The Phaserl


3 Big Reasons Why The ‘Greek Debt Deal’ Is Really A German Trap

by Michael Snyder, The Economic Collapse Blog:

Greece is saved? All over the planet, news headlines are boldly proclaiming that a “deal” has been reached which will give Greece the money that it needs and keep it in the eurozone.  But as you will see below, this is not true at all.  Yesterday, when I wrote that “there never was going to be any deal“, I was not exaggerating.  This “deal” was not drafted with the intention of “saving Greece”.  As I explained in my previous article, these negotiations were all about setting up Greece for eviction from the euro.  You see, the truth is that Greece desperately wants to stay in the euro, but Germany (and allies such as Finland) want Greece out.  Since Germany can’t simply order Greece to leave the euro, they need some sort of legal framework which will make it possible, and that is what this new “deal” provides.  As I am about to explain, there are all kinds of conditions that must be satisfied and hurdles that must be crossed before Greece ever sees a single penny.  If there is a single hiccup along the way, and this is what the Germans are counting on, Greece will be ejected from the eurozone.  This “deal” has been designed to fail so that the Germans can get what they have wanted all along.  I think that three very famous words from Admiral Ackbar sum up the situation very well: “It’s a trap!

So why is this “Greek debt deal” really a German trap?

The following are three big reasons…

#1 The “Deal” Is Designed To Be Rejected By The Greek Parliament

If Germany really wanted to save Greece, they would have already done so.  Instead, now they have forced Greek Prime Minister Alexis Tsipras to agree to much, much harsher austerity terms than Greek voters overwhelmingly rejected during the recent referendum by a vote of 61 percent to 39 percent.  Tsipras has only been given until Wednesday to pass a whole bunch of new laws, and another week to make another series of major economic changes.  The following comes from CNN

Greece has to swiftly pass a series of new laws. Prime Minister Alexis Tsipras has until Wednesday to convince Parliament to pass the first few, including pension cuts and higher taxes.

Assuming that happens, Greek lawmakers have another week, until July 22, to enact another batch of economic changes. These include adopting European Union rules on how to manage banks in crisis, and do a major overhaul to make Greece’s civil courts faster and more efficient.

Can Tsipras actually get all this done in such a short amount of time?

The Germans are hoping that he can’t.  And already, two of Syriza’s coalition partners have publicly declared that they have no intention of voting in favor of this “deal”.  The following is from a Bloomberg report

Discontent brewed as Tsipras arrived back in the Greek capital. Left Platform, a faction within Syriza, and his coalition partners, the Independent Greeks party, both signaled they won’t be able to support the deal. That opposition alone would wipe out Tsipras’s 12-seat majority in parliament, forcing him to rely on opposition votes to carry the day.

The terms of the “deal” are not extremely draconian because the Germans want to destroy Greek sovereignty as many are suggesting.  Rather, they are designed to provoke an overwhelmingly negative reaction in Greece so that the Greeks will willingly choose to reject the deal and thus be booted out of the euro.

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6 comments to 3 Big Reasons Why The ‘Greek Debt Deal’ Is Really A German Trap

  • Aude Sapere

    Let me first state that I am opposed to the formation of these regional centralized governments with a common currency. This European Union with a common currency was a bad idea to begin with. The evidence of this is before us now. But, having stated this, there were some deficit guidelines/rules in the Maastricht treaty in which a Greek government working with Goldman Sachs violated.

    Greece should have never been allowed into the European Union to begin with. It was never in compliance with the deficit guidelines/rules set out in the Maastricht Treaty in it’s entire existence in the European Union.

    From a 2010 De Spiegel article:

    “Goldman Sachs helped the Greek government to mask the true extent of its deficit with the help of a derivatives deal that legally circumvented the EU Maastricht deficit rules. At some point the so-called cross currency swaps will mature, and swell the country’s already bloated deficit.” (This has happened).

    “Creative accounting took priority when it came to totting up government debt. Since 1999, the Maastricht rules threaten to slap hefty fines on Euro member countries that exceed the budget deficit limit of three percent of gross domestic product. Total government debt mustn’t exceed 60 percent.”

    “The Greeks have never managed to stick to the 60 percent debt limit, and they only adhered to the three percent deficit ceiling with the help of blatant balance sheet cosmetics. One time, gigantic military expenditures were left out, and another time billions in hospital debt. After recalculating the figures, the experts at Eurostat consistently came up with the same results: In truth, the deficit each year has been far greater than the three percent limit. In 2009, it exploded to over 12 percent.”

    “Now, though, it looks like the Greek figure jugglers have been even more brazen than was previously thought. “Around 2002 in particular, various investment banks offered complex financial products with which governments could push part of their liabilities into the future,” one insider recalled, adding that Mediterranean countries had snapped up such products.”

    “Greece’s debt managers agreed a huge deal with the savvy bankers of US investment bank Goldman Sachs at the start of 2002. The deal involved so-called cross-currency swaps in which government debt issued in dollars and yen was swapped for euro debt for a certain period, to be exchanged back into the original currencies at a later date.”

    So, all you German haters can blame and demonize the Germans all day long, but, it was a corrupt Greek government and Goldman Sachs that got them into this mess to begin with, not the Germans.

    How Goldman Sachs Helped Greece Hide Its Debt & Made €2.8 Billion Disappear

  • The Truth

    Everyone is paying attention to the deal that is not. The reality is this, this deal will be rejected come Wednesday. At the same time JADE HELM is to be started. Does this look like a coincidence to you? Obama got his Sodomite agenda to pass(illegally for those same 5 judges said before they had no authority to pass this law), and he got what he wanted with the TPP/TPA. The markets went up with CNBS and other prestitute media whores pumping how Greece got a deal, they took it and all is well. The dumb goats read into this and they come Wednesday, there is no deal. Welcome to the dog and pony show, only this time the people will be the characters, paying to watch and also being the acting ones who loose!

  • dutch

    trap trap trap
    It’s a compromise, greece wants to stay in the euro and eu, without reforming or bearing the actual cost. Then you get this. If they keep seeking confrontation it will only get worse for them.

    Neuro has two options of keeping it real for their own people. Start their own north mark. Or squeeze the existing euro. Keep in mind we in the neuro countries don’t want the euro or the EU in its present form either and certainly not when it means slushing our capital down south.

  • KSKing

    The Troika (the evil Central Bankers) just want control of Greece. I suppose they prefer to exercise this control with Greece remaining in the EU, but I’m sure they will settle for an enslaved Greece outside the EU just as well. Regardless they certainly want Greece to be an ‘example’ to any other nations who might be considering walking away from their debt.

    They’ve been playing this Greece song for a long time now. Back and forth, up and down, deal no deal. Meanwhile China’s market is crashing, oil which had been hovering around $60 for months has fallen back to $52, and this is during the summer months when Gas is most heavily sold, oh and physical silver can’t be found.

    Which Black Swan do you want to take home?

  • Johan

    The final agenda is to create the European Bond and have all of EMU share the debt burden, and then to incorporate the rest of EU.

    United States of Europe

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