Greece Still Defiant After ECB Mugging

[marmar]

Greece Still Defiant After ECB Mugging
Posted on February 6, 2015 by Yves Smith


Some brief updates, with more on Monday:

Quite a few pundits appear to be in denial about the aggressiveness of the ECB move towards Greece and what that signifies about the prospects for reaching a deal. The Syriza government insists it is not backing off from the major tenets of its yet-to-be-fully fleshed out proposal. In an interesting shift, some economists, including Frances Coppola in a Financial Times column and the Economist’s Free Exchange blog, risk-sharing ideas that Draghi himself has put forward. However, they miss that the body language of the ECB, having moved to make Greece’s negotiating timeframe as short as possible, is clearly signaling that it is trying to bring Greece to heel and force a deal within the current parameters. That makes it very difficult for new structures to be included in the negotiations.

The strongest implicit message from the ECB was its rejection of deviations from the current deal, such as Greece’s rejection of Troika monitors (the comment in the ECB press release about how “it is currently not possible to assume a successful conclusion of the programme review.”). And even the media stories that took a more conciliatory tone towards the idea of negotiating financial terms took a very stern tone about the importance of structural reforms, as in driving wage rates down, along with the reasons to doubt Syriza’s promise that it can crack down on oligarchs and improve tax collection. The issue of “structural reforms” is a major outtrade, since Syriza is committed to higher, not lower wages, and having the government engage in direct hiring to reduce unemployment levels. So the message remains loud and clear: despite lip service to the idea of favoring growth over austerity, the most that Syriza might get is austerity lite.

The Greece population is showing strong support of Syriza. Since when have you ever heard of pro-government rallies? Hat tip Δημήτρης:



And the rally in Athens does not appear to be based on a fuzzy-headed notion that Syriza has good odds of prevailing against the Troika. .....................(more)

The complete piece is at: http://www.nakedcapitalism.com/2015/02/greece-still-defiant-ecb-mugging.html

[sabrina 1]

1. Everyone should know that name, DRAGHI! He is a Goldman Sachs guy, installed in

in his current position to force Goldman/Wall St destructive, damaging, Austerity policies on Europe.

It's fascinating how they did it. Goldman Sachs has its people in many Governments there and of course we have them here, taking away the sovereign rights of Govts, making sure to destroy Social Programs, (all that money going to the plebs when it could be gambled away in the Casino on Wall St).

Every public fund is a target for these high stakes gamblers. Education, Europe's Health Care programs, ours, SS etc, Pension Funds.

Greece finally had enough, and what Draghi and thieving buddies from Wall St are worried about is that if they let the people of Greece win back their country, damn, other countries, suffering under their corrupt policies, might get the same idea.

I am glad to see that the people are supporting their government, but right now Greece needs support from other European countries.

These thugs will stop at nothing to keep there crooked schemes going.

[azmom]

2. Comment section

Is worth reading too.

[xchrom]

3. du rec.