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German Minister Dares Greece to Leave the Euro Zone

German Minister Dares Greece to Leave the Euro Zone

German Finance Minister Wolfgang Schaeuble has issued a dare to Greece to leave the euro zone after yet another attempt to form a coalition government failed on Friday. The leader of the socialist Pasok party, Evangelos Venizelos, was the third to receive a mandate to form a unity government, after last Sunday’s elections saw support for his party and the conservative New Democracy party under Antonis Samaras drastically fall. Pasok received only 13.2% of the vote; New Democracy received the greatest share of the vote, 18.9%, which was still far short of the 20 percent needed to form a government.

Radical leftist coalition Syriza won an “unprecedented” 16.8% of the vote. The party’s leader, 37-year-old Alexis Tsipras, has now twice refused to participate in a “national unity administration” with New Democracy or Pasok, on the grounds that Syriza is keeping to its election promise to reject austerity measures imposed on Greece. “It is as if the message of last Sunday’s election has not been heard,” Tsipras said, in emphasizing that his party will “not participate in a government that will enforce the policies of the memorandum,” the terms set by Greece’s creditors to keep its debt-mired, recession-plagued economy afloat.

Greece’s President Karolos Papoulias may now have no choice but to call for new elections as early as next week.

Greeks have been objecting more and more strongly to have successive rounds of austerity measures — involving higher taxes and pension cuts — imposed on them, as required by the “troika” of the International Monetary Fund, the European Union and the European Central Bank.

Politicians throughout Europe are stepping up pressure on Greece to stick to its commitment to austerity or to leave the euro zone. Even as German minister Schaeuble issued his challenge to Greece, investors and economists are strategizing what to do to save the euro should Greece indeed leave. Says Bloomberg:

The risk is if Greece leaves and the save-the-euro response flops the world economy could face a sovereign-version of Lehman Brothers Holdings Inc.’s collapse. That makes Schaeuble’s confidence sound all too similar to former U.S. Treasury Secretary Henry M. Paulson’s optimism that the U.S. financial system could withstand the 2008 loss of Lehman Brothers, only to witness the deepest global recession since World War II and a 40 percent slide in the Standard & Poor’s 500 Index in six months.

The fate of the 13-year-old euro zone hangs in the balance. The EU has given Greece billions of euros in bailout funds, aid that Greece needs to pay its maturing debt and, indeed, its bills. Greece has a 450-million-euro bond that is due this month and must still identify $14.8 billion in spending cuts for 2013 and 2014 — 5.5 percent of the country’s gross domestic product — to qualify for continue bailout funds and also complete a recapitalization of its “cash-starved banks.”

As the New York Times states, the prospect of new elections is unlikely to offer a lasting solution and might only “fuel social discontent as well as interfere” with the deadlines for, among other commitments, that multi-million euro bond.

According to a new poll reported in the center-left newspaper To Vima, if new elections are held, Syriza would win 25.5% of the vote.

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Photo of Alexis Tsipras by PIAZZA del POPULO

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32 comments

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8:28AM PST on Jan 26, 2013

HUBER F

"Greece should reveal more potential to the EU"

WHAT?

5:47AM PST on Jan 26, 2013

Greece should reveal more potential to the EU.

3:59PM PDT on May 14, 2012

Tom J - I note that you live in the US, do you really think that a situation that affects one of the largest trading bodies in the world will not affect your country? The US exports to the whole of the EU, if the EU has less money to spend then this will affect jobs across the world, including in the US. The US is a large, and poweful country, but it is not immune to what is happening in the rest of the world.

Even if the current situation in Greece doesn't have a direct effect on you do you think that it is appropriate to seemingly make fun of others? If your neighbour falls and breaks his arm do you laugh? People in Greece are suffering, some are killing themselves. This is not a laughing matter. If it happens to the US I very much doubt that you will find many Europeans who will laugh at your troubles.

Please treat everyone with respect.

1:30PM PDT on May 14, 2012

Hey Tom J. you said:
"There has to be some point where our lottery winners could theoretically buy the country of Greece"
It seems all amusing to you, but remember there are many people committing suicide and others losing their homes, businesses, families.
This is an open season Class Warfare started by the 0.01% against everybody else to try to push back all the gains made with sweat, blood and tears in the last 200 years.

Greece is the weakest link but we all the 99.9% are suffering the same fate, some more, some less.
Lets be serious to find a solution.

12:12PM PDT on May 14, 2012

There has to be some point where our lottery winners could theoretically buy the country of Greece. Why would anyone want to do that? It might be cool to own your own country, even if just for a little while. One of our lottery winners might just have what it takes to turn Greece around. The Europeans are bailing out on one of their own. That is sad. What about Italy, Spain, and Portugal? Maybe the winner of the Irish Sweepstakes should receive a country, not a wild sum of money.

8:52AM PDT on May 14, 2012

To see what I am trying to convey please check these links where it's explained how the Fractional Reserve Banking System is the key as to how using the creation of money, this Cabal is catching us in all in a web of debt, giving them the power over our lives and our sons and grandsons.
=======

A Simple Solution to the Debt Crisis -
http://www.youtube.com/watch?v=CrKV6bfqOck&feature=player_embedded
=======
Debunking Money - 1 Myth and Machiavelli
http://www.youtube.com/watch?v=5iBSBVew-3Y

=======
EXCELLENT COURSE explaining the world power structure

Damon Vrabel Renaissance 2.0
http://csper.org/renaissance-20.html
=======
MONEY AS DEBT 1
http://vimeo.com/3843038
========
ZEITGEIST addendum
http://www.youtube.com/watch?v=EewGMBOB4Gg


8:39AM PDT on May 14, 2012

It is important to understand Germany as well as the USA are being manipulated by the Cabal of international financiers who are at the top of the pyramid of world power, for the benefit of this elite, not necessarily the benefit of those countries, as we can see with the decline of the US middle class and the outsourcing of jobs to China etc.
This is not good for the US as a country and yet its politicians are acting as agents for this Cabal, than to serve the needs of the US voter.

In Germany a similar situation is happening.

To see what I am trying to convey please check these links where it's explained how the Fractional Reserve Banking System is the key as to how using the creation of money, this Cabal is catching us in all in a web of debt, giving them the power over our lives and our sons and grandsons.

This can happen because we have adopted these people's "narrative" that benefits them, against our own interests.
ITS A MIND GAME. They control us by believing in THEIR GAME, but once we understand how it works, we can change our mind and release ourselves from the chains we have imposed on ourselves.

The key to our freedom is to bypass the monetary system we currently use. When we create a parallel monetary system like spontaneously happened in VOLO, Greece, we can restart the economy.
Check this BBC video on the town of Volo.
====================
Greek Town Develops Credit System Without Euro
http://www.youtube.com/watch?v=9y9R0v96K48
===========

9:20AM PDT on May 13, 2012

Has anyone noticed he is not Arean. (hope I spelt that right but you know what I mean) He is more Hitlers child!!!

9:11AM PDT on May 13, 2012

Susan, Jason, Josha, Rafael, etc......What they said! Germany should have realized 75 years ago they didn't need a war to take over Europe. Would have saved a lot of lives and money. The US is also complicit in this. Like it's said, "Money isn't everything it's true, but what it don't get I can't use". Ironic that an organization like "Goldman-Sachs" is a big player. Would those be Jewish names heir Merkel??? Hmmm.

6:49AM PDT on May 13, 2012

Germany started two world wars trying to take over the rest of Europe and got beaten both times. Now they have taken over by making what was just supposed originally to be a "COMMON MARKET" and made the European Union their own to make or break (mostly break) the other members so they are reliant on a German bail out and successive governments of the rest of the EU have let them get away with it. They also have the great idea that if anyone does leave they will once again march to war and try to destroy anyone who goes against their will. I guess they still think they should rule the world and think the whole of the EU should be disbanded then everyone could unite against the germans again!!!

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