designed to extend across the breadth of northern Greece before veering northwest to Albania. From Fier, Albania, plans envision the pipeline crossing under the Adriatic to emerge in southern Italy. Continue reading

Six Balkan countries agree on new routes for energy imports into Western Europe, sign cooperation agreement

Greece could very well regain its footing within the EU should this materialize. It could also serve as the cooridor to Europe for oil and gas deposits within the contested Cyprus region, which was also recently wrestled away from the Turks and Russians by the EU.

On May 23, Montenegro, Bosnia and Herzegovina, Albania and Croatia signed a memorandum on cooperation in the implementation of projects concerning the Trans-Adriatic Pipeline (TAP) and the Ionic-Adriatic Pipeline (IAP) in Tirana, the capital city of Albania. Montenegrin Foreign Minister Igor Luksic, Vice Chairman of the Council of Ministers of Bosnia and Herzegovina Zlatko Lagumdžija, Albanian Foreign Minister Aldo Bumçi and Croatian Deputy Minister of Foreign and European Affairs Joško Klisovic represented their respective countries at the meeting. Continue reading