Don’t worry. This isn’t a trick question. Anyway, none of those currently in power (mostly the unelected nomenclatura of the Commission and of course The Frau Directorate) are never going to ask us. It’s neither here nor there to them what the people of Europe want. (Note, I say people rather than peoples, because we are one and not many, even though we have yet to fully realise this.)

So we start from negativity. Since they know best, and what is best is saving the banks (well at least they think that is what they are doing) the last thing they want is any kind of democracy because for all the threats and terrorization, ultimately not only will the people not want to pay for the banks with everything they have, including their lives, but they will be unable to.

A point Greece is reaching at the moment. This year’s tax returns under a new extremely harsh system will demand payments from many already below subsistence level on pain of having anything they own summarily confiscated! Which is why the current government of toadies decided to put off submission of tax returns till AFTER the election. They knew they wouldn’t have a chance in hell if it happened before. Now full terrorization of the electorate is being employed.

Professor Varoufakis has an excellent piece on the democratic deficit of Europe, pointing out that when it comes to the democratic deficit, all European countries can (and are) slide into it. As opposed to the economic deficits where (Angela please note) that for some countries to have a surplus others must be in deficit. BY DEFINITION.

So the real danger to Europe and what used to be know as European values is the stark erosion of Democracy. One blatant example being when Greece’s Prime Minister was summoned to Cannes to be told by Merkozy (then) that he cannot ask his people if they agree to the new bailout! He was told not to hold a referendum, or if he insisted, the question would not be the one about agreeing to the terms of the bailout, but whether or not Greece wanted to remain in The Eurozone.

The sad part is that our then PM came back with his tail between his legs like a whipped dog acquiescing to all of the Merkozy demands. A nasty blow to the concept of Democracy.

Now that the Merkozy monster has split (at least until the French Elections), the bully’s side kick finds himself in the place he so relished putting the hapless Papandreou into. As we said yesterday, after seeing his chances of reelection go dangerously down in the polls, he decided to demand that the ECB should play a role in promoting growth in the European Union.

A very sensible, if belated, proposal. And something the people of Europe not only want but need and are unanimously in favour of. But what happens? Almost a replay of the Cannes ignominy Papandreou was subjected to.

Jens Weidmann, head of the Bundesbank (and hence far more important and far more powerful than any piddly elected head of state, be that of France or Spain) thunders out the following: What nonsense from Sarkozy! The European Central Bank should not give any attention to economic growth! And that’s final! And about Spain and the dangerous rise in her spreads?

Spain should not expect the ECB to pull it out of the mire. So what if its spreads have gone up temporarily? All this means is that the Spanish government should pull its act together and screw its people even harder and more viciously. (My paraphrase of what the man actually said. But not of his meaning).

So there we have it. Who gives a damn about elections in France? It is the Bundesbank laying down the law! As for Greece? Why doesn’t that messy place just sink into oblivion! We really have no use for it any more.

No. They don’t. And especially not for one of the things produced there many many years ago. No, not olive oil. But Democracy. They have no use for that at all!

As we pointed out in a prior blog, crucial elections are to be held on May 6th. The second round of the Presidential elections in France and the general election in Greece. And lo and behold! Suddenly certain candidates have finally seen the light!

Purely by coincidence, the opinion polls are going against these neophytes who have suddenly seen the light. The first, by order of priority and significance is France’s President Sarkozy. Francois Hollande may be rather dull and uninspiring, but he has dared speak out against the iron lady’s great scheme.

The Frau’s idiotic plan whereby all countries in the European Union must not have a deficit and will be penalised if they do! Whereas there is no cap on surpluses, still less any provision for recycling surpluses, (God forbid!), is a critical part of the Great German Scam. Sarkozy was very happy not only to sign up to it but to be vociferously on the bully’s side. As always.

All of a sudden, however, he has realised that all this toadying up to The Frau and her self serving brain waves that are in the process  of ruining Europe, don’t seem to be going down all that well with the electorate. So lo and behold! After Hollande said he would renegotiate the pact and insist on serious provision for growth. Sarkozy suddenly pipes up.

The ECB, he says, must be activated and enlisted in the struggle to achieve growth! A taboo subject. And The Frau nearly went apoplectic. How dare her side kick and best toady mention the ECB! It must not be touched! It must not do anything! Germany does not want to tackle the European crisis, she wants to make the best of it for herself, and solutions such as that are anathema to her!

Second is our own rather unpleasant former Minister of Finances (unpleasant because he barks at us and threatens us and when he is in Brussels he cringes). Now this gentleman was directly responsible for the policy implemented that has ruined the Greek economy and plunged us into continual recession achieving an official unemployment figure of 22% (and growing).

This gentleman has now become Leader of the PASOK party and all of a sudden it has suddenly dawned on him that the Greek economy needs growth! Oh really? Why did he do everything he could when he was in power to strangle growth? Not least the exorbitant property tax under the threat of having your electricity cut. And as if that were not enough, not only did he sign, but also claimed credit for what is known as the new bail out agreement. An agreement that has no provision for growth but is designed to push the economy into ruin.

So what is this? The Toadies rebellion against The Frau? Hardly! It’s just the blind panic of the prospect of losing power! So they have started saying anything to save their skins. And in the case of Venizelos (the current leader of the PASOK party), we all know very well that should, God forbid, he be returned to power he will renege on his belated good intentions, and turn round and tell us,

“Oh well yes… I did say we needed a change in policy… but, well… The Troika Won’t Allow it!”

So we all better be very careful what we vote! At least we know that this little lot of toadies has botched it completely.

Megan Greene of Roubini Global Economics is reported as having said: “If the Spanish government does not announce further austerity measures, the markets think it is not serious about hitting its fiscal targets and shun Spanish sovereign debt. If the Spanish government does announce additional austerity measures, however, the markets fret that the swingeing cuts will push Spain further into recession and shun Spanish government debt.”

There you have it. In a nutshell. Europe’s conundrum.

In other words, this is a case of heads they win, tails we lose. Under current German dictated policy there is no way Europe will ever recover. All that will be achieved is a continual sinking into the austerity quagmire. Recession turning into depression, depression into full scale catastrophe.

Is it really so hard to see that this policy is not only leading nowhere, but is in fact causing far more damage than it seeks to amend? Can’t anyone see that we are stuck in a cul de sac without any possibility of ever getting out, like the Hotel California? Isn’t there any little boy in the crowd to shriek “Look! The King isn’t wearing any clothes!”?

But creative thinking requires imagination and a willingness to smash established concepts. It does not need rigid adherence to rules and regulations with German precision that can only lead to ruin. The ruin of Europe.

Will this be Europe’s fate?

Even the best laid plans can go terribly wrong. Today is Easter of the Greek Orthodox Rites which coincides with the Jewish Passover (which always makes us smugly think that it is we who have got the date right and not the other, western, side of the schism who are usually too early in celebrating the event!).

A whole lot of literature has appeared over recent years with the discovery of the Gospel of Judas and controversy over his role. Was he really the bad traitor the official Gospels portray him as? Or Jesus’ greatest disciple and the only one with the intelligence and insight to understand him?

For there to be Christianity there had to be a Judas, otherwise perhaps it would all have quickly faded out.

I do not intend to get embroiled in any religious controversies, but I would like to share the Last Supper song from the musical Jesus Christ Super Star  with you. At some point, honing in to the importance of the Great Betrayal for Christianity’s very existence, Judas says “What if I just stayed here and ruined your ambition?” when Jesus is urging him to go, just go and betray him, so the story can unravel. What if I just don’t do it? What then?

Jesus of course was God, or the son of God and his plans did not go wrong. But I would urge others trying to play God without the stature or the brains, to ponder the fact. A little detail they are sure will not go wrong may well throw the proverbial spanner in the works and blow their small minded little plans to high heaven.

A Happy Easter to you all and enjoy the clip.

On the eve of our general election here in Greece, the Director of the IMF has decided to tell us how to vote. Not the small marginal parties! She declares with horror. They are irresponsible! What next? The troika will not allow any parties that do not grovel to it to stand for election at all. But we know all this, we’ve been through it all before. Most recently during the military dictatorship.

But this piece is not about the eroding of democracy by the IMF/EU evil partnership, once the economy has been destroyed. We leave this one for later.

No, today I want to comment on how mean Mme Lagarde has been to our appointed Prime Minister. Since he is out going now (we hope, she doesn’t) she chose to praise him and the work he has done as Prime Minister of the Southern Balkan Protectorate (formerly known as Greece).

Now, this gentleman carried out all the commands of the troika with perfect, German precision and efficiency. He slashed minimum wages, pensions even more, agreed to implement all the further recession inducing inane ideas concocted  by the troika and worse of all, he and his government (made up of the parties Christine wants us to vote for) signed away just about every sovereign right Greece had left. No wonder she praises him!

All revenues (including taxes) will go into an escrow account from which the banks will be paid first and only if anything is left will it go to the Greek Economy. Minimum wages will drop to 200 Euro a month, though all prices on utilities and taxes will rise exponentially. Labour Laws have been abolished. Those trying to work have no rights left. They will get a below subsistence wage and may be hired and fired at will and work for as long as is needed. Overtime? What a stupid notion! And more and worse. No wonder she praises him!

Also this model Prime Minister Lagarde has chosen to lavish praise on, decided to misinform (to put it politely) the Greek people through Parliament. On the build up to the miserable bond swap, he officially assured us that the new bonds would not be issued under British law. British law means that the rights of the new bond holders are totally and utterly assured at the expense of the Greek state and of course the Greek people.

That is in the event of a default, or rather when Greece defaults fully, and it will, because the troika’s policies make sure of that, any bond holder can come in and claim anything and everything belonging to the Greek state. And what happened? Despite the PM’s assurances in Parliament, the bonds have been issued under British law and not a word of apology or even explanation. Talk to the plebs? Heavens no! Just whip them into submission. No wonder she praises him!

Furthermore, this bond swap was supposedly one of Private Sector Involvement, that is only private bond holders would have to pay. So the European Central Bank did not have the bonds it holds shorn. But hang on a minute… The various social security funds are NOT private sector! Are they? Shrug of indifference. They got shorn anyway. Why? The PM probably didn’t think it mattered. So did the funds of Universities, state hospitals etc. Anything within Greece got shorn whether it was private or official sector or not. No wonder she praises him!

So this is what the outgoing (hopefully!) appointed Prime Minister achieved, aided and abetted by the two major parties Christine wants to see back in power. Well of course she does!

But by lavishing such praise on the poor man she has merely exposed him to even greater contempt that his low profile might have avoided. How mean of her!

Greece is teetering on the brink of total collapse. A situation constantly made worse by the supposed remedies being cruelly imposed. Need we say it again? This obsession with austerity to the exclusion of everything else. In this context we have the troika continually bullying us and badgering us to do this, to do that to do the other. Otherwise they’ll cut off our life line!

And what is this, this, that and the other? You know very well. Slash pensions, slash wages, raise tax levels. VAT to an unsustainable 23% which has resulted, of course, in LESS revenue from VAT because a little economic detail they appear to be ignorant of, elasticity of demand, is in play. Not to mention, not the erosion but the collapse of disposable income.

Nevertheless, we are constantly being told that we HAVE to carry out these nonsense commands, or else! Or else you wont get the loan money! That is, we are threatened with the cutting off of our life line. At least, that is how our own politicians like to present it to us. In fact, these preposterous loans to Greece do not  constitute Greece’s life line, but that of the banks, where the money goes. Hardly any of these billions ever goes in to the Greek economy. On the contrary, the Greek economy has virtually been sucked dry of all and any self generated funds, but be that as it may.

Now, our wonderful politicians, those of the two larger parties that have been alternating in power, decided that since elections were coming up, they needed money. So what did they do? They voted in perfect unison, (with a few but note worthy exceptions) in the middle of the night, to treat themselves to millions in funding from… well where else? The taxpayers.

The taxpayers, who have been squeezed dry, an exponentially growing number of whom are in fact unemployed, but still have to pay. Oh, and unemployment benefits have been slashed because the troika commanded they should. And pensions have been slashed because the troika commanded they should. And so on. The troika commands and the so called Greek governments scuttles to obey.

Yet… yet, when these compliant, servile politicians of ours decide to help themselves to millions of Euros in funds at the taxpayers’ expense, the troika initially says nothing. After the outrage aroused within Greece from the Greek taxpayers (whom nobody gives a damn about at all), the leader of the Liberals in the European Parliament, Guy Verhofstadt,  also raises the issue.

And the answer? Quite deafening in its arrant hypocrisy and total cynicism. Jose Manuel Barroso, Chairman of the Commission officially stated that when it comes to the funding of parties it is up to the individual governments of every state to decide. The European authorities have no say in the matter.

Flabbergasted? You can imagine what we feel like! Our so called government has no say in the troika’s decisions to overtax and reduce all income to below sustainable living standards. But when it comes to the parties helping themselves to rich dollops of what has been so inhumanly squeezed out of us, only to pay for all the lies they want to tell us, then they can do what they like and the troika will of course not intervene!

So what is the real object of the exercise? The Greek economy and how to put it right? Hardly! How to save the banks? Probably (though I don’t see how anything is going to be salvaged if this goes on much longer). Nevertheless, it is now not only a matter of save the banks, screw the people! But screw the people, try and save the banks, but above all! Save those wretched politicians! Particularly the ones most responsible for the mess in the first place!

So now that the Greek problem has been “solved” (Ha, ha, ha!), we have to find somebody else to blame. Having, swept the Greek mess under the carpet, now it’s time to play the blame game on Spain. Monti is alleged to have blamed the Spaniards and their mishandling of their economics (ha, ha again!) for the rise in Italian borrowing costs to dangerous levels.

In their turn, the Spanish blame the Europeans for not providing enough support, to which the Germans (and possibly the French too) responded by saying how much they admire the tenacity of the Spanish government and its efforts to apply austerity! A good solid pat on the back which is really no help at all!

Mind you, Greece is only temporarily out of the picture. But will no doubt come back with a vengeance after the general elections are held when whatever government emerges finds itself saddled with an impossible program which will only lead to greater recession and greater unemployment (we are already on the 22% mark and rising) if it is carried out.

But not only is no attempt being made to solve the real, underlying structural problem of the Euro, but no one (of those making the decisions) even sees it! They are in full and absolute denial (as Professor Yani Varoufakis has gone blue in the face repeating.

The problem is not the structure of the Euro! No! The problem is Greece’s deficit! (Now there’s a laugh if you take it as a percentage of the European economy as a whole.) Or now, it is Spain’s deficit! Later it will be Italy’s, or even, yes of course, Holland’s deficit. Which tut, tut is too high!

By the time the real problem slaps Germany in the face (and it will) it will probably be too late to do anything about it because Europe will already have collapsed into a heap of rubble under the weight of “austerity overload” (to use Charles Dallara’s own expression).

George Soros has said that the European crisis has entered a “more lethal phase” . This article from today’s Guardian ends with the following:

Soros stated that “.. ‘The rules of the Eurozone need radical revision’, and suggested that all countries need to be able to finance their existing debts at the same rate. He acknowledged that the Bundesbank would not accept his ideas but concluded ‘The future of Europe is a political issue. It is beyond the competence of the Bundesbank to decide.‘”

Yes indeed! Ionesco and his Theatre of the Absurd is alive and well and thriving in The Frau’s Euroland!

Today our so called Minister of Labour told us perfectly seriously the following: That when our government was being dictated the terms of what is known as the second bail out, in the billions that were to be cut there was a short fall of 350 million, and this was a terrible stumbling block.

One really has to admire the precision of the troika and their remarkable forecasting ability. Anyway, we know all that from the amateur theatricals that were performed for our benefit at the time, by our Prime Minister and partners. But, today our Minister told us that the shortfall of 350 million arose from the fall in revenue from VAT tax. So, he tells us with a straight face, we had to cut pensions!……..

Even Ionesco couldn’t have thought up something more absurd than that! So we remedy the shortfall in VAT receipts by cutting spending power even more??? And the Minister does not even realise he is talking nonsense?

But there may be some light shimmering in the distance. Spain is reported to be unwilling to raise the VAT rate so as to avoid falling into the recession feeding downward spiral that Greece has been plunged into. Through the over taxation and across the board cuts of salaries and pensions. You know, what our government is proud of having achieved.

But there is more, the Great Man himself, Charles Dallara of the IIF, has stated: “The emphasis on fiscal austerity [….] is excessive when carried out across the board and has already contributed to a steep contraction in domestic demand in the Euro area as a whole. It is important to move beyond just fiscal discipline, so as to avoid the risk of an austerity overload.”

Now if anyone wants to see what “an austerity overload” looks like, they should come to Greece. But we should warn you, it is a terrible sight and not for those with a queasy stomach.

When you get lost in the desert  you start going round and round in a blind circle without realising you’re lost. You think you are going ahead and you think you are in charge of where you are going and of your own destiny as if no one had ever got lost that way ever before. You keep going, under the conviction that you are navigating your own course and you actually believe you will get out of the desert in the end.

I think this describes The Frau’s New Europe in a nutshell.

In this context, I would like to share a Reuters article with you entitled Bernanke says banks need bigger capital buffer . Just one quote from this article providing yet one more instance of European brilliance, aka pig headedness.

“A Call from the head of the International Monetary Fund Christine Lagarde last year for European banks to raise up to 200 billion euros in new capital was quickly rejected by European politicians.”

Ring a ring a roses

A pocket full of posies

Atishou atishou

We all fall down!

A children’s nursery rhyme originally inspired by the effects of the Plague (aka The Black Death). Today it could be interpreted as European policy (or rather lack thereof) and where it will lead:

Atishou, atishou we all fall down.

Quite by coincidence on the eve of the announcement of the precise date for the general election to be held in Greece, Mme Lagarde announced that Greece still remained at great risk of bankruptcy, somewhat taking the wind out of the sails of the euphoria generated by the PSI.

Well, Mme Lagarde, we KNOW that. Everybody knows that. We also know that the hullaballou of the bond exchange being a great and resounding success was arrant nonsense too. And such a disaster that it really must not be repeated by anyone else! But we shall see about that.

Back to Greece and the terror aroused (for a change!) in the European directorate over what the result might be. After the man shot himself in front of Parliament, it seems they started wondering whether there might not be a backlash from the electorate after all.

So what do they want? Well, the ridiculously strict and impossible terms signed by the Greek government MUST be adhered to! How can that be achieved? Only by a government made up of the parties supporting the present government, preferably with the same appointed so called technocrat Prime Minister.

Yes, you might say, okay. Since they have signed on the dotted line, those are the ones who can be trusted to carry out the plan. However, the troika keep complaining that the problem with Greece is that the government has NOT carried out what it signed up to. And this is perfectly true. They haven’t. All they have done is repeatedly slash wages and pensions and slap exorbitant, crippling taxation on us.

Now the troika were perfectly happy with this in that they never complained and kept doling out the tranches of the loan. Despite the disastrous effects on the economy. Well of course. This money went through Greece, at the Greek tax payers expense, to prop up their zombie banks. The only time they did in fact stop the disbursement of a tranche from the loan was when Papandreou said he would call a referendum on the loan agreement.

Screams of anguish not only from the troika buy straight from Merkozy who summoned Papandreou to be publicly upbraided by them in Cannes.  This terrific hero of course came back with his tail between his legs and called the referendum off.

Be that as it may. The troika themselves have made a mess of it all too. First, of all they have been wrong with every forecast. Second, they have engineered the complete collapse of the Greek economy with recession running at around 6% per annum for three years (and counting) while unemployment has soared to over 21% (and counting).

Nevertheless, it’s always easier to blame the other guy and even though the troika were quite happy to condone the Greek government’s inertia, remedied by across the board income slashes and taxation, they insist that the destruction of the Greek economy is entirely the fault of the Greek government.

So why, one has to ask, why are they so desperate that the very people who they claim made the bloody mess should be the ones to form the next government too???

I do not believe in conspiracy theories but this situation is making me paranoid. Why are they so desperate that  Greece should continue to be governed by these utter failures? To carry out the plan imposed by them? But they know very well, as Lagarde herself confirmed, that if they do attempt to carry out the plan Greece will go bankrupt probably by the end of the year. (That is in the unlikely event that insurrections will be avoided.)

On the other hand they know from past painful experience that these wretched guys will not carry out the plan devised and imposed. Which means that Greece will again go bankrupt by the end of the year.

Is this all some dark conspiracy to destroy Greece for some sort of unfathomable gain? Or is this just another case of “collective denial”, (as the LSE Economists claimed when the Queen asked them why none of them had foreseen the crash*)  or, more likely, collective pig headedness and refusal to admit their own complete and utter failure in dealing with the European Crisis?

* See 19th August 2009 http://parina.gr/blog/?m=200908 The Wisdom of a little Old Lady