The Greek finance minister says the Eurogroup were close to coming to an agreement on another Greek debt writedown.
But German finance minister Schaeuble has stepped in and said
“The moment we decide to give Greece a haircut, we cannot give any new guarantees,” he said on Thursday.
“That is logical because the budget law rightly says you can only take on guarantees if you believe that the debt will be paid back, so you can’t do both,” he added.
I’m not sure what more the German government has to say in order for the Greek government to accept default.
What the Schaeuble the German finance minister says is obviously correct. You cannot pretend your “lending” money to someone who is in a situation where they have to default on other debt.
You have to be honest and say you are giving money to that person and if you get money back that will be a bonus.
It seems we have reached the situation where politicians have to specifically say something for it to be understood. It seems the public has reached the point where the only reality is that which comes out of the mouth of politicians and if you “read” anything into a politicians remarks then you are a “conspiracy theorist”.
And all this is ignoring the 20 tonne elephant in the living room. The whole goal of these bailouts is to get the Greek debt down to 120% of GDP.
This is where the country was in 2008. A 120% GDP target is an admission of guilt on behalf of the Troika.
It is an admission that the Troika has interfered in the business of Greece and decimated the economy with no measurable improvements in anything. Not in government debt, not in working conditions, not in businesses ease of working not in fixing the government deficit.
Getting the Troika in has been the equivalent of letting a 5-year-old work on your car. They think they know what they are doing, they think what they are doing is fun, they have no clue what the effects of their actions will be, they do not have to bear any responsibility for the consequences of their actions and they have the potential to cause a lot of damage and to put people s actual and economic lives in danger.
The Troika in Greece is like throwing a fox in a chicken coup and expecting the environment in the chicken coup not to descend into complete bedlam.
Greeks need to listen to German politicians, they are the only sane voice in the room, unfortunately the international media and the media in Greece has done an excellent job of poisoning the minds of Greeks against German politicians and with that they have destroyed the ability of Greeks to recognize the obvious solution because it comes from a German politician.