Greek Prime Minister Alexis Tsipras has confirmed he had full knowledge of a secret plan to reintroduce the Drachma and ordered Mr Varoufakis to take charge.
Tsipras must now resign.
If he had full knowledge of the plan to reintroduce the Drachma, why did he not pose the question in the referendum on July 5th?
Why did Tsipras not ask the Greek people, do you want to stay in the euro or do you want my plan for a Drachma?
Why did he chose instead to place on the ballot a question on an irrelevant bailout option?
The answer is obvious. Polls have consistently shown that the Greek people would not have backed a switch to a Drachma.
So, under the pretext of allowing Greeks to choose their policy options using a referendum and direct democracy, Tsipras, in reality, subverted the ability of the Greek people to make a meaningful choice by withholding from them the key question. That is, do you want euro or my government’s Plan B for a Drachma?
In addition, Tsipras has to explain why his plan to reintroduce the Drachma was kept secret for months of bailout negotiations when annoucing a plan to revert to the Drachma would have been a big bargaining chip in those negotiations.
The answer, again, is obvious. An announcement of the plan would have brought transparency. Transparency would have led to scrutiny. Scrutiny would have revealed it was a disastrous way of reintroducing the Drachma.
This deliberately flawed, disastrous method of introducing the Drachma could only be carried out in the form of a sudden coup. That is what Yannis Varoufakis attempted when he announced on the evening of the referendum result the introduction of the Drachma on his terms.
Thirdly, Tsipras has to explain why he did not take up the offer of Germany and the European Commissio to organize an orderly exit from the eurozone.
The German Finance Minister Wolfgang Schauble even offered a temporary, five year Grexit.
Angela Merkel made it plain in her speech to the German parliament that a third bailout, funded by German taxpauers, was preferable only to the chaos which would have resulted from a lack of a viable Grexit plan.
There was no need for Tsipras or Yannis Varoufakis to keep this plan secret from the peoeple or parliamant of Greece. Tsipras had no right to keep it secret.
It turns out the only people who were informed about the plan were international hedge fund managers. But hedge fund managers and bankers, who stand to profit handsomely from a botched Drachma, are not the people who should be able to influence the introduction of that Drachma.
Varoufakis even discussed a criminal plot to hack tax files to effect a switch to the Drachma. He admitted, he did not have the resources to carry ou this plan. Creating parallel tax files is a tiny part of introducing a new currency. It is all about grabbing money from Greeks, not about creating a stable currency for trade.
Yet, Varoufakis went on TV after the referendum and announced he would introduce the Drachma knowing he had none of the resources to do so.
In addition, it is absolutely not necessary to arrest a central banker or raid reserves in order to introduce a new currency. A central banker can be charged, put on trial and arrested before or after for their role in the fractional reserve banking fraud, but that is a separate matter.
The introduction of a new currency benefits from political stability, international support and transparency.
Tsipras and Varoufakis deliberately and wilfully planned in secret together with other highly knowledgeable economits like James Galbraith to introduce a faulty Drachma at a time of capital controls, and so to destroy the Greece’s new currency at birth. They did this to profit the international hedge fund managers and bankers, who could have bought up all of Greece for pennies. Indeed, these hedge fund managers were their closest allies.