Skip to main content

Schäuble made clear to Varoufakis that euro means discipline through destruction!


New details came out from a new book by the former Greek Minister of Finance, Yanis Varoufakis, concerning the dramatic negotiations with the German leadership about the Greek issue, at the time of his term in the ministry. The dialogues are quite revealing and confirm that the main concern of the German directorate is to impose the cruel neoliberal conditions, not only in Greece, but in the whole eurozone.

Varoufakis reveals the characteristic words by the German Minister of Finance, Wolfgang Schäuble, during a private meeting with him, who says clearly that euro goes with the memorandums, which are the catastrophic agreements signed between Greece and Troika (ECB, IMF, European Commission):

           «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.»

           «You see, the only way for the Union to survive, the only thing it can keep us, is more discipline. Anyone who wants the euro should accept the discipline. Eurozone will be en-powered significantly in case that discipline will be imposed by a Grexit.»

We have pointed repeatedly that the particular problems of Greece were only the pretext for the IMF-EFD invasion. An invasion for the purpose of destroying systematically the Greek economy according to the brutal neoliberal experiment, to open the road for the new conditions. That is, unprecedented cuts in wages-pensions, dissolving labor rights and social state, sell off public assets.

Therefore, Schäuble's ultimatum leaves no doubt: eurozone means brutal austerity, sado-monetarism, neoliberal destruction.

Indeed, Greece was forced yesterday to sign a fourth catastrophic memorandum which seals the final details of the cruel neoliberal experiment. From Reuters:

As part of the reforms, Athens has promised to cut pensions in 2019 and cut the tax-free threshold in 2020 to produce savings worth 2 percent of gross domestic product.

If it outperforms its targets, it will be allowed to activate a set of measures offsetting the impact of the additional austerity, which includes mainly lowering taxes.

Athens also agreed to sell coal-fired plants and coal mines equal to about 40 percent of its dominant power utility Public Power Corp's (DEHr.AT) capacity.

On the budgetary target level, the lenders are now likely to decide among themselves on Greece's medium-term primary surplus targets, a key element for granting further debt relief.

In a draft document seen by Reuters, the IMF says Greece can reach a primary surplus - the budget balance excluding debt repayments - of 2.2 percent in 2018 and aim at 3.5 percent annually in 2019-2021. It suggests the primary surplus target be reduced to 1.5 percent of GDP thereafter.

Euro zone lenders, however, believe Greece must sustain a 3.5 percent GDP primary surplus target over a longer period.

Last year's Greek primary surplus was 4.2 percent, according to the lenders. Whether that can be maintained is unclear.

Early this year, the neoliberal priesthood made clear what it wants:

While the German sado-monetarists insist that the IMF mafia should remain in the Greek program, the IMF has set new conditions: it wants Greece to continue cuts and austerity even after the end of the cruel agreement (third memorandum) between Greece and its creditors (EU Commission, ECB, IMF), meaning, even after 2018!

Less than a year ago, the chairman of eurozone finance ministers, Jeroen Dijsselbloem, has stated that “I don’t see any flexibility on the 3.5 percent [of GDP primary surplus] in 2018 because it was one of the anchors of the agreement of last summer. So that’s going to take a huge effort on the part of Greece but I think it can be done,”.

In other words, after six years of orchestrated destruction of the Greek economy through the IMF recipe, the Brussels bureaufascists insisted on 3.5% primary surplus by a devastated economy! Either they are indeed sociopaths, or, the most probable, do not care about any surplus. They just use it to impose further cuts in pensions and salaries, further rise in taxes for the remaining middle class, to the last drop of blood of the Greek economy.

The IMF-adopted policies completely ruined Greece over the last six years, but the Troika sadists want to destroy whatever has left from the country. They want to make an example of Greece. They want to finish the experiment, loot public property, transfer the new conditions throughout eurozone. It is more than obvious now.

As also described in previous article:

Poor Mr. Schäuble must give "earth and water" to the German oligarchs. He must organize a new Treuhand for the whole Europe to sell-off public property, he must completely dissolve labor rights, bring down pensions and wages, destroy the social state. He must end quickly with Greece and pass all the "Greek achievements" to the whole eurozone.

Europeans should also start to get used to unemployment rates of more than 30%, according to the Greek experiment. When these measures reach Germany, Mr. Schäuble will have the perfect excuse for the angry Germans: blame the Greeks and the European south because they refused to take "reforms" early, it's their fault.

This whole scenario explains why Greece's creditors insist to destroy Greece, knowing that they will never take their money back, as they systematically destroy the economy. Now you know. They don't care at all. They can print as much money as they want and give them to the banking parasites who control the Brussels-Berlin axis.

So, as you see now, poor Mr. Schäuble is very far from being considered a "powerful leader". Not only he is a puppet, but he is a puppet under pressure. He must do the work quickly for the oligarchs, persuading European people that the definite "restructure" of the eurozone into a totalitarian financial dictatorship is inevitable.

Therefore, any country that would think to join the euro sado-monetary prison, should know what to expect from now on.

Furthermore, the dialogues revealed by Varoufakis are quite interesting for one more reason: they show that he fell in Schäuble's trap, as the German official was pretending that he was pro-Grexit. Varoufakis' reactions show that this is a very probable scenario that we will analyze in a subsequent article.

Comments

Popular posts from this blog

How a group of economists undermined public institutions, paving the way to neoliberalism

An assumption had become a truth. The self-interested model of human behaviour, that had been developed in the Cold War to make the mathematical equations work, had now been adopted by these economists as a fundamental truth about the reality of all human social interaction.
globinfo freexchange
A group of economists in the early 70s arbitrarily adopted the self-interested model of human behaviour that had been developed in the Cold War, to explain the dysfunctionality of public institutions. This perception would become a powerful tool in the hands of the neoliberal ideology, carried by big banks and corporations, to demonize the state and dismantle any state control upon them at the expense of the societies.
In his documentary The Trap, Adam Curtis explains:
In the early 70s, the government bureaucracies in Britain began to collapse. Those around them blamed a growing economic crisis, but it was clear that something much more fundamental had gone wrong. What were supposed to be institut…

Italy, Greece, Deutsche Bank: heavy clouds of non-linear collapse gather again above Europe

globinfo freexchange
For nearly ten years now, the key decision centers inside eurozone are trying to hide the huge problems, pretending that the crisis is behind, in order to maintain a completely failed economic model, which also reveals, day by day, its authoritarian nature and despise against real Democracy. The totally problematic structure of eurozone makes things even worse.
In Italy, we had another political crisis and a constitutional coup because the new majority and potential coalition government is not likeable to the Brussels/Berlin axis.
In Greece, things are not looking better. The country is about to exit the IMF-type neoliberal program imposed by the Troika (ECB, European Commission, IMF), in August. Yet, the economy is still in very bad shape, drowning in stagnation, with unprecedented unemployment, nearly zero growth and a national debt at 180% of GDP, which is actually much higher than Greece's debt in 2010 (120% of GDP) when crisis hit the country!
In fact, the eu…

WikiLeaks reveals Italian officials had serious concerns about Italy's ability to participate in the monetary union already since the late 70s

The WIKILEAKS Public Library of US Diplomacy (PlusD)holds the world's largest searchable collection of United States confidential, or formerly confidential, diplomatic communications. As of April 8, 2013 it holds 2 million records comprising approximately 1 billion words. The collection covers US involvements in, and diplomatic or intelligence reporting on, every country on earth. It is the single most significant body of geopolitical material ever published. The PlusD collection, built and curated by WikiLeaks, is updated from a variety of sources, including leaks, documents released under the Freedom of Information Act (FOIA) and documents released by the US State Department systematic declassification review.
globinfo freexchange
A 1978 cable from the US Bureau of Economic and Business Affairs to the Secretary of State, was monitoring in detail the Italian serious concerns on the perspective of Italy joining the European monetary union. It describes an atmosphere of anxiety insi…

How eurozone became a financial dictatorship

It all started with the silent coup against Ireland
globinfo freexchange
In 2010, Ireland experienced Frankfurt's political blackmail. On the 18th of November, where there was a governing council of the ECB in Frankfurt. The governor of the Irish central bank who sat on the governing council, called "Morning Ireland" which is the most important radio program in Ireland, to say that Ireland will need what he called a loan. He didn't warn the government about it and this created a massive panic.
Then, the next day, there was a letter written from the then president of ECB, Jean-Claude Trichet, to Brian Lenihan, the minister of finance at the time, saying that 'if you don't apply the so-called bailout program, by this opening of the markets the following Monday, we're going to cut off access to Emergency Liquidity Assistance (ELA)', which obviously would have collapsed the Irish banking system.
The ECB used the liquidity weapon in order to impose its terms o…

David Harvey: unless there is some real new thinking, another crisis is inevitable

globinfo freexchange
Chris Hedges spoke with David Harvey about the repeated crises of the capitalist system, which generate further instability, especially since the early 70s where we have the rise of financial capitalism and neoliberal ideology.
As Harvey points out:
Interestingly, in almost every crisis there has been a good deal of re-evaluation of exactly how to think about the economy, how to think about the relationship between state power and politics and all this kind of stuff.
Since 2007-08, is hardly any new thinking at all. And actually, we're trying to hang on. And we are trying to hang on because the oligarchy - which has all of the money, all of the power - is actually in a situation where it does not want any change. And until we confront the oligarchy, we're not going to find a way of exiting from this, apart from repeating what happened in 2007-08.
And the interesting thing when you look back, before 2007-08, and you see big financial crises in Argentina, in Braz…

The facts about Venezuela’s May 20th Presidential Election

Despite a high level of election transparency, one that Jimmy Carter called “the best in the world”, the US and its allies have accused Venezuela of election fraud. Caleb Maupin breaks down how Venezuela’s electoral system really works.
by Caleb T. Maupin
Part 3 - Accusations of Fraud
Despite the stringent safeguards in place to protect Venezuela’s election integrity, international media based in Western countries have widely claimed the election was fraudulent. Those claiming that the results are illegitimate have cited prior statements from SmartMatic, a corporation based in London that manufactured Venezuela’s voting machines. An official statement from SmartMatic claimed the 2017 Constitutional Referendum vote showed “tamper evident.” Statements from SmartMatic have been vague about how exactly the results were illegitimate or what malpractice took place.
Tibisay Lucena, president of the National Elections Center (CNE), says the claims from SmartMatic and its Chief Executive Antonio …

Will the Swiss citizens beat the banksters today?

About 5.3 million Swiss citizens, including registered members of the Swiss Abroad community, are eligible to take part in the June 10, 2018 ballot. Votes on a broad range of issues, as well as elections, also take place in many cantons and municipalities across the country.
globinfo freexchange
The Swiss sovereign-money referendum of June 2018, also known as the Sovereign-Money Initiative, aims to give the central bank of Switzerland the sole authority of "creating money."
This is actually what the proponents of the Swiss "Vollgeld Initiative" want. They say only the government, through the publicly-owned Swiss central bank (SNB), should be able to create money and put it into circulation.
The Sovereign Money Initiative aims to give the Swiss Confederation a monopoly on money creation, including demand deposit (full-reserve banking, by including the creation of scriptural money in the legal mandate of the Swiss National Bank. The name of the initiative was inspired by…

Marx predicted our present crisis – and points the way out

The Communist Manifesto foresaw the predatory and polarised global capitalism of the 21st century. But Marx and Engels also showed us that we have the power to create a better world.
by Yanis Varoufakis
Part 1 - The spirit of communism driving the manifesto is proving hard to silence
For a manifesto to succeed, it must speak to our hearts like a poem while infecting the mind with images and ideas that are dazzlingly new. It needs to open our eyes to the true causes of the bewildering, disturbing, exciting changes occurring around us, exposing the possibilities with which our current reality is pregnant. It should make us feel hopelessly inadequate for not having recognised these truths ourselves, and it must lift the curtain on the unsettling realisation that we have been acting as petty accomplices, reproducing a dead-end past. Lastly, it needs to have the power of a Beethoven symphony, urging us to become agents of a future that ends unnecessary mass suffering and to inspire humanity …

More evidence that the 2011 riots in Syria were sparked by a false flag operation

globinfo freexchangeIndependent journalist Eva Bartlett spoke with Lee Camp about her recent trip in Syria. Bartlett visited the hospital in Douma where many victims of the latest alleged chemical attack went to receive medical care. Bartlett spoke with a medical student who was working the day of the alleged attack, and actually confirmed the reporting by the veteran journalist Robert Fisk, according to which there was no evidence of a chemical attack.
Bartlett also went to Daraa, where the first protests took place in 2011, and spoke to people there. They confirmed what many other investigative journalists support. 

This is strong evidence that it was a false flag operation that actually sparked the subsequent riots:
In the initial protest, Daraa was named as the birthplace of the so-called revolution. And Daraa is a city in the very south of Syria, not a very large city, and a rather unlikely city for a so-called revolution to have started. But prior going to Daraa, I interviewed a do…

IMF lunacy: Lagarde admitted to Varoufakis in private that the program imposed on Greece doesn't work!

globinfo freexchange
As Yanis Varoufakis describes in his book Adults in the Room:
Less than a month after my election, on 11 February 2015, in one of those spirit-numbing, windowless, neon-lit meeting rooms that litter the EU’s Brussels buildings, I found myself sitting opposite Christine Lagarde, the IMF’s managing director, France’s ex-finance minister and a former Washington-based high-flying lawyer. She had waltzed into the building earlier that day a glamorous leather jacket, making me look drab and conventionally attired. This being our first encounter, we chatted amicably in the corridor before moving into the meeting room for the serious discussion.
Behind closed doors, with a couple of aides on each side, the conversation turned serious but remained just as friendly. She afforded me the opportunity to present my basic analysis of the causes and nature of the Greek situation as well as my proposals for dealing with it, and nodded in agreement for much of the time. We seemed to s…