Greek government teeters on brink of collapse in wake of referendum plan

[harvey007]

Source: London Guardian

The French president Nicolas Sarkozy and German chancellor Angela Merkel will hold emergency talks on Wednesday in a desperate attempt to hold the eurozone together and formulate a response to the Greek prime minister's plan for a referendum on the austerity measures imposed by his European partners.

George Papandreou's socialist government was on the brink of collapse after his referendum plan sparked a furious reaction within his own party and plunged Europe back into turmoil, only days after a complex rescue deal had been agreed – requiring Greece to embark on tough new cost-cutting measures.

Read more: http://www.guardian.co.uk/business/2011/nov/01/greek-government-teeters-on-brink?newsfeed=true

[tcaudilllg]

1. They can't stop it...

the people's will will no longer be constrained. Their pretensions are disintegrating, their foundations collapsing....

[DallasNE]

2. What Else Did Merkel And Sarkozy Expect

Today the markets indicated that they expect voters to reject the one-sided deal hammered out by Merkel and Sarkozy. Before this announcement by Papandreou Greece was on the verge of widespread riots. A problem is that local elections in both Germany and France show both Prime Ministers to be in political trouble so they are trying to cling to power and that ties their hands with their base. They have the same problem as Boehner has here -- they have lost control of those they lead so they are unable to do what the situation calls for. It is, in other words, a lack of leadership and I don't see any on the horizon so this will go to the brink. The question is, then, will there be anything to prevent things from going over the brink. And where are the Central Bankers in all of this. They need to step forward as well, including Bernanke, though Bernanke needs to be leading from behind.

[IamK]

3. Military Coup is next.... n/t

[Marazinia]

4. I thought another site said the referendum was dead?

http://blogs.wsj.com/marketbeat/2011/11/01/referendum-might-be-dead-but-stocks-are-still-down/?mod=google_news_blog

The stock market has bounced back a little bit on a report that any Greek referendum on that country’s bailout is now essentially a non-starter. But they haven’t bounced back much.

Was it all just a ruse to damp down the anger for another day?

[muriel_volestrangler]

5. PM still intends the referendum to happen

Very recent statement from his office:

Greece's plan to hold a referendum on a European Union aid package will make clear the country belongs in the euro and market turmoil will be short-lived, Prime Minister George Papandreou told a cabinet meeting on Tuesday.

"The referendum will be a clear mandate and a clear message in and outside Greece on our European course and participation in the euro," Papandreou said, according to a statement released by his office. "No one will be able to doubt Greece's course within the euro."

http://www.reuters.com/article/2011/11/01/greece-pm-idUSA8E7KN00420111101

[Ghost Dog]

9. Greek Cabinet backs PM's referendum decision

"The cabinet expressed its support," said government spokesman Elias Mossialos. "The referendum will take place as soon as possible, right after the basics of the bailout deal are formulated."

/... http://www.athensnews.gr/portal/8/49924

[CHIMO]

6. Carney says Greece right on referendum

Bank of Canada Governor Mark Carney said the Greek government is right to seek broad democratic support on whether it should accept the financial-rescue plan on offer from its partners in the euro area, so he respects Prime Minister George Papandreou’s plan to hold a referendum.

Speaking to the House of Commons Finance Committee Tuesday morning, Mr. Carney notes that it is “imperative that there is widespread support” for tough decisions to implement major fiscal austerity measures, because they will unfold over a long period.

“If it’s the judgment of the Greek government that this is the best approach to validate that support, we fully respect that,” Mr. Carney said.

http://www.theglobeandmail.com/report-on-business/economy/carney-says-greece-right-on-referendum/article2220900/

[CHIMO]

7. Halloween

Has come and gone. We are back with real people. So get some sleep.(Stop running off to meet Merkel!)

http://www.guardian.co.uk/business/2011/nov/01/greek-government-teeters-on-brink

[unkachuck]

8. "...requiring Greece to embark on tough new cost-cutting measures."

....that's the problem, and here's my solution....

1) Drop out of the Eurozone.
2) Start printing your own money.
3) Pay off your international debt with your printed money.
4) Begin negotiations to trade with the BRIC countries. (they like the Greek people and the BRIC countries are your future)

....why bother remaining tied to the old wall street and euro bank swindlers when you can set yourself free....any financial deal with these ponzi artists will only punish the Greek people in favor of the international corporate elite....

....when our super-dooper-committee returns this month with our punishment for international corporate sins, we too will insist on a referendum....

[hugo_from_TN]

10. There will be a problem with #3 on your list

Maybe I should print my own money and pay off my mortgage.

:rofl:

[unkachuck]

16. "Maybe I should print my own money..."

....but you're not a sovereign nation....

....why would you want to pay off bad paper with good paper if not to transfer more wealth from the poor to the rich? Why should the international banking swindlers be the only ones to put out bad paper?

....if wall street doesn't like it, then it must be good for us....has wall street done us any good lately?

[Little Tich]

11. What happens if the Greek people vote against the rescue plan?

[GliderGuider]

12. First a bit of fancy dancing by all concerned, then default.

An outcome devoutly to be wished for, IMO.

[GliderGuider]

13. Sarkozy and Merkel are carrying the bankers' water.

While there is no "good" solution to this mess, I think Papandreou's decision is exactly right. In the world's oldest democracy, the people surely have the right to decide on their own future.

The global financial system needs to be reset, the entire enterprise is rotten to the core. Greece is as good a place as any to begin that process. And yes, I am fully aware of the implications.

[Hotler]

14. +1 n/t

[workinclasszero]

15. Destroy the banksters!

Its us, the 99%, or them.

Their rotten corrupt to the core system just needs a little kick to collapse worldwide.

Ironic that Greece where democracy came from in the first place from gets the honor of starting the destruction of the fascist banking system.