I am looking forward to Armstrong's comments re Greece tomorrow and the near-future.
I think I understand this better than Armstrong does.
Perhaps the Troika will use the big stick of capital controls to induce the Greeks to vote for the Troika's bailout terms which contains a few carrots with more austerity.
The referendum is some sham to convince the Europeans they are not under a dictatorship, as was the case for Scotland.
Remember my prediction in 2010 in the "Understanding Everything Fundamentally" essay.
http://www.coolpage.com/commentary/economic/shelby/Understand%20Everything%20Fundamentally.html#europe"Coases theorem says that an inefficient internal order will continue for as long as there remains an unavoidable frictional barrier insulating it from the more efficient external possibilities. The fundamental reason the EU crisis will not result in a disintegration of the union, at least not until its people significantly abandon collectivism, is that organisms which are unable to comprehend the mechanism by which they are consuming resources faster than their ecosystem can replenish, thus are unable to stop the mechanism before they perish. So the implosion of the friction and thus the order only occurs when they perish, because they will continue to repeat the mechanism which they do not understand to be a cause of their suffering. This can be verified in a petri dish, as an organism will reproduce until it consumes all of its food or oxygen."
Yet another in my growing list of "I told you so". Armstrong finally starting to realize what I told him years ago, that the Euro was designed from the beginning to federalized Europe.
http://www.armstrongeconomics.com/archives/34228You Can Check-In for the Euro But You Can Never Leave
...Brussels has a hidden clause that shows from the very beginning this was a covert action to federalize Europe displacing democratic institutions from the top down...
...This Article 352 allows the EU to wage economic war on any member state to force its will upon the people regardless of what they vote. This is an amazing authoritarian view for this is not just about maintaining a single currency, it is now all about centralized power. The EU is now in a position to carry out coercive measures against Greece that are completely outside any legal framework.
http://www.nytimes.com/2015/07/02/business/international/greece-bailout-tsipras.htmlWith its banking system shut down and access to further aid cut off, Greece faced the prospect of further debt defaults...
...Chancellor Angela Merkel of Germany made clear on Tuesday that she favored waiting until after the Greek referendum on Sunday to reopen talks, and her finance minister, Wolfgang Schäuble, repeated that message on Wednesday after news of Mr. Tsiprass letter became public.