big3Three Blind Mice

Try and unravel this twisted mindset if you can. The steps go like this:

  1. Having lied to the IMF’s Christine Lagarde about aiming to make Greek debt sustainable by 2020, Berlin (aka Wolfgang Schäuble) suddenly realises Ms Lagarde is awake.
  2. She says, “No debt forgiveness, no IMF involvement in Bailout3”.
  3. Berlin ( Schäuble & Merkel) adopt irrational position, viz: IMF may be right that Greek cannot repay debt, but there will still be no debt forgiveness.
  4. Yet somehow, vague promises from Berlin (Merkel) of debt ‘restructuring’ seem to mollify Frufru Lagarde. The Slog has his doubts, engages in friendly Twitter debate on subject.
  5. 4.30 am this morning, Die Zeit publishes a piece saying that Berlin is considering AN EU guarantee to the IMF about Greek debt in return for Lagarde DROPPING DEBT FORGIVENESS demand. First up, it’s important to know that Zeit is unser geliebte Geli’s favourite leak-hole, if you’ll pardon the expression. But equally important, whoTF do the Germans think they are thinking of an EU guarantee rather than a eurozone guarantee? Third, since when is it the European taxpayers’ job to protect American risk? And last but not least, how can Berlin sustain its claim to be ‘helping’ Greece, when it will clearly try on any scam in order to keep Athens in debt ad infinitum?
  6. Hat-tip to Fred Walton, who pointed out the re-reportage of the Zeit piece at Reuters.
  7. 13.45 CET, Bloomberg (arch neolib apologist site) runs a piece naming an obscure German FinMin official saying the Reuters/Die Zeit pieces are untrue. Well naturally, of course they are: Die Zeit does as we know have a long history of tabloid gutter bollocks. Not.

If ever there was a case of running up a flag and waiting for a salute, this was it. I understand the reaction from London was swift. But be in no doubt: when the dust has settled, this issue will come back – in a slightly altered form perhaps, and probably when minds are focused on something else….like the outbreak of Sino-Japanese war, for example.

Two final points here: this is an EU run by a few unconstituted cowboys, from whom David Cameron insists he can extract real reform. And this is a Germany reborn, once more convinced that it has the right to make the running, the rules, and obscene profits….but then whinge long enough to extract cost overheads from other member countries.

Consider: as the main shareholder in the ECB, Berlin stands to make imaginary losses that will never come home to roost, because as a central bank, Draghidosh Inc can park it forever in the negative assets column. But as such a shareholder, the Reich will get cash on the nail every quarter for the usury that has been inflicted upon ClubMed. Since 2010, this has amounted to €130m euros. And – given an eternal basket-case ClubMed – the debt market flight to safety means that German debt has never been cheaper to manage. And – given the low valuation of the euro in this maelstrom of Mammon – Germany can export in volumes unimaginable had it stayed with the Mark.

The problem with German foreign policy at the minute is that it is being dictated by a sociopathic desire for advantage. Berlin is taking advantage of the misfortune of others and giving the proceeds to itself…. while at the same time demanding that others share in its costs – but not in its profits.

One could summarise as follows: MerkeSchäuble sanctimony leads it down the path of parsimony. It wants a divorce from ClubMed, but insists the rest of us share in the alimony. Sooner rather than later, this can only lead to acrimony.

Or in soundbite form, “As always, it’s all about the money”.

Is there anyone out there with a larger readership than mine that can expand awareness of these realities?

Connected at The Slog: Why the world’s economists think eurogrope is mad

This analysis was not brought to you by UKip