German Chancellor Angela Merkel has mooted the idea that Greece
should hold a referendum on the euro alongside its second round of elections
next month. Mrs Merkel's proposal came up in a jaw-jaw with the
country's president Karolos Papoulias earlier today, according
to a spokesman for the Greek government. Official statement from the President
of Hellenic Republic's office, concerning what Angela Merkel asked for this
morning in their telephone conversation. Apparently, she asked for a referendum
to be run concurrently with the next Greek elections, asking the question, "Do
you want to stay in the euro?" Is she demented? Wasn't she the one along with
Sarkozy that gave an ear ache to the ex Prime Minister of Greece, Mr George
Papandreou for daring to ask the same thing in Greece a few months ago, and
eventually forcing him to step down? In a statement, Dimitris Tsiodras
said the proposal was "obviously" outside the scope of a Greek
caretaker government. In Greece, Goldman Sachs got lots of Greek assets on the
cheap in order to help the Greek government to massage its debt profile in order
to qualify for the Euro.The fact is that in or out of the Euro, we are all being
screwed by international financiers such as JP Morgan and Goldman Sachs. These
fraudsters control the government, they control the regulators, the media ...
and they rip us off and then demand austerity. They know that the Fed and the
ECB will always cover their bets. Which means ultimately that we will cover
their bets. In other words, ordinary Greeks and the rest of us are paying
through "autierity" for the thieving and greed of usurers. Max Keiser on Russian
TV is the closest you will get to an honest media commentator on the financial
system.
Elswhere in Europe - More than 400 people have been arrested today while participating in an
anti-capitalist protest outside the European Central Bank offices in Frankfurt,
Germany. "Blockupy Frankfurt" protesters have been in the city since Wednesday,
and have called for four days of protest against austerity measures in Europe.
5 comments:
he plot thickens.
A spokesman for Angela Merkel has denied that she floated the idea that Greece should hold a referendum on the euro. "This is false and we completely dismiss this," he told Reuters.
18.49 German Chancellor Angela Merkel has mooted the idea that Greece should hold a referendum on the euro alongside its second round of elections next month.
Mrs Merkel's proposal came up in a jaw-jaw with the country's president Karolos Papoulias earlier today, according to a spokesman for the Greek government. In a statement, Dimitris Tsiodras said the proposal was "obviously" outside the scope of a Greek caretaker government.
We have been now for one year under "Troika intervention" and in one year we ACTUALLY IMPLEMENTED the (severe) austerity measures and we are ACTUALLY IMPLEMENTING the structural reforms....and quite fast, i must say.
Our situation is by no means comparable to Greece.
Any comparison wouldn't even be remotely fair.
Why?!
Well, because we have a far more modern a DIVERSE economy, an up to date modern infrastructure (even the germans say it is up to the standards of central Europe) and , SPECIALLY....we are in this with a completely different mood.
When the former (socialist) government asked for the bailout they immediately resigned and new elections were held. The campaign and the elections were during the Troika evaluation and after the final agreement with the Troika: the ("short") 78 Bn bailout.
So the elections were also, in fact, a referendum to the austherity and the agreement with the Troika.
The pro-bailout parties had.....80% of the votes.
(after one year situation is the same).
It's not pleasant, we're not happy (in fact we feel squeezed like lemons), but we are making an 180 degree turn in some important things. We are taking care of our future.
The Troika is pleased (and even surprised) with the results and they are even more surprised with the absence of "noise-threats-riots-instability" and the fact our government says they are going beyond Troika demands .
It's not rosy over here but even the recession is far milder (which is a surprise) than expected because exports are rising at a very fast rate.
We have some advantages like not having a housing bubble for instance and the fact we are in this situation is purely circumstantial, not structural
Portugal and Ireland are, with no fuss, honestly making an effort to correct and......all this effort can be ruined now by this mess. Without this mess both countries would be doing great (and with no Troika) next year.
It's sad and unfair.
In an echo of the months leading up to the Lehmans collapse, Mike Smith, chief executive of Australia and New Zealand Banking Group, said the turmoil in the eurozone meant Australian banks were being frozen out of money markets when seeking funds.
Chote said there were so many uncertainties around what might happen with Greece and the eurozone that trying to produce firm predictions was not "particularly helpful".
But the OBR has tried to quantify the impact of a disorderly sovereign debt restructuring in the eurozone on Britain – and the figures make grim reading. Britain would be plunged into recession for two years, according to the OBR analysis, published in its most recent economic and fiscal outlook report. There would also be deflation and unemployment would reach almost 11% by 2013-14, with debt subsequently reaching more than 90% of GDP.
Chote said these projections were of limited value because the eurozone crisis could develop in so many different ways. "For example, one issue would be, do difficulties in the eurozone make it cheaper or more expensive for the UK government to borrow?" he said. "If it makes investors more nervous about risk in general, it might make it more expensive. If they see the UK as more of a safe haven, it might make it less expensive."
And if Athens stops paying its creditors, the problem then takes on a different hue. Greece is in a much stronger position than most think.
"Keynes said it many years ago. It's not just the person who borrows but the person who lends who can find himself in a difficult position. If you owe £5,000 to the bank, it's your problem but if you owe £500,000, it's the bank's problem," he said. "This is a common problem. It's our problem. Its Merkel's problem. It's a European problem. Its a world problem."
With his good looks, raven black hair and propensity for rousing oratory, Tsipras comes across more as a pin-up (which is how many in Greece see him) than a saviour, which is how a great deal of others see him.
His aides add in passing that one of his heroes is Venezuelan leader Hugo Chávez, with whom he shares the same birthday. Nor does he believe in political tags "at this time of crisis".
But though he appears to be preparing for power and moderating his tone, he says the war will continue.
The eurozone crisis is set to dominate four days of intense diplomacy which began in Washington Friday morning and continued through a meeting of G8 leaders at the presidential retreat Camp David on Friday evening. Discussions will continue there on Saturday and on to a Nato meeting in Chicago.
In talks at the White House, only hours before the Camp David summit, Obama met the new French president, François Hollande, for a one-to-one conversation in which he explored the possibility of a new approach to the eurozone crisis based on a pro-growth, stimulus strategy. Obama has been pressing for such a strategy for the past three years and has a potential ally in Hollande.
The White House welcomed what it sees as a change in the debate since Hollande's election that tilts the balance slightly more in favour of a growth strategy.
The French president is proposing an EU-wide financial transaction tax (FTT) that could raise up to €57bn a year that could be used to stimulate the 27-nation bloc.
After meeting Obama, Hollande was scheduled to meet David Cameron in Washington before flying to Camp David.
However on arriving in the US, Cameron said: "On the financial transactions tax I'm very clear. We are not going to get growth in Europe or Britain by introducing a new tax that would actually hit people as well as financial institutions. I don't think it is a sensible measure. I will not support it."
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