GREXIT The Real Question is, Do the Morons at the ECB understand the Consequences?

Here we go again with Greece. With Zero Hedge reporting (they really are on top of the latest crap, got to give them that, even if it’s sometimes overstated):

Unfortunately for Greece, moments ago Germany’s Frankfurter Allgemeine Zeitung confirmed the bad news, when it said that the EU commission has rejected the Greek request for speedy aid payments, cites Valdis Dombrovskis, EU commissioner for the euro. The commissioner adds that the Varoufakis letter “lacks specific enough action plan and that the reform steps must be approved by Greek parliament and be implemented.”

In other words, as we reported before, Greece is back to square minus one, where first Europe will send the dreaded Troika inspectors “on the ground” in Athens to catch up to everything they have missed in the months they have been absent and then, and only then, does Greece have any chance of even being seriously considered for more aid.

I’ll stop pretending I know what’s going on here. But the funniest part is that Greece (may have, depending on whether you think ZH is credible or not) issued a plan to use foreign tourists as wires against tax evaders, a plan which was laughed at by European creditors, Troika, ECB, EFSF, whatever:

Financial Times reports that the reaction from eurozone officials to the tourist plan was received with humor. They thought the proposal was hilarious and even laughed when they read it. “It’s quite hilarious, if it were not so tragic, that this is what a government in an industrialised country comes up with,” said one eurozone official involved in the talks.

Here’s the question really. It all comes down to this. Does whoever is financing Greece currently, with whatever stupid acronym they use to name themselves, really understand the consequences of a Grexit? Do they undestand the chain reaction that will ensue, given that the world is embroiled in a debt crisis the likes of which it has never, ever seen in history?

If they understand it, they will keep funding Greece indefinitely. If they don’t, they will start a chain reaction that will end the entire game.

Maybe I’m wrong. That’s what I think.

I’m reminded of a line from Payback, that Mel Gibson movie where Porter goes after the whole Outfit by himself for $70,000 he claims was stolen from him. Porter is looking for the one man in charge of the outfit. He says to one of the gangsters, “One man… you go high enough you always come to one man… who?”

It’s the same in legalized gangs like the Eurozone. You go high enough you always come to one man. Who? And does he understand that he has the trigger to the entire pile of cards collapsing in a matter of weeks? By that I mean everything the whole western financial system?

If he gets it, it’ll be a few more years. If he doesn’t get it, it could be any day now. But I don’t know, because I don’t know who that one man is.


3 thoughts on “GREXIT The Real Question is, Do the Morons at the ECB understand the Consequences?

  1. Based on my observations, this is what looks like is happening. The Troika know Grexit is coming. This is why they’re stringing Greece along as much as they are. Squeeze every possible euro out of the idiots in Syriza, holding out the promise of further cash infusions at some unspecified future date.

    No? Greece has already made one payment to the IMF just this last week, right? Are they going to be stupid enough to send yet more money in the further payments due in March?! Logically, they should be able to see what’s going on and default now, while the money is still in their possession. But they don’t.

    Yes, it’s all over when Greece defaults, but they might still be betting on their ability to control the crisis, regardless of whether that’s even possible.

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