Athens, Don’t Call Us, We’ll Call You…

Today is the first day of the rest of Greece’s life — and it looks just like every other day…except worse.

The Greek Finance Minister has resigned because he called the European negotiators all sorts of names, and now the waiting begins. The Greek socialist Foreign Minister says he will be in a better negotiating position now that he has a 60% vote of the people, but that is only if the European negotiators return to the negotiating table at all.

If I were the Europeans, I would schedule a new negotiation. I would schedule the meeting on July 10, 2020!

Meanwhile the Greek banks will run out of money by Wednesday of this week, and the Greek government will have to start to issue IOUs by Friday, and there should begin riots in the streets by next Monday. The Greeks are a proud and mercurial people. Soon they will also be hungry, unless they trade a few seaports to Russia for a bailout.

If I were the negotiators for Europe, I would slow-walk any proposals by the ECB and IMF until the Greeks socialist PM was calling every 10 minutes begging to restart the negotiation.

But the Europeans are, after all, European. The socialist president of France wants to go back immediately to the negotiating table, and give away more German money. The Germans are not so anxious to give away their money, so Merkle and Hollande are talking.

The Germans are not so much concerned about giving Greece more money to survive (O.K. actually they are, and mostly because of the Greek attitude of entitlement), but there are upcoming negotiations with other debtor nations — Spain, Portugal and Italy — and the Germans don’t want to set a precedent that if those countries throw a hissy-fit that the German coffers are open.

I suspect that the Greek euphoria over sticking the Germans in the eye will soon subside.

The Greeks are already a Deadbeat nation, and soon will be a beggar nation.

Reality bites, unless the Europeans cave — NEVER an impossibility.

The EU is slowly unraveling, but it was always a political construct beset by multiple languages, multiple currencies, multiple cultures.  It is surprising that it has lived so long.

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