Stavros Lygeros – Why is the Greek media living in EU political fantasy?

EKathimerini carried an opinion piece today by Stavros Lygeros. And the article is as good an example as any of how Greeks and the Greek media are buying into the fake reality that has been created by the international mainstream media and the EU politicians like Barroso.

The article starts off by saying

The risk of a eurozone breakup is very real.

Apart from the international mainstream media and the politicians saying it is true, what other factors make this statement true. There has to be some fundamental reason, some fundamental facts that make this statement true and as yet, I have yet to hear a single one.

The last time I looked Greece was called a democracy and so were all the other countries in Europe. The people of Greece decide whether they want to be part of the Eurozone or not.

It is false to say that Greece can be forced out the Euro. It comes down to democracy, do Greeks and other Europeans want Greece in the Euro or not?

As long as the Greek government accepts Euros as payment of taxes then the Euro will be the currency of Greece and nothing else can change that.

Lygeros goes on

The vast majority of experts appear to agree that the only way to save the euro is if the European Central Bank comes into play either by issuing eurobonds or by printing more money.

Please, vast majority? I do not know which “experts” he has been speaking to but the economists I hear and read, are urging for ECB intervention are not the “vast” majority.

In fact I think the majority of economists say that the only way for Greece to truly recover and move on from the current issues is for the country to default.

I’ll even state my source, check this out, 98% is what I call the vast majority. And it is not 98% support for ECB intervention (in case you were wondering)

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Lygeros then moves on to Germany

But both ideas have met with German resistance. Berlin has counterproposed yet another unclear plan about fiscal unification in the eurozone as well as automatic and draconian sanctions for member states that violate strict new limits on deficit and debt.

While what he saying may be true Lygeros has conveniently not stated the context of Germany’s draconian demands.

If it was up to Germany, Greece would have defaulted 2 years ago and Greece would be well on the way to recovery by now.

Germany’s involvement with Greece boils down to this.

To all the people (read banks) that are saying to Germany, “you must help Greece”, Germany responds by saying, “if you want the German taxpayer to be involved in bailing out the Greek government then this is want we want in return. If you think the terms are too harsh, then default and we will pick up the pieces after”.

Germany is not forcing anybody to do anything, Germany is simply stating the conditions of its involvement, banks/governments are free to choose what they want to do.

About Germany’s plan being unclear, it is anything but. Germany could not have been more clear.

With regards to draconian sanctions, this is an idea coming from Sarkozy not Germany. The ultimate sanction is exposure to the markets which Germany has no problem with.

Sarkozy on the other when he says “draconian” sanctions is actually saying he wants less sanctions.

Lygeors continues

But even if the uneasy eurozone governments succumb to the whims of Berlin, the problem will not be remedied.

Again with the Greek media attacks on Germany, “whims of Berlin”.

Again, Greek media simply regurgitating the things they have heard in the international mainstream media.

What exactly is a German whim? An example would be nice.

Lygeros the implies that Sarkozy and Merkel have the same perspective

Everything seems to point to the fact that the markets will continue to test the tolerance limits of member states such as Italy and Spain. Practically, this means that unless Angela Merkel and Nicolas Sarkozy open the path for greater ECB involvement during the coming EU summit, then any plan will be irrelevant and the eurozone crisis will grow deeper.

Apart from the nice appearances that Merkel and Sarkozy put on for the media and apart from the international media portraying Merkel and Sarkozy wanting the same thing, what exactly is Lygeros basing his assertion that Sarkozy and Merkel together are resisting ECB involvement?

Even the international mainstream media cannot hide the real facts about this situation.

Sarkozy can not get the ECB printing press up and running quick enough, Sarkozy is literally  chomping at the bit, Sarkozy would quite happily feed the paper into the printing press if that would speed up the process.

Merkel on the other hand is dead against the idea of the EU printing its way out of trouble.

In summary,

There are 2 forces at work in Europe.

On the one hand you have Sarkozy, the banks chief spokesman, who believes it is morally acceptable to devalue people’s labour and property if that will help the banks.

On the other hand you have Merkel and Germany who believe in sound money and believe in the fact that wealth and prosperity can not come from a printing press but can only come from hard work and intelligence.

If there was any doubt that Germany and Merkel are being targeted by the banks you have to look no further than their last bond auction which was the most blatant evidence yet that government debt could be being manipulated by the banks. Paul Craig Roberts, deputy treasury secretary under President Regan points out the obvious.

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