Reader Comments On The Greek Betrayal & Pan-European Solidarity Part 1
Daneackerman Hello JC well written and a great catch on broken promises. Would “collapsing the quality of capital available” be the shrinking of liquidity to force the move to the SDR or multilateral?
“I had asked Mr. Varoufakis how Greece intended on keeping the promises……No answer was forthcoming.” The empty response is not surprising. Your doing great works here JC thank you yet again.
JC Collins Dane, the collapse in the quality of capital would indeed be the liquidity crisis we have discussed many times. This whole Greek drama is being stage handled very well to lead into the multilateral transition.
Raoul Asare-Bediako Long time reader, first time poster. Thank you Mr Collins for your concise, insightful analysis of macroeconomic trends that are far beyond my capabilities.
I just wanted to highlight the Grand Irony of the apparent likelihood that it will be a “Greek Tragedy” that ushers-in the New World Financial Order. One must wonder whether if (forgive the pun) that too was “scripted”.
Londonsimes haha, on hearing the surname Varoufakis it struck me as a play on ‘very *uck us’! And the character of a ‘rock star’ financial minister is not a new or original one.
Roger Parness No modest proposal can be acceptable while insatiable greed rules.
Speedspirit Looks apparent that One World Government is taking over in a Marxist way, milk for children, electricity for the poor, heating oil stamps for the poor, the young unemployed working on public work projects and of course profits for Eurozone private investor rich fat cats. Hell our savior has arrived.
Lets see how the logic works out. Government runs off taxes. The world economy is plummeting and with it GDP. Taxes revenues are declining but size of government is increasing and so are expenditures.
People are being coerced to be dependent on the government rather than themselves. Logically no need for a revolution.
Sorry but this is not going to end well for the bankers and anyone who betrays the trust of the people. Call them disorganized now but when they have had enough there will be no place, no island, no underground compound for the bankers to hide. Their bloodlines will seize to exist.
JC Collins That is likely the sort of revolution that is being intentional manufactured. As was the French Revolution. Which is why I continuously state that the answer is found within, and not without.
Revolution will only promote more of the same. The cycle repeats. Though I do understand the frustration. But we need to recognize the socioeconomic engineering which is creating that frustration. An alternative answer must be found at some point.
Mark Stringfellow I once had a heroine character I envisaged for a novel I was putting together about my idea of a revolution of the alternative variety you mentioned. When the inner circle came to her after the assassination of their leader, to which the heroine was the significant other.
They were busy arguing about what was to be done and passions were building from deep sorrow to righteous anger, everyone talking over each other, until one of the company noticed how quietly and calmly our heroine was listening.
Soon, the others began to notice that the others were breaking off their conversation and looking in our heroine’s direction one by one, until the room began to quiet. And then, one of the company asked her, “What would you do?” To which she replied, “The problem is about what we all do, every day.
Out of necessity we support the very ones that we want to remove. We buy and consume everything that they sell, because we believe we need it to survive. You ask me what I would do? Quit buying what they’re selling. It all comes down to this simple question. “What if they had a sale and nobody came?”
Speedspirit I believe an answer will become apparent after the breaking point of the governments asking for too much in taxes and the mass consciousness has an epiphany.
We know that human emotions are predictable in nature and we know governments are predictable in actions so until this plays out history will repeat unless Mother Nature intervenes with a almost global catastrophe and/or their plans fail and the system collapses and gets to reset.
At some point people need to accept that the Universe is governed by Universal Laws. Fail to learn or recognize those laws the Universe does not care, it is what it is. So first the disorganized masses must recognize that a problem exist. Leaders must face facts of what reality is and not what they perceive
A great unlearning must occur before Truth can be obtained and knowledge used to set us on a better path. Too many believe what is not true and others refuse to accept that which is fact.
9/11 should have been enough of an false flag event to correct the path we are on, thankfully it woke me up. What’s coming next will wake up alot more people. Will that be enough to turn the tide peacefully?
I doubt it. God does not let things happen so abruptly unless our leaders choose to go nuclear than I see intervention.
So the only peaceful solution is for every individual to seek Truth and recognize the system is built on a 1 Quadrillion of financial derivatives leveraged against 300 Trillion of real world assets world wide which is backed by only 5,144 Moz of Gold and 1,286 Moz of Silver.
Combined are worth 6.424 Trillion (gold at $1,250,Silver $18.50). Every peaceful solution individual must have the brains and the guts to say the hell with profits and remove any monetary wealth from the system despite the fines and buy Gold, Silver, Land, long term storage food or seeds and exit the system.
Remove the leverage they are using to cause the enslavement. Seek real knowledge, real skills and love those who you spend time with and those you can help. Thats your answer to a world we can live in.
Roger Parness I don’t know that there is a full exit available nor can a “revolution” prevail against vastly superior ordnance. The real revolution is internal and the best exit is in personal peace.
An informed peace is the challenge when war rages and ignorance abounds. Something good might still happen.
Ozymandias 3 The Greek idealists and Marxist may have sold the Greek electorate a bill of good or a pig in the poke, but since they came to power they have received hardball lessons in geo-politics and geo-finance that has been and is intended to keep them enslaved by design.
The EU, with pressure from the US State Department basically deceived, lied and cooked the books in order for Greece to join the EU. They should have never been admitted. Greece’s politicians and oligarchs at the time planned to suck on the tits of the EU and Germany in particular fir everything they could suck or steal once they were admitted. Part of the game plan all along. So,……..Cui Bono???
If Greece became a NATO member country and part of the EU, then did that provide a convenient means to prevent the Communist from coming to power?
Was it the intent of the US and NATO to prevent the Russian Navy access to Greek warm water ports and to the Mediterranean Sea for commerce if Greece becoming a NATO member country?
Again, my analytical and inquisitive mind always asks, “Cui Bono?”.
George Koliavas JC, this article is very interesting to me, because I was originally a supporter of SYRIZA and then…when I realized they were slowly backing out of their original promised policies, I sensed that there was something more to it.
Varoufakis’s adviser (and colleague while at the University of Texas at Austin) through out the negotiations with EU was Dr. James K. Galbraith (do a little research on who his father was); and I am not sure if you have seen it, but he wrote this article “explaining” the back peddling of the Greek gov. from its original policies.
“Reading The Greek Deal Correctly” http://www.socialeurope.eu/2015/02/greek-deal
I am wondering if you can see something in his explanations which validate even more your above analysis.
I am disappointed with SYRIZA, but I guess all that we have been reading here are coming slowly into play.
Norman Ball Everybody memorize the Grecian Formula. We’ll probably see it again:
1. Expropriate the Marxists
2. Incarcerate the Fascists
Matt McBride (@MattMhmmcbride) Hi JC Hope you are well. Where were you able to source the Greek Policy document? I was unable to find it anywhere on the web apart from a zero hedge article posted by this sites member Bruno. I was hoping to investigate this policy and further implications Thanks Matt
JC Collins Matt, the document was given to me and I’m not at liberty to acknowledge the source. I sat on it for a few months but felt it was time to share it, considering the drama in Greece. It does fit with how I would suspect parts of the transition would happen. Let’s see how Europe responds to a banking crisis. I wouldn’t be surprised if the ESM gets involved.
Matt McBride (@MattMhmmcbride) Hi JC Thanks for the reply. No problem at all. I thought that might be the case after re reading the article again (after my message was sent), however I could not edit or delete it. Things are definitely playing toward the reset as expected Have a good weekend
Londonsimes For many good reasons, Saturn’s aim is to transition money and markets into a different ‘perspective’ and/or level of importance.
Despite its utter brilliance, aside from the morality inherent in the making and fulfilling of contracts, the ‘technology’ of money has no other ethics or morality – and therefore can’t be an adequate foundation of a more ethical civilisation.
One can claim that money ‘just’ reflects the ethics of the user (i.e. to what purpose they put it to), but in the context of today (i.e. billions of people with varying types/degrees of ethics), such a claim is relatively meaningless, practically speaking.
Unfortunately, at the present there is no other alternative to money except ‘extraordinarily detailed specification’ by bureaucratic powers – i.e. in the same way that all the materials and components of a jet engine are specified down to a minute level, so will all matters of economy and politics also be – in every nook and cranny of living.
The need for such ‘detailed specification’, is that because of its dynamic mechanism, money by-itself creates links and connections in all directions (and continually rebalances these) – and therefore replacing it and creating something better requires a level of reasoned and rational organisation about every matter under the sun, so that everyone, at least has adequate means to live at reasonable levels.
The positive aspect of Saturn is a controller, but not for controllings sake. However, the real question is, do those pursuing and implementing Saturn’s agenda
1) Have enough ‘members’ sufficiently able to reason
2) Are those ‘members’ able to temper reason with real compassion and empathy
3) Are enough of those ‘members’ able to rise above the temptations of corruption and greed
4) Are enough of those ‘members’ able to dedicate themselves to the real task they have undertaken to carry out (i.e. work ceaselessly and selflessly at creating a better, fairer, more ethical civilisation) — i.e. being a civil servant in the best tradition and meaning of the term.
The four qualities listed, are different ones from those required for taking power, which has required duplicity, corruption, etc, to an extreme degree.
So this is going to be the interesting part, i.e. can Saturn transition quickly from the qualities required to achieve power, to the qualities required to create a new civilisation.
Norman Ball londonsimes: Money is a stalking horse for power, a mid-term instrumentality only. In its final stage money will shed all other functions and stand as a unit of account. This will be the Final Accounting. Few will get in. Most will perish.
“Can Saturn transition quickly from the qualities required to achieve power, to the qualities required to create a new civilisation.”
This is an excellent question that I’ve pondered myself quite a bit. The attributes of ruthlessness and cunning that delivered certain human beings to the top of the heap will become of lesser value in a transhuman world of, say, 200 million. The sins of the fathers won’t matter in 300 years. ‘
History simply won’t reflect the dirty job of reaching the year 2400 as an intact species. They will simply be humans–if they’re lucky and post-human artilects haven’t rendered them extinct.
Moreover the world will be a kinder place with a fraction of the current population. So, the metrics of the new civilization you describe will be on a much smaller scale, hardly the jostling multicultural billions we have today. Let’s be honest. Today’s world is an impossible task. We’re on the threshold of a winnowing process.
Roger Parness Rather pessimistically optimistic view. I’d call it defeatist to visualize the deaths of 6.7 billion people. Be nice to live in an near empty world with all the accommodations of modern technology. Certainly more goodies for each. I support outcomes a little more life friendly. Life not profit!
Norman Ball Everybody dies. I’m talking benign attrition mostly, having the number managed down.
Dripfood JC, do you think the issuance of the SDR bonds will be visible to the public or do you think they will prefer a more behind the curtain approach? If the latter is chosen, the ‘European QE’ start could already be a kind of phase 1 of a silent SDR transition, right?
And if you foresee a ‘visible’ transition to the SDR happening, do you see it happening in concert with the upcoming SDRM activation or well after that? Thank you for your insights.
JC Collins The exchange and issuance of SDR bonds/liquidity will likely fall under the radar at first, but will eventually rise and become more visible as we move deeper into the transition.
Matt McBride (@MattMhmmcbride) Hi JC Is the exchange of bonds eg Greek, Spanish, US, Canadian, for SDR bonds limited due to the IMF 2010 quotas not yet being forthcoming? And hence will allow the IMF to cry poor when help is needed in Europe (and as it spreads globally)?
I imagine issuance of SDR bonds will depend on reserves (received from quotas)
Or do you think the IMF will temporarily utilise existing borrowing facilities/lines of credit they have in place with eg China?
I guess it may all depend on timing of when the crisis kicks off vs the SDR basket review meetings vs Plan B to get around the U.S. veto.
Finally, do you see bond exchange dangerous to the IMF in anyway? Taking on lots of PIGS (or even US/Japanese bonds) could not be a safe asset to hold and risk their balance sheet.
Would there be anyway around this (apart from huge quota reserve requests) in order to dilute certain national bonds as a percentage of the total balance sheet? Thanks
JC Collins Matt, I think all of those things are possible, and likely. The only thing I would add is that the balance sheet of the IMF will be optimized by both loaning and borrowing countries. So I don’t see much risk there. At least not at first. China will be the big mover here, or first to market if you will.
Dripfood Does perhaps one of you know if any of the ‘Western’ sovereign bonds, issued in the past 7 years came with CACs?
daniel grig (@gelingrig) Hi JC, Very interesting article, but I need me clear something. The online translator not clear this phrase:
“I had asked Mr. Varoufakis how Greece intended on keeping the promises of exiting the European Union and implementing economic policies which are independent of the larger multilateral macro changes which are taking place, not just in Europe, but internationally as well.” No answer was forthcoming.”
Means that your you have personally asked Mr. Varoufakis and you have not received a response?
I need this clarification which I want to upload to the blog in Spanish, your comment. Thank you.
JC Collins Daniel, yes, I asked Mr. Varoufakis through direct contact. No answer has been received to date.
David Aylward (@Aylward5) Michael Pettis offers his views on the psychological and mechanical relationship of too much debt in Europe. His take on a dual currency bond solution is interesting
maxentropyy Max Keiser at http://www.maxkeiser.com
Suggests that a crypto currency could alleviate some of the imposed austerities for Greeks.
By by-passing the euro or drachma individuals can transfer value/conduct business outside of the state imposed currency. This could address some the problems. I expect this would not happen any time soon.
JC Collins Crypto currencies offer no liquidity, or at the very most, low liquidity. As such, there is a lot of risk and instability. I’m sure the Greek government would put in capital controls to prevent such a move, but the people themselves would have to measure the risk of moving wealth into a crypto currency.
Maxentropyy Hi JC, I understand your point about liquidity, but that could change locally based on need to do so. But currency flight from the country would devalue assets and inflate cost of commodities and services. Transacting outside the euro system locally would seem to be necessary… buying eggs and car parts. If I were there, I would try to accomplish two objectives:
1: not contribute my labour/assets to the euro system
2: exchange value locally
Clearly, this is not my area of expertise, as I am software research person, so your thoughts on what Varoufakis has said re: Bitcoin would be of interest. I do not have the reference handy, but I will locate it and post it here.
JC Collins Please do. It’ll make for some informative exchanges.
Comments may be made at the end of Part 2 Thank You