sábado, 21 de febrero de 2015

THERE WAS NOT FINAL DEAL ON GREECE



THERE WAS NOT FINAL DEAL ON GREECE

Hugo Adan Feb 20, 2015

In the official  text of the deal is said “by the end of April” will come the agreement:

The Eurogroup notes, in the framework of the existing arrangement, the request from the Greek authorities for an extension of the Master Financial Assistance Facility Agreement (MFFA), which is underpinned by a set of commitments. The purpose of the extension is the successful completion of the review on the basis of the conditions in the current arrangement, making best use of the given flexibility which will be considered jointly with the Greek authorities and the institutions. This extension would also bridge the time for discussions on a possible follow-up arrangement between the Eurogroup, the institutions and Greece.

The Greek authorities will present a first list of reform measures, based on the current arrangement, by the end of Monday February 23. The institutions will provide a first view whether this is sufficiently comprehensive to be a valid starting point for a successful conclusion of the review. This list will be further specified and then agreed with the institutions by the end of April. http://www.zerohedge.com/news/2015-02-20/full-eurogroup-statement-greece          

The text signed today 20th is not a final deal. It can only be considered as final statement of today meeting. The corporate media is presenting this text as final agreement with the intention of coping with the negative economic effects of this issue.  Once was said that an agreement was reach, automatically the Econ indicators went up. The fact is that today words are not the final agreement. “By the end of April” is coming a possible agreement, is stated so in the official doct.

The extension of financial assistance agreed today (Feb 20th) expires in 4 months, it means that the real final agreement is to be reached the day 20th of June. Meanwhile all that we have is a bridge for talking’s on the advances of works to be done by Greek authorities, like the one on Monday Feb 23. At the most, today’s deal could be considered as win-win situation for both sides. They both got time, the troika to avoid the immediate collapse of the Euro and the collapse of the Union and the Greeks got time to better assemble their plans with their people and time also to get an agreement with Russia and China.  

The unfair statement in today’s deal is this one:
The Greek authorities reiterate their unequivocal commitment to honour their financial obligations to all their creditors fully and timely.  
The Greek authorities have also committed to ensure the appropriate primary fiscal surpluses or financing proceeds required to guarantee debt sustainability in line with the November 2012 Eurogroup statement. The institutions will, for the 2015 primary surplus target, take the economic circumstances in 2015 into account. http://www.zerohedge.com/news/2015-02-20/full-eurogroup-statement-greece

This means that there is no way to cancel austerity with the troika. Todays bla, bla made it clear. At least today Greeks  leaders got what they wanted: no 6 but 4 months extension period. HOWEVER, the statement above could be taken a sing of betrayal to the Greek aspiration. Is that the US media and the European is intending to portrait in the aim of delegitimizing the current Govt.   

To both parts what count are actions, no words. Both agreed that time extension was need.  The words “honoring financial obligations” are words. The troika never honor their financial obligations: they should protect people from misery, hungry and health decay. They did the opposite with their austerity plans. What they practice is vulture capitalism; they extract capital from poor nations by promoting speculation with the sovereign debt. The debt is their fault and if the troika want to honor their ethical duty to protect people, they should canceled the whole debt, no parts of it. If a thief return part of the money stolen and not the whole, is obviously accepting his felony.

Regarding the extension time, What this means for Greeks?. Let’s see  

1st, Greeks put down the threat of “today or never” placed by the corporate media. The 4 months extension means that Greeks transferred the problem “in vs.out”  to them, to the EU.

2nd, It was clear that Greeks  left to Germans & Europeans with this  dilemma:
a-      how to stop the domino effect of Grexit. To solved  it, they either have to print enough money, at least 1 trillon euros to keep “the Pigs” inside the EU and show them the mercy & miracles of the troika policies in Europe, OR..
b-      declare the insolvency of European banks and “salvece quien pueda”, bye bye EU. So Germans will be free from the burden on their shoulders:  the financing  people that they consider pigs, with no sense of ORDER, the requisite N1 to survive in neoliberal time. Pigs that in addition use to discuss their bosses’ addiction  to explosive inequality in favor of tiny elites. To these bosses poverty & austerity are need and ORDER implies that workers should keep their mouth  shut.  

3rd, it was also clear the textual threat implicit in the statement  to honour their financial obligations to all their creditors fully and timely”. They  also have to “ensure the appropriate primary fiscal surpluses or financing proceeds required to guarantee debt sustainability”, this could mean to “pay the interest rates of 2012 for loans received”.  In few  words, austerity will continue and if they do not accepted there  will no be one single penny for Greece. Why Europe became sadist with Greeks?  to let know the rest of pigs that any subversion entails punishment.

Furthermore, the EU is demanding Greek authorities to explain the above “text’ of the deal to their voters,  if they want to receive financial support. They have to delegitimize themselves in front of their own people, if they want money. In other words, they are demanding their resignation. . opium dreams.  Do Greek leaders singe that? If yes, they don’t care for what papers said, they plan to quit.

4th, the fact is that this “deal” also left open doors to discuss this issue later on. By the end of Monday February 23 Greeks should provide the list of reforms to be discussed by the end of April. In sum, today Feb 20, nothing was agreed, there were only quick words to further talking’s. Of course the corporate media will claim victory in order to cook positive economic effects in west markets. On the other hand, the Greeks have the chance to trash these humiliating provisional “deal” in whatever day from now on to the end of the 4th month of grace period (june 20th).

While the Greek exit will have strong negative economic effect on EU business and politics too, Greece has the chance of making a deal with Russia, China, Iran, etc to get a fresh start and a new life. The  leaders should start thinking in building a new society. Perhaps Aristotle’s dream will come back to their mind: the building of  a rhomboid society with few rich people and few poor people and a huge amount of productive middle classes in between.

Greek leaders  have to make plans with people to build a rhomboid society in Greece. There are many experiences of auto-gestion worldwide. I saw  schools run by teachers with shared decision making in Andean Countries. Medical post run and city clinics run by Med graduates intending to pay their student debt. Groups of workers creating their own small enterprise for home construction and repairs.. In time of Rev or rapid change, leaders like Greece have today are need., they are the ones who can spark sunami of economic and social change in Greece. In Peru an agronomist working for the State Agrarian Reform split from the Govt and decided to transfer 5 State coops to peasant communities and make a real Agrarian reform. They planed the invasion for one night with 2 month of anticipation. In that night not 5 but 79 State coops were took by peasant communities and the rest of the Andes in Peru start a real agrarian change. The military Govt had to make a deal with him. Did you planed this huge Mov? No, was his answer. I planned  only 5 community coops, the leader responded. It is the human capital the most important factor in socio-econ change. The other money is needed too but is less important than human capital. I have visited  different countries in time of Rev and I saw this fiber of change, places in which everybody wanted to run their own business.. Only leaders like the ones in Greece  can create such miracles. I friend told me that in Scandinavian countries, there were experiments of rhomboid society  too.. How to finance these coops and self-directed enterprises?  That requires the other capital and cooperative banks.. How to convert workers into managers of small enterprises?. Workers  know the how to; technicalities is all they need and graduate students from Univ can provide such help. What other ways of creating middle classes in Greece?.. that is a Key Qt for Greek leaders today.

Greek leaders  are wasting their time in talking with bureaucrats from big corp. Greeks don’t need  big Corp,  they need leaders  like the ones in Greece today.  So far they are responding good to the troika, they are setting the path, an alternative way of dealing with them at world level. In Argentina it happens twice, the 1st one was a failure and the 2nd a success. In Greece is different, their leaders treat the troika bosses in a very polite way and looking at them like cockroaches, simple peleles  of  bankers & corporations.. …everybody like these leaders. Now is time to trash the troika. They need to get 1st the money  from Russia & China to finance effective  projects. Their example will be followed. People worldwide already admire them. Big corporations in Europe &US are afraid of them. That is why they distort their actions and their words.

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FULL EUROGROUP STATEMENT ON GREECE - Redline Comparison With Previously Rejected Statement.  
From: Zerohedge. com. Submitted by Tyler Durden on 02/20/2015

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