Yanis Varoufakis calls far left party Popular Unity's plan for Grexit and a return to the drachma "isolationist"

In Greece the left calls the left isolationist.

In America the right calls the right isolationist.

Maybe the isolationism is where the real meaning is, the other monikers "left" and "right" being obfuscatory and Orwellian, and useless.

The two candidates for president in America with any energy in their campaigns are against free-trade because it is one-sided trade which slowly impoverishes the American middle class. A more insidious form of Fabianism is hard to imagine. One of the candidates is a patriotic socialist throwback to the FDR 1930s, the other a businessman whose hero was another Democrat in recovery, Ronald Reagan.

In our time it has been only some people from the left who have seemed capable of understanding that our capitalism-in-name-only actually requires the destruction of the economic ladder along which historically Americans have more or less freely traveled both up and down. This is because only people of the left are acquainted with the truth of the observation by Marx how free-trade was to be welcomed because it hastened the revolution. We get absolutely no insight from the American right about this and they run headlong unaware toward their fate. Accordingly we get no sympathy from them either for the plight of formerly prosperous millions of Americans who have crashed onto the rocks of the libertarian free for all. Their few children will become the next proletariat, the wealth of their parents and grandparents only a faint memory. 

The irony of the world situation is that it is creatures of the left who want to stop this, both here in America and in Greece. 

Yanis Varoufakis on the other hand is not one of them. Chalk it up to being an "erratic" Marxist, as he likes to say. What he is is a pan-Europeanist, a world citizen and globalist who is more at home in European capitals than he is on Aegina. He is not for what Greeks need most, which is the ability to feed themselves and export at a profit, for which they must have control over, and responsibility for, their own affairs. 

Seen here:

'The 54-year-old Varoufakis has already dismissed speculation that he would join the far-left Popular Unity party that broke away from Syriza last week, telling ABC that he had "great sympathy" but fundamental differences with them and considered their stance "isolationist".'

In Greece the popular PM Alexis Tsipras resigned last week in order to consolidate his power

Alexis Tsipras, Greece's hope peddler

Most reports put the resignation of Alexis Tsipras last week down to an act of desperation due to a loss of support in his own coalition in Syriza. 25 MPs have split off to form Popular Unity, basically composed of Syriza's old Left Platform. This party intends to stay true to the Syriza platform of an end to austerity, evidently adding in Grexit and a return to the drachma as planks.

How wonderfully conservative of the lefties. The Greek left has moved so far to the left it's become the bourgeois nationalist right.

True as all this is, Tsipras' resignation was actually an exertion of his power in the current circumstances and a demonstration of his political acumen.

By resigning now instead of sometime later, Tsipras is able to do two important things. One, he can select the candidates himself according to the rules who will replace the defectors, for whom he will use his popularity to smooth their way to election, presumably on 20 September. But he also catches the opposition flat-footed thereby, giving them no time to prepare to stop him. If Tsipras is successful in this gambit, he will be able to form a less leftist government committed to the Euro but also committed to breaking the privileges of the Greek oligarchy, approximating a key leftist political aim of more social equality.

Tsipras is proving himself to be quite adept at discerning politics as the art of the possible, for which he is already much hated by the overly principled figures populating his own and the other political parties, even as the Greek people keep supporting him.

For all the mistakes he has made this year, Alexis Tsipras has proven himself remarkably capable for such a young man.

Greece could do a lot worse, and it has.

EuroGroup president Jeroen Dijsselbloem gets a new name: Lightweight Weaselbloom

Yanis Varoufakis, quoted here:

'In the full transcript published on his blog, Varoufakis also laid into the Eurogroup president, Dutch Finance Minister Jeroen Dijsselbloem, saying he was key to the Greek deal “not just because he is so intellectually lightweight but, primarily, because he is untrustworthy. For example, he chose to lie to me in my first Eurogroup about procedure. It is one thing to disagree with the Eurogroup president. It is quite another thing to have him lie to you about gravely important procedures.”'

Greek PM Alexis Tsipras proves once again he's a stand up guy, says he directed Yanis Varoufakis to develop Plan B

The Telegraph reports here:

'This morning, Alexis Tsipras has come out in defence of Yanis Varoufakis. The PM has spoken about the plans the former finance minster was in charge of, to look into developing a parallel payments system, in public for the first time. He has confirmed he had full knowledge of the blueprint, and ordered Mr Varoufakis to take charge. But he denies that they amounted to a full blown "Grexit" plan.'

Yanis Varoufakis, the former Finance Minister, previously in parliament had stood up for Tsipras by reluctantly and surprisingly voting Yes to proceed with the EuroGroup Summit plan Tsipras had agreed to in Brussels.

Perhaps now parliament will abandon, as it should, any effort to prosecute Varoufakis who like every other member enjoys immunity.

Ambrose Evans-Pritchard is rightly exasperated by the oligarchy's attempt to criminalize Yanis Varoufakis

Here:

'It has come to this. The first finance minister of a eurozone country to draw up contingency plans for a possible euro exit is under investigation for treason.

'Greece's chief prosecutor is examining criminal charges against a five-man "working group" in the country's finance ministry for the sin of designing a "Plan B", a parallel system of euro liquidity and bank payments that could - in extremis - lead to a return of the drachma.

'It is hard to see how a monetary union held together by judicial power, coercion and fear in this way can have a future in any of Europe's ancient nation states.

'The criminalisation of any Grexit debate shuts off the option of an orderly return to the drachma, even though there is a high probability - some say a near certainty - that the latest EMU loan package for Greece will prove unworkable and precipitate the country's exit from the single currency within a year. As a matter of practical statecraft, this is sheer madness.'

Someone gets to Ambrose Evans-Pritchard: On the weekend Schauble was a devil, but now he's a misunderstood genius!

Ambrose Evans-Pritchard erupted on Twitter on the weekend when Schauble leaked the Grexit memo in Brussels:

Now Schauble is a misunderstood genius who had it right all along:

'Wolfgang Schauble is one of the very few figures who has behaved honourably in this latest chapter. ... [H]e is entirely right to argue that a velvet divorce and an orderly exit from the euro for five years would be a “better way” for Greece, as he did on Germany radio this morning. ... Mr Schauble has been pushing for Grexit since 2012, and probably earlier. He genuinely thinks it would better for all concerned. When he floated his plan, he meant it. ... Even if [Merkel] was irritated by the Schauble paper – and her skirmishes with the irascible finance minister are legendary – she appears to have latched on to it as a useful negotiating ploy. The trick worked. It terrified Mr Tsipras into submission. ... Mr Schauble’s original and honourable intentions have been entirely misunderstood. The world’s verdict is that Germany's benign and enlightened statecraft in Europe over the past 60 years has given way to Bild Zeitung reflexes, the hegemony of crude populism. One can only feel sympathy for German diplomats who must clean up the mess and explain how this tangle of conflicting agendas spun escaped control.'

Rumors of Grexit Leading to Spanic Might Prompt Quitaly and Finally Fixit

The Euro humor, coming from Matthew Lynn, here, is deadly serious:

“A fresh panic in Spain might be followed by rising demands for Italy to quit if it doesn’t get the same terms its Mediterranean neighbor has been offered, followed by a Finnish departure from the single currency that might finally bring the whole saga to a climax,” he said.

A game of dominoes, started by Greece.

Greek Exit Could Expose Banking Ponzi in Italy

Ambrose Evans-Pritchard for the UK Telegraph, here:

The IMF said Italian bank exposure to the state is 32pc of GDP, including all forms of lending. ... Almost half of this is owed to foreigners. Italy's central bank owes a further €278bn in 'Target2' claims to peers in Germany, Holland, Finland and Luxembourg, reflecting capital flight.

Italy's former premier Romano Prodi said the EU risks instant contagion to Spain, Italy, and France if Greece leaves. "The whole house of cards will come down", he said. ...

The ECB's emergency lending may have made matters worse, encouraging banks to buy their own states' debt. It has led to an incestous inter-linkange of fragile banking systems and fragile sovereign states, each propping the other up. Many of the banks used ECB money to buy state bonds until they need to roll over their own debt. They are now nursing stiff losses.