This would again seem to give credence to Ambrose Pritchard's narrative.
http://diaryofarepublicanhater.blogspot.com/2015/07/why-ambrose-pritchard-may-know-what-hes.html
There has been all these demands from the EU for a 'serious' proposal from Greece-which makes you think of Krugman's Very Serious People. This word so employed in this context is very nasty.
The fact that former ECB President Trichet is now saying Greece is serious strongly hints that maybe Tripas is about to make a deal, a deal strikingly like the same bad deal voters rejected last Saturday.
"Former European Central Bank President Jean-Claude Trichet said Friday negotiators must remain cautious throughout discussions with Greece on its bailout, but the latest moves by Athens show the drama could end "fortunately."
"The new proposals that are made by the Greek government are demonstrating a real will to have an agreement," he told CNBC's"Squawk Box." "We will see. I remain very, very prudent myself, but clearly we have something which is very different from what was the position at the moment of the referendum."
http://www.cnbc.com/2015/07/10/sals-show-real-will-for-agreement-trichet.html
Good to know he likes it. This kind of sounds like the fox praising the hens on their new hen house.
For him to say that there's still a trust issue is also rich-coming from a fox in the hen house that is. Why should the Greeks trust the EU that keeps demanding more with every concession?
Everyone from the IMF to the US government has urged debt relief but that is conscicuous by its absence in this new proposal that has Trichet more optimistic.
"We will more completely gut these documents in the morning, but a few things that stand out. First, none of the documents mentions debt relief. This was a major demand of Yanis Varoufakis, Tsakalotos’ predecessor. And while it is obliquely mentioned in Wednesday’s bailout request, there’s nothing in the documents sent to Brussels Thursday night that mentions the topic."
"Instead, what is interesting about both the Tsipras and Tsakalotos letters is their explicit mention of wanting to remain in the EU’s common currency. As Tsipras puts it:
"With this proposal, the Greek people and the Greek government confirm their commitment to fulfilling reforms that will ensure Greece remains a member of the Eurozone and ending the economic crisis. The Greek government is committed to fully implementing this reform agenda – starting with immediate actions – as well as to engaging [sic] constructively on the basis of this agenda, in the negotiations for the ESM loan."
"Tsakalotos puts it with a bit more flourish:"
"[The proposal is] a vision which serves our commitment to remain an integral member of the eurozone and respect the evolving rules of our monetary union; one that underpins that commitment with a comprehensive set of reforms and measures to be implemented in the areas of fiscal sustainability, financial stability, long-term economic growth and sustainable development, and, last but not least, reforming the public administration…."
"On substance, the new “prior actions” come very close to creditors’ last “prior actions” proposal, which Greek voters overwhelmingly rejected in a referendum at the weekend. It maintains a primary budget surplus target (revenues minus expenses when debt interest payments are not included) of 3.5 per cent by 2018, though it remains a bit more vague about how fast it will get to that level. The previous progression – 1 per cent this year, 2 per cent next and 3 per cent in 2017 – remains in the proposal, but tellingly in parentheses."
"On the two areas that proved most divisive before negotiations were cut off two weeks ago, overhauling the value-added tax system and pension reform, there is also a lot of convergence."
"In the VAT system, Athens vows – as the creditors demanded – to find new revenues amounting to 1 per cent of gross domestic product (about €1.8bn) every year. It also concedes to a creditor demand to allow processed foods to be taxed at the standard 23 per cent rate."
"The Greek proposal also incorporates one of the creditors last concessions – moving hotels to a lower 13 per cent VAT bracket – but it appears to hold out on one thing that could prove problematic: a separate, lower-rate system for Greek islands."
"Creditors have demanded a single system for the whole country, arguing that a separate rate for the islands – which Athens has insisted on because many are remote and expensive to supply – requires a completely separate administrative system, raising expenses needlessly."
http://blogs.ft.com/brusselsblog/2015/07/10/leaked-greeces-new-economic-reform-proposal/
Meet the new deal, same as the old deal. I guess unlike the Iraqi negotiations here no deal is not better than a bad deal. Meanwhile the EU may pull out because of one thing they disagree with while the Greeks have accepted the poison pill of no debt relief.
This is again, the British way of paying down your debts-basically bleeding your nation's GDP in order to pay bondholders.
http://diaryofarepublicanhater.blogspot.com/2015/07/german-pomposity-towards-greece-what.html
Here is Simon Wren-Lewis on the British plan being imposed on Greece:
"But to demand primary surpluses (i.e. to take money out of the country) while unemployment remains so high - as the Troika continues to do - is unforgivable in my view. It clearly makes the unemployment problem worse - see here, footnote [2]. At best it indicates an impatient creditor with no concern for the welfare of the debtor, but given the responsibility the creditor has for the debtor’s current position it is far worse than that."
http://mainlymacro.blogspot.ca/2015/07/austerity-is-integral-part-of-greek.html
Nick Rowe argues that this is reasonable because the EU can't be expected to trust those irresponsible Greeks. We don't trust you so we will destroy our economy which will make us feel more secure.
http://worthwhile.typepad.com/worthwhile_canadian_initi/2015/07/its-the-absence-of-trust-simon.html#more
A few responses::
1. America and the Western world had far better reasons to not trust Germany in 1953-the Holocaust for starters-and yet they were given debt forgiveness.
2. The EU itself has simply been totally unrelaible in this wole proecess as a commentator-Peter Dorman-at Nick's points out:
"I'm struck by how one-sided the discussion of "trust" is in the media and even here. Yes, previous Greek governments were mendacious and the current one has been erratic and self-contradictory, and trust is surely a casualty. But for five years the troika has also been mendacious and capricious with horrible consequences. Their "bargaining" strategy since Syriza was elected has been to counter every compromise on the Greek side with an escalation of their own. I can't see how any rational Greek actor could entertain any trust in them."
Basically the EU plan is to destroy the Greek economy. Even the 'bailouts' are all diverted towards the creditors anyway. If Tripas accepts such a poison pill then it's a real black eye to the Greek people who voted no.
http://diaryofarepublicanhater.blogspot.com/2015/07/why-ambrose-pritchard-may-know-what-hes.html
There has been all these demands from the EU for a 'serious' proposal from Greece-which makes you think of Krugman's Very Serious People. This word so employed in this context is very nasty.
The fact that former ECB President Trichet is now saying Greece is serious strongly hints that maybe Tripas is about to make a deal, a deal strikingly like the same bad deal voters rejected last Saturday.
"Former European Central Bank President Jean-Claude Trichet said Friday negotiators must remain cautious throughout discussions with Greece on its bailout, but the latest moves by Athens show the drama could end "fortunately."
"The new proposals that are made by the Greek government are demonstrating a real will to have an agreement," he told CNBC's"Squawk Box." "We will see. I remain very, very prudent myself, but clearly we have something which is very different from what was the position at the moment of the referendum."
http://www.cnbc.com/2015/07/10/sals-show-real-will-for-agreement-trichet.html
Good to know he likes it. This kind of sounds like the fox praising the hens on their new hen house.
For him to say that there's still a trust issue is also rich-coming from a fox in the hen house that is. Why should the Greeks trust the EU that keeps demanding more with every concession?
Everyone from the IMF to the US government has urged debt relief but that is conscicuous by its absence in this new proposal that has Trichet more optimistic.
"We will more completely gut these documents in the morning, but a few things that stand out. First, none of the documents mentions debt relief. This was a major demand of Yanis Varoufakis, Tsakalotos’ predecessor. And while it is obliquely mentioned in Wednesday’s bailout request, there’s nothing in the documents sent to Brussels Thursday night that mentions the topic."
"Instead, what is interesting about both the Tsipras and Tsakalotos letters is their explicit mention of wanting to remain in the EU’s common currency. As Tsipras puts it:
"With this proposal, the Greek people and the Greek government confirm their commitment to fulfilling reforms that will ensure Greece remains a member of the Eurozone and ending the economic crisis. The Greek government is committed to fully implementing this reform agenda – starting with immediate actions – as well as to engaging [sic] constructively on the basis of this agenda, in the negotiations for the ESM loan."
"Tsakalotos puts it with a bit more flourish:"
"[The proposal is] a vision which serves our commitment to remain an integral member of the eurozone and respect the evolving rules of our monetary union; one that underpins that commitment with a comprehensive set of reforms and measures to be implemented in the areas of fiscal sustainability, financial stability, long-term economic growth and sustainable development, and, last but not least, reforming the public administration…."
"On substance, the new “prior actions” come very close to creditors’ last “prior actions” proposal, which Greek voters overwhelmingly rejected in a referendum at the weekend. It maintains a primary budget surplus target (revenues minus expenses when debt interest payments are not included) of 3.5 per cent by 2018, though it remains a bit more vague about how fast it will get to that level. The previous progression – 1 per cent this year, 2 per cent next and 3 per cent in 2017 – remains in the proposal, but tellingly in parentheses."
"On the two areas that proved most divisive before negotiations were cut off two weeks ago, overhauling the value-added tax system and pension reform, there is also a lot of convergence."
"In the VAT system, Athens vows – as the creditors demanded – to find new revenues amounting to 1 per cent of gross domestic product (about €1.8bn) every year. It also concedes to a creditor demand to allow processed foods to be taxed at the standard 23 per cent rate."
"The Greek proposal also incorporates one of the creditors last concessions – moving hotels to a lower 13 per cent VAT bracket – but it appears to hold out on one thing that could prove problematic: a separate, lower-rate system for Greek islands."
"Creditors have demanded a single system for the whole country, arguing that a separate rate for the islands – which Athens has insisted on because many are remote and expensive to supply – requires a completely separate administrative system, raising expenses needlessly."
http://blogs.ft.com/brusselsblog/2015/07/10/leaked-greeces-new-economic-reform-proposal/
Meet the new deal, same as the old deal. I guess unlike the Iraqi negotiations here no deal is not better than a bad deal. Meanwhile the EU may pull out because of one thing they disagree with while the Greeks have accepted the poison pill of no debt relief.
This is again, the British way of paying down your debts-basically bleeding your nation's GDP in order to pay bondholders.
http://diaryofarepublicanhater.blogspot.com/2015/07/german-pomposity-towards-greece-what.html
Here is Simon Wren-Lewis on the British plan being imposed on Greece:
"But to demand primary surpluses (i.e. to take money out of the country) while unemployment remains so high - as the Troika continues to do - is unforgivable in my view. It clearly makes the unemployment problem worse - see here, footnote [2]. At best it indicates an impatient creditor with no concern for the welfare of the debtor, but given the responsibility the creditor has for the debtor’s current position it is far worse than that."
http://mainlymacro.blogspot.ca/2015/07/austerity-is-integral-part-of-greek.html
Nick Rowe argues that this is reasonable because the EU can't be expected to trust those irresponsible Greeks. We don't trust you so we will destroy our economy which will make us feel more secure.
http://worthwhile.typepad.com/worthwhile_canadian_initi/2015/07/its-the-absence-of-trust-simon.html#more
A few responses::
1. America and the Western world had far better reasons to not trust Germany in 1953-the Holocaust for starters-and yet they were given debt forgiveness.
2. The EU itself has simply been totally unrelaible in this wole proecess as a commentator-Peter Dorman-at Nick's points out:
"I'm struck by how one-sided the discussion of "trust" is in the media and even here. Yes, previous Greek governments were mendacious and the current one has been erratic and self-contradictory, and trust is surely a casualty. But for five years the troika has also been mendacious and capricious with horrible consequences. Their "bargaining" strategy since Syriza was elected has been to counter every compromise on the Greek side with an escalation of their own. I can't see how any rational Greek actor could entertain any trust in them."
Basically the EU plan is to destroy the Greek economy. Even the 'bailouts' are all diverted towards the creditors anyway. If Tripas accepts such a poison pill then it's a real black eye to the Greek people who voted no.
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