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Das boot? Wolfgang Schaeuble is on the attack. Calls for 5 year Grexit and humanitarian aid

Did Germany kick Greece out of the Eurozone, conditionally, for 5 years, quarantine it, and treat it as a third-world country until 2020?

Alex Christoforou

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Wolfgang Schaeuble just burst the Greek bubble of Eurozone hope.

The German finance minister is rounding up support to give Greece das boot from the Eurozone, even after the Greek Parliament last night voted to pretty much do anything to stay in the Eurozone.

Here is Zerohedge with an excellent, bullet point, blow by blow…

GERMAN FINANCE MINISTER WOLFGANG SCHAEUBLE

  • “We will have exceptionally difficult negotiations.”
  • “The problem is that that there was a situation at the end of the year that was very hopeful, despite all the scepticism of previous years, and that this was destroyed in an incredible way in the last months and hours.
  • “We are dealing with financing gaps which exceed everything we have dealt with in the past.”
  • “We are talking about a completely new three-year programme.”

LUXEMBOURG FINANCE MINISTER PIERRE GRAMEGNA

  • “We, as Luxembourg, because we hold the EU presidency right now, are definitely ready to discuss debt restructuring, finalising is another issue.”

SLOVAKIAN FINANCE MINISTER PETER KAZIMIR

  • “I see a huge problem with DSA (debt sustainability analysis), so long-term sustainability of the Greek debt. So now we will see what the institutions will bring on the table, what kind of finances and we have to assess it… This package would be appropriate for the completion of the second programme, but I’m afraid this is not enough for the third programme, for the ESM programme.”

EUROGROUP CHAIRMAN AND DUTCH FINANCE MINISTER JEROEN DIJSSELBLOEM

  • “We are still far away. It looks quite complicated. On both content and the more complicated question of trust, even if it’s all good on paper the question is whether it will get off the ground and will it happen. So I think we are facing a difficult negotiation.”
  • Will you talk about debt relief?
  • “I don’t know we will get to that.”
  • “There is still a lot of criticism on the proposal, reform side, fiscal side, and there is of course a major issue of trust. Can the Greek government be trusted to do what they are promising, to actually implement in coming weeks, months and years. I think those are the key issues that will be addressed today.”
  • (For Greeks to regain trust) “Well, they will have to listen to the ministers and the institutions first and see what improvements are needed. And they will have to show very very strong commitments to rebuild that trust.”

FRENCH FINANCE MINISTER MICHEL SAPIN

  • “Confidence has been ruined by every Greek government over many years which have sometimes made promises without making good on them at all. Today we need to have confidence again, to have certainty that decisions which are spoken of are decisions which are actually taken by the Greek government.
  • On debt restructuring: “France has always said there is no taboo about the debt. We have the right to talk about the debt.”
  • We don’t want there to be reduction in the nominal value of the debt because that is a red line for many of the member states in the Eurogroup.
  • “France … is a link, and we will play this linking role to the very end.”

ITALIAN ECONOMY AND FINANCE PIER CARLO PADOAN

  • “I expect a long finance ministers meeting on Greece. It is not very easy but we will do all we can.”
  • “The purpose of this meeting is to kick off negotiations on ESM which is a medium-term, very demanding programme and we are all here with open minds to reach an OK, a green light to start negotiations. The government, the Greek Parliament and the Greek people are positive towards starting what is the beginning of a negotiation. It is not about striking a deal tonight.”

MALTESE FINANCE MINISTER EDWARD SCICLUNA

  • “This (Greek issue) has to be solved today because it is a question of coming up with this framework which gives assurance to the finance ministers.”

IRISH FINANCE MINISTER MICHAEL NOONAN

  • “The Greek paper was silent on banking. Obviously the Greek banks are in difficulty now and it’s going to be hard to put them back on an even keel, so we need a full briefing on that. Secondly I said we needed a medium term sustainable programme. Sustainability depends a lot on whether the programme is sufficient to cause the Greek economy to grow and to create jobs… It is very hard to stimulate an economy when on the demand you are doing corrective work so they need more supply side initiatives which effectively means a lot of reform which doesn’t seem to be built into the programme.”
  • “I think the trust is now being rebuilt in the relationship with Greece. I would hope that trust would continue to be rebuilt today. That’s pretty important also.”

EUROPEAN COMMISSION VICE-PRESIDENT VALDIS DOMBROVSKIS

  • “It must be said that we are clearly making progress and the Greek government’s proposal actually is pretty much along the lines of what the institutions’ proposal was before the referendum. So clearly we see there is a willingness of the Greek to reach an agreement and also the vote in parliament showed that there is a parliamentary majority to move ahead with this programme.”
  • “What we should be discussing today is basically about giving a mandate to the European Commission in liaison with the ECB and in close cooperation with the IMF to start negotiations about this ESM programme.”

AUSTRIAN FINANCE MINISTER HANS JOERG SCHELLING

  • Asked about whether he was positive on a deal: “Yes and no. Of course it is a step ahead that Greece has finally delivered, surprisingly what was already agreed before and surprisingly after the referendum. What is missing are the details. The biggest item we have to talk about is what guarantees Greece can give to implement what has been agreed. We have seen for five years now that such lists are sent, but the implementing measures never happen.”

DUTCH JUNIOR FINANCE MINISTER ERIC WIEBES

  • “The Greeks have clearly made a step forward but at the same time we see that the institutions are critical of the plan, the missing specificities and they see that the plan is weaker in some areas than it should be. It is their suggestion to only start negotiations when these conditions are further filled in.
  • At the same time, many governments, mine too, have serious concerns about the commitment of the Greek government and also the power of the implementation. That has been the weak point because after all, we are discussing a proposal from the Greek government that was fiercely rejected a week ago, and that is a serious concern.
  • (On what the Greeks can do further) we have to discuss that. Clearly there has to be made a step that enables trust with all the financing parties. (What happens if there is no agreement tonight) That is basically up to the Greek government.”

IMF MANAGING DIRECTOR CHRISTINE LAGARDE

  • “I think we are here to make a lot more progress.”

EUROPEAN ECONOMIC AFFAIRS COMMISSIONER PIERRE MOSCOVICI

“Since the start, the European Commission had the objective, that of the integrity of the euro. It was to keep a reformed Greece in the euro zone.”
“I note that the Greek government has made significant gestures.”
“We (the creditors) have said the Greek reform programme could constitute a basis for a new programme.”
“Our general sentiment is that there need to be reforms, solid reforms, reforms appropriate to the Greek authorities and reforms that are implemented as soon as possible.”

And here are the punchlines:

First the Finns:

  • Finnish Parliament Committee Opposes Greek Aid Talks
  • Greek proposals don’t warrant negotiations on new bailout, public broadcaster YLE says, citing unnamed sources.
  • Finnish parliament’s Grand Committee adopted position regarding Greek bailout request on Saturday; stance won’t be published ahead of Eurogroup debate in Brussels, state secretary Olli-Pekka Heinonen told local media
  • MP Paavo Arhinmaki, head of Left Alliance, told Helsingin Sanomat newspaper he left dissenting opinion at Grand Committee meeting; said Greek govt proposals “could be basis to start talks”

And now, Greek nemesis #1, Schauble via Bloomberg:

  • SCHAEUBLE PROPOSES TIME-LIMITED `GREXIT’: FAZ.
  • SCHAEUBLE SUGGESTS 5-YR GREXIT, HUMANITARIAN SUPPORT: FAZ

References:

http://www.zerohedge.com/news/2015-07-11/schauble-proposes-5-year-grexit-humanitarian-support-what-other-eurozone-finmins-are

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Saudis Admit Khashoggi Killed At Consulate “In Fist-Fight”, King Salman Fires 5 Top Officials

Saudi Arabia confirmed tonight that Washington Post columnist Jamal Khashoggi was killed at its consulate in Istanbul on 2 October.

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Democrat Congressman Adam Schiff has weighed in on the Khashoggi murder admission from KSA claiming “the Saudi report of Khashoggi is not credible.”

The White House issue a statement…

Via Zerohedge


Saudi Arabia confirmed tonight that Washington Post columnist Jamal Khashoggi was killed at its consulate in Istanbul on 2 October.

In a statement put out on Saudi state television, citing an initial investigation by Saudi prosecutors, SPA said that:

“an argument erupted between him [Khashoggi] and others whom he met in the Saudi consulate in Istanbul leading to a fistfight which led to his death.”

Prosecutors said the investigation was still ongoing and that 18 people, all Saudi nationals, had so far been arrested, SPA reported.

“The Kingdom expresses its deep regret at the painful developments that have taken place and stresses the commitment of the authorities in the Kingdom to bring the facts to the public,” the statement said.

Additionally, Saudi Arabia’s King Salman has removed a key royal adviser and a senior intelligence official..

King Salman issued an order to remove Saud al-Qahtani, an adviser to Crown Prince Mohammed bin Salman, according to the state-run Ikhbariya television.

The monarch also relieved deputy intelligence chief Gen. Ahmed al-Assiri.

This follows the narrative reported by The New York Times on Thursday that Riyadh is looking to blame Assiri for the purported murder of Khashoggi in an effort to shield Crown Prince Mohammed bin Salman from the blame.

Saudi King Salman has also ordered the formation of ministerial committee led by crown prince Mohammad bin Salman to restructure the general intelligence agency.

As Ali Shihabi, Founder, The Arabia Foundation, tweets:

“The removal of two top officials, a cabinet ranking, very powerful and close advisor of MBS and the Deputy Head of Foreign intelligence + 4 other Generals in foreign intelligence (virtually its whole top leadership) cannot be written off as a cover up. This is unprecedented.”

This is not saying “rogue killers” but implicating virtually the whole top leadership of foreign intelligence. They carried out a mission that went sour very quickly and tried to cover it up initially. Bad news travels slowly to the top.”

We await President Trump’s “very severe consequences.”

 

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Pat Buchanan: Caravan Puts Trump Legacy on the Line

Unwanted mass migration is the issue of our time, as there is no foreseeable end to it before it alters America irremediably.

Patrick J. Buchanan

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Authored by Patrick Buchanan via Buchanan.org:


Our mainstream media remain consumed with the grisly killing of Washington Post columnist Jamal Khashoggi in the Saudi consulate in Istanbul, and how President Donald Trump will deal with Crown Prince Mohammed bin Salman.

Understandably so, for this is the most riveting murder story since O.J. Simpson and has strategic implications across the Middle East.

Yet far more critical to the future of our civilization is the ongoing invasion of the West from the Third World.

Consider the impact of the decision by Chancellor Angela Merkel in 2015 to throw open Germany’s doors to 1 million refugees from Syria’s civil war.

Last weekend, in a crushing blow to Merkel, the Christian Social Union, the Bavarian sister party of her CDU, won its smallest share of the vote in half a century, 37 percent. Her coalition party, the SPD, saw its share of the Bavarian vote fall to a historic low of less than 10 percent.

The right-wing Alternative for Deutchland saw its support rise to 10 percent and has become a force in German politics. Some conservatives are urging the CDU to adopt the AfD hardline on illegal immigration.

The message sent by the Bavarian electorate is the message voters across Europe have been sending to their own capitals for years: You are failing in your first duty — defense of the homeland from foreign invasion. Mass migration of unassimilable peoples and cultures from a global South represents an existential threat to our Europe.

As Merkel’s chancellorship approaches its end, French President Emmanuel Macron, her progressive EU partner, has seen his approval fall to below 30 percent.

The U.S.-led NATO alliance may guard the Baltic and Black Sea regions against a Russian invasion from the east. But in Central, Southern and Western Europe, the more feared invaders are the peoples of Africa and the Muslim world, whose numbers are expected to triple or quadruple by this century’s end.

And as their numbers grow, so, too, does their desperation to escape, even at risk of their lives, the poverty, wars and repression of their homelands to cross the Med and fill the empty spaces left by a depopulating Europe.

It also now appears that the U.S. elections, not three weeks away, may be affected by another immigration crisis on the U.S. border.

As of Thursday, a caravan of 4,000 refugees without visas had crossed from Honduras into Guatemala and was heading toward Mexico. By Election Day, it will either have been stopped, or it will be here. And this caravan is a portent of things to come.

According to The Washington Post, during FY 2018, which ended last month, 107,212 members of “family units” crossed over into the U.S., “obliterating the previous record of 77,857 set in 2016.”

Citing DHS figures, the Post adds, “Border patrol agents arrested 16,658 family members in September alone, the highest one-month total on record and an 80 percent increase from July.”

When Trump, under intense political fire, ended his “zero tolerance” policy of separating refugees from their children, this message went out to Mexico and Central America:

Bring your kids with you when you cross the border. They will have to stay with you, and they cannot be held for more than 20 days. Thus, when they are released, you will be released to await a hearing on your claim of asylum. The odds are excellent that you can vanish into the U.S. population and never be sent back.

Enraged, Trump has threatened to cut off aid to El Salvador, Honduras and Guatemala if they do not stop the caravans and has warned Mexico he will use the U.S. military to secure our border.

Unwanted mass migration is the issue of our time, as there is no foreseeable end to it before it alters America irremediably.

As these migrants are almost all poor, not highly skilled, and do not speak English, most will join that segment of our population that pays no income taxes but qualifies for social welfare benefits like food stamps, medical care and free education in our public schools.

They are thus a net drain upon the resources of a nation that is already, at full employment, running a deficit of $779 billion a year.

These migrants, however, are a present and future benefit to the Democratic Party that built and maintains our mammoth welfare state, and which, in presidential elections, routinely wins 70 to 90 percent of the votes of people whose trace their ancestry to Asia, Africa and Latin America.

Not without reason, Democrats believe that if they can change the composition of the American electorate, they can control America forever.

If Donald Trump was elected on any one issue, it was immigration and his promises to secure the border, build the wall and halt the invasion.

How he deals with the impending crisis of the migrant caravan may affect both the fate of his party in November and his presidency in 2020.

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‘Mohammad bin Salman Must Go’, but US-Saudi Ties Are Here to Stay

Was it possible that Mohammed bin Salman (MBS) was so arrogant that he could not imagine the consequences of such a heinous crime?

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Authored by Federico Pieraccini via The Strategic Culture Foundation:


Mohammad bin Salman is fully aware of the Western elite’s understanding of its own values. While he may be given a pass to bomb Yemen and kill thousands of innocent civilians, he should know better than to dare touch a Washington Post columnist – “one of ours”, as one MSNBC host said. Did he not realize there would be consequences?

As more information came out, many analysts began to confront the most obvious question. Was it possible that Mohammed bin Salman (MBS) was so arrogant that he could not imagine the consequences of such a heinous crime? How could MBS betray Trump this way, not anticipating that the Democrats and the mainstream media would jump all over Trump’s friendship with him? Could he be so foolish as to place in jeopardy foreign investments planned at the Davos in the Desert conference on October 23? The answer to that question is apparently: yes, he could.

The only rational explanation for this behavior is that MBS thought he could get away with it. Remember that we are talking about someone who had Saad Hariri, the prime minister of Lebanon, kidnapped and carried off to the Kingdom, with his whereabouts unknown for days but with very little reaction from the mainstream media or Western politicians. It is possible that in this instance, MBS simply misjudged the level of Khashoggi’s popularity amongst neoliberals of the Washington establishment, provoking an unexpected response. Furthermore, the thesis that the Saudis understood that they had some kind of green light from Trump is not to be totally dismissed. Such a backlash is what you get from having a big mouthpraise your friends too much, and tweet all the time.

The rapidity with which the US media, and especially dozens of Republican and Democratic senators, attacked Saudi Arabia, blaming it for the atrocious crime, is rather unusual. After all, the Saudi elites have been inclined to behave in such a manner over the last 40 years. But it also highlights the ongoing inconsistency and double standards: nothing is said about Yemen, but the Kingdom is currently under the strongest censure for allegedly offing a journalist.

As I had already pointed out in my previous article, Khashoggi was clearly part of a faction opposed to the current ruling royal family in Saudi Arabia, headed by MBS. To understand this Saudi golden boy of the US mainstream media as well as military-industrial-spying complex, we have to go back to Mohammed bin Nayef. Bin Nayef has been under house arrest for almost two years, immediately purged by MBS as soon as he assumed power as crown prince. Bin Nayef has for decades been the CIA’s go-to man in Riyadh, helping the CIA & Co. pretend to “fight” al Qaeda in the Kingdom while using al Qaeda as a tool to inflict damage on US geopolitical adversaries.

The removal of bin Nayef by MBS was greeted with anger by a part of the US establishment close to Washington think tanks and the CIA and was never fully digested. MBS and his father, King Salman, needed to consolidate power around the throne at the time, and bin Nayef was certainly part of the faction opposing MBS, as was Khashoggi.

Naturally, these antipathies were set aside by the CIA, think tanks and neoliberals in the media due to to the importance of the relationship between Saudi Arabia and the US, especially vis-a-vis the US Petrodollar. MBS even undertook a tour in the US to help smooth the relationship with the West, being hailed as a new reformer, if you can believe that.

Nowadays,the relationship between Riyadh, Tel Aviv and Washington is based on the strong friendship between Trump and MBS and Trump and Netanyahu. Furthermore, the strengthened link between Trump and MBS, facilitated by son-in-law Jared Kushner, who is close to Israel, served to create a new alliance, perhaps even hinting at the possibility of an Arab NATO. Israel is eager to see more Saudi and US engagement against Iran in the region, and the Saudis similarly praise Israel and the US for being engaged in a fight against Iranian influence in the region. In this way, Trump can please his Israeli friends and see Saudi money pour in as investments.

These agreements have led to a series of disasters in the Middle East that go against the interests of Israel, Saudi Arabia and the US. Israel’s recklessness has led to the deployment of a wide range of Russian state-of-the-art weapons to Syria, preventing Israel and the US from acting as freely as before. The disastrous Saudi war in Yemen, the almost diplomatic break with Canada, the kidnapping of the prime minister of Lebanon, and now the Khashoggi affair, have further weakened and isolated Saudi Arabia, MBS, and therefore Trump. The US is no longer able to influence events on the ground in Syria, and so the initial plans of Israel and Saudi Arabia have foundered, after having devoted hundreds of millions of dollars to arm and train terrorists to overthrow Assad.

The Khashoggi affair plays into this situation, exacerbating the war between elites in the US as their strategies in the Middle East continue to fail. The neoliberal mainstream media immediately used the Khashoggi story to pressure Trump into taking a firm stance against one of his last friends and financiers, trying to further isolate him as the midterms approach. Many in the US deep state are convinced – as they were convinced that Clinton would win the presidency – that the House and Senate will end up in Democratic hands in the November elections, paving the way for Trump’s impeachment and for Mike Pence to become president. Pence, a prominent figure of the evangelical right, would be the perfect president for Israel, placing Tel Aviv in the driving seat of US foreign policy as never before. In this scenario, it would certainly be preferable for certain parts of the elite to have a different figure at the helm in Saudi Arabia, seeing as MBS appears to be an unstable leader. Possibly they would prefer someone tied to the US secret services – someone like Mohammed bin Nayef. For these reasons, Democrats, some Republicans and the mainstream media have gone all out against MBS and Trump.

Turkey seems to be using the situation to further widen the fracture between Saudi Arabia and the rest of the world. Since Doha is paying the bills for Erdogan these days, with the Turkish lira at a low, it is essentially the Al Thani family running the PR show in the Turkish media. It looks like the Qatari media are paying back with interests all the negative media they received from the Saudis over the past year. Despite this, neither Ankara nor Riyadh is intent on any kind escalation, both knowing that any suffering on their part is a boon for their enemies.

An interesting aspect related to the Khashoggi affair concerns the sources of the news about the investigation, all anonymous and coming from Turkish police or from people linked to the top echelons of the Turkish state. Knowing the odd state of relations between Ankara and Riyadh, and especially between Turkish ally Qatar and Saudi Arabia, all this news coming from one source should at least be taken with a grain of salt. What is certain is that the Turks had immediate knowledge of the matter regarding who, what, where, when and why. This means that they must have bugged the Saudi consulate in Istanbul, allowing the MIT, Turkey’s intelligence service, to know in real time what was happening to Khashoggi. The story concerning the Apple watch appears to be an attempt by the Turks to thrown off the scent Saudis who may be scratching their heads wondering how the Turks came to have such intimate knowledge of what transpired in their consulate.

For Turkey, the Khashoggi affair could be the occasion for a rapprochement with the US, following a deterioration in relations in the last two years. Turkey has few friends left, and after being cornered by Russia and Iran in Astana with regards to Syria,  it also has to deal with the tensions between Riyadh and Qatar as well as balance its relations with Iran and Israel. Erdogan would like to exploit this event as much as possible, and the release of Pastor Brunson seems to indicate Ankara’s willingness to extend an olive branch to Washington.

Russia, Syria and Iran have everything to benefit from this ongoing internal quarrel between elements within Saudi Arabia, Israel, Turkey, Qatar and the US. Whatever the outcome of the Khashoggi affair, Moscow, Tehran and Damascus can only benefit from any deterioration of relations between these countries.

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