The Silent Anschluss: Germany Formally Requests That Greece Hand Over Its Fiscal Independence

[stockholmer]

http://www.zerohedge.com/news/silent-anschluss-germany-formally-requests-greece-hand-over-its-fiscal-independence

It was tried previously (several times) under "slightly different" circumstances, and failed. Yet when it comes to taking over a country without spilling even one drop of blood, and converting its citizens into debt slaves, Germany's Merkel may have just succeeded where so many of her predecessors failed. According to a Reuters exclusive, "Germany is pushing for Greece to relinquish control over its budget policy to European institutions [ZH: read ze Germans] as part of discussions over a second rescue package, a European source told Reuters on Friday." Reuters add: "There are internal discussions within the Euro group and proposals, one of which comes from Germany, on how to constructively treat country aid programs that are continuously off track, whether this can simply be ignored or whether we say that's enough," the source said.' So while the great distraction that is the Charles Dallara "negotiation" with Hedge Funds continues (as its outcome is irrelevant: a Greece default is assured at this point), the real development once again was behind the scenes where Germany was cleanly and clinically taking over Greece.

Because while today it is the fiscal apparatus, tomorrow it is the legislative. As for the executive: who cares. At that point Goldman will merely appoint one of its retired partners as Greek president and Greece will become the first 21st century German, pardon, European colony. But at least it will have its precious euro. We can't wait until Greek citizens find out about this quiet coup.


More from Reuters

http://www.reuters.com/article/2012/01/27/us-eurozone-greece-germany-idUSTRE80Q1ZF20120127?feedType=RSS&feedName=businessNews&utm_source=dlvr.it&utm_medium=twitter&dlvrit=56943

The source added that under the proposals European institutions already operating in Greece should be given "certain decision-making powers" over fiscal policy. "This could be carried out even more stringently through external expertise," the source said. The German demands for greater control over Greek budget policy comes amid intense talks to finalize a second 130-billion euro rescue package for Greece, which has repeatedly failed to meet the fiscal targets set out for it by its international lenders. It is likely to spark a strong reaction in Athens ahead of elections expected to take place in April.

"Strong reaction?" Is that the politically correct parlance for "civil war" these days? We must be out of the loop on that one...


snip

Update 2: the first local headlines are coming in now, from Spiegel: Griechenland soll Kontrolle über Haushalt abgeben (loosely Greece must give up domestic control) http://www.spiegel.de/politik/ausland/0,1518,811922,00.html , and Kathimerini: Germany proposes Greece relinquish some fiscal powers, sources say http://www.ekathimerini.com/4dcgi/_w_articles_wsite1_1_27/01/2012_424788

Update: Formal Greek annexation order attached. http://www.scribd.com/document_downloads/79632467?extension=pdf&from=embed

[FreakinDJ]

1. Think about this and USA's debt to China

and then you start to understand the importance of rebuilding America's manufacturing sector

[stockholmer]

2. my prediction on China- As Q3 takes place via the Fed buying treasuries to facilitate the continued

schema of low interest rates and a weak currency known as 'financial repression', this will allow the Chinese to offload massive amounts of US debt. The Fed has played itslf into a corner, as it simply cannot allow the proper market mechanisms to set rates, as this would explode the debt servicing to well over $1 trillion a year. They are also forced to backstop the Eurozone via further trillions in dollar swaps and indirect loans to the banksters globally (paid by the US citizens) just to keep the game of musical financial chairs going.

Combine this with the begginings a massive exodus from the dollar in terms of bi-lateral, non dollar-based trade and oil agreements by China, Russia, India, Brasil, Iran, etc, now taking place, and there is a horrific systemic failure event looming in the near to mid-term future (2013 to 2015 or so).