Saturday, July 11, 2015

Yves Smith on Greece

"Tsipras has just destroyed Greece" :
"As MacroBusiness sums up:
This is basically the same proposal as that was just rejected by the Greek people in the referendum…This makes absolutely no sense. The Tsipras Government has just:
  • renegotiated itself into the same position it was in two months ago;
  • set massively false expectations with the Greek public;
  • destroyed the Greek banking system, and
  • destroyed what was left of Greek political capital in EU.
If this deal gets through the Greek Parliament, and it could given e veryone other than the ruling party and Golden Dawn are in favour of austerity, then Greece has just destroyed itself to no purpose."
Long read. Towards the end, there is a list of Policy Commitments and Actions to be taken in consultation with EC/ECB/IMF staff.
Germany won't spare Greek pain - it has an interest in breaking us by Yanis Varoufakis:
"Based on months of negotiation, my conviction is that the German finance minister wants Greece to be pushed out of the single currency to put the fear of God into the French and have them accept his model of a disciplinarian eurozone."

This may be a sign of how weaker countries will fare under various treaties and globalization.

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