POTUS and Germany

Courtesy of the White House

As overhead by an American Eagle, Distance might have confused this conversation.

POTUS: Please AM gives me Euro Bonds, that will keep Greece in the Euro and get me re-elected.

Chancellor: Hows that 16 Trillion Debt going?

POTUS: If we spend we can get growth.

Chancellor: Weimar Germany, NO

POTUS: IF don't get re-elected you get a Conservative President.

Chancellor: Thanks I need a laugh, you bailout Greece after you get re-elected and I will say yes to Euro Bonds.

POTUS: Your not keen on me are YOU, my Staff and the NYT love me.

Chancellor: That's your problem!

Blackmailing the Greeks - Eurozone Crisis

Guardian: Reports on a backlash to the anti austerity Parties in Greece the articles notes the following, " polls indicated that fears of expulsion from the eurozone have helped consolidate support for parties backing the tough terms.. ".

Lets Get Real:

The Greeks are being blackmailed folks, either toe the line and suffer years of painful austerity or face banks runs, civic disorder, the police not be paid, the modern Greek state falling outside the EU. It if the article is picking up on a trend then Greece might vote for austerity Parties, thus no Greece out of the Euro but hardly in either. How many more billions will it cost the German tax payer, if Greece does not have the backbone to get out of the Euro then the Greek crisis will flare up every few weeks or months. It would throw the problem in to the long grass for a bit, and Germany could argue that the EU does not need Euro bonds. Thus the Greek Election on June 17th might only gave the a short breathing space, even if the Greek people are cowed this time, what happens in the days, weeks, months ahead when people are searching for food in bins, when the Middle Class are drive to take such action, kicking the ball in the long grass wont help Greece or the Euro folks.

Greece and the Euro

Telegraph: Reports that the G8 has called for Greece to remain in the Euro but for it to keep to its agreements.

Lets Get Real:

The above in a way is a threat to Greece, toe the line as to your agreement or your out, the political leaders might stress growth but only Germany has the money to bailout Greece and the rest of the PIIGS, and the German tax payer has had enough of its lose spending EU allies. Thus since the May election in Greece the Greeks banks have seen billions taken out by people afraid that their saving will be cut over night should Greece return to its original currency. The question that has to be asked can Greece get to June 17 and its General Election before the Greeks banks go under, will the EU/IMF/ECB bailout the Greek banks before the June election. If not Greece will be carried out of the Euro by events not the political process. Its down to Greek voters folks, they have to decide, austerity or OUT of the Euro. The fate of Greece and the Euro could be settled by the June election in Greece.

G8 and the Euro

BBC News: Reports that the US and French stress on growth won out in the debate at the G8 about the present crisis facing the US and Europe, the losers in the debate are seen as the UK and Germany and their austerity plans.

Lets Get Real:

It does not matter what the US and France want, its Germany that holds the money strings, the US has a near 16 trillion debt, POTUS is taking the class warfare attack at present to keep his uber liberal base happy. In the case of President Hollande he is still in Campaign mode, he has Parliamentary elections coming up, thus he cant fold, he needs to stress growth, as if this is some cure to all the economic ills facing Europe. The nightmare for Hollande after just winning the election would be to share power with the extreme right wing PM, that would be a political nightmare for him and the his left party. The Germans and the UK will of course stress growth but they are not going to drop their austerity plans to keep Hollande happy, as it was noted in Germany of late, the Germans are not going to pay for French election promises.