The EU, the IMF, and ECB are actually offering to provide Greece with € 36.1 billion! The standard figure in the news of € 7.2 billion is actually wrong. (€ 7.2 billion balance tranche of second loan; € 1 billion profit on Greek bonds; € 10.9 billion diverted from the EFSF bank bailout; and € 17 billion remaining tranche from the IMF.)
The EU is so scared, that they will do anything to placate Greece in order to maintain this strange notion of unity. But everyone knows that this is simply throwing good money after bad.
The EU should simply save this money and they’ll immediately get back 15% of the debt owed. Greece is demanding at least a 50% loss on the loans. So the difference is only the additional 35% of € 240 billion. It’s a much better deal to not pay any more to Greece. And the EU taxpayers will be better off.
Not News Flash
Every politician in the EU, the ECB and the IMF knows that Greece will never pay back their debts. Yet every politician is too scared to admit it. Their Sword of Damocles is that they’re damned if they do and damned if they don’t. If they do something about it – they’ve screwed their own voters and taxpayers. And they’re afraid that their taxpayers will kick the EU politician bastards out of office. On the other hand, at this point, if they don’t do something about it – they just get some egg on their face and they probably get to keep their high office.
Desperately Seeking Alexander.
The Institutions and Greece have tied themselves up in an insoluble Gordian Knot. No one can untangle it without fear and loathing all around: fear of damage and loathing for one another.
The better course is to simply and publicly admit what everyone otherwise knows: game over; start over.
So where is the European Alexander to step up to solve the “unsolvable problem” ? It’s downright pathetic. At this point, the politician who takes up Alexander’s sword will become the Hero of Europe.
Where is Alexander when Europe needs him now?