Euro Drops Following Juncker Statement IMF May Not Release Next Greek Tranche

Tyler Durden's picture

And some more headlines:

  • EU's Juncker says IMF may not release tranche for Greece next month
  • EU's Juncker says IMF needs 12-month Greek refinancing guarantee
  • EU's Juncker says governments unable to make up IMF portion

Full report from Reuters:

International Monetary Fund, IMF, may not be pay their share of aid to Greece next month.

It said the Eurogroup Chairman Jean-Claude Juncker on Thursday, according to Bloomberg News.

"There are specific IMF rules of these rules says that the IMF can only be take action when refinancing guarantees over twelve months, "he said.

"I do not think that the troika (EU / ECB / IMF) will conclude that this is given, "he continued

Elsewhere, Greece is already planning its upcoming series of 24 hour strikes which will make sure that Greek budget deficits continue to demonstrate that only the US is worse than the Mediterranean country when it comes to balancing its books.

That said, the EUR is very unhappy with the news...

But nowhere near as unhappy as Swiss exporters. The EURCHF just hit a new all time low as the scramble to frontrun the increasingly inevitable (Deutsche Bank earlier said it had already written off most of its Greek debt) approaches the final lap.

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LawsofPhysics's picture

... and China is the only country that can blow bubbles without consequence.  All is well (giggling).  Sorry Tyler, just happy about the price of soybeans, cotton, and quite surprisingly sorghum.  Seriously considering a move towards manufacturing the gluten-free beer made from the latter.  I have the resources, but need to do some more market research.  Any help on the latter would be greatly appreciated.  How many people are gluten-sensitive these days?

tmosley's picture

You brew?

If so, mad props.  

LawsofPhysics's picture

We engineer micro-organisms to produce a number of "biologics" via fermentation.  Brewing would be a logical extension of the business.  My meager stash of physical silver and gold is nothing compared to my investment in physical stainless steel.  But yes, I have been a home brewer for 20+ years.

hedgeless_horseman's picture

How many people are gluten-sensitive these days?

Not nearly as many as believe that they are.  Just ask Lara Merriken how profitable an unfounded health fear can be.

tmosley's picture

I make mead myself, though I haven't done anything in more than two years now.  I have a couple of batches that have been fermenting that long.  I need to get off my ass and bottle them.  I sampled some, and I can say that leaving them for that long was definitely the right choice.

topcallingtroll's picture

I make better wines than any winery in arkansas and hope to open one someday with organic inputs and cement tanks with a little barrel aging for blending.

Nice to see other brewers.

I dont suppose anybody would admit to growing.

JW n FL's picture

I need an esquire to File Suit in Federal Court Against the U.S. Government.. more over the President of the United States of America. Pro Bono in the name of Fight Club!


The Law Suit is for breach of the Constitution for bringing home the U.S. Army and now Training the U.S. Army to operate Against "We the People".


Who wants to get some T.V. face time for themselves and for Tyler here.. we want warm bodies to educate we have to up our visible profile.


I am looking for feedback and ideas to make as big a splash as possible! so if you have something that will help, speak up! even if you think its small! speak up! every little thing matters and helps! SO PLEASE!!! Speak Up!


The Hawk's picture

I put a 100 vines in at our lake house... Next year I'll hopefully be making 300+ bottles and increase to 500 the next few years after...

StychoKiller's picture

Waiting until the end of July to bottle 6Gallons of mead...

john39's picture

i was drinking a few of these for awhile due to gluten issues.  Red Hook I think from AB.  was not great.  I understand that sorghum beers fairly common in Africa, perhaps you can find a better formula there.  as for the gluten intolerance issue, hugely missed issue.  food intolerances largely undiagnosed, people popping pills for any number of syptoms not knowing that food intolerances are at play.   and don't hold your breath waiting for mainstream medicine to point that out.  no drug for it, no money in it... much more money treating symptoms rather than telling people to stop eating foods that make them ill.   of course, look a little deeper at the foods and you see the genetic modification, metal and pesticide contamination, etc...  but, that would all sound too much like conspiracy stuff.

Bay of Pigs's picture

More cowbell Greece. Or Molotov cocktails.

Whichever works better.

Quintus's picture

This grandstanding and brinksmanship in Europe is a good warmup act for the US Debt Ceiling show.

Mountainview's picture

In the meantime Greek citizen go to their banks, withdrawing the last cent of their savings.. Cash in Banknotes, but not those with a Y before the serial number...those are issued by the Greek National Bank !!!

alien-IQ's picture

/ES banging on the 100 day MA again. A break could be fun.

NidStyles's picture

Let me guess it's all headed into the USD, typical....

6 String's picture

Yeah, it's amazing. The 10y Treasury is back down to about a 3% yield...while the small caps float miracously up at the same time?

I'm gonna have to call bullshit (or is it that the 133 Eccles building just can't have stocks fall apart too far in advance of QE2 ending because it would further diminish any value QE2 has achieved--which is of course none to the plebs, so it must be levitated as long as possible until QE2 ends.

This whole thing is going to end disastrous.  

topcallingtroll's picture

Small caps are highly dependent on overall market liquidity and easy money so this is expected.

Long term small cap and value tend to be inefficiently priced and are overweighted in my non speculative investments.

Dismal Scientist's picture

The Germans 'need' the peripherals to keep competitive. The issue is always execution, and whether the peripherals play ball. ECB has no barganing power now. They have lent their money by buying up Greek debt and are 'begging' for austerity measures, else Greece just defaults. They can't afford the default yet (not until after 2013) due to lack of equity, and the knock on effects to other countries. It would be like credit crunch II on steroids. The game plan was to deliver more control over the peripherals, but increasingly looks like the peripherals have them by the balls...

Rainman's picture

Former ECB chief economist Issing joined the " Greece is insolvent " parade today. And good old Krugman wants to lay odds .

lizzy36's picture

What do the Swiss export besides chocolate?

Trillax's picture

I knew it was rhetorical, however...

"The largest exported goods are chemicals (34% of exported goods), machines/electronics (20.9%), and precision instruments/watches (16.9%)."[81]

HamyWanger's picture

You forgot armaments and precision weapons, which make up far more than what is publicly stated. 

Quintus's picture

Primarily machinery, chemicals, metals, watches and agricultural products. Total exports in 2010 were $232 Billion.  Not an insignificant sum for a small country.

Dapper Dan's picture

Soon to be exported from Geneva... Quarks and anti-quarks.

Seriously, they invested over 6 billion $ in the CERN LHC,  plus untold millions in operating expense for what?  You don't invest that kind of money with out some  sort of "earth shattering"  return.  Think Manhattan project.

Check out the photos at above link, look at the size and complexity of the machinery. 

Quintus's picture

It's a large investment, true, but the LHC is just the latest in a long line of multi-billion dollar particle accelerators and as far as I know none of the previous ones have yielded anything more than interesting scientific data.  I don't think there's anything subversive or underhand going on, it's just that particle physics is a very expensive hobby.

Ahmeexnal's picture

Don't forget big pharma and the huge processed food giant Nestle.

Atlantis Consigliore's picture

"Duetschemark, Uber Alles"  bring back those strong D-marks as currency peg, medium of exchange, store of value with the swiss fr:Lets get back the hard currency cross systemthat worked, dm/swiss,  cross,  and a strong Bubba,  as the leader of a strong, export driven sane central bank, anti inflation, anti money supply shennigans like Berflunky and Too Big to Flail Banks, let the pigs collapse devalue, default derail, and money/capital will flow where it will.

Dmark/Yuan cross anyone?  Dmark/C$ ?

Saw "Too Boring to Snore":  I liked when P-p-p-p Paulson got on his knee and grovelled to Palosi;  and bashed the Brits...Lol,

Berflunky?  Let them eat 



InconvenientCounterParty's picture

The notion of a "merit" based fiat as a store of value? Good one.


topcallingtroll's picture

Killing the euro maintains dollar hegemony and helps the usa vis a vis german mercantilists.

I dont mind since many of us benefit from being a virtual monopoly producer of world trade fiat.

Alienated Serf's picture

ding ding ding!!  we have a winner!

and i thought i was the only person who thought that the Fed would be happy to see the euro die.  very surprised that it does not come up here with my fellow tin foilers...

reserve fiat monopoly  = lower interest on national debt service.

all the fed has to do is not extend dollar swaps to ECB/Euro centrals when shtf over there. 

strong dollar policy for real.  this country would MUCH rather get more purchasing power for imports then an export advantage.


InconvenientCounterParty's picture

count down to my big fat Greek vaccation with big fat stack of Dracmas.... 3...2...1

knukles's picture

Junker:  You will come to toe, do as we say or no more money.
Greece:  Yeah, OK
Junker: Glad that's settled.
Greece:  What's settled
Junker:  You'll do as we say
Greece:  eah right.  Go fuck yourself
Junker:  What do you go fuck myself?  Without the money, you'll go belly up.  
Greece:  So the fuck what?  Not my problem, we're already insolvent, bankrupt, done, fin asshole.
Junker:  Well, you won't be able to pay your debt.
Greece:  So the fuck what, like that's news?
Junker:  You have to pay your fucking debt, assholes
Greece:  Go fuck yourself.
Junker:  If you don't pay, the banks will all go belly and the EU itself will dissolve!
Greece:  So?
Junker: You poeple are irresponsible!
Greece:  (LOL) So?  Shouldn't have lent me the money, douchebag.  Ever heard of character loans?
Junker:  What will you do if we don't give you the money?
Greece:  Not pay off and all your banks, the ECB, your pension funds and governments will go shitzola, baby.
Junker:  OK Where do I send the money.  Oh, and can I book a room for the high season now?

Dismal Scientist's picture

That is pretty much the truth of it. The Greeks have the upper hand. Its somehow the opposite of a symbiotic relationship, ie: the peripheral parasite is in danger of eating the core host...

virgilcaine's picture

Who would have thought a tiny Eu Island nation would bring down the AOM civilization? Sort of fitting it ends where it began.  Socrates to now. 

Paralympic Equity's picture

Which language is this in the reuters report? Klingon?

German bund 10Y yield went under 3%.

Equity still pricing it the best it can.

writingsonthewall's picture

"Elsewhere, Greece is already planning its upcoming series of 24 hour strikes which will make sure that Greek budget deficits continue to demonstrate that only the US is worse than the Mediterranean country when it comes to balancing its books."


Tyler - this is known as the final standoff - you force austerity on us - then we shall stop working. Lets see how the profits of banks manage without a workforce from which to extract surplus value from.

If banks truly are 'wealth generators' - then now is the time for them to demonstrate it. However we all know this is a lie - and the parasites will die as the host goes into a coma / hibernation.

topcallingtroll's picture

Negotiations have broken down to the point that it has to be done thru public channels with ultimatums.

I am sure they will work this round out. Not so sure how long they will keep greece afloat, but it is always longer than expected.

slaughterer's picture

Unclear in this type of situation who is the parasite and who is the host.   One can easily argue opposite scenarios.

Banks = parasites, Greece = hosts  (ok)

Banks = hosts, Greece = parasites (ok)

LawsofPhysics's picture

Either way, the parties involved will be forced to deal with one another.  The financial sector has been extracting real wealth (without adding real value) from those that actually create things of real value.  Likewise, the general population has gotten too used to entitlements.  Either way, when you crash the fucking system, compensation will return to those that are actually worth a shit.   Good for the greeks, the bums at the top and bottom will finally get theirs.  Fuck the banks and the "government save me population", in general they both have been a fucking cancer that the productive few can no longer support.

Jack Burton's picture

Indeed! Forced austerity = no work. Want a tried and true example? The Union of Soviet Socialist Republics: that didn't work out too well. Austerity and hard work from the underclasses is rarely a compatiable model.

Ahmeexnal's picture

Forget about 24hr strikes.

Time for 12 year Galt strikes!

Oh, wait...those actually started about 10-11 years ago, which means....

AldoHux_IV's picture

Unless the euro region can sweep the protestors into some kind of camp or a bunch of camps-- where they can eliminate these protestors from speaking their mind about the austerity/bailout measures then politically impossible will some how have to reverse itself.

Didn't someone try this before in order to impose their will... I forget his name now that are so many villains today to look at.

Cdad's picture

That story about China bailing out Portugal causing the Euro ramp was absurd on its face.  And by the reversal in the USD/Euro cross, it would seems it is confession time.

The level of desperation and absurd price action is indicative of a market in the last gasp phase...until such time as Ben Bernanke comes out with it, that the US economy requires perpetual money printing in order to support the wise caretakers of the American economy.

On the retail stocks, today's manipulation of the XRT [which I remind you has more shares sold short against it than actually exist] is breathtaking.  The arbitrage trade on, of course, lifting the XRT and dumping the underlying into its stupid gaping maw.

As a side note, the BlowHorn [CNBC] is choosing today to suggest that folk should sell their farmland.  It is the theatre of the absurd, and the criminal syndicate Wall Street script writing staff in the penthouse of BlowHorn headquarters is the both producer and director.

Thank you criminal syndicate Wall Street bankers for this wasteland.  Thank you for destroying any last drop of market credibility that might have survived all of this.  And thank you for the coming collapse.  

Good grief [and by that I mean bring on the flesh eating zombies already...because anyone who really believes anything that the BlowHorn says anymore deserves to be eaten]

Bay of Pigs's picture


The CNBC Love Fest exhibited yesterday (because of Haines death) was something to behold.

I thought most posters here were way beyond this financial propaganda? 

Liesman, Kudlow, Cramer, Pisani, etc....? Bankster and corporate shills one and all. Give me a break.

baby_BLYTHE's picture

Once Germany goes back to the Deutsche Mark I will be backing up the truck

slaughterer's picture

DM 2 will not be as strong as DM 1.  Germany has pimped itself off to the globalization game with all the risks inherent. Quickly becoming post-industrial with no service culture to take up the slack.