This morning on Greek radio, Mr. Papadopoulos, the spokesman for the left wing party of Communist provenance, DIMAR, stated the following: “We will vote for the measures because we must get the 31.5 billion tranche of the loan. We will do this because we prefer the monthly wage to be 300 Euro* rather than 100 Euro.”

The DIMAR party is the small party propping up the government whose policy is to implement the troika policy to a tee, not because it expects this to help the Greek Economy, but because Greece must prove that it is a “good boy” to regain credibility. Now how this will actually benefit the Greek Economy is never addressed. It does not seem to matter.

Some naive electors who voted for DIMAR still expect it to veto some of the worse measures being prepared. I hope they heard their spokesman’s statement.

Mr. Stournaras the Minister of Finances has informed us that we will not reach the target for the primary deficit. It will be 1.5% and not 1%, as forecast. (Is it my fault they never get their forecasts right? I suppose they can’t help that since they never take the obvious effects their measures will have on the economy into account.) Speaking of which, Stournaras also stated that by the end of 2014 the Greek Economy will have shrunk by 25%.

Given their successful forecasting so far, the shrinking will probably be far greater. Nevertheless, DIMAR will persist in supporting this catastrophic, doomed policy, so that the monthly wage can be 300 Euro and not 100 Euro. Mind you 300 Euro with all the taxation and hikes and rising cost of living nobody bothers about, won’t really be any better than the 100 the left wing party has now found it expedient to threaten us with.

With such left wingers helping ruin the country, who needs Neo Liberals?

*It is not even down to 300 Euro per month, but I guess Mr. Papadopoulos is optimistic.

The great minds of the IMF, the ECB and the European Commission combined to draw up plans… well okay a plan, a one fits all plan, for the solution of the European Crisis, erroneously perceived as a sovereign debt crisis.  Let us see how this plan worked out, brilliantly solving the said crisis in a matter of a couple of years.

Starting with the Iberian Peninsula. Portugal. The plan worked out in every detail, with precise forecasts drawn up for Greece (to which we shall come later) was applied hook, line and sinker to Portugal, without even taking any differences into account.

The Portuguese, unlike the unruly Greeks, carried the plan out to a tee, doing everything precisely as the troika had imposed. Stringent austerity and selling off assets.  Nevertheless, the meticulously planned targets were missed and forecasts bore out no relation to reality.

Now, given that the Portuguese did absolutely everything demanded of them in precisely the way the troika had designed, whose fault was that? Now before you go saying silly things like “it was the troika who got it all wrong!”, see what happened. Portugal was praised for its efforts. However, targets were missed and forecasts went wrong because “recessionary pressures caused a short fall in revenue.”

You don’t say? But before you do say that well, in that case austerity in Portugal should be reversed, because it is what created these recessionary pressures, and anyway, what goofy self styled economists designed a plan that would indeed lead to recessionary pressures, expecting to achieve anything other than that? Think again.

The failure here was not attributed to anyone or any plan. It was certainly not the troika’s fault! It just sort of happened, as of itself, as it were, and no troika took any responsibility still less any blame for the obvious failure of the imposed policy. No. Instead, the Portuguese politicians were given a pat on the back and told, “Good” now make further cuts and tighten up austerity in order to…. meet your targets? Can they be serious? Won’t this repeat performance lead to even greater recessionary pressures? And further missed targets?

Probably. But the troika has its solution for that. More cuts.

Now, Spain. Which is really a tragic case (well I suppose they all are). Spain’s finances were among the best in Europe. Its sovereign debt lower than that of Germany’s, but as the financial capitalism bubble burst so did Spain’s construction bubble burst wreaking havoc on the economy with an explosion in unemployment and insolvent banks, resulting in growing interest rate spreads.

As these reached and passed the danger mark of 6%, going up to 7% and so on, action had to be taken. Some action any action. Mario Draghi of the ECB declared he would start unlimited bond buying of the sovereign debt of endangered countries, Italy and Spain in the instance. Which was sensible. But then, his arm twisted by those nice people in Germany, one presumes, he added that this scheme would only come into effect after a request by the beleaguered state, and in strict “conditionality”. Which was not at all sensible.

Because now, the state would have to make an official request and would have its bonds purchased “provided” the well worn Memorandum of stringent austerity and loss of fiscal sovereignty were imposed. Which means, that although Spain’s borrowing costs could be contained initially, the very terms of this exercise would lead to prolonged and greater recession, exacerbating the already far too high unemployment rates, which would end up in disaster.

So even though borrowing rates have been contained to a certain extent by Draghi’s mere declaration of intent, if the”conditionality” required by Germany is applied, it will end up as one more self defeating exercise, throwing the Spanish Economy into the same downward spiral and free fall, Greece’s Economy is now in.

And now to the villain of the piece. Greece. The initial Memorandum of Undertanding was absurd and everybody knew it at the time. (Including the IMF). Nevertheless it was set in motion, with the endless bail outs and worsening terms, quarter after quarter. The plan failed completely and utterly. Achieving a higher debt figure both as a ratio of GDP and in actual terms, despite the PSI (the euphemism for the partial default on debt).

The Greek economy is in free fall, the private sector has just about been wiped off the map, and the only prospects in sight are complete collapse and disorderly default.

So what is the troika’s solution? You must carry out the absurd terms of the second Memorandum, that is cuts of nearly 12 billion (in reality closer to 20billion but still), more and worse taxation, and ONLY if you do so, shall we give you your 30 billion tranche to recapitalize the banks, and a two year extension to achieve your targets. Which you must admit is very generous of them in that in their narrative, the plan for Greece has gone all wrong because the Greek governments did not do it all properly like Portugal, and cheated on the terms

Okay. Maybe so. But the question has to be asked, if the Greek government does indeed carry out all the extra cuts and austerity terms demanded by the troika and as planned by the troika, why should there be a two year extension at all? Surely the troika has carefully analysed and designed the plan so that if Greece does do everything demanded, the problem will be solved. In which case any extension will be unnecessary.

No? Well obviously not. And the troika knows it. So why this persistence with these polices of the absurd? Well, you could say it is a matter of principle. States must learn to be disciplined. Only by example will we be able to put the EZ back on track and all that other crap.

Or you could just throw in the towel and accept, OK, you win (that is you conspiracy theorists win) and this is all some dark and devious plan to create a feudal Europe with serfs and slave labour in the south and Feudal Lords in the North.

Or perhaps it is just a case of sheer arrogance and ingrained neo liberal dogma, of the kind the IMF has been designed to perpetuate, that is leading Europe to yet another Continent destroying explosion.

The Media and politicians here in Greece are reaching a quasi delirious pitch in their joy over the “change in climate” towards Greece in Europe. We are getting, they keep underlining, messages of support from everywhere! Even our dear Austrian Maria Fekter and our other good friend the probably provisional Dutch Minister of Finances have all joined the chorus, of okay, maybe Greece should be allowed a two year extension.

Okay, even with the caveats of “no more money, though” (sensible) and, courtesy of the Dutch Minister that it could be justified by a “temporary” downturn in the Greek economy.

What nonsense! What hypocrisy! How underhand! Not to mention idiotic. A “temporary” downturn? Greece has been in continual recession, that is defined as depression, for five years and the recession is growing not slowing. The “kindness” being extended by granting Greece an extra two years to turn Greece into a slave labour state, is making Samaras and Stournaras ecstatic!. They wish to persuade us that this is a great success! What is? Well, quite simply, what, I believe Professor Varoufakis was the first to describe as doing nothing other than giving Greece more rope to hang itself with.

And now back to how the Greek Memorandum forces are deceiving (or attempting to) the Greek people. The French Minister Moscovici’s visit to Samaras was hailed as another great success because he expressed his and Hollande’s support for Greece and other such, while completely failing to point out that he only repeated precisely what Schauble has been saying.

Oh yes. Of course we want you to stay in the Euro (we don’t want a Grexit right now for our own reasons) provided you carry out the program designed to ruin your economy and turn your country into a vassal state! A sentiment echoed by our own Minister of Finances. We need to show determination! He declares. We need to carry out the program in full to obtain credibility! He admonishes. And we will do that! He pledges.

In other words, we must plough ahead with the most inhuman and un European policies ever. We must destroy all welfare and healthcare, we must gradually abolish all pensions completely, we must turn our work force into a cringing body of terrified serfs, oh and of course everyone who is not useful such as the elderly and disabled must be helped to die off quickly.

Does he even realise that he is expressing the Greek conundrum? It goes something like this: In order to save you we must ruin you, and this is precisely what we shall not shrink from doing. We are so happy all the Eurogeeks have relaised that we mean business. No more shilly shallying. We shall do their bidding and ruin our economy and destroy our people. And that makes them happy. And we are very happy that they are happy with us. And the Greek people should be very grateful. Because we are going to annihilate them. And that will bring back… credibility!?

None of these brilliant, inhuman neoliberlas has the slightest idea what it is like in the real world. Why should they? Pushing this policy is the very essence of their existence and their good life. To hell with the poor and the disabled! Why should they give a damn?

Why indeed? They have nothing to lose if they act in complete and utter disregard of the human factor and everything to lose if they should actually care in any way. And the horror is that the evil forces of neoliberalism have won. Game set and match. Let the scum of the earth (that is all the rest of us) squirm.

When I was young and read about the French Revolution and saw films about it, I was horrified by the idea of the “tricoteuses”. How could people possibly throng to the guillotine to watch people being beheaded as entertainment? It seemed quite shocking to me then.

Today I can totally understand it. I can even imagine myself being part of the delighted throng shouting with glee.

So what is going on? Does anyone even know? Games of hide and seek, charades, plain deceit or complete clulelessness?

This morning we were informed here in Greece that a report drawn up by ALPHA Bank showed quite clearly that Greece has done not only better than expected but better than anyone (anyone being the troika and the Greek government) is admitting. Apparently revenue is greater by 3 billion and expenditure less by 3 billion than what the troika and government are telling us and working on. In other words Greek figures for 2012 are better by 6 billion which means we have achieved a primary surplus.

Now this afternoon news comes from the IMF that Greece will need a third bailout. The reasoning being, no doubt, that since the first two bail outs have done such a good job of ruining the Greek economy then we should implement a third one to devastate the country entirely.

The Minister of Finances Stournaras promptly denied that Greece was seeking a third bail out, but then they always do deny it before it happens, so we can give no credence to that, one way or another.

On top of this there was news last night that since Greece was delaying in fully agreeing to all the troika’s (impossible and unrealistic) terms, the 31 billion tranche could not be disbursed till November. Which instantly brings to mind the American Elections. And the possibility of a Grexit thereafter.

Oh and the visit to Athens by Moscovici, the French Minister of Finances is again being flaunted as a great success for Samaras, talks held in an excellent climate, beaming smiles all around.

Which does beg the question. If Samaras has achieved such good will from the Euro Powers that be, smiles and endorsements from The Frau, Draghi, Junker, Barroso, even, what’s is name “who are you?” Rompuoy and Now Moscovici, how come the troika (who are only their minions after all) refuses to accept any of the Greek proposals for the infamous 11,5 bill. in cuts because, they say, they do not trust them?

Our quisling Minister of Growth Mr. Chadjidakis desperately wanted to arrange the institution of the so called Special Economic Zones with the troika of dynasts who have come to impose the rule of their law on Greece. So he wanted to suck up to them in his turn, like all the other good little boys.

Now what is a Special Economic Zone? Well, er, it is an area where, sort of, people work with no pay and the owners of the works pay nothing at all in taxes or anything else, the “host” country, donating these areas gets absolutely nothing since the “investors” get all the profit and… well, in short, it is in essence a Gulag. Now Mr Chadjidakis (who wants to be a particularly good little boy who wants nothing more than to please the Mistress and perhaps get a pat on the head for his pains) thinks this is a brilliant idea, and wants to institute these zones as soon as possible.

However, he was in for a shock. And perhaps so should we be. The Troika unkindly rebuffed him, trashed his efforts and told him they were not interested in the institution of such zones. Why?

Well, quite simply with the current anti labour laws they are imposing on Greece, six to perhaps seven day week, 12 hour working days, no indemnity payments, oh and under subsistence level wage, why bother with zones? The intention is to turn the whole of Greece into a Gulag! Not just a few silly zones! The whole bloody country.

And no doubt Mr Chadjidakis along with Samaras, Venizelos and Kouvelis will scuttle to do this as quickly as possible!

Otherwise, tremble, tremble, shake, shake! We will be kicked out of the Euro!!!!!

And the sun will rise in the west.

Because it is depressing perhaps? Pleasantries aside, not only is the Greek Economy in a full Depression but the Greek people are also in full depression. Which is why reactions and protests so far have been luke warm. Nevertheless those pretending to govern should not be reassured by this subdued reaction, still less should they be enscouraged by it.

Today already there have been some flickers of resistance. Outside the Ministry of Labour, albeit a KKE organised demonstration blocking the path of the troika. Who are demanding that Greek labour be turned into slave labour with no rights, endless working hours every day, and less than subsistence pay.

The idea is to turn Greece into a Gulag where the Foreign, probably German Capitalist can maximize their profits in true neoliberal dogma. So the demonstration was indeed luke warm. There should have been thousands, tens of thousands blocking the entrance.

But the fact that there weren’t, should not lull anyone, troika gang or local quislings, into a sense of false security. The resentment is there, shimmering. The anger is there, controlled. Muscles are twitching, but not yet flexing. People are depressed. But this depression is not the final phase. It is the calm before the storm. It is the lull before the fighting flares up.

The whole of Greece is like a tinder box, or to modernize this expression, it is as if the whole country has been drenched in gasoline, and the tiniest of sparks will set off a wild raging fire.

Whatever else it is Samaras may or may not be doing in Frankfurt (which is no doubt nothing more than shallow window dressing he hopes to feed to the masses as a success) he might do well to ask for some extra helicopters to be on alert.

Angela Merkel, we are being told from all quarters, has had a change of heart over Greece and will not kick her out of the Euro. No! She will do everything she can to keep Greece within the Eurozone. Even little Wolfie has started saying so!

Now why does that terrify me? Because it is not good news. The Frau has changed her mind, to the extent that she has, not because she has had a change of heart, despite all her pity of the poor Greeks she is punishing with relish, but because it suits her. And what suits her cannot suit Greece.

Now, if Greece had relatively competent politicians, this would be great news because it would mean they now have a stronger bargaining chip. However this is not the case. Not only will they not use this change in The Frau to benefit Greece in any way, they will take it to mean that she thinks they are good little boys and will go about ruining the Greek economy with a vengeance just to please her. And hang Greece and the Greeks.

But why has The Frau had this change of mind? Because it suits her. Why? For many reasons. But first let me say that she has only voiced this change of heart because she KNOWS our politicians are disgracefully inept and will not use the information to their advantage, but to her advantage.

How so? Well it does appear that the main object of the exercise is to strip Greece (and the other countries) of their assets. And the only way to do this is to keep Greece in the Euro, make sure everyone believes it, carry on devaluing all things Greek within the Euro through this wretched inhuman policy which Samaras has vowed personally to see through to the end (the end of Greece that is).

Furthermore, at this point it would not be expedient to kick Greece out because of the fear of a domino effect. So once Greece has been stripped of her assets and the Spanish and Italian spreads have been tamed, then either just before her elections, or just after, she will have another change of heart.

Easy to justify. Samaras has not lived up to his promises, the debt has ballooned (as surely it will if Greece continues down this path Samaras has pledged himself to), the deficit reduction has not met its target and so on and so forth. It has all been written into the script already.

But there may just be one flaw in The Frau’s carefully thought out plan. She is counting on the utter ineptitude of the so called Greek government, in that she knows they will not use anything to their advantage but instead keep on trying to be the good boy in the class to the detriment of the Greek economy which will be ripe for the picking.

But this very ineptitude she is counting on may be just what throws the spanner in her works and scuppers the asset striping project.

What a thing to be counting on!

Mr Samaras’ government has chosen a very dangerous and a very short term, short sighted course for Greece. A course that, if adhered to as designed, will lead to the total collapse not only of the Greek Economy but of all social cohesion with all that that entails, particularly in the light of the all too predictable (except for the chronically short sighted) rise of the Golden Dawn party.

After doing a complete about turn on all he ever said and promised, Samaras has decided to do everything he condemned in order to… build up confidence in Greece again. In his excellent book “End This Depression Now!” Paul Krugman has some extremely stinging comments to say about calls for “confidence”. It is a nebulous, meaningless concept used to justify stringent austerity, social injustice and arrant cruelty.

We must destroy the economy in order to regain confidence! Is what Samaras is telling us. And how will confidence thus obtained, if obtained at all, benefit the country? Come on! It is confidence for the sake of confidence and to this end we must sacrifice everything, from welfare, education, health, subsistence, demand, even national security. Cuts must be made everywhere and in everything.

All this so that we can regain our confidence, from a man who unashamedly told the whole world from Berlin that all his rhetoric when in opposition was nothing but sinful bull! So true to form he continues with his sinful bull and in his new confidence building deceit he “assures” us that these will be the last such stringent measures. But he doesn’t explain why, he doesn’t explain what these measures will achieve and why we should derive hope from them. Nor even does he set out the “targets” he expects them to achieve.

Then he says something else. Eventually we shall start reversing all these cuts. How and why and what will we have achieved to be able to do this? Again nothing. Just the nebulous, metaphysical assurance that by ruining our economy in such a way we shall have regained “confidence”.

And if Germany decides it would prefer to avoid a Grexit at this point, Greece may well get its 30 bill. Euro, or more likely part thereof. Money, we are assured that “will go into the Greek economy!”. How? Well, the bulk to re capitalizing the banks, and a trifle, perhaps, to go towards a partial payment of the enormous debts to the private sector the government has piled up in a lame attempt to show it has reduced the deficit.

However, Samaras’ decision to implement the troika’s destructive policies to the letter will have destroyed the economy. The banks may well have been re capitalized but there is no assurance liquidity will return to the market. What market? One where the only thing that has been achieved is a further drastic fall in demand? And how will this great achievement lead to anything resembling growth? We are not told that either. Only that growth (another meaningless, nebulous concept in Samaras’ mouth) will come when we have regained “confidence” in this way.

Meanwhile with all the cuts and taxation and general strangulation of the Greek economy, all that has been achieved is a Great Depression, growing unemployment, reaching 50% for the young. As a result our best and brightest, what should have been the blocks to build our future on, that is the educated young, are all fleeing Greece. A recent review has shown that University Professors and academics, whose salaries have been slashed and are to be slashed even more, are also fleeing the country in droves.

So one does have to wonder where exactly is Samaras’ policy building up “confidence”? Nevertheless, he has said something which I fear is absolutely true and which will definitely be born out if he remains in power. And that is, that “in two years, Greece will be unrecognizable!”

Well, yes. It will be, won’t it? A barren waste land populated by goats and a few old codgers of a robust disposition. All the rest will have either gone or died!

Congratulations Mr Prime Minister. What a wonderful way to build up confidence! (In whom? I just can’t help asking yet again. Certainly not in the Greek people!)

I’m off for about a week but will be back, I hope, before The Date. 12th  September 2012. Unlike the Mayan Calendar this is not when the world ends. Though… well you never know one way or the other. Do you?

Anyhow, why is this date important? Firstly the German Constitutional Court will announce its ruling as to whether the EMS is constitutional for Germany. And all that that entails. Secondly General Elections are to be held in The Netherlands. It appears the Euroskeptic party is in the lead. And last but not least the Brains of the Eurozone (Barroso, Rompuy, Draghi, and Juncker, I believe) will announce the Great Euro Banking Fix-All they have been concocting!

All on one day! A kind of make or break Europe day? Well, no. Unlikely. Europe just isn’t like that, is it? In the worse case scenario for Europe: The German Court rules against the EMS. What happens? The whole bail out edifice crumbles? Well, no. A German Euro Fudge will be concocted one way or another. Either the EFSF is enhanced or else some wording is changed to satisfy the Court or some other such sneaky round about will be thought up.

The Elections in The Netherlands. Now this is interesting in that for all the great big fuss kicked up over the Greek elections, and the terror of what we would vote and oh Tsipras will take Greece out of the Euro! (Which is what Europe did not want. Hang the Greeks.) the Dutch elections are playing out to hardly any European coverage at all. And yet, there are strong voices in The Netherlands for a Nexit. So could there be a bang after their elections against the fizzle out after the Greek ones?

Could be. But unlikely. There may be grumbling and there may be some anti austerity rhetoric, but as likely as not the new Dutch government will go the way of Hollande. Fizzle out and obedience to The Frau. Albeit without the hugs and the smiles. And the great Banking Fix-All? Well now… There might be some improvements, there may be a way to reduce the spreads for peripheral countries (excluding Greece of course) but I very much fear it will not amount to much more than a stop gap.

For one reason alone. The whole of what passes for European leadership from Angela Merkel down to the insignificant Herman Van Rompuy, they, collectively, haven’t a clue how economies really work and/or are engineering a plot to impose a German Imperial Model, by establishing slave labour plants in the ruined periphery. Which again is an unrealistic project for political if not economic this time reasons. Or both actually. Because even if she does succeed in this dark satanic plot, where will Germany then sell?

Which brings me to my closing remarks. While The Frau is maneuvering and manipulating and plotting to enhance German Hegemony through her stringent austerity policy for all, things are happening in the world which she should do well to think about occasionally. First the American Elections and secondly the Iran-Israel confrontation.

So what happens if Romney wins and starts his own version of The Frau’s Nonsense Economics and worse (Gold Standard? Recessionary cuts in government spending?) culminating in closing the USA behind a wall of splendid isolation? And what happens if Israel makes good on its threats to attack Iran, perhaps in an attempt to force the hand of the US? There was an interview on BBC World last night when an Israeli official said their patience was running out. An Israeli attack, said the journalist, looked far more likelier than ever before.

Meanwhile The Frau is poring over her accounting books, seeing that these stupid vassal states of hers are simply not reducing their deficits as she has dictated. No matter that the strings she attaches are policies that ensure an inability to reduce deficits because they are all totally recessionary. But never mind. What Lola wants Lola has to get! Understood?

Wolfie trundles up to her office in a panic and screams that the US have closed their borders to all imports from Europe, that Israel has bombed Teheran and Teheran is retaliating. Oil supplies have been cut off from the area and the price of oil globally has shot up to the sky. Not to mention skirmishes in the eastern Mediterranean. “What do we do now?” He cries out in desperation!

“Stick it to the Greeks.” She answers. “It always works. That’s the only thing we’re keeping them on for, anyway.”

“But!!!!” Wolfie cries out, sweat trickling down his face, “Greece is not even on the map any longer!”

Whereupon The Frau turns and looks at him with a big smile.

“Why didn’t you say so? At last! Success! Our policies have just notched up their first success!”

Okay folks! I leave you all with that cheerful little story and the certainty that when I come back nothing will have happened at all. Well, I am returning before September 12th, and before the American Elections!

See You!

Take cover everybody! Batten down the hatches! Prepare for hurricane Angela that is expected to blow into Europe from China and destroy everything in its path!!!

The Frau trotted off to China to sell air buses and get China to buy up Euro zone sovereigns so Draghi won’t have to do it. She’s pretty cool this Angela. Always wanting somebody else to pick up the tab! Anyhow, in the talks China initially appeared a little disgruntled, expressing their “worries” over the Eurozone crisis. As well they might! Look at how sales have dropped?

Anyhow, the Chinese Premier Wen Jiabao told The Frau (well he can do that, he is the stronger of the two bullies) that Italy, Spain and Greece should reform their economies, and instantly a malicious little glint lit up The Frau’s eyes! Of course! I’ve got it! That is exactly what we must do! We must impose Chinese Communist regimes on the southern states first and then take it to the rest of the Eurozone!.

A totalitarian regime where capitalism can run wild without any of this sissy emphasis on democracy, rights and other such distortions of the market! And we shall also call these regimes “Communist”, the way China does which means we have rendered them immune form any Marxist agitation or revolutions. In a go we will have annihilated all the Tsipras of Europe and all calls for a more socialist approach!

What could be more socialist than a Communism regime? Thank you Wen Jiabao! You have just solved the Eurozone crisis for me single handedly!

So wait for it! When hurricane Angela storms back from China she well be good and ready to impose this final Chinese Communist solution on all of us! (You too up there in the Netherlands, so don’t get cocky! Get out while you still can!)