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18 May, 2017

How Varoufakis fell in Schäuble's trap

An example of the wrong way to deal with a high ranking agent of the European Financial Dictatorship


In previous article we saw how the German Minister of Finance, Wolfgang Schäuble made clear to the former Greek Minister of Finance, Yanis Varoufakis, that, actually, eurozone goes hand in hand with the strict discipline to the cruel neoliberal measures.

Now, it's time to examine how Schäuble led Varoufakis exactly where he wanted, by making him believe that he was not afraid, or even, sought Grexit. Varoufakis reveals the characteristic words by the German Minister of Finance, during a private meeting with him:

I was very pleased to hear your PM speak about the possibility of a referendum. This would be perfect! But pay attention. You should be very clear with the Greeks on what are their options. According to the polls, the majority is in favor of euro. You should tell them that, if they want euro, they should accept the memorandum. If they don't want the memorandum, that's ok, let them go on. Let them go on. The memorandum goes without changes. Or, drachma. You should accept the memorandum if you want euro. If you don't want euro, that's another issue. That's why I was very pleased to hear your PM speak about a referendum. You should indeed organize this referendum. And you know, if the Greeks need six months to take their decision after a serious dialogue and thought, no problem. We will fund you for six months.

In other words, the big bluffer Wolfgang Schäuble made Yanis Varoufakis believe from the first moment that he does not care if Greece would exit eurozone. The more he was observing Varoufakis terrified with this possibility, the more he was sure that the Greek government had no plan for Grexit, and therefore, Greece's only option was to accept the disaster of memorandums.

Indeed, Varoufakis himself describes that he was shocked by the words of the German Minister of Finance and responded: "Yet, Wolfgang, as responsible leaders and pro-Europeans we must do whatever we can to avoid Grexit and offer to our people the prospect of a decent living inside eurozone. By pushing them to chose between a destructive fiscal policy inside eurozone and a destructive exit from eurozone, is not an example of enlightened political leadership." Varoufakis tried to persuade Schäuble by saying that Grexit would be a situation that no one could control.

Seeing Varoufakis in a situation of extreme stress, Schäuble 'expanded' his major bluff. He responded: “Then, don't call it Grexit. You don't have to think it as a permanent exit. Think it as a time-out. The way I understand it, you get out for a while, you restore competitiveness through devaluation and, therefore, recover very fast. After a year, more or less, when you will restore most of your lost competitiveness, you can enter again.

After this, Varoufakis was totally convinced that Schäuble was either didn't care or even pursuing Grexit. Therefore, he was ready to obey, as Greece had no plan for a return to national currency. With his major bluff, Schäuble imposed his cruel terms: austerity and sado-monetarism.

With Macron winning in France and Merkel rebound in Germany, the Brussels-Berlin axis will now have all the time to impose the desirable neo-feudal conditions inside eurozone. This is an example of what not to do when you are dealing with the ruthless agents of the European Financial Dictatorship. Their only fear is the break up of the eurozone. Any country who will attempt to escape from the destructive memorandums, should have a serious plan to exit the euro monetary prison.

2 comments:

  1. Anonymous18/5/17 21:34

    You're making brazen assumptions. Unless you were a fly in the wall in all discussion AND privy to internal discussions amongst the Greek leadership

    ReplyDelete