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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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Default on the loan then. What are the bankstaz going to do about it, throw a tantrum and threaten no more fractional reserve imaginary fiat loans? Big deal. No one actually needs the central banksta gangstaz, except the phony fraud leechs themselves.
the imf can suck it.
Austrian Finance Minister spokesman says Eurozone breakup "absolutely unthinkable"
Really? Why is it so "unthinkable"? Was 5 margin hikes in 9 days "unthinkable"? STFU, nothing is "unthinkable" anymore.
What's "unkthinkable" is the notion that any idea remains outside the realm of possibility and that the status quo should continue. Burn it all down and let's start again: IMF, UN, World Bank...
Creative Destruction BITCHEZ!!
Its unthinkable to central banksters because they have no other way of making a living other than loaning out their fake fiat currencies at interest.
Right, he might have to get an honest job and stop dreaming up phony economic/statistical models on the white board to pay for his MB S550
+1913
I always wondered why nobody questions the fact that the FED's balance sheet balloons by a trillion or 2 and nobody questions where the money came from?? Or at least, how would common sense explain it?
This really is the crux of the problem. They don't like to work.
http://www.youtube.com/watch?v=-D7APJ4dr78
usury has historically paid better than real work.
Gold, the money of kings.
Silver, the money of gentleman.
Barter, the money of peasants.
Debt, the money of slaves.
+100, that was deep
Standard Eurocrat response. Event X is 'Unthinkable' and the consequences would be 'Unimaginable' therefore it can obviously never happen.
Every time an issue is raised that questions the viability of their Empire-building project, this is precisely the answer they deliver.
Now let's wait for the USSA to breach the debt ceiling next week.
Here comes the dollar bounce. Watch out silver.
Benny has his finger on the up key.
maybe china paid cash for greece! greece was feta up with all the shinanigans
BURN THE BONDHOLDERS!
The Bonds, the bonds the bonds are on fire - we don't need no water...
Paging Max Kaiser!
And Greece should totally blow off the euro denominated debt too- take that! Deflationary, all that bond debt going to heaven? Poof goes money supply.
Ironically, it takes euros out of the system and burns up the inflationary effects of printing.
· Officials arrive for meeting; officials deny there is a meeting.
She had a gun, she didn't have a gun
She was shot in the leg, she wasn't shot in the leg
She didn't have leg, she had a leg
She was killed, she wasn't killed
They were armed, they weren't armed; armed with yellow squirt guns
We're gona' release the photo, we're not gona' release the photo; there is no photo
We're gona' release the video, we're not gona' release the video; cameras blacked out, there is no video
....the lying is bad, and it's universal.
+1. Good presentation.
Priceless.
Don Asmussen (SF Chronicle cartoonist) seems to have finally settled the facts in this fog of war. Using the well-circulated photo in the Situation Room (Hilliary, Biden, Gates and the gang), Asmussen has the real picture with Michelle being held in front of Obama, a human shield to protect him from the prying eyes of the citizens.
Truth has become a smorgasbord scenario: select your own.
They will announce next week a restructuring of Greek debt. It will be better than this, will be the reasoning. Then everyone will see it as a positive.
If this story gains an iota of creedance over the next few hours its could set up a bollocks of a flash crash, how poetic
Beautiful! Yet another black eye for all of the Globalist Phucks out there...
Theyre losin it man! Big time!
Greeks are viewing the pay-off table - They have nothing to lose - as the EU marginalizes the EU periphery the Greeks recognize that they cannot win by attrition - they must double down in order to obtain a favorable adjustment to their bailout package - Currently as we all know the Greek government cannot maintain their agreements - if past performance is indicative of future results the Greek economy is far worse than reported, therefore, they need to press their position or continue to be marginalized - which basically translates to extinction for the ruling party
Viva Greece.
the weekend is here, which means ANYTHING can happen
Yamas!
I toast the Greeks & Irish. And the Icelanders..ics?
Anyways, Cheers to Iceland, Greece & Ireland - and I hope they wave the Big Bird to the Banking Cartel. They could lead by example.
NEWS FLASH:::::DOUCHE BANK TO GET GREESE:D !
We can only hope!
The EU is nothing but the 4th Reich - another German attempt at controlling Europe.
In WWII, it was the Greeks that gave the Germans the toughest fight.
Once again, the Greeks lead the way.
Either way - we're all fucked. ;)
...or to put it another way....
"On a long enough timeline the survival rate for everyone is zero"
Where did you learn history?
He's actually correct. The Greeks gave the Germans the toughest feta during WWII. He must improve his spelling though.
It is comprehensible that most people still blame the Germans for WWII. What I find amazing is that Germans are also often blamed for the post WWII world order, the very order they destroyed their country fighting against.
Having said that, Godspeed the greeks stick it to Douche Bank, SocGen et al., and give the finger to the European Federasts.
Yay. Another "scare" amidst an ocean of repetitious same-ness.
i dunno, t_k_neek, this lQQks like a real kick in the crotch to the NWO, but mine eyes have not yet seen the glory of the visine, and they are really red. that overnight in luxem may have early-warning shakespearean midsummer night's dreams.
as in the US 150 years ago, there seems to be some ambiguity abt the legality of leaving the Union. all kindsa paper is on the line here. at the very least, greece is going john connely b4 the negotiations: it may be our debt, but it's your problem. that google version is fabulous! t.y., tyler for the insight into how the communications in europe must seem! maybe if you get the achilles outfit out, and the chariot, you could drag a giant braunschweiger (on wheels like the OMWeiner) around brussels, this weekend. maybe put a stabilizing finn on it with the word "true" on it in all the EU languages.
maybe the EU can convince the UN to get a coalition together for a "no fun zone" around greece. invasion is, again, the best answer, but greece?
the second best deal would be for the EU to make a deal w/ china for all the iou's, tell the greeks adios, and let them work it out w/ bejing. the downside to this is that the other piis will want to get the same deal.
so, slewie says: let's have japan take care of greece. the japanese had, until recently, a v.gd. track record for managing islands. also, this would strengthen the euro and send the dollar south again w/ the yellow jersey in the Race To The Bottom.
reflation would be renewed, the NWO would be saved, and they all lived happily ever after.
now, where's the visine?
Who cares! Just checked all the indices and GREEN, GREEN, GREEN! Non Event!
DaddyO
Trying to avoid your girlfriend when you know she's trying to break up with you has not worked well for me. Maybe it will work better for Germany and Austria. It's so easy to see all these European politicians letting all calls with Greek country codes going straight to voicemail. Yup, no meeting. Nope, they don't want to break up.
Silver to go boom in 3...2...1...
Spain should do this.
America should do this and reinstate constitutional monie.
If this happens, get ready for a surge in the US$ and an asymptotic collapse in PMs.
(I'm just waiting to buy)
Exactly, and as of now the markets are just feeling through this news.
Make no mistake, this is simply the next iteration of the ongoing, slow motion collapse of the EU.
Insolvent banks will be the last thing they have to worry about when this happens--better get body guards and perimeter security for all the pols.
This news has important implications for QE3, since Bernanke absolutely does not want a strong dollar.
Have you no shame!
Obama, Bernanke & Geithner have all pledged a strong dollar mantra to and for the American People!!!
/SARC
Right. Because every buyer in the world only gives a shit about the USD price of Gold. If the Euro is collapsing, Eurozone buyers will be leaping into CHF, Gold etc. like they always do. Supply and demand will do the rest.
A temporary--and I use that term lightly--spike in the USD could occur, but of course that would be a dead cat bounce sucker move.
Either way, the USD and the Euro are fucked, and all that matters is how many oz's you own of physical.
If you are a greek citizen right now, you must be thinking, fuck, I am about to get steamrolled.
They think they have a problem with daily riots now over austerity cuts, wait until the citizenry figures out whats going on.
They will be forced to cash in one worthless piece of fiat shit paper for another one.
It will happen but not on the 1st try
I forgot to mention...it's been a busy day.
Last night the Scottish National Party (SNP) won an overall majority in Scotland - they now have a mandate for a referendum on independence.
That's not a break up of the EU - that's a breakup of the UK!
I presume they will take all the North Sea oil too - leaving the rest of Britain in a depressed state.
The world is changing.
ty, w_o_w.
perhaps those who still remember the house of stewart are ready to say bye-bye to the house of windsor. before charles decides on the crown.
FATWA bitchez
Greece...the new fucking Iceland.
Go you greek muther fuckers go!
Silver taking this in stride, off modestly from intraday highs.
Hi Ho, Hi Ho - it's off the charts we go
the english version:
http://www.spiegel.de/international/europe/0,1518,761201,00.html
Greece, much like Ireland and recently Portugal gave up their economic sovereignty when they accepted the German led EU bailout. The leading zone members knew that Greece or any of the other PIIGS would eventually default as this is all part of an agenda to break the weaker nations. Yugoslavia was a test run of one method of nation breaking and Bosnia Herzogovina are now just vassal states to the zone. Once this is played out, the EU/Zone will be restructured, possibly along ethic lines rather than current national ones.
A Germany dominated EU, a German pope and a resurgent Vatican, imho a recipe for a nationalist movement on an unprecedented scale.
Empty threat guys. You always fall for these rumors. If it is one thing we know, they will kick the can until they cant. This press release was only done to get the attention from the Fins and Germans to back a restructure or bail out.
That is doubtful.
And while this will not happen overnight, having these ailing pigs as part of the EU is an unsustainable proposition.
It is not a matter of IF the EU implodes, simply WHEN.
And with this news that WHEN is getting closer.
I agree the EU is unsustainable. However, my point is the press release was a threat to get the EU to back a greek bailout or restructure deal. ECB said failure is not an option. FINNS said yes it is. Greece said, watch this! Next, ECB forwards the Hank Paulson memo to Finland. This is politics.
Since when do ZH members believe finacial releases from the greek gov? People are right, ZH has changed.
"You better shape up . . . . "
Greece, the musical
LMAO
There would be a retail bank run in Greece.
Would you not want to get your Euros out before they are converted to Drachs.
You would. Furthermore, you would want to check the serial numbers to make sure the notes you receive are not Greek Euros.
NO Y-V-T-M-S- etc.etc. then...Only X?
"Where do my euros come from? The code breaker"
"The 11 digit serial number on every note begins with a prefix which identifies which country issued it.
German notes begin with an X, Greek notes start with a Y, Spain's have a V, France a U, Ireland T, Portugal M and Italy S.
Belgium is Z, Cyprus G, Luxembourg 1, Malta F, Netherlands P, Austria N, Slovenia H, Slovakia E and Finland L."
"The serial number also contains a secret clue to the country which issued the note".
Read more: http://www.thisismoney.co.uk/news/article.html?in_article_id=503732&in_page_id=2#ixzz1LaqiK0aVGo Greece Go...tell the bankstas to bend over...
Greece has a lot of gold.
Can someone please post what our good, good friend and venom spitting friend Nigel Farange things of all of this?
Greek People ask international gangster-banksters if they like it 'Greek.'
I'm having a greek pepperoni pizza for lunch.
with german schnitzel?
can't happen soon enough, tell the lot of them to fuck off
Greece was doing OK until they joined the "club" and started taking advice from the w/b/ankers.
sure, everybody fiddled their taxes, public services were rife with nepotism and over manning. they were behind the times in many ways and as far as i could see were better off for it. having loads of money means having loads of debt, it looks good, it feels good, until you realise that your creditor owns you.
hopefully they have woken up and just like Iceland, realised there is a way out
When times were (perceived as) 'good' the euro was great, but at that point few gave any thought to relinquishing their ability to implement a 'stealth tax' (inflating) on their citizens.
Now the realization of what they sacrificed is made clear those in trouble don't want any part of it. Should have thought of that back when you wanted into the club.
the whole EU/euro experiment was based on voluntary state participation to common money and Maastricht criteria. None of the PIIGS have respected this as is the case with the bigs boys as well. So its general incompetence/corruption continent wide. The chickens are coming home as elsewhere. Big shit storm on three continents.
Did they never consider that the slaves would revolt when sufficiently oppressed?
Go Greece !!! It's the only way to be master of your destiny...Out of the EURO, Back to the new Drachma. And then: Debt rescheduling...
We will be back on your wonderful islands as happy tourists...
Its got to be a nightmare for the Bernank watchin the dollar creep up...1.4% in a few hours?
How long before Greece hyperinflates? If they leave to avoid austerity, then they leave to try to make their 'fiat dreams' come true. Greece remains our own pilot experiment, right before our eyes..
If George Papandreou comes out of this meeting tonight after telling the EU overlords to go fuck themselves, I predict he will be assasinated in short order.
Until people understand he is the viceroy of the overlords........
I'm picking apart a m15 silver chart. A nice h/s scenario is forming. A decent neckline would be around the 14:30(G.M.T>) 5-06 candle. I drew a line and may just t/p and reload. We shall see how this unfolds.
The ALGO's caught that trade. Fortunately ALGO's over compensate.
The manipulations, the hits, the lies and fraud. It is all about resources (scarcity) and an effort to prolong the status quo. That is all.
GREAT!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Down with Lisbon Treaty, liberty for Europeans.
All Greeks, do it. Do it. Take the step. This will be good for you and everyone else.
Let EU burn.
Aside from mass printing of Euro/debt forgiveness, is there really any other option over the long term?
Ask RM he is here on thread.
Similar to a company that goes BK, Greece needs to secure DIP (debtor in possession) financing to continue to operate. What everyone knows is that when you go BK, capital/cash/hard currency is needed to continue to operate until the situation stabilizes as nobody is going to provide you with credit. So you must plan to go BK, re-organize, and emerge with any chance to survive. If Greece has put any thought into this process at all, it should have already lined-up some type of "external support".
So who or what country would provide DIP financing, think of China, rich Middle East governments, and others with excess reserves that may be worthless anyhow. You may ask why China would cough up $50+/- billion in USD's to provide to Greece to work through this problem. Well first, China may have already determined that in order to dump $1 trillion worth of USDs or USTs, they would only get 50% of the value so rather than dump, let's put them to use. Second, there could possibly be some real assets, infrastructure (via Greece's location) and/or goodwill that China would like acquire. So think of it as a marketing or R&D expense and if the return is there, then make the move. Hell, $50 billion is only about 1.5% of China's reserves or chump change.
Months ago, I discussed this same strategy for Ireland as a means to just "getting it over with". For Greece, it will be painful over the short-term as when their new currency is issued, it will depreciate enormously in value with everyone's standard of living in the country decreasing substantially. On the flip side, Greece gets to hit the reset button and take their medicine all at once. Longer-term, however, this is really the only choice Greece has as once an individual, company, or country reaches this point, the only real choice is to clean house and start over. And down the road, Greece will become a more competitive country via a massive depreciation with their currency in addition to having the satisfaction of not having bust their ass and watch all of their future earnings go to the banksters via debt payments.
Now the only question I have left is who is the counter party on Greek's CDSs? The large European bank debt holders are going to have to take some major hits but the issurers of the CDSs, well it would be interesting to see how this unfolds.
In the end, Greece is smart as if they can pull this off first and be the early adopter to the only choice left, they will be the crowd to the races and have the best seat as we all know that the rest of the PIIGS, other weak European countries, and even the USA will soon follow suit.
Lucid, buy Gold, Asian currencies (Renminbi on the black market) and Russian Oil@Gas co's
Walk the streets of Athens and ask the shop owners how much coffee used to cost in Drachma.
Bring back the silver drachma!!!!!!
Greek CDS spreads have been predicting this outcome for weeks and months.
We are one cowfart away from a solvency crises within the EU banking system.
China, where are you??????
@mountainview
nearly perfect, just the bit about rescheduling needs tidying up
sod them, no money can't pay, no money won't pay, take a haircut,
30% haircut at least...
Equities barely flinch on this news, still riding high after todays statistically induced headline employment number charade.
central planning or bust
Too funny...
We all know this will lead to default not only by Greece, but the contagion cascade to the other PIIGS countries.
EURUSD tanks in response. It couldn't have happened to a nicer currency.
When Greece leave the Euro, the biggest organisational problem will be how and if, to honour Greek Cash Euros. Greek Euro bank balances will be toast, but most players have already gone to german bank accounts. Domestic greeks will get new drachmas, but there will be quite a lot of greek euros elsewhere. Look for the eurozone to re-assure its non-greek citizens, and thus for all domestic greeks to send their euros-cash to relations elsewhere in the zone to convert!
The bad debts in the world's banks that will be crystallised as a result of the greek exit will be turned into 100 year assets backed by the entire full faith of the zone's governments. Accounting entry: Credit non peforming greek debt, debit "100 year superdebt". This debt will be non-interest bearing (maybe 0.001% for legal technicality reasons) and will be written off over 100 years by the banks who will receive a 300% tax credit for each euro written down. It will not have to be marked down sooner as the myth of its "guarantee" by the zone governments will be sufficient to calm down the auditors.
Anyone who thinks this is fanciful, just remember where you heard it first. Also remember that all banks are holding off balance sheet MUCH larger unacknowledged liabilities, with NO CHANCE of their ever being repaid, than are involved with a greek exit, and nobody seems to mind - least of all the auditors or the regulators.
The eurozone will stagger on in such fashion until it reduces itself to a hard currency area containing germany and the german hinterland only. The consequences for the European Union will be ZERO - the euro experiment's peripheral-countries' exits will be airbrushed out of history, and the peripheral countries who exit will be quietly reduced to junior EU members that think themselves lucky to be in a free trade area.
Everything else is fluff and PR and grandstanding.
The bad debts in the world's banks that will be ... turned into 100 year assets backed by the entire full faith of the zone's governments. This debt will be non-interest bearing ...and will be written off over 100 years by the banks who will receive a 300% tax credit for each euro written down.
+1
I think most of Greece will be very happy to rid themselves of the Euro. They never wanted it in the first place, Greeks are pretty independant, they have plenty of farmland live simple lives and do not rely on IPODS!
and so the blackmail begins...
I have an old 5 billion drachma bill from 1944 that my dad gave me. Maybe those will be legal tender again for all debts public and private.
So the germans and the rest of the north have to continue to ignore deficit and tax violations by the greeks.
They have to permanently subsidize greece.
SUCKERS! How do you say suckers in german? How do you say lmfao?
There is no exact translation for sucker ... german analogs to sucker tend to run the lines of dumb (in the sense of idiot), mentally deficient, or someone who allows others to make an ass of himself.
http://www.youtube.com/watch?v=YLrgpGfZdQ4&feature=related
It's Finnish, but fits like a glove.
1) Simply translating through google might be adequate, but it is often amusing to see what the machine plugs in ...
2) They talk as if Greece leaving would be a bad thing ... the best thing for the Eurozone would be for Greece to take its marbles and go away. Yes, the big banks would take a haircut, but they have already taken most of that haircut already. Better to call a spade a spade, unplug the patient and get on with life rather than to continuously apply heroic efforts to revive a dead patient.
Tyler, hope your servers are bullet proof Rush just featured your birth / death model on the employment news
Does anyone know what an 1toz gold coin is going for on the streets of Athens? And what are they paying with?
would you like a quote in euros, coffee, or silver?
or just go down on the docks and ask the pi-rat jenny: YouTube - Lotte Lenya - Pirate Jenny
"Why shouldn't cash-strapped European countries be forced to liquidate their gold holdings, German politicians have been asking."
http://tiny.cc/z8v4p
Portugal should sell its gold reserves, says German MPhttp://www.expatica.com/de/news/german-news/portugal-should-sell-its-gol...
Can Greec's Gold Reserves Pay Off It's Debt?
"Currently Greece has $112.4 tonnes of gold worth some $4.2 billion based on a spot price of $1166. Barely enough to pay off 1% of its debt. " [From 2010 article]
http://blog.learcapital.com/blog/gold-market/can-greecess-gold-reserves-...
Search for article titles or "gold reserves" and derivatives in News if blocked.
Well, they *are* meeting now:
http://www.faz.net/s/Rub0E9EEF84AC1E4A389A8DC6C23161FE44/Doc~EC1273D4207...
i posted this comment on other articles here at zerohedge
so... here is Greek reality...
hello i am Greek.
I am a real estate developer (with no loan obligations) and even now in the so called greek-crisis i am building 5 apartment buildings, 1 office building and 2 holiday-residence complexes.
PLEASE listen carefully what i have to say about Greece.
Greece is one of the poorest countries but the Greeks (as an average) are very wealthy.
I am not talking about wealth being happy, healthy and so on.
Greeks (as an average) own more real estate that any other,
They do not rely on lending as much as other eauropeans or americans
They have gold (especially english gold pounds) that no average european or american has
I am not saying they are good people or that they have a lot of exports i am just saying they are wealthy.
However the wealth they have you cannot find it anywhere because it is no declared anywhere.
My friend that works for 850 euros per month has 4 acres of land outside the city near the sea, 24 gold coins (worth 6000 euros) he got as a gift from his family on the day he was born 25 years ago, and his own apartment he bought with no loan for 230000 euros (i am not talking about what his family owns but what he owns). How can this happen? he gets his 850 euros, he has a second job (as a plumber-not declared) that gets him another 850 euros (where he pays no taxes-poor Greece), he has a farm in the 4 acres that gets him minimum 1000 euros (from selling produce) also not declared anywhere (so he pays no taxes-poor Greece) and some times (3 or 4 times per year) he earns another 2000 to 2500 euros doing part time jobs (like waiting or plumbing in hotels in summer-not declared and tax-free ofcourse). So he gets 10200 from his day job thatbecause in Greece until 12000 income you pay no tax he is tax free and 25000 euros from the rest that are tax free. so with a clean income of 35000 spending less that 9000 per year (no rent or mortgage) say 10000 with his vacations (health insurance and so on have been discounted from his 1050 euros pay giving him 850 euros) he gets 25000 euros in his bank each year.
That is why greek people are rich but Greece as a country is poor. The example i gave you can happen in smaller numbers (however not vry often) but at the most of time can be really magnified in case we talk about doctors, lawyers and so on that make with the same method (these are real - calculated numbers) 200000 euros at least but they declare 12000 geting away tax free.
sure there are poor people and rich people like any country, sure there are people loosing their homes to the banks like every country.
But as an average believe me
Greeks are wealthy.
So whether Greece leaves Eurozone or not, whether drachma comes back it doesnt really matter.
All that matters is that the Banksters (Rothchilds and the gang -imf fed central bank of Greece...all properties of the same families...Rothchilds and the gang) come and get Greece for a fraction of what it really costs. It is happening and it will continue to happen and the Greeks will beg for it to happen so that they continue to have theur 25000 at their bank accounts each year because they do not care what happens to the railway stations, the ports, the energy/water companies. They may even give them free like we did with Meganisi Island that the Rothcilds bought to build homes for the super rich just a cople of months ago(they bought land with value 60 mil euros for 6 mil euros).
To sum up...
do not worry about the Greeks just worry about Greece (but why should you-Greeks don't) and wahtever you do always remember it does not matter what you feel or what you do you are not in control no one except a few, very very few people are and what they want will happen and you DO NOT know what will hapen NOONE does. You just guess.