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The principal utility of these claims is not to make a coherent legal case, or even to make a political case that will actually convince anyone who isn't a recent victim of German aggression.

The principal utility of this kind of claims is to create (more or less artificial) dividing lines between different creditor pools. Because such lines of division can be used to cut deals piecemeal.

It is an argument of the same form as "we will honor all commitments to the Eurosystem central banks (but the private banks who priced in a substantial risk premium can go fuck themselves)," and "we'll pay back the Eurogroup (but it would hardly be the first time the IMF has taken losses on their engagements)."

Similarly, "we'll pay back everything owed to the Eurogroup (but we don't owe Germany jack shit because of the War)" may or may not be a convincing legal, political, or economic argument. But if you're sitting in Helsinki or the Hague it might mean the difference between getting back 80 cents on the Euro and getting back 20 cents on the Euro.

And the enemies of Greece have shown repeatedly that their votes can be bought.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Sat Mar 14th, 2015 at 02:06:49 AM EST
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