Dangerous Greek Vagueness

Varoufakis says he used "creative vagueness" in his list of reforms to EU

Varoufakis told Greek television channel ANT I that he was proud his team was so obscure while negotiating their four-month bailout extension.

I use the term creative vagueness. I want to be the first minister of finance who will never refer to a number if I am not sure that I will attain it

And Varoufakis insisted that he had warned his counterparts that he didn't want to speak of numbers because he didn't want to be ultimately exposed and contradicted.

 The live thread at the paper also reports that PM Tsipras has convened a meeting of his whole economics team.

Insiders are saying that the "emergency" talks Tsipras has called with his economic team are focusing on two things:

 1) The financing gap that Greece faces imminently (it has to service IMF loans, which expire in March, of just under €2bn euro and has to redeem short-term debt amounting to €21.8bn by the end of June).Greek officials are increasingly voicing concerns about how such loans will be financed, amid mounting speculation that Athens may even ask the IMF to delay the repayment.

My view:

The Marxist finance minister Varoufakis has probably pulled fast one over the Germans and the Troika.

His comments imply the government knows it will not make the next installment to service their IMF loans.

Debt that can not possibly be repaid will be defaulted on.

Like the Trojan Horse myth of old, the Greeks have launched a campaign of financial terror on the EU.  This is the deal - keep our government financed or we will blow up the Euro (and ourselves).

Expect an increase in market and currency volatility in this environment.

One of the more interesting phenomena we see over the past two months is the US dollar and gold rising in tandem.  Generally they move in opposite directions.