For the umpteenth time, the IMF has warned that Greece cannot meet fiscal targets set by its creditors. And once again, the IMF insists that it will not be a part of the “Troika” unless the goals on Greece are realistic.
History suggests the IMF will cave in to Germany and agree to some half-baked plan (make that 1/8th baked plan) that will supposedly put Greece back on track. Such nonsense has been going on for years.
Mercy, Please!
Here we go again: IMF warns Greece Won’t Meet Fiscal Surplus Targets Set By Europe.
Greece’s primary budget surplus will rise to 1.5 percent over the long run from about 1 percent last year, amid a modest recovery, the IMF said Monday after executive directors met to discuss the fund’s annual assessment of the nation’s economy. Still, the projected surplus falls short of the 3.1 percent forecast by the country’s European creditors.
The fund reiterated its view that Greece’s debt is unsustainable. Most of the executive directors don’t believe the economy needs more fiscal consolidation, the IMF said.
The IMF has said it would consider giving Greece a new loan to supplement the 86 billion euros ($92 billion) it’s receiving from euro-area countries, but only if the nation’s debt-reduction plans are credible. [Mish comment: How many times have we heard that?]
Greece’s government debt will reach 275 percent of its gross domestic product by 2060, when its financing needs will represent 62 percent of GDP. Public debt will reach 181 percent of GDP this year, the IMF projected Monday.
Time for Greece to Break the Deal
The Failed Revolution notes Yanis Varoufakis, the former finance minister of prime minister Tsipras, calls on Tsipras to Break the Destructive Agreements.
The following as translated and explained by the Failed Revolution, from http://www.efsyn.gr/arthro/rixi-me-tis-pseydaisthiseis.
Varoufakis wrote among other things:
The night of the Greek referendum, I tried hard to explain to the Greek PM that the submission of Greece to the third memorandum was Schäuble’s real plan (not Grexit).
In reality, there was no hope that the 3rd toxic “program” for Greece would be rationalized progressively through the support of the European Commission to Athens. Meaning, there was no hope that IMF’s austerity and anti-social measures could be soften. The fact that Moscovici, Juncker, Sapin and others gave such promises, is no excuse because the Greek government knew since May 2015 that these people know how to tell lies, or, they are unable to keep their promises when they don’t lie.
Suddenly, the Schäuble-IMF-ECB attacked on Greece, demanding exhausting measures, while Merkel-Hollande-Commission didn’t do anything. Tsipras then retreated for one more time in order to “save” Greece. This was Schäuble’s plan.
Tsipras promises, one more time, that he will not retreat (this time!) by legislating new austerity even after 2018. If he means it, I remind him what we had agreed that is necessary and which – even today – is the only thing that may prevent the worst things to come.
Prepare for unilateral restructuring of Greek bonds held by the ECB, which must be repaid in July (and after).
Prepare the electronic system of transactions through Taxisnet which I had designed, I had started building it and even announced it to the new Minister of Finance, Euclid Tsakalotos, when I delivered the Ministry.
Therefore, if indeed the Greek PM means it this time that he will not retreat, he should prepare for breaking the deal with the creditors, so that to prevent it. The design of a parallel system for payments is ready since 2014, as he knows.
No Reason to Act Now
I offer one significant improvement to the plan: Stall for 3 months.
Wait for the IMF to do what they say. If the IMF acts first and backs out of the deal, it will put extreme pressure on Germany to provide relief.
Schäuble has stated Germany will not provide any more credit relief. So why act now?
Instead of acting in advance, Greece can blame Germany and the IMF unless there is significant relief. And as a side bonus, Merkel will take the hit for having a country exit the Eurozone on her watch.
Won’t that be fun?
Another Greek WTF Showdown Moment Explained
I wrote about much of this a few days ago in Another Greek WTF Showdown Moment Explained.
The IMF has once again threatened to pull out of the Troika following a warning that Eurogroup Loan Measures Not Enough for Greek Debt.
Perpetual Nonsense
The IMF argues correctly that Greek debt is unsustainable. Previously the IMF correctly argued Greece could not maintain a primary account surplus of 3.5 percent.
Yet the IMF now demands Greece automatically implement rules forcing it to have a primary account surplus of 3.5 percent of GDP as far as the eye can see.
Last week Eurointelligence reported that Greek officials were elated the much-despised IMF might exit the program. Although Greece hates the IMF, the IMF has at least been partially on Greece’s side, arguing for debt reductions.
Were the IMF to actually pull out to happen, Schaeuble wants Greece out of the Eurozone.
Meanwhile, Eurozone officials pretend the program is working when they know full well its not.
WTF Moments
This is one of those WTF moments where statements from Greece, from the IMF, and also the Eurozone make no apparent sense.
Yet, despite the obviously apparent nonsense, it’s possible to piece together what’s happening.
- Neither Germany nor the Netherlands is willing to throw Greece the smallest of bones for fear of election consequences. It’s far easier for Eurozone nannycrats to pretend things are running smoothly.
- Schaeuble has long wanted Greece out of the Eurozone. But Germany does not want to take the blame. Instead, Schaeuble wants the IMF or Greece to take the blame.
- The IMF does not want the blame either, so it takes a preposterous stance that the debt is not sustainable but a 3.5% primary account surplus for as far as the eye can see is sustainable. The IMF takes this view despite having argued many times that 3.5% is not sustainable.
- By pretending to now be in favor of 3.5% perpetually, the IMF can argue it is not one-sided to Greece.
- Despite the fact the IMF is more on Greece’s side than Germany or the Eurozone nannycrats, Greece hates the IMF so much that its position of not wanting the IMF involved overrides common sense.
- As an alternative to point 5, consider the possibility that Greece wants outs of the Eurozone, but none of the politicians want to take the blame. Instead, the politicians want to blame the IMF or Germany and are just itching for the IMF to get the hell out so they could do what they wanted to years ago (exit the eurozone). In this possibility, Greece looks to place the blame elsewhere and is waiting for the right moment.
Troika Blame Game Theory
Points 1-4 are certain. Points 5-6 are pick one. Despite the apparent absurdity of conflicting views and the IMF’s changing stance, blame game theory explains all you need to know. Here is a shorter synopsis.
- Greece wants to blame the IMF and Germany
- Germany wants to blame Greece and the IMF
- The IMF wants to blame Greece and Germany
Make the IMF and Germany Commit First
Greece has four reasons to stall, making the IMF and Germany act first.
- If the IMF does not insist on debt relief, Greece can blame the IMF and Germany.
- If the IMF does insist on debt relief and Germany will not go along, then Greece can blame Germany.
- If the IMF and Germany do not provide enough debt relief, then Greece can blame both of them.
- If the IMF and Germany provide enough debt relief, then Greece wins as well.
Greece is in a no-lose setup if it stalls long enough to get the IMF and Germany to play their cards first.
Expect Trump to Pressure IMF
Trump has stated Greece should abandon the Euro, and Germany is a currency manipulator.
Thus, it is reasonable to believe Trump may threaten to pull funds from the IMF unless they cooperate.
Cooperation in this case means backing out of the Troika deal.
Related Articles
- Trump Drives a Wedge in the EU
- Trump Accuses Germany of “Currency Exploitation”: Merkel vs. Trump, Is Either Side Telling the Truth?
Mike “Mish” Shedlock
It’ll make me laugh when France & Italy leave the EU before Greece does. What then? Germany & Greece will be left alone on the dance floor, looking at one another & wondering what to do…
Greece will make a deal with Russia, then get stabbed in the back when the jihadi alliance invades and sacks Athens. Germany will go bankrupt and kiss Russia’s arse to survive.
Dear Mish
Could not all this nonsense be just strang and durm?
Seems to me our ruling overlourds the Private Central Bankers don’t want their EU project falling apart. They most definitely have a globalist future plotted out for us in which cash is eliminated so their reserve ratios can do through the sky and every transaction tracked so their front company the government can chemically leach every last possible cent out of us.
Under my model it all makes sense. Politicians just sniping and ducking to avoid blame while people suffer endlessly.
In order to grow an economy needs credit growth. US data show that less than 2% credit growth leads to recession. Greece has no room for more credit. Real debt burden is more like 8 times tax revenues and 6 times private sector GDP. So there is no escape route for Greece.
Then add unemployment, poverty, non performing loans etc. You have to be an EU bureaucrat not to understand this.
They have to hit the reset button.
Very good point about credit dependent growth. In this regard, Greece is a laboratory for other countries where growth is fine tuned to credit, and to asset based credit to boot. When the music stops, the vicious cycle begins.
Greece should return to the Balkan fold of countries with whom it shares culture. The only reason for being in the EU, and Euro is historic.
Real economic growth may occur when people produce more than they consume, and then exchange that surplus for additional consumption. No credit is necessary.
In fact credit pulls demand forward and requires an interest payment that erodes future spending. So credit for consumption actually hurts the economy in the long run.
Are the “help yourself” Target 2 billions the Greek central bank borrowed from the Bundesbank, leaving behind an I.O.U. @ 0.75% but no collateral part of those calculations?
What about the ECB’s nearly 90 bn € used to stabilize Greek banks?
A rounding error? Merkel said this is a good deal for the German taxpayers. Shut up and participate in the daily 2 minutes of HATE vs Trump instead.
Is it 1984 yet? Can’t belog. Not with tech giants like Goolge being hurt not that their top experts from Somalia etc. cannot come back.
Why not simply stay out of European affairs Mr. Mish. You are seriously anti-European, Anti-German, so best to keep doing that wonderful job as the Pro-Putin, Trump-Libertarian wedge-driving cheerleader you do so well. Great work for your allies. Thank you ever so much.
Fools Blame the Messenger
Why not pay attention and learn something instead of being a hopeless nannycrat? By the way, it was nannycrats who forced Brexit and will lead to the breakdown of the EU.
I accurately point out what I see, and I have been right.
Pay attention Nannycrat! Oh very measured and balanced Mr. Shedlock. It is nonsense that the EU forced BREXIT. It was basically frightened old folk voting to get rid of foreigners pumped full of Daily Mail right wing Tory B/S. Sound familiar? Why not pay attention and learn something Mr. Rand?
THAT’S NOT TRUE. Blaming the media is false. No more than you can blame the media in the US for Trump.
There is an understanding of the crony undemocratic nature of Brussells that grates with swathes of free thinking people.
The UK government deliberately tried to scare the population sh!t less to achieve REMAIN.
STILL PEOPLE VOTED LEAVE. Arch pro-Europeans like Lord David Owen campaigned for LEAVE. Gisele Stuart- German but UK MP & MEP headed LEAVE group saying Brussells was beyond reform.
Remove the fear campaign and more would have voted LEAVE.
Cameron resigned because he tried to bully people into submission on the orders of the EU. Disgusting. Evil.
The Brussells outfit is corrupt, anti-democratic and dark at heart. Read up on Amato statements – architect of Article 50.
Read up on what happens to whistle blowers.
Wake-up.
You do realize The Eurozone isn’t really united under anything except their currency right?Each country still issues their own bonds, and each country is still driven by their own fiscal policies. What you have is broke country’s borrowing and lending to other broke country’s, legitimized by unelected bureaucrats out of Brussels. The Euro currency is the ONLY thing that binds them to one another, it was doomed from the start the moment they did not have a unified bond market.
Brexit was not simply a vote by frightened old people against foreigners. That is what Brussels and their lackeys want you to believe. It’s easy to throw around
mainstream talking points, but the truth lies somewhere below. https://www.youtube.com/watch?v=UTMxfAkxfQ0
…and you definitely over-use that silly word “Nannycrat”. Sounds a tad juvenile.
Nanicratum Europeus
My playroom is the safest
There’s a Russian in the fridge
And the roofs are lined with snipers.
Personally I am pro- Greece. Pro the 25% living in poverty. Pro the 50% youths that are unemployed. Pro all greeks who are struggling to make a living. Pro depositors in banks having lost most of their money due to 40% NPLs. and anti corrupt bureaucrats in Athens and Brussels.
And I am definitely pro Mish and his writing.
Whether or not Greece is part of the EU, I doubt that will change. Greece’s problems are deeply embedded in the structure of the country.
What should Greece be like?
The U.S.A!!!!!!!!!!!!
…and start by getting rid of that language. I can’t even pronounce a damn thing phonetically .
Sorry old chap, just my lingering Byzantine complex.
We fall into a trap measuring the quality of life in dollars, some of the most beautiful countries and people living a fulfilling life are theoretically poor but are support and welcoming. Most Greeks I have met are in the rather nice category so I hope they don’t succumb to EU bullying.
Regardless of what you think of the IMF and the machinations of central banks, the current trend in support of Mr. Putin and his vicious intents do not bode well for Europe, including Ukraine and The Baltics and many do not like what they see coming from certain quarters on the other side of The Atlantic. Know who your friends are and stop peeing on us.
This is the same EU that threatens democratic UK with punishment?
With friends like Hollande, Merkel, Verhofstad et al, who needs enemies?
Perhaps Putin isn’t so bad after all.
BTW – UK intelligence agencies reckon German systems are riddled with Russian spies. Probably the same in Brussells central. UK having to be very careful what intelligence is released.
I expect the EU will become very pro Russia quite soon.
Russia military budget is $ 35 bn. NATO + US is $ 900 bn. You don´t attack somebody 25 times stronger than you are. Putin is not stupid. But NATO needs en enemy do justify its existence.
Lars is onto something but I am not sure his figures are quite correct. Russia spends a little more than Britain and France but even Saudi Arabia spends more than Russia. Russian spending is obviously very effective but seems more focussed on warning off threats that history tells us are nearly from the West.
http://books.sipri.org/files/FS/SIPRIFS1604.pdf
ECB – Bernard Coeuré. Right or wrong? More concerned with world power/influence than youth unemployment? Greece will be bailed out, or not?
“in an interview with Le Parisien Mr Coeuré insisted: “The euro is clearly a success. It has created a strong bond between European citizens. We can only influence world affairs if we are united.
“The single currency allows medium-sized countries like France to speak as an equal to the United States or China. The euro does not constitute a loss of sovereignty, it is a lever of sovereignty.” ”
“I don’t think that Greece should not have been included in the euro.
“Its problems are not related to its euro membership but administrative shortcomings, very weak social protection, problematic tax collection and a highly specialised economy.
“Greece needs to overhaul its administrative and political structures to be able to prosper in the euro.
“The Greeks are still facing this predicament, but they have to be commended for the major reforms that they have undertaken.”
“The unemployment rate has nothing to do with the euro, it is linked to the success or failure of employment policies.”
He added: “I believe that the euro has even had greater benefits for the disadvantaged and the vulnerable. The single currency has contained inflation, which is a tax on the poor.”
Basically saying ECB has no responsibility for any of this. Not the fault of the Euro. Must be the Greeks alone.
That which benefits the disadvantaged and vulnerable… are the same policies that make the entire system vulnerable.
We want to argue about economic policy like it is what matters, but it is the results that matter. Greece is losing its liberty because it voluntarily became a dependent state. Like so many others in the world it demands a lifestyle for which it was unwilling to work and now is left with nothing but debt and no means to repay….an unwillingness to repay. What are Greeks protesting? Loss of benefits, wage reductions, higher taxes.
The rest of the world watches because we are ALL greeks in some ways and Greece’s future in some ways portends all of our futures.
Of course the other issue is simply a dominoing financial collapse that will take us all down.
Eurocrats are working to save Greece for both reasons….pure survival and the preservation of their ideology. But no one cares about the Greeks as if they did, they would have NEVER allowed Greece to get to this point in the first place. They could have said NO.
They do, they do !
They say ‘ No bailout! ‘ and ‘ No exit! ‘.
Then they put deeper into debt to make that they don’t need to bailout themself neither, and everyone know there is no way out of the numbers except by Draghi who he has what it takes.
Naí naí, it is true.
This is indicative of a problem, the inability to allow people to think and say what you don’t like to hear or read without having to ask them to stop it.
Why not ask probing questions instead?
Become a little Socratic to expose any lack of knowledge and thereby educate us all?
Socrates – there was an Athenian indeed.
The world needs the likes of Socrates. Questioning gadflies.
I disagree, who needs Socrates when you have the Kardashians!
‘ I know nothing except the fact of my ignorance ‘
You can always find some other blog to your liking if it is such a mental torture to read this one.
The Target2 credit is not part of the “government debt”. The numbers are € 311 bn from Brussels and IMF. Plus the new € 86 bn credit. Then you have almost € 100 bn in Target 2 credit (loans and over issuance of notes). So you end up at almost € 500 bn. GDP is € 175 bn, tax revenues € 65 bn.
The risks are asymmetric. Greece gets hung drawn and quartered to protect a much larger block that could take the hit on the chin.
Another example that people don’t really matter to the Euro/EU zealots. Under this mess there are people. Some might be tax dodgers, some drunkards, whatever, but people with families.
The IMF has made mitakes and became too embroiled and biased, under Lagarde. Say no more. Time for a non-EU IMF head?
Please read: http://www.telegraph.co.uk/business/2016/07/28/imf-admits-disastrous-love-affair-with-euro-apologises-for-the-i/
Do you think the EU could take the hit on the chin? € 500 bn? Remember that nations like Portugal, Ireland, Spain, Italy, France are creditors (Total 35%) and the ones to take the hit. Not only Germany.
The hit is going to floor them because next defaulters will be these same creditors.
Saw some silly argument a few years back. Greek debt did not matter because it was such a small amount compared to world GDP. It´s not the world paying but a few insolvent nations.
You’re right. Need to do some thinking here.
Pity Greece if they can’t get out from under this mess.
If Trump looks to pressure the IMF it might be good to start with a new head with no baggage.
This is long term agony. What cannot be paid back will not be paid back. Period.
Mish – from the horseâs mouth:
âWe all know what to do, we just don’t know how to get re-elected after weâve done it.â ~ Jean-Claude Juncker, prime minister of Luxembourg and president of the European Commission
âWhen it becomes serious, you have to lie.â ~ Jean-Claude Juncker, former President of the European Commission, May 2011
Barry Rose, CBF
Credit Manager
Diamond Plastics Corporation
T: 308-385-4329
F: 308-385-4390
âThe only thing worse than being blind is having sight and no vision.â ~ Helen Keller
“We all know what to do, we just don’t know how to get re-elected after we’ve done it.”
Of course. You can’t make the bankers pay for their crimes and relieve the villagers from their suffering and get re-elected. The bankers won’t fund your campaigns.
Unfortunately, as Obama found out, you can’t protect the bankers and leave the people suffering for long either. Quite a conundrum.
a 3.5% primary surplus means reducing some smaller percentage of capital out of the economy and sending it to the rest of Europe. If government expenditures represent say 40% of the Greek economy (I don’t know), that would mean a reduction of 1.4% of the nation’s capital.
That means a compounding reduction of expenditures in the nation by 1.4% every year. And since Greece’s major revenue source is the VAT, one would expect a similar reduction in federal revenues each year, compounding the problem.
In approximately 70 years, every bit of money and wealth will have been drained from Greece and sent to Greece’s creditors. The world doesn’t actually work in a straight line like that (there would be some growth and wealth creation along the way), but that has to be the end game. And in this environment, why would anyone ever make an investment? If you know that your government and its population will be perpetually unable to maintain your transportation system so you can get your products to market, maintain a legal system to protect your investments and contracts, even provide an educated work force.
Greece must default on its loans. They are economically and politically unsustainable. It must exit the Eurozone. However, a majority of currently employed want to stay in, because they really don’t care (they’ll just exit Greece when the SHTF). So politically, Mish has hit the nail on the head with this one. The Greek leadership must force the IMF and Germany to give them no other option.
Latest € 86 bn rescue package was put in place to service debt. So the money never leaves Brussels. Goes from one EU account to another.
No one in his right mind would buy fixed assets in Greece today.
Reminds me of the Ouzlum bird – is it a derivative of Ouzo? 🙂
https://en.wikipedia.org/wiki/Oozlum_bird
Greece cant leave EU it is not educated statement. All of the Greek deposits in Greek banks are owned by ECB. The day they leave there will be 0 foreign currency to trade. The country will social fabric will collapse. So Mish take it easy with helping the Greeks.
Greece will suffer for 60 years under the current arrangement. It cannot last. I said the same thing years ago. But yes, hyperinflation highly likely but it will not last 60 years.
Mish
If Greece leaves the Euro it will have to reconstruct its international balance sheet, that is to say it, in extremis, may declare a clean slate and build its trade relations as it chooses of worth with those willing to. The Greek elite have a lot of foreign exchange as well as contacts and they would return to manage the country AS LONG AS POLITICAL STABILITY WAS ACCEPTABLE AFTERWARDS. If EU shunned Greece it would have to rely on its traditional revenues, that would include shipping, tourism, some agriculture, as well as trade with countries that did not decide to ostracize it.
Those who are sceptical of EU are not out to ‘help Greece’, you have to do that, should be able to do that, by yourselves, whether you stay in or leave the Euro. What help does Greece want or need? That is up to the Greek people to decide, if they are listened to.
Mish is educating you from one perspective, you won’t stop him, you have the other three quarters of the press towing the EU line. If Greece leaves the Euro it should have a clear idea of why, and to do so it is vital that you study from different points of view. We cannot speak from the point of view of local political drama, only comment on what we observe from outside, whether it is appreciated or not.
Either way, it is more likely the choice will be made for you, at least you will know who supports you in your new adventure if it is one to leave.
So before leaving just withdraw all the foreign currency from the banks and repudiate all debts to foreign institutions. What more can they do to you that what they would have done to you anyways? Then offer a nice strategic island to similarly Orthodox Russia at a peppercorn rent to build a blue water port and airbase to keep the Turks away.
Expropriation and Impoverishment: “Capitalist” Greece and “Socialist” Venezuela
Chrales Hugh Smith – February 7, 2017
Neocolonial “capitalist paradise” or crony “socialist paradise”: the net result is the same: expropriation and impoverishment.
http://www.oftwominds.com/blogfeb17/expropriation2-17.html
Both Greece and Venezuela along with many countries play the same game. But we forget that the people want this to be honest. I have no debt period and own my home and live within my means. I planned this long ago and it is not something new.
WE the people are stupid and follow along with these schemes and then blame everyone else for our problems. Greece once owe 70 Billion when this crisis started and not it is over 370 billion and still the Greeks want the Euro. Venezuela did the worst thing possible by nationalizing their industry and no longer had the required skilled people to run them.
The Venezuela people wanted and got their free handouts. This was not just stripping from the oligarchs and the rich. I read Charles Smith but sometime he lays blame where the blame is not just those in charge. Voters asked for this shit and now they cry foul.
Greece should have been let loose a long time ago but Brussels, France, and Germany will not do it because they will lose money big time. They will also lose more as the PIIGS will want the same deal and we cannot have the Euro failing. Although many stated back in the 80’s and 90’s this was what would happen with the Euro because some countries were still third world countries. Some were not much better then Venezuela. Many blame Goldman Sachs but the auditors from the EMU knew exactly what was going on and looked the other way. Proven time and time again with documents surface in many investigations.
Democracy always fails when the voters realize they can vote themselves wealth out of the government coffers. It has 100% of the time and will happen to all. We can point to wherever we like but just look in the mirror next time Okay.
Wasn’t Draghi involved with allowing Greece in?
Was involved with GS at the time?
The IMF will do whatever is most likely to perpetuate it’s existence and maintain a place at the global policy table. At the end of the day, that’s the only real driving force behind IMF decisions. Greece is no different.
This basically boils down to a calculation of how best to appease the great economic powers. Expect the IMF to make the decision that will offend the least number of large economies.
They will do whatever is needed to preserve the Eurozone.
They have a love affair with the Euro. Pure and simple.
As such the Euro Group have the IMF over a barrel.
Mish is right – Greece should sit tight and wait and not make these decisions for the creditors.
ECB have basically said – “no blame here”
Euro Group – “don’t blame us”
IMF ?
Greece should be careful not to volunteer to do the dirty work for the creditors. Creditors problem.
“Creditors problem.” Exactly correct. If I owe someone $1000, I have a problem. If I owe a million dollars, the lender has a problem; a very big problem.
Another shining example of what could go wrong with multilateral agreements. Trump’s take is spot on.
Three failed anchor states and an imaginary WW2 relic, all bankrupt themselves, attempt their 999th attempt of a bailout of a tiny little state…
They will all drown together
The root problem is the IMF working hand in hand with EU elites. Like the Fed in America, it should be disbanded.
The IMF is a satellite of US foreign policy. Its very purpose is to keep foreign peoples indebted to American financial interests and towing the line on maintaining US “interests”. Those who don’t accept IMF hegemony: Cuba, Venezuela, Iran, often suffer catastrophic consequences.
IMF is too opaque to figure out who has what say, depends partly on political circumstance, but a short answer is the G7 has near majority, with the US largest. It is possible to think of it as soft power ( obviously destructive in many cases) which is tried before other methods. That is to say a plan might be to control another country, the IMF is offered as the cooperative multinational way, if that is rejected then it moves towards law of the jungle.
Just don’t think it is only US interests, and there are also influences that are outside of government ( banking, finance, business, political etc. )
Why don’t people understand that the Greek government is even now unable to live within its means and needs continuously new loans to pay current expenses. Declaring bankruptcy and leaving the Eurozone, they can go back to the drachma and inflate it to cover its obligations. And no one, Ms. Lagarde, Mr. Scheuble,etc.etc. can then tell them whom to fire, what pensions to pay what privatizations to accept and which ones of the other austerity measures to implement, or not to implement. We Greeks are a creative race, and left to our own devices will surely muddle through.
Whatever happens we should all wish the Greeks well. Lagarde commenting today, changes little, same old, same old. Parties waiting for Greece to make the move to the exit.
http://uk.reuters.com/article/us-imf-lagarde-idUKKBN15N221
Can blame but will not…because this game theory to be proved needs 3 players not just 2 and a yesman 😉
3. If the IMF and Germany do not provide enough debt relief, then Greece can blame both of them.
Kabuki Theatre at its rip-roaring, side-splitting best.