From an outsider perspective, it looks like the new addition is because the IMF is headed by Christine Lagarde. Lagarde is an ally of the Obama administration and placed within the IMF by it. Wolfgang Schäuble probably couldn’t get the job done with 1/3 of the Troika being compromised by the IMF’s continued sympathy for Greece and now Berlin’s Fourth Reich has found a way around it. It’s unclear what role the ESM will exactly be playing, but time will tell.
With creditors’ motorcades having officially returned to the streets of Athens in the wake of Greek lawmakers’ approval of the second set of bailout prior actions last Wednesday, tensions are understandably high.
After all, these are the same “institutions” which Yanis Varoufakis famously booted from Greece after Syriza swept to power in January, and they’ve come to represent the oppression of the Greek people and are now a symbol of the country’s debt servitude. Continue reading
A United States of Europe with Germany’s Fourth Reich at the helm is coming.
Countries such as Italy and France will just toe the line and join. Unlike Greece and Cyprus who were forced to join the club, the corrupt Italian and French leaderships are either too scared to go against the grain after Athens has just had an example made of it, or they’re in on the scheme.
Italy’s finance minister has called for deeper eurozone integration in the aftermath of the Greek crisis, saying a move “straight towards political union” is the only way to ensure the survival of the common currency.
Pier Carlo Padoan’s comments reflect how the tortured and dramatic negotiations that led to this month’s deal on a third bailout of Greece have triggered a round of soul-searching about the future of monetary union across European capitals.
“The exit and therefore the end of irreversibility is now an option on the table. Let’s not fool ourselves,” he said in an interview in his central Rome office. “If we want to take that risk away, then we have to have a different euro — a stronger euro.” Continue reading
Now Berlin’s Troika is gunning for the cash.
Two weeks ago we explained why Greek banks, which Greece no longer has any direct control over having handed over the keys to their operations to the ECB as part of Bailout #3’s terms, are a “strong sell” at any price: due to the collapse of the local economy as a result of the velocity of money plunging to zero thanks to capital controls which just had their 1 month anniversary, bank Non-Performing Loans, already at €100 billion (out of a total of €210 billion in loans), are rising at a pace as high as €1 billion per day (this was confirmed when the IMF boosted Greece’s liquidity needs by €25 billion in just two weeks), are rising at a pace unseen at any time in modern history.
Which means that any substantial attempt to bailout Greek banks would require a massive, new capital injection to restore confidence; however as we reported, a recapitalization of the Greek banks will hit at least shareholders and certain bondholders under a new set of European regulations—the Bank Recovery and Resolution Directive—enacted at the beginning of the year. And since Greek banks are woefully undercapitalized and there is already a danger of depositor bail-ins, all securities that are below the depositor claim in the cap structure will have to be impaired, as in wiped out. Continue reading
Tsipras went against 61% of the population and its no-vote referendum, and now Greece has been fully compromised and is in the beginning stages of German/Troika control. Greece is now effectively a vassal state.
It has been one month since Greek capital controls were imposed, and as we explained earlier, Greece is nowhere closer to having its deposit limits lifted. In fact, with several more months of capital controls at least, the Greek banks are likely to suffer ongoing balance sheet impairments which will ultimately result in depositor bail-ins, with Germany already pushing for haircuts on deposits over €100,000.
However, when it comes to banks there is at least still the illusion that Greece has some residual sovereignty. The reality is that it does not, as Greece is no longer an independent nation, and as of July 15, the Greek “In Dependence” day, every Greek decision needs to get pre-approval from both the ECB, Brussels and, naturally, Berlin. Continue reading
“It is obvious that Germany is controlling the ECB policies even though recently there is a strong sentiment against German policies and the possibility of the introduction of a weaker euro that will be used by poorer countries. The Eurozone since its introduction 15 years ago has only brought pain and misery to the European south,” the spokesperson said. Continue reading
The Bundeswehr is planning to unfold its “offensive capabilities” in cyber warfare. A new strategy paper of the Ministry of Defense considers the Internet as a potential war zone.
The Bundeswehr is facing a major change of its strategy in cyber warfare. In addition to defense against cyberattacks, the German army is due to perform attacks on foreign states, DWN wrote, referring to a strategy paper of the German Ministry of Defense.
Germany faces increasing cyberattacks on its infrastructure. Therefore, according to German officials, the Bundeswehr should be responsible for “the defense against cyberattacks, which represent an armed attack on Germany” in the future. Continue reading
Although there’s great insight here, Armstrong is missing one final piece that puts it all together: The Euro was designed to fail.
Germany’s Fourth Reich is breaking entire countries and remolding them to fit the shape of its dream for a United States of Europe — something that’s been repeated throughout the years here on Global Geopolitics. Greece’s crisis was planned years ago, if not decades.
It was about 20 years ago when Wolfgang Schäuble, current German Finance Minister, wrote his paper on the danger in the Eurozone reflecting on European policies, even describing his tough behavior towards Greece. Schäuble is the politician who has done much to shape contemporary Germany, and his falling out with Helmut Kohl remains alive and well to this day. Continue reading
Integration, integration and more integration… That’s the path Europe is on until it represents the United States of Europe in one form or another which has been repeatedly predicted here since 2011 — all of which is brought to you courtesy of the Fourth Reich. Soon, along with it (and already in development) is the European Army.
History repeats because human nature never differs. I have warned that Albert Einstein was correct that you can NEVER solve a problem with the same line of thing that created the crisis. We will see that absolutely NEVER has anyone in power EVER conceded that they have been the cause of a crisis – it is always someone else. They are the people who in school didn’t do an assignment and blamed the dog for eating it.
French President Francois Hollande has called for the 19 countries using the euro need to now move rapidly to complete a full socialistic state for Europe with a budget and parliament to relieve the individual governments of their failed socialistic agendas. If anything will cause the collapse of the Euro – this will be it. Hollande argues that the Greek crisis illustrates the problem and of course it was never their failed dreams, it was the lack of a federalized Europe where people have no vote whatsoever in any Troika member.
Not only was Greece set up to burn and have an example made of it by Wolfgang Schäuble, according to former U.S. Treasury Secretary Timothy Geithner, the entire Euro was designed to fail. All roads are leading to Berlin and it’s Fourth Reich dominating the continent.
My ‘job’ here is by no means done, anyway. Because of the general strike today, another Solidarity Clinic that I wanted to donate some of your AE for Athens Fund money to, is closed (update on the Fund tomorrow). Parliament is debating the latest Troika strangle plan as we speak, and who knows what tomorrow will bring? An entire economy is being deliberately suffocated, and all in all it’s just total madness. Quiet madness, though (update: and then the riots broke out..).Two things I’ve been repeatedly asked to convey to you are that:
1) you can’t trust any Greek poll or media, because the media are so skewed to one side of the political spectrum, and that side is not SYRIZA (can you imagine any other country where almost all the media are against the government, tell outright lies, use any trick in and outside the book, and the government still gets massive public support?!),
2) Athens is the safest city on the planet. I can fully attest to that. Not one single moment of even a hint of a threat, and that in a city that feels very much under siege (don’t underestimate that). And people should come here, and thereby support the country’s economy. Don’t go to Spain or France this year, go to Greece. Europe is trying to blow this country up; don’t allow them to. Continue reading
– Euro is one recession away from implosion – David McWilliams
– Mismanagement of euro “both laughable and terrifying”
– “When economic negotiations stop making economic sense, you should begin to question the motives of the EU”
– Germany is out of control
– Successful British exit will be model for other countries
– Euro membership is now conditional
– “Countries that don’t play ball with Germany will see their banking system used against their democratically elected politicians”
– Investors and savers need “PLAN B”
McWilliams, who is among the best economics commentators from the only Anglophone nation in the euro – Ireland, warns that we only have a few months to plan an alternative to the disastrous consequences on peripheral nations of what he sees as German hegemony. Continue reading
Even a lunatic can be right about something from time to time.
“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. Continue reading