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Greek Finance Minister Yanis Varoufakis, gives the finger to Germany in a May 2013 speech [Video]

Alex Christoforou

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Post originally appeared on Zerohedge.

In a recently uncovered speech by the Yanis Varoufakis that took place in May of 2013, and which was either ingenious or naive beyond comprehension – we can’t decide – or is simply the contradictory stream of consciousness of a financial expert who has become the epitome of saying one thing now, and its diametrical opposite 5 minutes later, the Greek finance minister explains why he was for a Greek default but against returning to the Drachma.

Following several minutes of tortured logic, Varoufakis explains that devaluation is, drumroll, bad for a country that is on the verge of doing so and seems not quite clear with the concept of currency controls (he applauds Argentina for “sticking the finger to the IMF” and says Greece unlike Buenos Aires doesn’t have a Chinese export market ready: perhaps he should read up on the whole Dry Bulk shipper thing) yet completely ignoring the the very reason why a country devalues in the first place: to implement an external rebalancing – something it should have done years ago – the reason for which is that Greece will soon be if not already is, on the verge of outright social conflict as there is no further room for internal rebalancing, i.e., wages and welfare cuts. Just wait until the people realize their pensions are being used to repay the IMF…

Then Varoufakis, channeling Schauble, proceeds to justify the German way of thinking, namely one where the only thing that matters is the preservation of exiting wealth, an odd position for a self-proclaimed Marxist, and one which forgets that while there is a period of acute pain, the nations that made up all failed currency unions in the past (incidentally, all of them, which is why the Euro too is doomed to fail) somehow managed to survive. The reason being that once exports are cheap enough, any country – even Greece – can finally implement the much delayed reforms and return to growth on its own, and not on the back of German generosity: just how much money will the Troika agree to wire Athens this month?

There is of course an alternative, the one which Varoufakis is warming up to: a less acute, but unlimited and endless pain while existing as a vassal state of the most powerful authority in the monetary union, in this case Germany. This is precisely what Samaras had decided on, and why Greece had become a “sovereign” in name only – it was a broken country whose every state-level decision was made by the Troika. It was also why Varoufakis was elected: the break these shackles of German oppression, or perhaps he already forgot all his promises to the people?

Then the abovementioned logic gets even more tortured, when Varoufakis who until that point destroys the hypothesis in which a return to a Drachma is even remotely conceivable, crushes everything he had built up until that point: “what we should do is create a plan B, we should start the process of thinking of creating a currency in case we need it not just because we may choose to leave the euro, but because the euro may not exist after a while. If Germany leaves, that is more likely for me, as far as I am concerned that Germany would depart from the euro.”

Well, if his intention was to soothe Europe’s fears that Greece may contemplate a Plan B, he failed.

Then the stream of consciousness touches on Cyprus, which Varoufakis says should leave the Euro because it has already suffered the pain of capital controls, and because its banks are already insolvent. Here one asks: “and Greek banks are what exactly?”, especially if on one sunny day the ECB decides to cut all ELA to Greece to €0? Or maybe in some game theoretical world in which Greece is hinting at its own currency, the ECB defecting on its own (and with Q€ as a backstop why not) is impossible.

Tortured stream of consciousness “logic” aside, where things get fun is when Varoufakis says: “the most effective radical policy would be for a Greek government to rise up in Ecofin and say folks we are defaulting – we shall not be repaying next May the €6 billion that supposedly we owe the ECB…. But why step out? Because the moment the Greek prime minister declares default within the Eurozone all hell would break loose and either they would have to introduce those shock absorbers or the Euro will die anyway and then we can go to the drachma.”

Well, the Greek finance minister had his chance to do just that, at the Ecofin… and completely folded. So let’s avoid any more such hypothetical cases in which Greece “should do this or that”, when Greece had the chance to do just what Varoufakis said was the optimal path, and didn’t do it. In other words, “regardless if you want or don’t want your euro, you get to keep your euro. Just as Germany demanded”

* * *

But the reason all of the above will be ignored by everyone, and certainly the German media, is because of what happened 2 minutes into the clip below: “my proposal was that Greece should simply announce that it is defaulting within the Euro in January 2010 and stick the finger to Germany and say well, you can now solve this problem by yourself.”

Judging by how quickly Greece retreated with its tail between its legs after Syriza took power, Germany must have been quite persuasive in explaining why, no, Germany wouldn’t solve this problem by itself.

And all questions aside why the finance minister who would rather walk out on a TV interview than answer if he has become a liability to his country didn’t do precisely that during one of the many Eurogroup and Ecofin meetings he participated in since coming to power, we know what the German public – of which the majority already want Greece out of the Eurozone – will be obsessing over the coming days and week.

Greece “sticking the finger to Germany”

References:

http://www.zerohedge.com/news/2015-03-15/varoufakis-strategy-no-grexit-default-inside-euro-and-stick-middle-finger-germany

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EXPLOSIVE: Michael Cohen sentencing memo exposes serial liar with nothing to offer Mueller (Video)

The Duran Quick Take: Episode 38.

Alex Christoforou

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The Duran’s Alex Christoforou and Editor-in-Chief Alexander Mercouris take a quick look at the Michael Cohen sentencing memo which paints the picture of a man who was not as close to Trump as he made it out to be…a serial liar and cheat who leveraged his thin connections to the Trump organization for money and fame.

It was Cohen himself who proudly labelled himself as Trump’s “fixer”. The sentencing memo hints at the fact that even Mueller finds no value to Cohen in relation to the ongoing Trump-Russia witch hunt investigation.

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Via Axios

Special counsel Robert Mueller and federal prosecutors in New York have each submitted sentencing memos for President Trump’s former personal attorney Michael Cohen, after Cohen pleaded guilty in two different cases related to his work for Trump and the Trump Organization.

The big picture: The Southern District of New York recommended Cohen serve a range of 51 to 63 months for four crimes — “willful tax evasion, making false statements to a financial institution, illegal campaign contributions, and making false statements to Congress.” Mueller, meanwhile, did not take a position on the length of Cohen’s statement, but said he has made substantial efforts to assist the investigation.

Southern District of New York

Mueller investigation

Michael J. Stern, a federal prosecutor with the Justice Department for 25 years in Detroit and Los Angeles noted via USA Today

In support of their request that he serve no time in prison, Cohen’s attorneys offered a series of testimonials from friends who described the private Michael Cohen as a “truly caring” man with a “huge heart” who is not only “an upstanding, honorable, salt of the earth man” but also a “selfless caretaker.”

The choirboy portrayed by Cohen’s lawyers stands in sharp opposition to Cohen’s public persona as Trump’s legal bulldog, who once threatened a reporter with: “What I’m going to do to you is going to be f—ing disgusting. Do you understand me?”

Prosecutors focused their sentencing memo on Cohen as Mr. Hyde. Not only did they detail Cohen’s illegal activities, which include millions of dollars of fraud, they also recognized the public damage that stemmed from his political crimes — describing Cohen as “a man who knowingly sought to undermine core institutions of our democracy.”

Rebuffing efforts by Cohen’s attorneys to recast him as a good guy who made a few small mistakes, prosecutors cited texts, statements of witnesses, recordings, documents and other evidence that proved Cohen got ahead by employing a “pattern of deception that permeated his professional life.” The prosecutors attributed Cohen’s crimes to “personal greed,” an effort to “increase his power and influence,” and a desire to maintain his “opulent lifestyle.”

Perhaps the most damning reveal in the U.S. Attorney’s sentencing memo is that Cohen refused to fully cooperate. That’s despite his public relations campaign to convince us that he is a new man who will cooperate with any law enforcement authority, at any time, at any place.

As a former federal prosecutor who handled hundreds of plea deals like Cohen’s, I can say it is extremely rare for any credit to be recommended when a defendant decides not to sign a full cooperation deal. The only reason for a refusal would be to hide information. The prosecutors said as much in their sentencing memo: Cohen refused “to be debriefed on other uncharged criminal conduct, if any, in his past,” and “further declined” to discuss “other areas of investigative interest.”

 

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Canada to Pay Heavy Price for Trudeau’s Groupie Role in US Banditry Against China

Trudeau would had to have known about the impending plot to snatch Huawei CFO Wanzhou and moreover that he personally signed off on it.

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Authored by Finian Cunningham via The Strategic Culture Foundation:


You do have to wonder about the political savvy of Canadian Prime Minister Justin Trudeau and his government. The furious fallout from China over the arrest of a senior telecoms executive is going to do severe damage to Canadian national interests.

Trudeau’s fawning over American demands is already rebounding very badly for Canada’s economy and its international image.

The Canadian arrest – on behalf of Washington – of Meng Wanzhou, chief financial officer of Chinese telecom giant Huawei, seems a blatant case of the Americans acting politically and vindictively. If the Americans are seen to be acting like bandits, then the Canadians are their flunkies.

Wanzhou was detained on December 1 by Canadian federal police as she was boarding a commercial airliner in Vancouver. She was reportedly handcuffed and led away in a humiliating manner which has shocked the Chinese government, media and public.

The business executive has since been released on a $7.4 million bail bond, pending further legal proceedings. She is effectively being kept under house arrest in Canada with electronic ankle tagging.

To add insult to injury, it is not even clear what Wanzhou is being prosecuted for. The US authorities have claimed that she is guilty of breaching American sanctions against Iran by conducting telecoms business with Tehran. It is presumed that the Canadians arrested Wanzhou at the request of the Americans. But so far a US extradition warrant has not been filed. That could take months. In the meantime, the Chinese businesswoman will be living under curfew, her freedom denied.

Canadian legal expert Christopher Black says there is no juridical case for Wanzhou’s detention. The issue of US sanctions on Iran is irrelevant and has no grounds in international law. It is simply the Americans applying their questionable national laws on a third party. Black contends that Canada has therefore no obligation whatsoever to impose those US laws regarding Iran in its territory, especially given that Ottawa and Beijing have their own separate bilateral diplomatic relations.

In any case, what the real issue is about is the Americans using legal mechanisms to intimidate and beat up commercial rivals. For months now, Washington has made it clear that it is targeting Chinese telecoms rivals as commercial competitors in a strategic sector. US claims about China using telecoms for “spying” and “infiltrating” American national security are bogus propaganda ruses to undermine these commercial rivals through foul means.

It also seems clear from US President Donald Trump’s unsubtle comments this week to Reuters, saying he would “personally intervene” in the Meng case “if it helped trade talks with China”, that the Huawei executive is being dangled like a bargaining chip. It was a tacit admission by Trump that the Americans really don’t have a legal case against her.

Canada’s foreign minister Chrystia Freeland bounced into damage limitation mode following Trump’s thuggish comments. She said that the case should not be “politicized” and that the legal proceedings should not be tampered with. How ironic is that?

The whole affair has been politicized from the very beginning. Meng’s arrest, or as Christopher Black calls it “hostage-taking”, is driven by Washington’s agenda of harassment against China for commercial reasons, under a legal pretext purportedly about Iranian sanctions.

When Trump revealed the cynical expediency of him “helping to free Wanzhou”, then the Canadians realized they were also being exposed for the flunkies that they are for American banditry. That’s why Freeland was obliged to quickly adopt the fastidious pretense of legal probity.

Canadian premier Justin Trudeau has claimed that he wasn’t aware of the American request for Wanzhou’s detention. Trudeau is being pseudo. For such a high-profile infringement against a senior Chinese business leader, Ottawa must have been fully briefed by the Americans. Christopher Black, the legal expert, believes that Trudeau would had to have known about the impending plot to snatch Wanzhou and moreover that he personally signed off on it.

What Trudeau and his government intended to get out of performing this sordid role for American thuggery is far from clear. Maybe after being verbally mauled by Trump as “weak and dishonest” at the G7 summit earlier this year, in June, Trudeau decided it was best to roll over and be a good little puppy for the Americans in their dirty deed against China.

But already it has since emerged that Canada is going to pay a very heavy price indeed for such dubious service to Washington. Beijing has warned that it will take retaliation against both Washington and Ottawa. And it is Ottawa that is more vulnerable to severe repercussions.

This week saw two Canadian citizens, one a former diplomat, detained in China on spying charges.

Canadian business analysts are also warning that Beijing can inflict harsh economic penalties on Ottawa. An incensed Chinese public have begun boycotting Canadian exports and sensitive Canadian investments in China are now at risk from being blocked by Beijing. A proposed free trade deal that was being negotiated between Ottawa and Beijing now looks dead in the water.

And if Trudeau’s government caves in to the excruciating economic pressure brought to bear by Beijing and then abides by China’s demand to immediately release Meng Wanzhou, Ottawa will look like a pathetic, gutless lackey to Washington. Canada’s reputation of being a liberal, independent state will be shredded. Even then the Chinese are unlikely to forget Trudeau’s treachery.

With comic irony, there’s a cringemaking personal dimension to this unseemly saga.

During the 197os when Trudeau’s mother Margaret was a thirty-something socialite heading for divorce from his father, then Prime Minister Pierre Trudeau, she was often in the gossip media for indiscretions at nightclubs. Rolling Stones guitarist Keith Richards claims in his autobiography that Margaret Trudeau was a groupie for the band, having flings with Mick Jagger and Ronnie Wood. Her racy escapades and louche lifestyle brought shame to many Canadians.

Poor Margaret Trudeau later wound up divorced, disgraced, financially broke and scraping a living from scribbling tell-all books.

Justin, her eldest son, is finding out that being a groupie for Washington’s banditry is also bringing disrepute for him and his country.

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US Commits To “Indefinite” Occupation Of Syria; Controls Region The Size Of Croatia

Raqqa is beginning to look more and more like Baghdad circa 2005.

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Via Zerohedge


“We don’t want the Americans. It’s occupation” — a Syrian resident in US-controlled Raqqa told Stars and Stripes military newspaper. This as the Washington Post noted this week that “U.S. troops will now stay in Syria indefinitely, controlling a third of the country and facing peril on many fronts.”

Like the “forever war” in Afghanistan, will we be having the same discussion over the indefinite occupation of Syria stretching two decades from now? A new unusually frank assessment in Stars and Stripes bluntly lays out the basic facts concerning the White House decision to “stay the course” until the war’s close:

That decision puts U.S. troops in overall control, perhaps indefinitely, of an area comprising nearly a third of Syria, a vast expanse of mostly desert terrain roughly the size of Louisiana.

The Pentagon does not say how many troops are there. Officially, they number 503, but earlier this year an official let slip that the true number may be closer to 4,000

A prior New Yorker piece described the US-occupied area east of the Euphrates as “an area about the size of Croatia.” With no Congressional vote, no public debate, and not even so much as an official presidential address to the nation, the United States is settling in for another endless occupation of sovereign foreign soil while relying on the now very familiar post-911 AUMF fig leaf of “legality”.

Like the American public and even some Pentagon officials of late have been pointing out for years regarding Afghanistan, do US forces on the ground even know what the mission is? The mission may be undefined and remain ambiguously to “counter Iran”, yet the dangers and potential for major loss in blood and treasure loom larger than ever.

According to Stars and Stripes the dangerous cross-section of powder keg conflicts and geopolitical players means “a new war” is on the horizon:

The new mission raises new questions, about the role they will play and whether their presence will risk becoming a magnet for regional conflict and insurgency.

The area is surrounded by powers hostile both to the U.S. presence and the aspirations of the Kurds, who are governing the majority-Arab area in pursuit of a leftist ideology formulated by an imprisoned Turkish Kurdish leader. Signs that the Islamic State is starting to regroup and rumblings of discontent within the Arab community point to the threat of an insurgency.

Without the presence of U.S. troops, these dangers would almost certainly ignite a new war right away, said Ilham Ahmed, a senior official with the Self-Administration of North and East Syria, as the self-styled government of the area is called.

“They have to stay. If they leave and there isn’t a solution for Syria, it will be catastrophic,” she said.

But staying also heralds risk, and already the challenges are starting to mount.
So a US-backed local politician says the US can’t leave or there will be war, while American defense officials simultaneously recognize they are occupying the very center of an impending insurgency from hell — all of which fits the textbook definition of quagmire perfectly.

The New Yorker: “The United States has built a dozen or more bases from Manbij to Al-Hasakah, including four airfields, and American-backed forces now control all of Syria east of the Euphrates, an area about the size of Croatia.”

But in September the White House announced a realignment of its official priorities in Syria, namely to act “as a bulwark against Iran’s expanding influence.” This means the continued potential and likelihood of war with Syria, Iran, and Russia in the region is ever present, per Stripes:

Syrian government troops and Iranian proxy fighters are to the south and west. They have threatened to take the area back by force, in pursuit of President Bashar Assad’s pledge to bring all of Syria under government control.

Already signs of an Iraq-style insurgency targeting US forces in eastern Syria are beginning to emerge.

In Raqqa, the largest Syrian city at the heart of US occupation and reconstruction efforts, the Stripes report finds the following:

The anger on the streets is palpable. Some residents are openly hostile to foreign visitors, which is rare in other towns and cities freed from Islamic State control in Syria and Iraq. Even those who support the presence of the U.S. military and the SDF say they are resentful that the United States and its partners in the anti-ISIS coalition that bombed the city aren’t helping to rebuild.

And many appear not to support their new rulers.

We don’t want the Americans. It’s occupation,” said one man, a tailor, who didn’t want to give his name because he feared the consequences of speaking his mind. “I don’t know why they had to use such a huge number of weapons and destroy the city. Yes, ISIS was here, but we paid the price. They have a responsibility.”

Recent reports out of the Pentagon suggests defense officials simply want to throw more money into US efforts in Syria, which are further focused on training and supplying the so-called Syrian Democratic Forces (or Kurdish/YPG-dominated SDF), which threatens confrontation with Turkey as its forces continue making preparations for a planned attack on Kurdish enclaves in Syria this week.

Meanwhile, Raqqa is beginning to look more and more like Baghdad circa 2005:

Everyone says the streets are not safe now. Recent months have seen an uptick in assassinations and kidnappings, mostly targeting members of the security forces or people who work with the local council. But some critics of the authorities have been gunned down, too, and at night there are abductions and robberies.

As America settles in for yet another endless and “indefinite” occupation of a Middle East country, perhaps all that remains is for the president to land on an aircraft carrier with “Mission Accomplished” banners flying overhead?

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