In the span of just a week, the leader of Greece and the ruling Syriza party made two very opposite and polar decisions that has the world wondering what the real game being played in Greece is all about. On Friday, Prime Minister Alexis Tsipris went to Russia and signed a pipeline agreement with President Putin at the St. Petersburg Economic Forum, signalling that the Southern European country was putting its chips in on the side of the BRICS. However, in a shocking move just three days later, the Prime Minister stunned his own party by accepting Troika demands and gave into the Euro bank’s position for austerity and reform.
Yet while some may call this being schizophrenic, one has to wonder if there is a third intention in play, and that is one of stalling for time.
Last night from Twitter:
Any agreement today by Greece is a stall tactic as Drachma backup infrastructure is not yet complete. Yuan swap facilities will fix that. – Guerrilla Economist, @Theroguemoney
The Syriza party was brought into power in Greece using the promise that the new government would end austerity, and stand up against the banking cabal of the Troika. For the past six months, both the Prime Minister and Finance Minister have played a dangerous cat and mouse game with the IMF, ECB, and European Commission. But since June 22 was the final day of reckoning for the Greek government, there wasn’t enough time for Greece to make a safe exit from the Eurozone at this time, and in a last minute decision Tsipris gave into the Troika.
Greece has accepted the principle of extending its current bailout programme which expires at the end of the month so as to keep it afloat while a long-term debt solution is worked out, Greek government sources said Monday.
“For the first time, we accept the extension of the programme as the only way forward,” one source said as eurozone leaders discussed Greece’s future in the single currency ahead of the June 30 end of its current aid programme. – AFP
There will be a cost for Syriza and Greece in playing this high stakes game of deception. Already members of the Prime Minister’s own party are vocally questioning whether they will vote to accept the agreement with the ECB, and the people of Greece have spoken their opinions for weeks through a series of bank runs that are validating a lack of trust in the government to do the right thing.
Time… it is the greatest enemy right now for Tsipris, Syriza, and Greece. And with the Prime Minister realizing his delaying tactics could go no further with the Troika on Monday, the only answer remains in how quickly and how likely are Russia, China, and the BRICS to go fully in with the Southern European nation, and how soon can they get the foundation laid for Greece to finally do the inevitable and leave the Eurozone?
Kenneth Schortgen Jr is a writer for Secretsofthefed.com, Examiner.com, Roguemoney.net, and To the Death Media, and hosts the popular web blog, The Daily Economist. Ken can also be heard Wednesday afternoons giving an weekly economic report on the Angel Clark radio show.