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Financial Times releases letter from Alexis Tsipras to Merkel. No EU cash for Greece, then no debt payments can be made

Greek Prime Minister Alexis Tsipras warned German Chancellor Angela Merkel on Monday of the country’s inability to repay its debt in the coming weeks without financial help from the European Union. One way or another, an endgame is about to arrive.

Alex Christoforou

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The Financial Times has acquired a letter sent from Greek Prime Minister Alexis Tsipras, addressed to Angela Merkel, saying that if the EU does not pony up some cash, fast, then Greece will be unable to meet its debt payments…i.e. bankruptcy, default, caput, stick a fork in it.

To read the full letter, Click here.

From Naked Capitalism…

If the plan of the Troika was to starve the Tsipras government and produce either capitulation or a loss of domestic credibility, their effort appears to be on track.

FAZ reported that the Greek government is set to run out of funds by April 8. Tonight, the Financial Times reports that Greek prime minister Alexis Tsipras sent a desperate-sounding letter to Angela Merkel on March 15. That appears to have led Merkel to meet with him at an EU conference last week and arrange for a one-on-one session tomorrow.

From the Financial Times account:

Alexis Tsipras, the Greek prime minister, has warned Angela Merkel that it will be “impossible” for Athens to service debt obligations due in the coming weeks if the EU fails to distribute any short-term financial assistance to the country…

In the letter, Mr Tsipras warns that his government will be forced to choose between paying off loans, owed primarily to the International Monetary Fund, or continue social spending. He blames European Central Bank limits on Greece’s ability to issue short-term debt as well as eurozone bailout authorities’ refusal to disburse any aid before Athens adopts a new round of economic reforms.

Curiously, the Financial Times story fails to mention that European Commission chief Jean-Claude Juncker offered €2 billion for humanitarian relief. However, there may be less here than meets the eye. If you read the text carefully, the €2 billion is the maximum Greece could get. And Juncker stressed, “That’s not meant to go into the coffers of the Greek state but to support efforts to create growth and social cohesion in Greece.” That would seem to imply that strings are attached or that there will be strict oversight of how the funds are used. And it was not clear how quickly the funds would be released.

But if we are to accept Juncker at face value, the €2 billion is for new spending for specific programs. And since the Syriza election budget proposed €1.8 billion for humanitarian programs, the intent of the Juncker offer might be to fund that part of the Greek reforms so as to eliminate that as a bone of contention and a potential PR disaster. Moreover, it could still be that the release of these funds is contingent on Greece getting its reform list negotiated and approved.

But even if you factor in this omitted bit of good news, the picture is still grim. From the pink paper:

Mr Tsipras was rebuffed in efforts to secure quick financing from either the ECB or eurozone lenders at Thursday’s Brussels meeting with Ms Merkel and a small group of other EU leaders — including French president François Hollande and ECB chief Mario Draghi.

In an interview, Luis de Guindos, Spanish finance minister, said his eurozone counterparts would not sign off on any new bailout funding until a full set of approved reforms was passed and implemented by Greek authorities, a process that could take months.

This comment by de Guindos is more deadly than it seems. He has emerged as the hardest hardliner in the Eurogroup, the committee of finance ministers. Recall that for Greece to get the near-term bailout funds it needs, it not only has to get the blessing of the Troika, but then the Eurogroup. And that vote has to be unanimous. A single dissent can block Greece. So de Guindos refusing to sign off on a change in procedures means Greece is still obligated to submit a detailed reform list and work with the Troika to get to a mutually acceptable version.

But keep in mind that de Guindos is not alone in that view. Merkel last week also stated, in effect, that Greece has to adhere to the process set forth in the February memo it signed with the Eurogroup. From Reuters:

“The agreement of Feb. 20 is still valid in its entirety. Every paragraph of the agreement counts,” Merkel told German journalists who questioned whether she was now offering cash for promises that many of her supporters have stopped believing in….

Merkel insisted only the completion of approved measures — in a final review by creditor institutions — would satisfy lenders including the Euro Group of euro zone finance ministers.

“The Greek government has the possibility of replacing individual reforms outstanding from Dec. 10 with other reforms, if these … have the same effect. The institutions and then the Euro Group must decide whether they do have the same effect,” she said, noting Ireland had made such changes with EU backing.

So understand what this means: Merkel knew last week that the Greek government was threatening default in order to get funds some funds released without having completed the process it had agreed to less than a month ago. She refused to budge.

The Financial Times provides more detail about the missive to Merkel:

Mr Tsipras’s five-page letter is particularly critical of the ECB, which he said had forbidden Greek banks from holding more short-term government debt than they did when they requested an extension of the current bailout last month — a cap that has prevented Athens from relying on Treasury bills to fill its urgent cash needs because Greek banks have become nearly the only buyer of such debt.

The Greek prime minister insisted the ECB should have returned to “the terms of finance of the Greek banks” that existed immediately following his government’s election — when ECB rules were more lenient — once the deal to extend Athens’ €172bn bailout through June was agreed last month.

Far from going easier on Athens, the ECB is considering whether to give its guidance to Greek banks more authority by making it a legally binding requirement not to add to their T-bill holdings. A decision is expected this week.

He also criticised the ECB for only increasing the amount of emergency central bank loans to Greek lenders “at shorter intervals than normal and at rather small increments”, arguing such drip-feeding continued to “incite speculation and spread uncertainty vis-à-vis Greece’s banking system”.

As we noted in our post last Friday, after Tsipras had met with Merkel, Draghi, French President Francois Hollande, Juncker, Eurogroup leader Jeroen Dijsselbloem, and EC council head Donald Tusk, the Financial Times described Draghi as “incensed” over the way Greece was making it difficult for inspectors from the ECB, European Commission and International Monetary Fund to do their job. One wonders if he was shown the Tsipras letter and that added to Draghi’s choler.

The Reuters report on the meeting last week stated that officials told Tsipras that if he presented a plan, the Eurogroup could meet on short order. But the message seems clear: the Greek government needs to flesh out its reform plans, and the starting point is the old, hated structural reforms, let the Troika inspectors do their work, and only then might it get some money.

We were worried from the outset that the Syriza slogan, “Hope is coming” was a bad omen. It looks as if the Greek government pinned far too much hope on the idea that it could play them off against each other (which we thought was remarkably naive) or that its creditors were so reluctant to avoid a Greek default that they’ve go into “extend and pretend” mode and throw Greece a financial lifeline. We’ll see what steps the Tsipras administration takes now that it sees that the Troika has closed the exits and does not seem inhibited about turning up the heat.

References:

http://www.nakedcapitalism.com/2015/03/leaked-tsipras-letter-merkel-shows-increased-desperation-warns-imminent-default.html

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Defeat in Bavaria delivers knockout punch to Merkel’s tenure as Chancellor (Video)

The Duran – News in Review – Episode 136.

Alex Christoforou

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The stunning CSU defeat in Bavaria means that the coalition partner in Angela Merkel’s government has lost an absolute majority in their worst election results in Bavaria since 1950.

In a preview analysis before the election, Deutsche Welle noted that a CSU collapse could lead to Seehofer’s resignation from Merkel’s government, and conceivably Söder’s exit from the Bavarian state premiership, which would remove two of the chancellor’s most outspoken critics from power, and give her room to govern in the calmer, crisis-free manner she is accustomed to.

On the other hand, a heavy loss and big resignations in the CSU might well push a desperate party in a more volatile, abrasive direction at the national level. That would further antagonize the SPD, the center-left junior partners in Merkel’s coalition, themselves desperate for a new direction and already impatient with Seehofer’s destabilizing antics, and precipitate a break-up of the age-old CDU/CSU alliance, and therefore a break-up of Merkel’s grand coalition. In short: Anything could happen after Sunday, up to and including Merkel’s fall.

The Financial Times reports that the campaign was dominated by the divisive issue of immigration, in a sign of how the shockwaves from Merkel’s disastrous decision to let in more than a million refugees in 2015-16 are continuing to reverberate through German politics and to reshape the party landscape.

The Duran’s Alex Christoforou and Editor-in-Chief Alexander Mercouris discuss the stunning Bavarian election defeat of the CSU party, and the message voters sent to Angela Merkel, the last of the Obama ‘rat pack’ neo-liberal, globalist leaders whose tenure as German Chancellor appears to be coming to an end.

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Via Zerohedge

Voters in Germany’s economically dominant southern state of Bavaria delivered a stunning rebuke to the ruling Christian Social Union, in an election that delivered another crushing blow for the parties in Angela Merkel’s grand coalition in Berlin.

With all eyes on Sunday’s Bavaria election, moments ago the first exit polls showed a historic collapse for the ruling CSU party, which has ruled Bavaria continuously since 1957, and which saw its share of the vote collapse from 47.7% in the 2013 election to just 35.5%, losing its absolute majority and suffering its worst result since 1950, as voters defected in their droves to the Greens and the far-right Alternative for Germany.

German newspaper Welt called the election “the most painful election defeat of the past 50 years for the CSU”. As predicted in the polls, the CSU experienced a “historic debacle” in the Bavarian state elections, according to Welt. The CSU was followed by the Greens which soared in the election, more than doubling to 18.5% from 8.6% in 2013, the Free Voters also rose to 11% from 9.0%, in 2013.

Meanwhile, the nationalist AfD are expecting to enter Bavaria’s parliament for the first time ever with 11% of the vote, and as such are setting up for their post-election party. Party leader Alice Weidel already is having the first beer in the small community of Mamming in Lower Bavaria.

Establishment party, left-of-center SPD also saw its support collapse from 20.6% in 2013 to just 10% today.

The full initial results from an ARD exit poll are as follows (via Zerohedge):

  • CSU: 35.5 %
  • Grüne: 18.5 %
  • FW: 11.5 %
  • AfD: 11.0 %
  • SPD: 10.0 %
  • FDP: 5.0 %
  • Linke: 3.5 %
  • Sonstige: 5.0 %

The breakdown by gender did not show any marked variations when it comes to CSU support, although more women voted for the Greens, while far more men supported the AfD:

There was a greater variation by educational level, with highly educated voters tending more towards the green GRÜNE (G/EFA) and liberal FDP (ALDE) then the average, while low/middle educated voters tended more towards CSU (EPP) and AfD (EFDD).

This was the worst result for the CSU since 1950.

Zerohedge further reports that alarmed by the rise of the anti-immigration, populist AfD, the CSU tried to outflank them by talking tough on immigration and picking fights with Ms Merkel over asylum policy.

But the strategy appeared to have backfired spectacularly by alienating tens of thousands of moderate CSU voters and driving them into the arms of the Greens.

Meanwhile, as support the CSU and SPD collapsed, the result confirmed the Greens’ status as the rising force in German politics. Running on a platform of open borders, liberal social values and the fight against climate change the party saw its support surge to 18.5%, from 8.4% in 2013. Meanwhile the AfD won 11%, and for the first time entered the Bavarian regional assembly.

“This is an earthquake for Bavaria,” said Jürgen Falter, a political scientist at the University of Mainz.

The CSU had governed the state with an absolute majority for most of the last 60 years. “It was Bavaria and Bavaria was the CSU. That is now no longer the case.”

The latest collapse of Germany’s establishment parties highlights the shaky ground the grand coalition in Berlin is now resting on as all three parties in the alliance, Merkel’s Christian Democratic Union, the CSU and the SPD, are haemorrhaging support. Some are now questioning whether the coalition, already frayed by personal rivalries and near constant bickering over policy, can survive a full term in office.

“This outcome throws ever more doubt on the future of the grand coalition,” said Heinrich Oberreuter, head of the Passau Journalism Institute and an expert on the CSU. “Based on current polls, if an election were held now, the CDU, CSU and SPD would not even command a majority in the Bundestag.”

The CSU will now be be forced to form a coalition government — a humiliating outcome for a party that has run Bavaria single-handedly for 49 of the last 54 years. Its preference is probably for a three-party coalition with the Free Voters, a small party that is mainly focused on local politics. It could also team up with the Greens, though it would be highly reluctant to do so: the two parties are deeply divided over immigration, transport and environmental policy.

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Elizabeth Warren’s DNA ploy backfires big time (Video)

The Duran Quick Take: Episode 1.

Alex Christoforou

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RT CrossTalk host Peter Lavelle and The Duran’s Alex Christoforou take a quick look at Senator Elizabeth Warren’s ‘genius’ idea to accept POTUS Trump’s ‘Native American DNA’ challenge. Let’s just say that Warren will never recover from this self-inflicted wound.

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The Cherokee Nation issued a statement crushing Elizabeth Warren for her “continued claims of tribal heritage.”

“A DNA test is useless to determine tribal citizenship. Current DNA tests do not even distinguish whether a person’s ancestors were indigenous to North or South America. Sovereign tribal nations set their own legal requirements for citizenship, and while DNA tests can be used to determine lineage, such as paternity to an individual, it is not evidence for tribal affiliation. Using a DNA test to lay claim to any connection to the Cherokee Nation or any tribal nation, even vaguely, is inappropriate and wrong. It makes a mockery out of DNA tests and its legitimate uses while also dishonoring legitimate tribal governments and their citizens, who ancestors are well documented and whose heritage is prove. Senator Warren is undermining tribal interests with her continued claims of tribal heritage.

– Cherokee Nation Secretary of State Chuck Hoskin, Jr

Zerohedge reports that Elizabeth Warren just owned herself after releasing a DNA test confirming that she’s as little as 1/1024th Native American – about half the percentage of the average white person.

What’s more, the DNA expert she used, Stanford University professor Carlos Bustamente, “used samples from Mexico, Peru, and Colombia to stand in for Native American” as opposed to, say, DNA from a Cherokee Indian which Warren has claimed to be throughout her career.

Adding to the absurdity are two major corrections by the Boston Globe (which has become the media mouthpiece of Warren’s 2020 damage control efforts of late), letting readers know that “Due to a math error, a story about Elizabeth Warren misstated the ancestry percentage of a potential 10th generation relative. It should be 1/1,024,” and later updating it to “between 1/64th and 1/1,024th Native American.”

Adding to the absurdity are two major corrections by the Boston Globe (which has become the media mouthpiece of Warren’s 2020 damage control efforts of late), letting readers know that “Due to a math error, a story about Elizabeth Warren misstated the ancestry percentage of a potential 10th generation relative. It should be 1/1,024,” and later updating it to “between 1/64th and 1/1,024th Native American.”

Elizabeth Warren’s got trolled by Trump in the most epic fashion, pushing the Senator to make a blunder that will follow her for the rest of her career.

The Daily Caller’s Benny Johnson exposed Elizabeth Warren’s history of lies in 10 simple tweets…

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Hillary Clinton: Democrats have been TOO CIVIL with GOP (VIDEO)

Civil war becomes more likely as Clinton calls for greater civil unrest after weeks of absolutely insane behavior from leftist activists.

Seraphim Hanisch

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Former presidential candidate Hillary Rodham Clinton just called for an end to civil behavior towards Republicans and conservatives. In an interview with Christiane Amanpour of CNN expanded on in a piece by USA Today, the failed candidate had this to say:

“You cannot be civil with a political party that wants to destroy what you stand for, what you care about… That’s why I believe, if we are fortunate enough to win back the House and / or the Senate, that’s when civility can start again.”

Clinton said that Senate Republicans under Majority Leader Mitch McConnell, R-Ky., “demeaned the confirmation process” and “insulted and attacked” Christine Blasey Ford – who testified before the Senate Judiciary Committee about a sexual assault she alleges Kavanaugh committed in 1982 – along with other “women who were speaking out.”

It should be pointed out here that Clinton told a lie. The Senate Republicans did everything possible to hear out Dr Ford’s testimony, and no one has gone on record with any sort of insults or demeaning comments about her. Every Republican Senator who stated anything agreed that something happened to her, but they also agreed that there was no corroboration showing that Judge Kavanaugh was actually involved in any misdoings. USA Today’s piece continues:

Clinton compared the handling of Kavanaugh’s confirmation to “Republican operatives shutting down the voting in 2000,” the “swift-boating of John Kerry,” attacks on former Arizona Sen. John McCain in the 2000 Republican primary and “what they did to me for 25 years.

“When you’re dealing with an ideological party that is driven by the lust for power, that is funded by corporate interests who want a government that does its bidding, you can be civil but you can’t overcome what they intend to do unless you win elections,” she told Amanpour.

Clinton compared Kavanaugh’s swearing-in ceremony at the White House on Monday to a “political rally” that “further undermined the image and integrity of the court.”

She told Amanpour the effect on the court “troubles” and “saddens” her “because our judicial system has been viewed as one of the main pillars of our constitutional government.”

“But the President’s been true to form,” Clinton added. “He has insulted, attacked, demeaned women throughout the campaign – really for many years leading up to the campaign. And he’s continued to do that inside the White House.”

Here, Clinton told at least two more incendiary whoppers.

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First, no one has been specifically after her, and second, President Donald Trump’s record with women including in the White House has been nothing short of stellar and gentlemanly. Nikki Haley, who supported Marco Rubio in the 2016 campaign and has at times been openly critical of Donald Trump, yesterday announced her full support of his 2020 campaign and her intent to campaign with and for him.

By all accounts, Mrs. Haley is a woman.

The first American Civil War had economic policy and states’ rights as its central focus. Slavery was a part of that issue, though slavery was practiced in the North as well in the South before this war began.

Now a new civil war is coming, but perhaps it should be called the American Social War. It is not about any real policy matter at all. It is hysteria, but it appears to be hysteria with a purpose.

The first American Social War has two apparent sides and allying forces and groups:

The Left:

  • pro-gay marriage
  • pro-death (in other words, pro-abortion)
  • anti-Christian, especially Christianity that says these first two issues are wrong
  • anti-GOP / Republican / Conservative
  • “victim class” – feminists, some millenials
  • supporters of legalized use of mind-altering / mood-altering drugs
  • appears to support overreaching socialist style government, featuring “fair” wages, such as a $15.oo minimum wage
  • anti-traditionalist
  • Mainstream media is strongly allied here
  • George Soros is a supporter
  • social media outlets, like Facebook and Twitter are supporters through “scrubbing” of media content
  • anti-white, anti-male, and if you are white, male and Christian, look out. You are Enemy Number One
  • supports and executes violence against all these people they are against, including family members.
  • very zealous, and very monolithic in terms of alignment and energy

The Right:

  • Conservatives
  • people who generally want the government to leave them alone
  • generally favors life, considering abortion tragic and to be avoided, though some consider that it should be made illegal
  • marriage has always been between one man and one woman and it should not be redefined to fit the whims of a few
  • God is sovereign (though many conservatives would never make this connection)
  • No real animus against the left, but at the same time, fed up with being hectored by the left all the time, as we saw in Senator Lindsey Graham’s explosive confrontation against Senate Democrats
  • Generally Republican by party affiliation, though many libertarian and conservatives are also present as well as a number of conservative democrats.
  • seeks to avoid violence. While there do exist a very few neo-Nazi types, their numbers are infinitesimal, and their behavior is rejected by the Right
  •  generally against drug use, though many have unfortunately moderated on the matter of actual illegality

The main characteristic of this approaching war, as stated before, is little more than some sort of outrage over identity politics and perceived victimization. This is something both new and old, as there is always a party in any war that claims that they are fighting because they are in fact the aggrieved party, under the other side’s aggression and suppression.

That factor exists with this war too. However, the reality of that aggression or suppression is that it does not exist, and this makes it very difficult for the “perceived aggressors” to ramp up the zeal needed to carry out the fight.

This factor is often very maddening for conservative people. As a whole they do not wish to fight. They wish to be left alone. The left on the other hand insists that everything must be fought for because the right has somehow managed to take it away from them, or is keeping it away from them.

This is purely fiction but it is almost impossible to convince a leftist that this is so. Tucker Carlson expands on this matter in this report. He makes reference at 6:37 about how Hillary Rodham Clinton is now openly calling for civility to the GOP to end (as if it hasn’t already!), but the entirety of this report begs to be seen to give perspective to the look and feel of this crisis:

This is unfamiliar territory in many ways, and it is unclear how far this will go. But one this is clear: it is testing all available limits, and it may come to real fighting, and real killing, for no reason better than perceived victimization.

It should be understood that the advocates for violence are all people that reject God and traditional values openly. There is certainly a connection.

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