The noose like agreement Greek PM, Tsipras signed with the 'institutions' demands the same budget surpluses, includes no debt reduction, no change in the commitment to keep austerity measures intact and the selling-off of public property for the exclusive purpose of lining lenders’ pockets, remains intact.
On the street ordinary Greeks wondered what the government had achieved. "We went through two months of agony, emptied the banks, to realize we are still a debt colony," 54-year-old electrician Dimitris Kanakis told Reuters. "The paymasters call the shots." A large group within Syriza, led by a Central Committee member, says "Leadership strategy has failed miserably".Why? Why, after the new Greek government fought a la David vs Goliath for several weeks would they cave in at the last minute and admit that the best it can do is continue the much hated policies of the predecessor Samaras government
The J. Edgar Hoover solution - blackmail, threats and bribes - ranks high on the why-o-meter. IMO though, being a recently confessed hope-aholic, the best tactical reasoning so far comes from Raúl Ilargi Meijer in '50 Shades of Greece'.which explains: Syriza wasn't given a mandate to leave the Euro, just to end austerity. Sypiza must, by referendum maybe, after bending over backwards to prove to Greeks that Germany and Holland will never budge, result in Syriza winning the mandate they need to leave the Euro.
Given that yesterday European Commission President Jean-Claude Juncker stated, “there can be no democratic choice against the European treaties.” Why would the trioka accept any result in any referendum, unless they won it. But between the mutiny in Syriza and the disillusionment on the street it's more likely the Tsirpas government will get booted out and another leader will shout that unlike Samaras, oops, Tsipras, this time they will really show Germany who's boss. Tyler Durden asks: "Does Germany really want to negotiate with Golden Dawn instead?"
That, the Golden Dawn lever, will probably be abandoned immediately by Striza just like Grexit, their only big lever, and the printing of Drachmas, which Syriza handed over without a whimper on last Friday in the agreement which excluded any “unilateral moves” such as new Drachmas and making a deal with BRICS for instance.
Beppe Grillo, leader of Italy's anti-austerity 5 Star party had it right beforehand in his piece: 'The Eurozone Chess Game Enters Its Final Stage: Germany Wins In Three Moves' but concluded that the Euro was up in smoke now that the curtain had been pulled back to reveal the reality that the N. Europeans, especially Germany, enjoy the benefits of their 'export miracle' only because the common currency's market value is dragged down by the PIGS [Portugal, Italy, Greece and Spain], the Baltics, the Irish...and the PIGS+ are forced to use a currency priced far to high to sell their goods, an export disaster.
All of the PIGS+ countries will face the same situation, sooner or later, their bankruptcy will be unavoidable. When that happens instead of dancing with the devil they should do some version of what Willem Buiter, chief economist of Citigroup, and John Cochrane of the University of Chicago suggested to Greece: "The Greek government could meet its domestic obligations, such as pension payments, by issuing tradeable IOUs that could also be used to make tax payments — in effect, creating a parallel currency. This virtual money could also be used for other purposes: for instance, to recapitalize ailing banks."
Virtual money, like Bitcoin could stand in while whichever country [Syriza should still do it], prints billions of Drachmas or Lira or ? then quietly distributes them to their banks over the weekend and open the banks Monday morning chocked full of the new currency, nary a Euro in sight.