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European Union is a “union” no more, as Germany prepares behind the scenes to remove Greece

German Finance Minister Schaeuble hinted that Berlin was preparing for a possible Greek default, drawing a parallel with the secrecy of German reunification plans in 1989.

Alex Christoforou

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Post originally appeared on Zerohedge.

It has been a very disturbing 24 hours for Greece.

It all started during yesterday’s surprisingly short, just one hour long Eurozone finmin meeting in Riga, where Yanis Varoufakis not only got the most “hostile” reception yet being called “a time-waster, gambler, and amateur“, but for the first time one minister openly said that maybe it was time governments prepared for the plan B of a Greek default. This happened after Jeroen Dijsselbloem slammed the door on Varoufakis’ proposal for early cash after partial reforms.

“A comprehensive and detailed list of reforms is needed,” Dijsselbloem told a news conference following a meeting in Riga. “A comprehensive deal is necessary before any disbursement can take place … We are all aware that time is running out.”

And so, what was once anathema, namely the official hints that a Grexit is being contemplated at the highest ranks, has now become almost commonplace, courtesy of the backstop provided by the ECB’s QE, which has lulled everyone into a sense of calm because somehow the hope has been kindled that the ECB (which is rapidly running out of government bonds to buy) can offset the realization that what was once an “unbreakable union” is suddenly not only breakable, but no longer a union. As such the trillions in deposit outflows that will sweep the periphery are somehow to be ignored because, well, “Draghi.”

This continued earlier today, when none other than German Finance Minister Schaeuble hinted that Berlin was preparing for a possible Greek default, drawing a parallel with the secrecy of German reunification plans in 1989.

As Reuters reports, at a briefing with reporters after a tense meeting of euro zone finance ministers on Greece on Friday, Schaeuble was asked if euro zone finance ministers were working on a “Plan B” in case negotiations on funding with cash-strapped Athens fail.

“You shouldn’t ask responsible politicians about alternatives,” Schaeuble answered, adding one only need to use one’s imagination to envisage what could happen.

He indicated that if he were to answer in the affirmative that ministers were working on a Plan B — what to do when Greece runs out of money and cannot pay back its debt — he could trigger panic.

To explain his position, he drew a parallel with the secrecy that was necessary during the initial stage of planning for German reunification in 1989.

“If back then a minister in charge — I was one of them — would have said beforehand, we have a plan for reunification, then the whole world probably would have said: ‘The Germans have gone completely crazy.'”

He is correct, but what is left unsaid is that the mere suggestion that Grexit no longer not being contemplated is a major escalation in Europe’s attempts to launch a bank run, which they have done an admirable job at so far, leading to more than half of total Greek deposits being funded by the ECB’s ELA as of this moment.

In other words, should the ECB boost the haircut on Greek bank collateral, and both a depositor bail-in and capital controls become inevitable.

Which incidentally, is what was also touched upon today, when the head of the Bundesbank and ECB governing council member Jens Weidmann said at a press conference in Riga, Latvia, that officials will discuss haircuts on collateral for emergency funding for Greek banks.

“As you know I have doubts about the provision of this emergency liquidity, because the banks are not doing all they can to improve their liquidity position, which I would expect from banks that avail of this assistance.”

Instead, they are extending their loans — so-called T-bills — to the Greek state, which is each time a new credit decision. As these T-bills aren’t liquid, this means that in comparision with the alternatives, this is a deterioration of the liquidity situation which I find unacceptable.”

“The haircuts are designed according to the quality of the collateral — which in this case is mostly government debt securities — and that depends on the  outlook for debt sustainability which is connected to a successful conclusion of the aid program.”

“From my point of view it is clear: time is running out, the solution cannot come from the central banks, we have a clearly limited task, a clearly limited mandate, and must abide by our rules.”

He, too, is of course correct, and yet his statement is also quite hypocritical, considering it is precisely the check-kiting scheme that Greek banks are engaged in and which the ECB “suddenly” finds objectionably, that has been the norm across Italy, Spain and Portugal for years: all countries whose reform efforst are laughable, and the only reason they haven’t imploded in the same pile of rubble as Greece is because the ECB has remained ss a buyer of last resort of their sovereign debt.

For now: because should Podemos or Beppe Grillo take chart in Spain or Italy, all bets are off, and the Greek “contagion”, which is really just the realization that there is no ECB bid into insolvent paper, will spread overnight.

Which brings us to the final reason why it has been a very nerve-wracking 24 hours for Greece.

In an interview with Bild, Mark Hauptmann, a lawmaker from German Chancellor Angela Merkel’s political party said that “if Greece stays in the euro, it will need not only a third bailout, but also a fourth, fifth or even more.”

He added that a Greek euro exit would be good in the long term because European contracts would regain their validity and Greece could regain its competitiveness.

He, too is correct.

Still, even with three “correct” statements laying out clearly why Greece should Grexit, somehow we doubt that anything will happen even as the posturing on all sides reaches a fever pitch, because while Europe may have Q€ as recourse to a Greek contagion, Greece now has a Putin threat as its final trump card. Because the second Greece is kicked out (or is forced to leave), the construction of the Turkish Stream begins, and with it the cementing of Russian energy dominance for the next decade, as well as the collapse of Ukraine (and the billions of western aid flowing into Kiev over the past year) into irrelevance.

References:

http://www.zerohedge.com/news/2015-04-25/germany-prepares-plan-b-says-greece-will-need-not-only-third-bailout-fourth-fifth-or

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Trump Weighs In On The Single Worst Mistake In American History

Trump hits Bush: Invading Iraq ‘the single worst decision ever made’.

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Via Zerohedge


In a wide ranging interview with The Hill on Tuesday conducted in the Oval Office, President Trump was asked to give his take on the biggest mistake in American history.

Considering just how open-ended a question that is, it’s perhaps surprising that he merely went back less than a couple decades into the Bush presidency, though Trump’s base will certainly welcome it as it hearkens back to his “America First” foreign policy vision of the campaign trail.

“The worst single mistake ever made in the history of our country: going into the Middle East, by President Bush,” the president during his interview with Hill.TV.

“Obama may have gotten them (U.S. soldiers) out wrong, but going in is to me the biggest single mistake made in the history of our country,” he said.

Trump explained the reasoning behind this choice, and why it wasn’t something like the civil war or another defining and devastating event reaching far into American History.

“Because we spent $7 trillion in the Middle East. Now if you wanna fix a window some place they say, ‘oh gee, let’s not do it. Seven trillion, and millions of lives — you know, ‘cause I like to count both sides. Millions of lives,” the president explained.

Some scholars and humanitarian groups estimate that over one million Iraqis were killed in the US invasion and occupation of Iraq starting in 2003. A 2008 Opinion Research Business (ORB) poll, for example, found that approximately 1.03 million people had died as a result of the war.

“To me it’s the worst single mistake made in the history of our country. Civil war you can understand. Civil war, civil war. That’s different. For us to have gone into the Middle East, and that was just, that was a bad day for this country, I will tell you.”

Various estimates on the Iraq war’s cost have put the total taxpayer bill as low as near $2 trillion, but none dispute that it is in the multiple trillions, and estimates will vary widely depending on if veteran care is factored into it.

The comments echo things Trump said on the campaign trail in 2016. For example during one of his first major foreign policy speeches then candidate Trump said, “I will never send our finest into battle unless necessary, and I mean absolutely necessary, and will only do so if we have a plan for victory with a capital V.” And referencing the famous quote of John Quincy Adams, he said during the same speech, “The world must know that we do not go abroad in search of enemies.”

He had previously shocked pundits for being the first Republican nominee for president to trash George W. Bush’s decision to go to war in Iraq, and has more recently likened it to “throwing a big fat brick into a hornet’s nest”.

All of this is a hopeful sign considering the extremely heightened and dangerous tensions over Syria this week, and given Trump seems to have vacillated between “bringing the troops home” and getting more involved. On Monday Trump hinted that a decision on the U.S. role in Syria is coming soon.

Commenting on the over 2,000 troops now in Syria ostensibly as part of the “anti-ISIL” coalition campaign, Trump indicated this mission could end soon: “We’re very close to being finished with that job,” he said. He followed with: “And then we’re going to make a determination as to what we’re going to do.”

We consider it a hopeful and a good sign that Trump is possibly revisiting his “America First” foreign policy pledges by identifying the Iraq War as the worst mistake in US history.

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Brett Kavanaugh eleventh hour smear begins to fall apart (Video)

The Duran – News in Review – Episode 112.

Alex Christoforou

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US President Trump is urging the woman accusing Brett Kavanaugh to testify and be heard.

Trump said he wants to hear from Christine Blasey Ford, noting that it would be “unfortunate” if she does not testify before a Senate committee. Trump told reporters Wednesday as he left the White House to view hurricane damage in North Carolina…

“If she doesn’t show up, that would be unfortunate.”

“If she shows up and makes a credible showing, that would be very interesting.”

From Trump’s lips to God’s ear…Blasey Ford came out to issue a statement essentially saying that she will not testify to Congress, either in an open or closed door session.

Furthermore it appears that Ford will not even allow Senate investigators to fly to California and obtain her statement from the comfort of her own home (as Senator Grassley has offered to do).

Ford is demanding an FBI investigation into an allegation with no date, time or place attached to it. 

RT CrossTalk host Peter Lavelle and The Duran’s Alex Christoforou discuss the dangerous game of identity politics being played by the establishment, Democrat left, and their mainstream media minions.

The premise that a four decades old accusation is all that is needed to destroy a person’s entire life, threatens to tear down the most basic foundational values adhered to from within the US Constitution, and propel the United States of America towards a fascist state where censorship, citizen surveillance, and evidence free accusations are used to keep the establishment left in power and the American population cowered in fear.

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According to Zerohedge, Democrats’ Hail Mary play to stymie the confirmation of Trump SCOTUS pick Brett Kavanaugh is beginning to fizzle out. As angry Dems demanded that a Monday hearing on the allegations against Kavanaugh be delayed until the FBI has a chance to investigate, turncoat Republicans (on whom the Dems had been depending for votes) instead withdrew their support and fell in line after Senate Judiciary Chairman Chuck Grassley declared that he would not honor Democrats’ request. Grassley revealed his intention to stand firm late Tuesday after lawyers for Palo Alto University professor Christine Blasey, who is claiming that Kavanaugh attempted to sexually assault her 35 years ago when the two were 17-year-old high school students, said their client wouldn’t be wiling to appear at Monday’s hearing.

According to the HillGrassley said Tuesday that there was “no reason” to delay the hearing now that Republicans have invited both Kavanaugh and Christine Blasey Ford, his accuser, to testify publicly. However, while Ford’s attorneys have insisted that their client has taken a polygraph test and “deserves to be heard”, Ford has bizarrely insisted that the FBI should have an opportunity to investigate her claims before she appears before the committee in order to spare her the “trauma” of confronting her alleged assailant.

Ford’s lawyers conveyed her request in the form of a letter sent to the committee, a copy of which was obtained by CNN.

Senator Grassley said he would refuse this request as several Republicans who had appeared to be on the cusp of defecting said they wouldn’t support further delays should Ford prove unwilling to testify.

Via the Hill…

“Republicans extended a hand in good faith. If we don’t hear from both sides on Monday, let’s vote,” said GOP Sen. Bob Corker (Tenn.), who was one of the first Republicans to call for the Judiciary Committee to hit pause on Kavanaugh’s nomination on Sunday.

GOP Sen. Susan Collins (Maine) told reporters earlier Tuesday that Ford’s lack of response to the committee about testifying was “puzzling.”

And GOP Sen. Jeff Flake, who had threatened to vote against Kavanaugh if Ford wasn’t given the chance to be heard, told CNN that he expected the committee to move on if she doesn’t appear.

“I think we’ll have to move to the markup,” he told CNN. “I hope she does (appear). I think she needs to be heard.”

Via Zerohedge…

Kavanaugh has denied Ford’s allegations and insisted he didn’t attend the party where the physical assault allegedly took place. Patrick Smyth, a fellow former Georgetown Prep student whom Ford alleges was also in attendance during the party issued a statement via his lawyer standing up for Kavanaugh. And in a separate letter to Grassley and Democratic Sen. Dianne Feinstein, not only does Smyth repudiate Ford’s allegations, but he adds that he doesn’t remember this party even taking place.

Of course, Feinstein – who admitted last night that she couldn’t say for certain that Ford’s story is entirely truthful – sat on Ford’s allegations for three months before referring them to the FBI and sharing them with other lawmakers (who purportedly “leaked” it to the press). President Trump on Tuesday said that he “feels sorry” for Kavanaugh, adding that he doesn’t want to “play into [Democrats] hands”, presumably by giving them more time to drag out the confirmation process.

“They should have done this a long time ago, three months ago, not now. But they did it now. So I don’t want to play into their hands,” Trump said.

Without the support of their Republican allies, Democrats will lack the votes on the committee to hold up the nomination past Monday. Though bizarrely, Kavanaugh himself hasn’t said yet whether he would or wouldn’t testify, which begs the question: If neither Kavanaugh nor Ford appear at the hearing, what exactly will lawmakers discuss?

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‘Hell on Earth’: MSF doctor tells RT of rape, violence, inhumane conditions in Lesbos refugee camp

One toilet for over 70 people, rape, and mental health issues – a doctor from Doctors Without Borders (MSF) and an aid worker told RT about the dire conditions in the overcrowded Moria refugee camp in Greece.

Alex Christoforou

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Via RT


One toilet for over 70 people, rape, and mental health issues – a doctor from Doctors Without Borders (MSF) and an aid worker told RT about the dire conditions in the overcrowded Moria refugee camp in Greece.

The overcrowded camp on the island of Lesbos, built to accommodate 3,100, houses around 9,000 people. “It’s a kind of hell on Earth in Europe,” Dr. Alessandro Barberio, an MSF clinical psychiatrist, said, adding that people in the camp suffer from lack of water and medical care. “It is impossible to stay there,” he said.

According to Barberio, asylum seekers are subjected to violence “during night and day.””There is also sexual violence”which leads to “mental health issues,” he said, adding that all categories of people at the camp may be subjected to it. “There is rape against men, women and children,” and the victims of sexual violence in the camp often have nightmares and hallucinations, Barberio told RT.

Asylum seekers in Moria “are in constant fear of violence,” and these fears are not groundless, the psychiatrist said. “Such cases [of violence] take place every week.”

There is “one toilet for 72 people, one shower for 84 people. The sanitation is bad. People are suffering from bad conditions,” Michael Raeber, an aid worker at the camp, told RT. They suffer from mental health problems because they are kept for a long time in the camp, according to Raeber.

“There is no perspective, they don’t know how their case will go on, when they will ever be able to leave the island.” The camp is a “place where there is no rule of law,” with rampant violence and drug addiction among the inhabitants, Raeber said.

In its latest report, MSF, which has been working near Moria since late 2017, criticized the unprecedented health crisis in the camp – one of the biggest in Greece. About a third of the camp population consists of children, and many of them have harmed themselves, and have thought about or attempted suicide, according to the group.

Barberio was behind an MSF open letter on the state of emergency in Moria, released on Monday, in which he writes that he has never “witnessed such overwhelming numbers of people suffering from serious mental health conditions.”

Calling the camp an “island prison,” he insisted that many of his patients in the camp are unable to perform basic everyday functions, “such as sleeping, eating well, maintaining personal hygiene, and communicating.”

A number of human rights groups have strongly criticized the conditions at the camp and Greece’s “containment policy”regarding asylum seekers.

Christina Kalogirou, the regional governor of the North Aegean, which includes Lesbos, has repeatedly threatened to shut down the facility unless the government improves the conditions. On Tuesday, government spokesman Dimitris Tzanakopoulos said that Greece will move 2,000 asylum seekers out of the severely overcrowded camp and send them to the mainland by the end of September.

Greece, like other EU states, is experiencing the worst refugee crisis since WWII. According to International Organization for Migration estimates, 22,000 asylum seekers have arrived in Greece since the start of this year alone.

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