Global Analysis from the European Perspective. Preparing for the world of tomorrow

There is no juridical solution for Greece, no matter what they vote

Politicians and geopolitical strategist have to realize that independent Central Banks do not exist, central banks are an integrated part of geopolitics. 

“There is no plan for Greece”, explained Gefira Foundation associate in the European parliament. The mood is split between the Liberals and Socialist. The Liberal faction believes that there is only a solution possible if Greece votes yes, however the Socialist do not believe in a solution whatsoever. They see a yes-outcome as terrible as a no-outcome and fear for the future of the Euro Area.

According to the latest IMF report, Greece needs a much bigger financial support than is assumed by European creditors. Greece is not only in arrears in relation to the IMF, but “the (Greek) government has been accumulating arrears, including unprocessed pension and tax refund claims. The estimated stock stands at over 7 billion and will need to be cleared”. The IMF concluded that Greece will need an other 50 billion Euro Bailout to be able to repay its massive debt, the debt they accumulated during the European economic wonder years. We have noticed that Greece currently is running a public budget surplus.

The IMF stated that the Greek debt is only sustainable as Greece receives new loans under the conditions as the current once, furthermore the “grace period” and maturities on existing loans should be doubled. Every European citizen born today in Greece will be hold liable for the next 40 years to its debt master in Frankfurt; the ECB.

Our unelected president, Mr. Juncker of the European Union, sees problematic negotiations laying ahead no matter what the result of the Greek referendum is going to be.

The yes vote will result in a nightmarish and unknown destiny for Greece, while the no vote will result in an even more nightmarish situation.

We have learned from Bloomberg that markets have not priced in a no vote, the much worse scenario, but for some unclear reason they seem to be completely prepared for the worse unknown scenario that comes from a yes vote.

The Europeans are the most advanced in experimenting with a new administrative layer on top of the Nation States.  The ECB, an European “intergovernmental”  creation, has been hailed as the most independent central bank that has ever been around. It was the crown on the new democratic liberal European enterprise, where companies are at the same footing as nation states. However there is a slight difference, companies can go bankrupt, but the citizens of bankrupted nations are held liable into oblivion.

Hardly a decade after its creation it turned out that the ECB has become the sole political player of the EU. Back in 2011 the ECB managed to dispose the former Italian president, Berlusconi, as the ECB “accidentally” let Italian interest rates spike. In that same year Mario Draghi, the head of the ECB, told the world that everything will be done by the ECB to save the Euro. The Network of Central Banks that forms the ECB, have currently shut down the Greek banks in an unprecedented move to pressure the Greek people and government. However none of the banks have been declared insolvent for now.

There seems to be no sufficient juridical solution within the European framework for Greece’s problems. Greece is not like Cyprus, the Euro’s credibility will be heavily damaged by a Greek exit. Greece is a pivot country for NATO. They are a key element for the US-EU-power in EurAsia, Greece have become rapidly more important since Turkey started to drift away from the EU.

The ECB is the only political player who is able to solve the current problems for the European elite in power. The European commercial banks, that are still completely depending on central bankers’ life support, in cooperation with the ECB should come up with a financially engineered solution to solve Greece’s obligations. Just like the FED handled  the defaulted mortgages hold by the failed American mortgage industry. Modern politicians and geopolitical strategist have to realize that independent Central Banks do not exist, central banks are an integrated part of geopolitics

Sources from the Internet

Trillion-Dollar Stock Managers See Days of Chaos on Greek ‘No’ Source Bloomberg
“The market right now hasn’t priced in a potential ‘no’ vote,” said David Joy, the Boston-based chief market strategist at Ameriprise Financial Inc., which oversees $815 billion. “If we get one, we’re going to see another round of downside volatility in excess of what we saw on Monday. The move would be more violent.”



ALDE Party President Sir Graham Watson Source ALDE
In Sunday’s referendum, Greek citizens have the chance to say Oxi (no) or Nai (yes). I urge our supporters to say YES: yes to being a committed member of the eurozone and especially yes to the chance to realise a modern and reformed Greece.Your yes supports the rule of law, your yes exposes the failure of Greek governments of the past, your yes is a red card to the mismanagement by the Syriza government.Say yes, and European liberals will work in solidarity with you for a European Greece.”

Schulz says Greek govt should resign after a ‘yes’ vote Source Ekathimerini
European Parliament president Martin Schulz said his faith in the Greek government had reached “rock bottom,” and that he hopes it resigns after Sunday’s referendum.

Political independence Source ECB
The independence of the ECB is conducive to maintaining price stability. This is supported by extensive theoretical analysis and empirical evidence on central bank independence.
The ECB’s independence is laid down in the institutional framework for the single monetary policy (in the Treaty and in the Statute).
ECB gave Berlusconi orders on how to run Italy Source Independent
The european Central Bank (ECB) told Italy to slash public spending and reform labour laws before intervening to prop up Italian bonds and reduce its borrowing costs, it emerged in a leaked letter suggesting the government kowtowed to EC bankers.

Berlusconi toppled, Brussels man installed to run Italy Source EuObserver
Investors began targetting the country in recent weeks as political paralysis over economic reforms in the country pushed Italy’s bond rates ever higher. The interest rate that Italy must pay to borrow money soared to over seven percent – the same danger zone suffered by Greece, Ireland and Portugal when forced to take bail-outs from the EU and IMF.

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