Greece Should Ice the Troika!

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Open Letter to the New Finance Minister of Greece Yanis Varoufakis

(This letter ran on the following notable blogs: ZerohedgeDavid Stockman’s ContraCorner, Dmitry Orlov’s Blog, and The StealthFlation Blog)

Dear Yanis,

As an ardent admirer, with the utmost respect for what you have put forward and accomplished to date, I humbly offer my thoughts for your consideration.

In my measured estimation, requesting substantive forbearance from the TROIKA on a purely rational and fair minded basis, as you have suggested, in the anticipation of a desirable outcome, is likely a proposition which will disappoint.  There obviously exist significant and powerful vested financial interests adamantly opposed to you on the other side of the table, not to mention the even more considerable, and now intensifying, European periphery precedent concerns which are clearly raising the ante.

Your adversaries’ obtuse position continues to remain implacable for the most determined of self-seeking reasons, and the collateral damage that is Greece, obviously matters far less to them then the well defined and established course that they have set for themselves. Remember, they have not done the right thing previously, they don’t do the right thing presently, and thus, will likely not do the right thing in the future given the opportunity. Don’t kid yourself, these adversaries are just that, and lethal opponents.

Considering they were able to stomach the desolation Greece has so desperately endured throughout this period, there should be little to no expectation that they will now suddenly magnanimously change their stripes, simply because it’s been determined by newly elected, more reasoned and humane men, that it’s the right and sound thing to do.

Having accepted that reality, almost certainly, zero sum game theory shall be called for.  Therefore, in my view, it would be critical that your Ministry of Finance promptly establish an official and entirely credible, thoroughly planned, monetary regime/reset exit program, so as to be perfectly positioned to exercise and execute a realpolitik monetary policy option/bluff, should the ensuing situation which develops call for it.

Make no mistake, Greece must have on the table a true, legitimate and authoritative default & national currency alternative, which the other side is firmly but calmly made to fully appreciate and understand, if not outright fear, even if your first choice is to actually avoid going down that extreme path.

Accordingly, onboarding an internationally recognized and esteemed monetary restructuring firm, with professional expertise in the comprehensive complex field of Sovereign finance and banking, would go a long way to fully validate the genuine viability of a well reasoned, planned and completely prepared alternative option for Greece. Establishing beyond any reasonable doubt the imperative credibility necessary in order to successfully leverage an epic bluff of such magnitude, or simply to have the full capability so as to effectively exercise the monetary reset option should it become entirely necessary.

The old adage; carry a big stick so you don’t have to use it, immediately comes to mind.

Finally, it is my genuine belief, that your special souls and broad shoulders, are now bearing the long awaited bright torch of capital enlightenment, which may very well carry with it an even more momentous moment in time than the vital issue of Greece itself, which is quite naturally closest to your hearts.

These are my sincere concerns, that I feel compelled to pass on to you, and which I would very much appreciate the opportunity to briefly discuss with you. As I see it, your only viable play is to credibly threaten going Icelandic on the Troika’s Medieval ass, thus the completely corageous option/bluff game theory stratagem.

When you’re up against monsters, don’t bring a knife to a gunfight. The time for gentlemanly deliberations are long over with.


Good luck my brother in arms, Godspeed, and know that we are all with you.


Bruno de Landevoisin