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Breaking: Greece Threatens To Leave Eurozone, Reintroduce Own Currency
- GREECE THREATENS TO LEAVE EURO AREA, GERMANY'S DER SPIEGEL SAYS
- FINANCE MINISTER FROM EUROZONE AND EU COMMISSION HOLDINGS CRISIS MEETING TODAY IN LUXEMBOURG
- MEETING AGENDA INCLUDES POSSIBLE NEAR-TERM DEBT RESTRUCTURING FOR GREECE
- EUROGROUP CHAIRMAN JUNCKER "TOTALLY DENIES" MEETING TO BE HELD TODAY TO DISCUSS GREECE
- And cue panic and furious denials:
- And cue panic and furious denials:
- French finance ministry official cannot neither confirm or deny Spiegel report of emergency Eurozone meeting
- Austrian Finance Minister spokesman says Eurozone breakup "absolutely unthinkable"
- German government source says theres no plan for Greece to leave the Eurozone
- Senior Greek government official denies report that Greece raises possibility of leaving Eurozone
- IMF SAYS IT HAS `NO COMMENT' ON REPORT OF GREEK EURO EXIT BID
Full google translated Spiegel Article:
Greece is considering withdrawal from the Euro-zone
The debt crisis in Greece is getting worse. The government of the country considered to information from SPIEGEL ONLINE, leaving the euro zone. The finance ministers of the monetary union and representatives of the EU Commission will meet on Friday evening secret to a crisis meeting.
Berlin - The economic problems of Greece are huge, almost daily protests against the civil government. Now Prime Minister Georgios Papandreou, apparently sees no other way: According to information from SPIEGEL ONLINE considered his government to abandon the euro and reintroduce its own currency.
Alarmed by the efforts of the European Commission on Friday evening an emergency meeting in Luxembourg has loaded. Apart from the possible withdrawal of Greece from the monetary union and a speedy rescheduling of the country is on the agenda. A year after the outbreak of the crisis in Greece this means for the European Monetary Union an existential turning point - regardless of what option they choose.
Because of the tense situation has been prescribed for the meeting in Luxembourg the highest confidentiality, only the Finance Minister and one close associate may. For Germany participate Finance Minister Wolfgang Schäuble (CDU) and Financial Secretary Joerg Asmussen.
Schäuble wants to hold the Greeks in all circumstances from € outlet. An internal presentation of his ministry, which he took to Luxembourg, warns of the consequences. "It will be a significant depreciation of the new domestic currency against the euro," it states. Was estimated using an exchange rate loss of up to 50 percent can be expected. This debt is growing dramatically in Greece. Schäuble experts expect that the national debt would increase following the devaluation of around 200 percent of gross domestic product. "A restructuring was inevitable," they warn. In plain language: Greece would be bankrupt.
Massive implications for the economy in Europe
While controversy is whether a Euro-Greece's exit would be legally possible at all - in the opinion of legal experts would have to leave the country for the same time the European Union as a whole. It is doubtful whether the other members of the Monetary Union of the government in Athens would preclude a unilateral withdrawal from the euro area actually.
This reveals that the measure had been estimated by the officials Schäuble massive impact on economic life in Europe. "The currency change would trigger a capital flight," they write. Greece may be forced to introduce capital controls. "This would be the fundamental freedoms of the single European market not to bring into line." Moreover, the country would be cut off for many years by the capital market.
Furthermore, would the withdrawal of a country from the monetary union, "damage the trust in the functioning of the euro zone difficult," it said. International investors have to expect that emissions in the future further € members wanted. "This would lead to contagion effects in the euro zone."
The German taxpayer would step dearly
Had a severe impact on the swerving of Greece still ailing banking sector, especially at home. By the currency cut "all of the equity would be eaten up the banking system, the country's banks would be instantly insolvent." But the banks in other countries would suffer. "German and foreign banks would have expected a substantial loss to their demands," says the paper.
The European Central Bank (ECB) would be affected. It would have "a substantial portion of their assets to write off as uncollectible. Among the loans to banks without counting the stocks added to Greek government bonds, which the ECB has bought in recent months. Their volume estimate Schäuble officials to at least 40 billion euros. "Germany would contribute according to its ECB capital share of 27 percent most of the losses."
The bottom line is an exit followed by Greece would bankrupt the country euro-zone countries and their taxpayers are even more expensive. Together with the International Monetary Fund, they have the land grant assistance amounting to 110 billion euros - around half of which was already paid. "The euro-zone countries would have to surrender to the bankruptcy of the country on some of their claims."
And the original version of the article in native English:
The debt crisis in Greece has taken on a dramatic new twist.
Sources with information about the government's actions have informed
SPIEGEL ONLINE that Athens is considering withdrawing from the euro
zone. The common currency area's finance ministers and representatives
of the European Commission are holding a secret crisis meeting in
Luxembourg on Friday night.
Greece's economic problems are massive, with protests against the
government being held almost daily. Now Prime Minister George Papandreou
apparently feels he has no other option: SPIEGEL ONLINE has obtained
information from German government sources knowledgeable of the
situation in Athens indicating that Papandreou's government is
considering abandoning the euro and reintroducing its own currency.
Alarmed by Athens' intentions, the European Commission has called a
crisis meeting in Luxembourg on Friday night. In addition to Greece's
possible exit from the currency union, a speedy restructuring of the
country's debt also features on the agenda. One year after the Greek
crisis broke out, the development represents a potentially existential
turning point for the European monetary union -- regardless which
variant is ultimately decided upon for dealing with Greece's massive
troubles.
Given the tense situation, the meeting in Luxembourg has been
declared highly confidential, with only the euro-zone finance ministers
and senior staff members permitted to attend. Finance Minister Wolfgang
Schäuble of Chancellor Angela Merkel's conservative Christian Democratic
Union (CDU) and Jörg Asmussen, an influential state secretary in the
Finance Ministry, are attending on Germany's behalf.
'Considerable Devaluation'
Sources told SPIEGEL ONLINE that Schäuble intends to seek to prevent
Greece from leaving the euro zone if at all possible. He will take with
him to the meeting in Luxembourg an internal paper prepared by the
experts at his ministry warning of the possible dire consequences if
Athens were to drop the euro.
"It would lead to a considerable devaluation of the domestic currency
against the euro," the paper states. According to German Finance
Ministry estimates, the currency could lose as much as 50 percent of its
value, leading to a drastic increase in Greek national debt. Schäuble's
staff have calculated that Greece's national deficit would rise to 200
percent of gross domestic product after such a devaluation. "A debt
restructuring would be inevitable," his experts warn in the paper. In
other words: Greece would go bankrupt.
It remains unclear whether it would even be legally possible for
Greece to depart from the euro zone. Legal experts believe it would also
be necessary for the country to split from the European Union entirely
in order to abandon the common currency. At the same time, it is
questionable whether other members of the currency union would actually
refuse to accept a unilateral exit from the euro zone by the government
in Athens.
What is certain, according to the assessment of the German Finance
Ministry, is that the measure would have a disastrous impact on the
European economy.
"The currency conversion would lead to capital flight," they write.
And Greece might see itself as forced to implement controls on the
transfer of capital to stop the flight of funds out of the country.
"This could not be reconciled with the fundamental freedoms instilled in
the European internal market," the paper states. In addition, the
country would also be cut off from capital markets for years to come.
In addition, the withdrawal of a country from the common currency
union would "seriously damage faith in the functioning of the euro
zone," the document continues. International investors would be forced
to consider the possibility that further euro-zone members could
withdraw in the future. "That would lead to contagion in the euro zone,"
the paper continues.
Banks at Risk
Moreover, should Athens turn its back on the common currency zone, it
would have serious implications for the already wobbly banking sector,
particularly in Greece itself. The change in currency "would consume the
entire capital base of the banking system and the country's banks would
be abruptly insolvent." Banks outside of Greece would suffer as well.
"Credit institutions in Germany and elsewhere would be confronted with
considerable losses on their outstanding debts," the paper reads.
The European Central Bank (ECB) would also feel the effects. The
Frankfurt-based institution would be forced to "write down a significant
portion of its claims as irrecoverable." In addition to its exposure to
the banks, the ECB also owns large amounts of Greek state bonds, which
it has purchased in recent months. Officials at the Finance Ministry
estimate the total to be worth at least €40 billion ($58 billion) "Given
its 27 percent share of ECB capital, Germany would bear the majority of
the losses," the paper reads.
In short, a Greek withdrawal from the euro zone and an ensuing
national default would be expensive for euro-zone countries and their
taxpayers. Together with the International Monetary Fund, the EU member
states have already pledged €110 billion in aid to Athens -- half of
which has already been paid out.
"Should the country become insolvent," the paper reads, "euro-zone countries would have to renounce a portion of their claims."
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Holy Shit
...and the new currency is going to be backed by?..... Or put it this way: Who is going to buy the new Greek Currency bonds?
Tossup. Either The Bernank or Japan. LOL
Relax, everyone.
Eurogroup Chairman Juncker "totally denies" this.
Like, OMG, he totally denies it.
/sarc
Cheers to Iceland, Greece & Ireland - and I hope they wave the Big Bird to the Banking Cartel. They could lead by example.
An Irishman abroad tells it like it isPMs suddenly are off their highs -- did an international gold market close somewhere for the day?
Why is this not good for PMs? Shouldn't increased uncertainty about FIATs mean rise prices in PM prices?
Good for physical, bad for paper.
Here's how I see it: PM prices are falling because of the "rally" in the USDX because of the falling of the Euro because of the threat from Greece to leave Euro and create it's own worthless paper currency....
What a mess...
I would really love to see the entire spool of lies and deception that is the Global Banking Cartel & its Fractional Reserve Fiatski Ponzi Scheme implode.
+1. Lookin forward to it.
DOES IT MATTER IF THEY LEAVE OR NOT? MAY 8TH IS THE REAL MAY DAY!
http://fiatsfire.blogspot.com/2011/05/fukushima-friday-redux-may-8th-may...
WHATS GOING ON?!?! COVER UPS AND LIES DAILY NOW!!
Oh come on. Looking out my window Athens is still there, right smack in the middle of the Eurozone.
Most Greeks being Christian it is apt to paraphrase Augustine:
"Lord, make me virtuous... but not now"
Nobody.
They'll just print money.
That is very fashionable these days. Backing for currencies is just sooooo lame.
The new Greek monetary slogan - "STFU and trust us!!!"
que Al Quaeda in Greece.
Anyone ask the same about Iceland? They told the banksters to shove dreadels up their poop chutes and never looked back....only ones hurt were the banksters dont believe the hype that unless you bow down to the cabal terrible things will happen to you. Theyve got bupkis.
the thought is they will repatriat the gold and back the new drachma with 10% gold. this is good news for the fight against global banksters the imf and the ecb WOW people finnally getting smart
Who bought Mexico's bonds in 1989?
No bid for Brazil40?
It'll be backed by calamari
Squid bitchez!
<<...and the new currency is going to be backed by? >>
Feta cheese ?
> Who is going to buy the new Greek Currency bonds?
Do you have a mirror handy?
And you don't even get to vote on it!
@flacon - sovereign countries don't have to borrow. That's a privately-held central bank construct. See the Lincoln Greenback. Not without its problems but at least it was the people's money.
Fuck that statist tyrant traitor Lincoln and his fiat, inflationary Greenbacks. They were in no damned way "the people's money" --- they were the GOVERNMENT'S money, never forget that. Yeah, greenbacks were "the people's money" just like modern senators and congressmen are "the people's representatives". Don't make me laugh!
What we need is the separation of money and the state, NOT merely some tinkering around the edges of the statist, fiat monetary paradigm. Stop the government from issuing ANY form of money --- it no more needs to be involved in dictating what individuals can and cannot exchange among themselves than it "needs" to dictate to us what we can and cannot voluntarily and freely chose to ingest.
Hello accelerated bank run throughout the periphery, and Hello the only plausible response: capital controls.
http://www.polycapitalist.com/2011/05/breaking-greece-leaving-eurozone.html
Eurozone is just a common currency agreement among too many different cultures. The thing had failure written all over it from the beginning.
amazing this would come out on the 1 year anniversary of the flash crash. AMAZING!
'Tis but a scratch
This pretty much makes all other news irrelevant barring a Bernank resignation.
If Greece does it to them, it means the Irish will also.
I don't know who here reads my stuff, but if Greece pulls out the European bankings system sill hit a ditch that would make Lehman look like a bond rally. May reference:
With Greek Debt Yielding 20%+ and Trading at Half Par Value, European Banks Are Trapped!Monday, April 25th, 2011 by Reggie Middleton
Well, if Greece does default or restructure (and the market is telling us that Reggie is right in that this is a foregone conclusion), then…
The greeks and the germans are damned if they do and damned if they don't. So if they can't agree to a compromise : Haircuts + austerity strapping in Greece (killer blow to population), there is no satisfactory solution. Its a lose-lose by the looks of it.
Default and resurrection of the Drachma seems the most expedient way out of EuroHell.
Ya. But it opens up the fractional reserving genie and the fictional reserving genie and it forces banks to use accounting that's not Disney approved.
Still doesn't make it the wrong move. Greece needs to pop out the drachma.
I like your stuff, Reg. Thanks for the explanation.
I agree. +1, Reggie.
Senior Middleton,
enjoy your insights but far too honest - I prefer simple (non)solutions to complicated, interconnected problems.
Will continue to read your stuff and agree where we are today...but curious in regards to how you propose (in general) to protect wealth in this environment? Given the world you paint of unrecognized losses and interwined liabilities...what has worth, value, utility in a deflationary world papered over w/ reflationary policies?
Take for example the REIT's (as you are well aware), these are trading at 2.5yr highs regardless the generally poor CRE and RE enviroment they exist within. The unrecognized losses papered over w/ yields, low rates, and extend/pretend financing has put a floor under these entities. Are they any different than the countries you describe in your presentation but only on a national instead of international level? What is the linkage of the sovereign to the national CRE / RE market?
reggie, i saw your article a couple of weeks back. nice call as usual.
does this mean my srs i've been holding since oct 09 will stop shrinking? lol
hoping whatever new government we form after ours blows up will include you as the finance minister.
would prefer a guy who knew the meaning of "penultimate"
All right, that's the second-to-the-last time I'm ever reading one of your posts!
I am also holding SRS! I will keep them until they go back to $200.00
Whenever Greek default is back in the news, I feel the need for the wisdom of Nigel Farage.
http://www.youtube.com/watch?v=WkEY7_gDCTc
The Euro as Volkerkerker (had to look up that one). They're all trapped inside an economic prison. Aeeeyyyyyy!
Everybody knows that 'der Spiegel' in Germany is absoltely not a respectful newspaper and mostly brings gossip about celebrities and most of what it writes is sensational articles?
We will see....next Monday !!!
Bs.
Wha???? no, Der Spiegel is somewhere between Time and The Economist. Founded by a German POW who spent WWII in Florida and read Time, he wanted to do a German version. They get as many scoops as Rolling Stone with Talibibi (sp?)...
err, No. Der Spiegel is actually quasi reputable -- albiet 'Sturmgeschütz der Demokratie' in some fashion. I've always found them to be somewhat balanced and reasonable; however, there are times they try too 'hard' for a scoop and jump the shark a bit. This might be one of those times.
Greece FTW Bitchezz !!!
Greece, always in for a good laugh.
Go Greece. Do an Iceland on their banksta ass.
Greece has restructured (defaulted) many many many times before. The country will go on. Most of the people there would rather default, have a currency that perhaps suffers inflation, and avoid the austerity measures they believe others have imposed on them. They'll turn inward and hunker down in Greece. They won't be the last.
The dirty little secret is no one actually needs the central bankstaz fiat fractional reserve currencies at all. The news is getting out, big time.
"""Tomorrow (May 6th) marks the first anniversary of the IMF, EU and ECB troika arriving in Greece. In response, base unions, the I won’t Pay movement and struggle committees in workplaces call for a demonstration today, May 5th at 7pm at the Propylea in Athens. They also call for participation to the General Strike of May 11th, and for the struggle to continue and to intensify up to May 15th, which is when the new round of cuts is to be announced.
Today, May 5th, also marks the first anniversary of the tragic death of the three bank workers at Marfin bank. In an effort to capitalise on their memory, the neonazis of Golden Dawn have called for a gathering outside the bank this evening, approximately at the same time with the base union demonstration only a few yards away."""
http://www.occupiedlondon.org/blog/2011/05/05/465-one-year-after-the-imf...
yep
Ha! How appropriate for Greece to stick it up someone's rear end. The irony is masterful!
Well done Greece - luckily I have old Drachma's stashed in my drawer somewhere.....
This is clearly 'EU Stability' and obviously the union is working - it's not in crisis - that's just the 'speculators'
(I am hoping to get a job as a speech writer for JCT)
Pretty soon, "Going Iceland" is going to sound about as attractive as "Going Galt".
Greece leaves Eurozone - banksters and fraudsters hardest hit.
WOW!
That's a big domino!
I hope they do, Fuck the EURO! An the irish better follow suit soon, time for this house of cards to come down as there is officially no more band aids left
Finally, let the games begin!
Leeeeeeeets get ready to ruuuuuuuuuuuuuuuuuuuuumble
In the RED corner - Greek Debt
In the BLUE corner - the EU flag
What took them so long? Germany says, "Don't let the door hit you in the ass on the way out."
Umm...no. If Greece leaves the EU, Germany will be in a world of hurt.
If Greece doesn't leave, Greece is in a world of hurt.
Pick your poison, I guess.
Not the Germans I know.
We don't need your rules.
We got our own rules.
And all you banksters are getting what you deserve:
Rien du Tout. Nicht. Nada. Nothing.
Bankruptcy for the banksters. Got to love it!
The Banksters dont care about Money, they just print it, its about Control.
C'MON IRELAND!!! Do you have any balls left?
Yea WTF is up with Ireland, are they now just confined to the pubs all day? Although we cant talk much here, americans are the most pathetic of the lot in the inaction and complacency categories.
what can you expect? the "reserve currency" status has afforded Americans luxury (including the luxury of ignorance). People get complacent.
Good point Sheep Dog. Actually all of us the world over are int esame state really.
Here in India, dysfunctional capitalism personified, I sit and write a blog. TO take on the sytem head-on is madness. Perhaps the smarter one's are working on it's demise from the inside.
Very interesting time to be alive and mostly sentient! ;-)
ORI
http://aadivaahan.wordpress.com
perhaps one?
perhaps one?
Approved!
This is nothing more then 'Theater' for the markets because they want the Euro to fall from these high levels. Nobody is buying anything from Germany when the Euro is this strong. I believe it when I see it.
+1
watch the big wheels, not the little ones.
Do it for god's sake! Take back your sovereignty!
"The euro-zone countries would have to surrender to the bankruptcy of the country on some of their claims."
Good game guys, good game.
GM'd bitchez.
One way or another the "haircuts" are coming. High and tight - Parris Island style.
-slick-
Did they actually sell any of their islands in the end?
Navarone. No guns.
Threatens... kinda like Quebec "threatening" to leave Canada.
I'll believe it when I see it.
Kinda like Kramer (cosmo) threatening to not accept junk mail.
Right after he builds "levels" in his apartment and gets rid of his fridge because he only wants to eat fresh food.. Long live Kramerica Industries!!!!
He even had his mailbox bricked from the inside.
Nice pop culture reference.
+1
fyi.......For all you "seinfeld" fans........jerry has a new website....started today.....all his old stand up bits...
http://jerryseinfeld.com/
Max Keiser effect?
That would be B!tchin to see Mad Max leave a trail of middle fingers in his wake after visiting these teetering countries
Someone has been creating possibly fake roumours all day today to bring the market down? Bombs in Liverpool street and Canary wharf, now this? mmm..
If they wanted to 'bring the markets down' all Bernank has to do is press the 'down' arrow on his keyboard.
Absolutely, this must be someone with less power.. Someone in pain due to a short.. but market looks good for a reversal and drop so he-she might be in luck after all..
If you've seen that AMC series 'Rubicon,' all I can say is -
Art imitating real life, bitchez!
Precisely.
where did u hear the Canary Wharf rumour? on the trading floor or after a few pints at lunchtime
Market News International: BUNDS: No reaction so far in June Bunds on talk that Canary Wharf tube
station in London has been evacuated due to a suspect package. June Bunds are maintaining earlier 51 tick gains at 123.58.Same source of news as for the Livp street blast. BULLET: UK: City of London police say they have had no of.... 06-May-2011 UK: City of London police say they have had no reports of any incident in London. Rumours had been swirling the market of a blast in the Liverpool Street area.
Break out the Ouzo and Metaxa, bitches...
EU greeked.
No doubt highly bullish, or something!
Bumper sticker seen around Athens: "What would Socrates do ?"
Do you hear that, Mr. Anderson? That is the sound of inevitability; it is the sound...of your death.
The endgame begins...
Consequences:
Euro shoots higher as weakest country leaves.
Dollar index bounce short-lived and breaks historic low.
Uh, no...
Or.. or... Domino effect of countries leaving Euro cause panic selling in Euro for fear of Bond market collapse and default of debts... No... This will be very bearish near term for the Euro.. Long term for Germany, France, Holland this may be good..
THIS IS SPARTA!! When did Leonidas return?
There are alot of people here who would like to leave the Joo Knighted States of Joo York Shitty's Imperial Empire bitchez.
Tyler- do you have any standards at all? Is this poster o.k. with you and ZH?
Leave a sample of your crocodile tears here: http://www.splcenter.org/
wtf? he's correct lol
Call the fucking ADL and SPLC and whine
I handle things my own way.
You've been signed up here for over a year. Is this your first trip into the comment section? This site has the best platform for the first amendment I've ever seen online. If you don't like what he says, call him out on it. Don't go whining to Tyler. It makes you look like a bitch.
1st Amendment rules here friend. After all I am a dirty Kraut and revel in it..
I am shocked *I say shocked* with your anti-semantic outbursts!
You are the WEAKEST link
So who is in the lead to destroy their fiat currency now? I can't keep up. If Greece takes these steps, surely they will take the lead into the toilet with the Drachma next year.
Yes, but they will have climbed out of the septic tank.
I dont know thats a given, Iceland told the banksters to go pound bagels up their asses, and are doing fine now.
"Because of the tense situation has been prescribed for the meeting in Luxembourg the highest confidentiality, only the Finance Minister and one close associate may (attend). For Germany participate Finance Minister Wolfgang Schäuble (CDU) and Financial Secretary Joerg Asmussen."
What no one from Goldman or Deutsch Bank.
How will they be able to front run the news?
Duh? They just named one from each. Hello?
I should pay more attention.
:)
An attendee "accidentally" putting their cellphone on "speaker"...
Good, let em slow roast in Club Med olive oil.
Refusing bankster inslavency never looked so good.
Maybe they can start fishing again
"Guy Who Drinks Too Much and Talks to Other Guys' Girlfriends In Inappropriate Ways Threatens to Leave Party"
LMAO! It's kinda like swinging a plastic sword!
Heh - don't know who junked you, I thought that was pretty darned funny.
Thanks for the chuckle.
A junk here and a junk there, keeps me smarter than Timmay. have a good weekend.
Greece should tell the globalists and the euro-dream to fuck off
they have been using such news to prop up the $.....will only believe it..if it actually happens
Just be sure to turn in your EU migration passes on the way out.
And so it begins .........
Lend to the Greeks in Euros and get paid back in...the new Drachma?
That's not a haircut. That's a decapitation!
:) I said my hair not my fucking throat..
And HSBC just came out this morning says greece was money good until at least June 2013 :D
Sell all your physical PM's!!!
I closed all my xag out in europe. Sadly I'm short again @ 35.68. Jimmy Hoffa made me do it!
Somebody's selling and I'll bet it's not physical.
Never! The fun is only getting started! Every time I look at my pile of gold and silver, I can hear a central bankster squeeling off in the distance!
http://www.entendance.com/forums/viewtopic.php?f=5&t=762&p=16809#p16809
The gang banger banksters will keep coming back like they did in iceland or else they will make germany's pensioners make up the loss.
That will harm your nazi friends?
joo banksters are the neo-nazis
just back from a wedding in Greece... the country looked like an abandoned building site....
That's just Greece as normal. Probably started a job and then got bored and went for a coffee, then retired at 36.
LMAO!
I have many Greek friends, and they'd all laugh with me at that!
+1 Opa
p.s. - Fuck The Federal Reserve, IMF, World Bank, ECB and all other tentacles of the Reptilian Money Masters.
like detroit?
Rumor is probably fake. Even if Greece exits the eurozone, their debt will still be in Euros and even at a 50% haircut they still will not be able to get their deficits under control, and will eventualy have to default outright.
Besides, under the IMF loan treaty signed by G-Pap, the 110bn loan from the IMF cannot be subject to a haircut. Oh and by the way, under article 4 of the loan agreement, in case of default on the IMF loan the creditors have the right to reposess government property including natural resources, land, government buildings etc, etc.
This will get bloody.
they will just convert the debt to new drachma at an exchange rate twice what it will trade at. All the banks and the IMF will hold new loans in new drachma's and carry them at par since they won't be impaired for accounting purposes.
IMF: We're here to repossess your land and other assets
Greece: Fuck off
IMF: Well since we don't have an army to invade and occupy said assets and you have one to defend them - OK then. But we'll never talk to you ever again.
Greece: Good riddance. So long.
I'm not giving the Greek army much credit as a fighting force here, but seriously, how does a bank foreclose on a sovereign nation. Pure BS.
They shut down their night clubs and poison their olive trees. Greece has no GDP!
The EURO is pumping MUD as we speak!