Greece Surrenders its Sovereignty to Brussels

http://www.blacklistednews.com/Greece_Surrenders_its_Sovereignty_to_Brussels/44859/0/38/38/Y/M.html

Greece Surrenders its Sovereignty to Brussels
Published: July 1, 2015
    


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Source: Martin Armstrong

Greece Surrenders its Sovereignty to Brussels
Posted on July 1, 2015 by Martin Armstrong

The Syriza government is backing down after the realization that Brussels will declare economic war on Greece by deliberately trying to plunge the country into total ruin, far worse than the sanctions imposed on Russia. This is a sad day for the entire world. It is a terrible example that the Troika is the new equivalent of a Roman Triumvirate – the death of democracy. Europeans will remember this day for it is when national sovereignty died.
We have a copy of a letter sent from Greece to the EU accepting all terms. This is a surrender of sovereignty and no doubt the truth of this turnaround will be hidden from the public at large worldwide – not just the Greek people. All our fears of moving into Economic Totalitarianism are coming true. Democratic principles are dead: long live Totalitarianism. No doubt, this was the toast in Brussels last night (behind the curtain, of course).

Quote :

The troika is a slang term for the three organizations which have the most power over Greece's financial future - or at least that future as it is defined within the European Union. The three groups are the European Commission (EC), the International Monetary Fund (IMF), and the European Central Bank (ECB).

It's an ominous day for the people of this planet.

Check zerohedge back a Few days, a lot is going on in this tug of war.

http://www.blacklistednews.com/EU_Parliament_President_Tells_Greece%3ATime_For_Another_Puppet_Government/44873/0/38/38/Y/M.html

EU Parliament President Tells Greece:Time For Another Puppet Government
Published: July 2, 2015


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Source: Zero Hedge

European Parliament president Martin Schulz said his faith in the Greek government had reached "rock bottom," and, as AFP reports, that he hopes it resigns after Sunday's referendum. Luckily, he has an idea for a solution... the time between the departure of Tsipras' hard-left Syriza party and new elections would have to "be bridged with a technocratic government, so that we can continue to negotiate."
As AFP reports,

Quote :

Schulz on Thursday told German Handelsblatt business daily that "new elections would be necessary if the Greek people vote for the reform programme and thus for remaining in the eurozone and Tsipras, as a logical consequence, resigns."
The time between the departure of Tsipras' hard-left Syriza party and new elections would have to "be bridged with a technocratic government, so that we can continue to negotiate," Schulz was quoted as saying.
"If this transitional government reaches a reasonable agreement with the creditors, then Syriza's time would be over," he said. "Then Greece has another chance."
Schulz charged that Tsipras was "unpredictable and manipulates the people of Greece, in a way which has almost demagogical traits."
"My faith in the willingness of the Greek government to negotiate has now reached rock bottom," he said

*  *  *
Just what The Greeks need - another "Yes man" puppet government to implement whatever Europe's bankers demand.

http://www.zerohedge.com/news/2015-07-02/did-imf-just-open-pandoras-box

Did The IMF Just Open Pandora's Box?


Submitted by Tyler Durden on 07/02/2015

 







By now it should be clear to all that the only reason why Germany has been so steadfast in its negotiating stance with Greece is because it knows very well that if it concedes to a public debt reduction (as opposed to haircut on debt held mostly by private entities such as hedge funds which already happened in 2012), then the rest of the PIIGS will come pouring in: first Italy, then Spain, then Portugal, then Ireland.
The problem is that while it took Europe some 5 years to transfer a little over €200 billion in Greek private debt exposure to the public balance sheet (by way of the ECB, EFSF, ESM and countless other ad hoc acronyms) at a cost of countless summits and endless negotiations, which may or may not result with the first casualty of the common currency which may prove to be reversible as soon as next week, nobody in Europe harbors any doubt that the same exercise can be repeated with Italy, or Spain, or even Portugal. They are just too big (and their nonperforming loans are in the hundreds of billions).
And yet, today, in a stunning display of the schism within the Troika, it was the IMF itself which explicitly stated that Greece is no longer viable unless there is both additional funding provided to the country, which can only happen if there is another massive debt haircut.
This is what the IMF said:

Quote :

Even with concessional financing through 2018, debt would remain very high for decades and highly vulnerable to shocks. Assuming official (concessional) financing through end–2018, the debt-to-GDP ratio is projected at about 150 percent in 2020, and close to 140 percent in 2022 (see Figure 4ii). Using the thresholds agreed in November 2012, a haircut that yields a reduction in debt of over 30 percent of GDP would be required to meet the November 2012 debt targets. With debt remaining very high, any further deterioration in growth rates or in the mediumterm primary surplus relative to the revised baseline scenario discussed here would result in significant increases in debt and gross financing needs (see robustness tests in the next section below). This points to the high vulnerability of the debt dynamics.

And the kicker:

• "these new financing needs render the debt dynamics unsustainable."
  

Bingo, because that is, in a nutshell, precisely what Tsipras and Varoufakis have been claiming since day one. As expected, a Greek government spokesman promptly said that the IMF report is in line with the Greek government's view on debt.
What makes the IMF report even more odd, is not so much its content and position which have been largely known for quite some time now, but its timing: just three days before the Sunday referendum, Tsipras now has prima facie evidence to wave in front of the Greek people and say "see, we were right all along."
It is exactly the case that only a "No" vote at this point would allow Greece to continue a negotiation which has already seen one of the three Troika members side with the Greek position. Should Greece vote "Yes", it will make any future negotiation with the Troika impossible, and while the country will get a few months respite the resultant bank run after the bank reopen with the ECB's blessing will mean that all Greece will do is buy itself a few months time. Only this time all the debt will still be due.
And, should hey vote "Yes", this time the Greeks will only have themselves to blame for all the future pain, pain which will continue well after the mid-point of this century.
But ignoring Greece for a minute, what the IMF's "debt sustainability analysis" has just done is open the door for every single other comparably insolvent peripheral European nation to knock on Christine Lagarde's door and politely ask: "Mme Lagarde, if Greece is unsustainable, then why aren't we?"
Because as the chart below shows, the debt situations of all the other peripheral European nations is just as "unsustainable."
.zerohedge.com/sites/default/files/images/user5/imageroot/2015/06/debt GDP ratios 2014 update piigs.jpg][/url]
 
In this way, while the outcome of the Greek situation is currently unknown, it has also become moot, because at this very moment, politicians from Spain's Podemos to Italy's Five Star movement are drafting memos demanding that the IMF evaluate their own debt sustainability. Or rather unsustainability.
Perhaps more importantly, these same politicians will now dangle the prospect of an IMF admission that they, too, deserve a haircut as the catalyst to be elected into power. After all who can refuse that their life would be made so much better if only the country was permitted to selectively "default" on €50, €100, €200 billion or more in debt? Just elect this politician, or that, and watch your living standard soar...
And since the IMF has no choice but to agree that just like Greece all these nations are accordingly drowning in debt, Syriza's sacrifice (assuming Tsipras fails to outnegotiate Merkel) will not have been in vain. In fact, it may very well end up that today the IMF opened up the Pandora's box, one which, more than a Grexit, will destroy Merkel's "united Europe" legacy.

http://kingworldnews.com/paul-craig-roberts-the-fate-of-the-entire-world-is-about-to-be-decided/
Paul Craig Roberts – The Fate Of The Entire World Is About To Be Decided
                 July 03, 2015


Snippet:
The Greek government, to the surprise and consternation of every other European government, has called a referendum for the Greek people to decide the fate of Greece.  For resorting to democracy, the Greek government has been universally denounced in the Western World.  So much for Western democracy.

MORE at link,,,, but you get the idea!
Like a school yard game of excluding, if you aren't on our team you are not good, etc.

http://news.yahoo.com/greek-bank-closures-may-deplete-supermarket-shelves-155431880--sector.html


Greek bank closures may deplete supermarket shelves


By Martinne Geller and Lefteris Karagiannopoulos 10 hours ago


By Martinne Geller and Lefteris Karagiannopoulos
LONDON/ATHENS (Reuters) - A halt to international payments from Greek bank accounts is hurting Greek businesses and their foreign partners and threatening supplies of vital goods like food and clothing into the debt-crippled country.
With banks closed, people limited to withdrawing 60 euros ($66.62) per day and Greece's future in the euro possibly hinging on a referendum on Sunday, Greek shoppers have been stocking up on essentials like sugar, flour, pasta, rice, beans, canned and paper goods.
Shelves remain full for now as retailers have inventories in storage. But capital controls put in place after Greece defaulted on a loan to international creditors have essentially frozen companies' cash flows and credit.
This has severely hampered production and shipping, meaning that goods are in finite supply. With this week's rush to supermarkets, shortages could be around the corner although budget limits are providing some cushion.
"At this stage there is no problem of shortages. There is sufficient stock in our warehouses and we renew it frequently," said Melina Varoutsikou, spokeswoman for Sklavenitis, one of Greece's largest supermarket chains.
"However, nobody knows how much these can last. It all depends on which product we are talking about."
With no international bank transfers, imports and exports have been clobbered, according to SEV-Hellenic Federation of Enterprises, meaning there are fewer raw materials, even for local production, and less petrol available for deliveries.
The Greek finance ministry said on Friday that companies wishing to process bank transfers abroad to pay suppliers must submit a request to the Committee of Approval of Bank Transfers through their commercial bank.
The ministry said companies can get further information by going to their home branch or calling their bank's central number. But for quicker processing, the ministry recommended faxing the requests. It made no mention of e-mail, the medium often used for international business.
Meanwhile, sellers of perishable items like fresh fruit and vegetables stand to realize losses as shipments are stalled.
"The food and beverage industry suffers heavily," said George Xirogiannis, director of industrial and sectoral policies for SEV, a trade group involved in lobbying the government to reconsider its position on cross-border transactions.
"Cash flow problems are spread throughout the economy, regardless of the size of the enterprise."
Large multinationals such as Nestle, Procter & Gamble, L'Oreal and Coca-Cola operate in Greece and could see a sales hit, since wholesalers that lack online banking facilities or international accounts have been unable to execute any payments abroad.

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