Greek Crisis: German Eurospin Goes into Overdrive

HJ: The waters continue to get murkier in the Greek/Eurozone debt crisis.  September is going to be a big month.  With Greek basically missing nearly all of the targets set by the Troika (really… who didn’t see that coming?), it is only a matter of time before the implosion begins. – Truth

By John Ward (The Slog)

The Slog

GREEK CRISIS: German Eurospin goes into overdrive.

Last week I predicted lots of Merkelian news management to suggest that Germany is going to be tough on Greece und effryvon is obeyink ordass. It’s begun in style this morning.

Ekathimerini  ‘American observers claim to be stunned by the manner in which hardline German officials are dealing with their southern European partner..[but]…Officials argue that the markets have already priced in the scenario…US officials are shocked at the stubborness of their German counterparts. They are particularly worried that the hardline view is shared by high-ranking officials at the European Central Bank.’

Daily Telegraph  ‘The deputy head of Chancellor Angela Merkel’s conservative parliamentary bloc, Michael Fuchs, told business daily Handelsblatt that Berlin was ready to use its veto if it is unhappy with findings from the Greece creditors’ Troika’….”You can quote me: even if the glass is half-full, that is not enough for a new aid package,” he said in an interview to appear in the paper’s Monday issue. “Germany cannot and will not agree to that.”‘

Wall Street Journal  ‘The European Central Bank will buy short-term government bonds, if necessary, to prevent their yields spiralling out of control – but only after recipients have formally requested aid from the EU bailout funds and agreed to be bound by certain conditions….This is very much a victory for the German model of running Europe. Some other countries were arguing for effectively unilateral intervention to get them off the hook but the ECB has signed up to the German diet of strict conditionality…’

In a sentence, “We don’t care if the Greeks leave, the ECB is on our side, and the others don’t matter.” It’s all bollocks from start to finish, but as this site’s aim is to deconstruct any and all important bollocks, I can do little better than to refer you – if you missed it –  to The Slog’s Saturday Essay:

Why Germany will leave the eurozone whether it wants to or not.

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