This article was published by The McAlvany Intelligence Advisor on Wednesday, July 15, 2015:
From Genesis 25 one finds this:
Once when Jacob was cooking some stew, Esau came in from the open country, famished. He said to Jacob, “Quick, let me have some of that red stew! I’m famished!” (That is why he was also called Edom.)
Jacob replied, “First sell me your birthright.”
“Look, I am about to die,” Esau said. “What good is the birthright to me?”
But Jacob said, “Swear to me first.” So he swore an oath to him, selling his birthright to Jacob.
Then Jacob gave Esau some bread and some lentil stew. He ate and drank, and then got up and left.
So Esau despised his birthright.
After suffering through some 17 hours of haranguing and browbeating last weekend, Greece’s Prime Minister Alexis Tsipras gave away Greece’s national sovereignty for some bread and a bowl of lentil stew.
And the stew smelled to high heaven. First off, it wasn’t an agreement to bail out Greece from its previous financial follies, just an agreement to “start the negotiations” over the bailout!
Second, it neatly removed every piece of national sovereignty the country once enjoyed. It demanded that the Greek government, no later than midnight Wednesday, July 15,
Reform Greece’s notoriously complex value-added-tax (VAT) by broadening its base and eliminating discounts currently allowed certain jurisdictions;
Reform its overgenerous pension system to improve its “long-term sustainability”;
Provide new rules that keep Greece’s statistical agency ELSTAT from fudging the numbers;
Create an outside fiscal group with authority to inflict automatic budget cuts if certain targets are not met on time.
And that’s just the beginning. Market reforms (read: regulations) affecting Sunday shopping, the length of “sales periods,” and rules on the sale of milk and baked goods and the dispensing of pharmaceutical drug prescriptions must be immediately undertaken. Rules on collective bargaining including dismissing of workers must be completely revised according to standards imposed by the EU.
The parliament must be allowed to tell the Greek government how to run itself, including ridding its parliament of the troublemakers that, in their view, precipitated the crisis in the first place. This is how the agreement reads:
The Greek authorities shall … modernize and … put in place a program, under the auspices of the European Commission … for de-politicizing the Greek administration….
It will have veto power over all legislation even before it is presented to parliament or to the citizens:
The government needs to consult and agree with the Institutions on all draft legislation … with adequate time before submitting it for public consultation or to Parliament.
And just who are those “Institutions”? The troika – the European Union, the European Central Bank, and the International Monetary Fund – populated by the same people Tsipras booted out of his country a month ago.
The “agreement” – more properly called an ultimatum – also prohibits Greece from ever again demanding that its lenders take a “haircut” or a reduction in the amount owed, while affirming that Greece will instead be responsible for paying back every penny:
The Euro Summit stresses that nominal haircuts on the debt cannot be undertaken. The Greek authorities reiterate their unequivocal commitment to honor their financial obligations to all their creditors fully and in a timely manner.
But, in a final declaration of the end of Greek national sovereignty, the agreement declares a “yard sale” of precious national treasures and assets:
Valuable Greek assets will be transferred to an independent fund that will monetize the assets through privatization and other means.
The monetization of the assets will be one source to make scheduled repayment of the [proposed] new loan … a targeted total of 50 billion euros….
The agreement fails to define “valuable” or “other means,” leaving open the extent and the procedure of the liquidation of those assets in order to pay down the nation’s debts. But Jeroen Dijsselbloem, the president of the Eurogroup and head of the ESM (the European Stability Mechanism that assisted Greece in getting into insurmountable debt in the first place), told Bloomberg:
[The fund] is going to be an independent fund … [made up of Greek] airplanes, airports, infrastructure, and most certainly banks….
This is good for Greece but also good for us. We are, in the end, the ones from whom the money was borrowed.
Like farm implements and land being sold off at auction, Greek assets will be auctioned off, including “even plots of land on its famed islands,” according to the Washington Post.
Word comes that Tsipras, despite selling out his country, has persuaded enough members of parliament to trade national sovereignty for the EU’s mess of lentil stew. If so, by midnight Wednesday, July 15, Greece will pass into history as a once sovereign nation and now a vassal of the supranational European Union.
MarketWatch.com: Opinion: Greece’s new deal simply won’t work for these two reasons
BBC.com: Journey across crisis-hit Greece