Varoufakis' Great Game - Yet another take on what's playing out & understanding all the moves...

[mother earth]

The ECB bears considerable responsibility for this situation. By failing to produce the two-thirds majority in the ECB Council needed to limit the Greek central bank’s self-serving strategy, it has allowed the creation of more than €80 billion in emergency liquidity, which exceeds the Greek central bank’s €41 billion in recoverable assets. With Greece’s banks guaranteed the needed funds, the government has been spared from having to introduce capital controls.

Rumor has it that the ECB is poised to adjust its approach – and soon. It knows that its argument that the ELA loans are collateralized is wearing thin, given that, in many cases, the collateral has a rating below BBB-, thus falling short of investment grade.

If the ECB finally acknowledges that this will not do, and removes Greece’s liquidity safety net, the Greek government would be forced to start negotiating seriously, because waiting would no longer do it any good. But, with the stock of money sent abroad and held in cash having already ballooned to 79% of GDP, its position would remain very strong.

In other words, thanks largely to the ECB, the Greek government would be able to secure a far more favorable outcome – including increased financial assistance and reduced reform requirements – than it could have gained at any point in the past. And if Greece exits, a large share of the acquired resources measured by the TARGET balances and the cash that has been printed would turn into an endowment gift for an independent future.

Many people in Europe seem to believe that Varoufakis, an experienced game theorist but a political neophyte, does not know how to play the cards that Greece has been dealt. They should think again – before Greece walks away with the pot.

Read more at http://www.project-syndicate.org/commentary/varoufakis-ecb-grexit-threat-by-hans-werner-sinn-2015-05#mDwUI40I4pvdh3Ic.99

[Demeter]

1. I don't know about that

The first rule in this game is:

There are no rules

Oh, we pretend there are rules, and sometimes even follow them, if it suits our game plan

But, unless somebody's army goes in to enforce them, there are no rules. Or we could send in the FBI, or the Navy Seals, or let the Drone Boy fly....

There are always "suggestions" floating about that can be bent, broken or totally perverted to the opposite of their original, ostensible purpose. Sometimes these good (or bad) intentions are even written up in big treaties with multiple nations signing on....and then ignored by practically everyone, almost all the time. This is the ultimate fate of the TTP, TiPP, TISA, and Fast Track by the way, although there will be tremendous suffering before the People say to hell with it and get out their torches and pitchforks. Just as there is tremendous suffering today, due to the Mortgage Fraud/Derivative Enhanced Financially Engineered Crash of 2006-to Present, and the Eurozone version of Russian Roulette (apologies to the Russians).

The days of Mutually Assured Destruction are over, by the way. The American velvet glove has been removed to reveal the fearsome iron fist is rusted away.


The bigger, wealthier states can do stuff like economic embargoes like Iraq and Iran, but as soon as somebody like Russia or China refuses to play along, that game is over, to the relief of its victims, who may not necessarily even live in the targeted area.

Ordinary individuals can join together to do boycotts, but that's even harder to set up and maintain...to date, aside from South Africa, or the American colonial tea party, I don't think boycotts have ever crossed borders. Not sure if Gandhi did boycotting...and I'm too lazy to investigate.

[mother earth]

2. Well "mutually assured" destruction is in the eye of the beholder. I agree with you on much of what

you've said, who can argue over the rigged game that plays out, since everything is up for grabs. I certainly agree the machinations of war, drones, all of it, is in the hands of the big power players, with all of it having economic roots.

What plays out in Greece though seems like it is indeed a good cop, bad cop strategy. My hopes are with Syriza, I like to go with the underdog, and I hope for a conclusion with the least amount of collateral damage.

I'm hoping the negotiations start being less "fight game" mentality, if not, Greece has tried all it can & deserves no blame. With a little luck, much congratulations will be in order for ending this charade of talk and "trade" and predatory capitalism, since it really amounts to economic slavery.