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A Glance At The Layout Of The Greek Parliament On The Eve Of The Austerity Vote

Tyler Durden's picture




 

As the Greek parliament begins its debate on the mid-term austerity plan expected to culminate with a vote later in the week, below is a quick glance at the layout of the Greek parliament via Reuters for those who are still unsure of the distribution of power. As can be seen, PASOK's majority is in question, with just 5 votes in protest needed to scuttle the carefully set up house of cards which would set off in motion a chain of events that would lead to a liquidity freeze worse than anything seen in the aftermath of Lehman. The question is whether any of the opposition parties will shift their allegiance to G-Pap: if the vote of confidence is any indication, in which not a single non-Pasok member voted for the PM, it does not look good.

Here is a summary of the most recent developments from Athens News:

Greek lawmakers will begin debating a 28 billion euro package of measures to increase taxes and cut fiscal spending that is critical to winning a new round of international funding to keep it afloat.
 
A rejection of the austerity plan could greatly worsen pressures already reflected by rising Portuguese and Spanish government bond yields, possibly bringing high-risk Europe closer to a chain of sovereign defaults that would blow out interbank funding costs and place heavy stress on the region's banking system.
 
The risk of a credit event of this magnitude is keeping two-year U.S. interest rate swap spreads near the widest in a year and helping to lift the U.S. dollar out of a downtrend that has lasted a year.
 
"If the government wins, there would be some bounce in shares. But it does not change the long-term story. Greece's finances are pretty unsustainable and until it starts dealing with its ability to raise funding internally by more efficient tax collection, investors will continue to be nervous," said Felicity Smith, fund manager at Bedlam Asset Management.
 
"Investors are more concerned about its effect on the banking system. If there is a disorderly default, then there is a real risk of another Lehman-style shock and its knock-on effects on other peripheral eurozone countries," she said.

And as a reminder, the update on the "French" plan on pretending the ponzi isn't ending, is to shove all the Greek debt into an off-balance sheet SPV and forget about it forever:

A French plan for rolling over Greek debt would involve placing new bonds in a Special Purpose Vehicle that would take them off the balance sheets of the participating banks, a French government source said on Monday.

The plan, to be discussed with European Union finance officials, would cover Greek bonds maturing between 2011 and 2014, and the SPV could be set up at a national or European level, the source told Reuters. "It's an initiative of the banks, it's a private initiative. There is no public guarantee," the source said, adding that the proposed scheme could be extended to insurance companies and investment funds.

All in a day's work to paper over the fact that the SS Ponzi is now rapidly taking on ever more water.

 

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Mon, 06/27/2011 - 12:05 | 1405623 slow_roast
slow_roast's picture

This is the biggest farce since Flip-That-Bond.

Mon, 06/27/2011 - 13:15 | 1405802 Xibalba
Xibalba's picture

"The French are our best friends" - Barack Osama Obama http://www.dailymail.co.uk/news/article-1346006/Barack-Obama-declares-France-biggest-ally-blow-Special-Relationship-Britain.html

 

Don't ever forget who ur daddy is

Mon, 06/27/2011 - 12:06 | 1405624 misterc
misterc's picture

http://www.calvin.edu/academic/cas/gpa/hitleranbruening.htm

Hitler's speech to Brüning (the austerity/deflationist/empoverishment-chancellor from 1931, who later fled to USA).

Hitler was a bad guy & mass murderer, of course, but the speech has some ugly parallels to today's situation. Read it.

Mon, 06/27/2011 - 19:24 | 1406920 CompassionateFascist
CompassionateFascist's picture

Thanks for this link. Hitler often spoke Truth to Power...until he became the Power. Then, he forgot the Truth.

Mon, 06/27/2011 - 12:06 | 1405625 SheepDog-One
SheepDog-One's picture

More tempest in a tea pot drama to divert from the rapidly approaching Cat 5 hurricane.

Mon, 06/27/2011 - 12:07 | 1405627 treemagnet
treemagnet's picture

If they get any votes for the austerity - it will be by proxy as the limp dick in question boards a jet to get outta town before the unreasonable types find them seeking more than an explanation.

Mon, 06/27/2011 - 12:12 | 1405630 gigeze787
gigeze787's picture

The required votes will be bought.

After all, Greece is the world's first capitalist democracy.

Mon, 06/27/2011 - 12:13 | 1405633 SheepDog-One
SheepDog-One's picture

OK then by evening Parliament building will be flaming, go for it.

Mon, 06/27/2011 - 12:16 | 1405639 Re-Discovery
Re-Discovery's picture

"The Vote"  is a foregone conclusion.  It will pass.  However, the Greeks will not adhere to austerity.  The revolution has already happened.  The Greek people will not pay higher taxes, regardless of what the vote is.

Mon, 06/27/2011 - 12:34 | 1405685 Franken_Stein
Franken_Stein's picture

 

You nailed it.

As if everybody in Greece will just stuff it and go back to work.

 

They are already protesting now, without the effects of the upcoming austerity plan biting.

 

The parliament may vote yes, but the people just won't accept it.

They will continue to strike.

And if they turn off power to the parliament building, and maybe water, then they can exert pressure on their own.

We have witnessed power outages already due to plant workers there going on strike.

 

Mon, 06/27/2011 - 12:50 | 1405710 Re-Discovery
Re-Discovery's picture

I had to laugh when I read part of the plan was to tax people getting paid 8000 Euro down from 12000.  Are they serious?  They can't even collect from people who make over 400,000 Euro.  So much easier to track.

Mon, 06/27/2011 - 21:52 | 1407379 Cleanclog
Cleanclog's picture

And really, do you believe that whoever is elected next by the Greeks, will abide by any plan or promise that the current Government votes?

It has become the same in the US now.  Divert and devote billions in resources to the campaigns of Pawlenty, Bachman, Romney, Huntsman, Obama - it doesn't matter who wins.  All noise, no action.  Whoever gets in will do more of the same, can't control Congress, and will keep playing to their money masters - nothing for the regular schmo except enough palliatives to try to keep from rioting on the streets.  And soon, that won't work any longer - though Dancing with the Stars and televised sports may continue to for a while.

And, no matter what magic wand plan is proposed (or even approved by vote), it won't matter.  All these plans talk about what they'd do in 2020, 2030, and with rosy economic forecasts of growth from now to then.  Won't happen that way, and whoever holds the reins of power then will reneg anyway.  

A worldwide phenomena developing, coming to a country near you.

Mon, 06/27/2011 - 12:18 | 1405642 Re-Discovery
Re-Discovery's picture

This is a Euro printing exercise.  German people have it right.

Mon, 06/27/2011 - 12:18 | 1405643 viator
viator's picture
General Strike to paralyze Greece on June 28-29, 2011

tagged: , , , , , ,

General Strike to paralyze Greece on June 28-29, 2011

"No public transport, no public services, no municipality services incl. garbage collection, no hospitals, no doctors, no dentists, no banks, no pharmacies,  no ferries from/to Piraeus, disruptions in air flights ,… An unprecedented general strike, lasting 48 hours will paralyze Greece on June 28-29, 2011, the days the Mid-Term Austerity Programme will be debated and voted in the Greek Parliament."

http://www.keeptalkinggreece.com/2011/06/27/general-strike-to-paralyze-g...

 

 

Mon, 06/27/2011 - 12:17 | 1405651 iamme
iamme's picture

The "left coalition" party said it will abstain, and maybe KKE (greek communist party) too. To pass the vote, you only need the majority of those present, not the total. So basically, the left party/-ies are helping the passage of the austerity plan, by abstaining. As usual, they are part of the system, all words, but deeds that help the system. The probability that the vote won't pass, is basically almost zero.

 

Mon, 06/27/2011 - 13:25 | 1405848 MS7
MS7's picture

I may have heard something like that before, but perhaps they have changed their minds:

http://www.larouchepac.org/node/18578

It seems that they are expected to vote "No." But you are certainly right-- if they abstained, it would all be over for the Greek people.

Mon, 06/27/2011 - 12:20 | 1405653 RobotTrader
RobotTrader's picture

Gold not doing so hot in other currencies.

http://stockcharts.com/freecharts/candleglance.html?$GOLD:FXE,$GOLD:FXY,$GOLD:FXC,$GOLD:FXS,$GOLD:FXA,$GOLD:FXM,$GOLD:FXB,$GOLD:FXF|D

I guess everyone has decided to dump gold and start fleeing back into U.S. Treasuries and/or common stocks, depending on which way the EUR/USD is trading.

And CMG, LULU, and HANS remain the premier safe havens against a Greece default.

Mon, 06/27/2011 - 12:25 | 1405669 Internet Tough Guy
Internet Tough Guy's picture

Momo, you are still a perfect fade.

Looks like we tank big, PM's getting destroyed, stocks swooning
RobotTrader - Sun, Jun 26, 2011 - 06:58 PM

Here we go, boys....

 

Mon, 06/27/2011 - 12:35 | 1405689 Piranhanoia
Piranhanoia's picture

Like King Arthur's horse said,  "it's only a model"

Mon, 06/27/2011 - 13:09 | 1405777 T-NUTZ
T-NUTZ's picture

yeah and someone gave silver a swift kick in the nutz.  impulse waves down corrective waves up.  clear out bitchez!!

Mon, 06/27/2011 - 12:22 | 1405654 CrashisOptimistic
CrashisOptimistic's picture

Nothing is going to change until bullets lodge in brains.  They will vote through austerity and the public will endure it, and those who die because of it will get no media.

Mon, 06/27/2011 - 12:19 | 1405655 BanksterSlayer
BanksterSlayer's picture

I love Tyler's sense of humour at accepting ad banner revenue from EligibleGreeks.com. Just had to snap a screenshot of that banner ad as it appeared at the top of this Greece parliament story:

http://slaythebankster.com/images/ZH_screenshot_June27.jpg

 

Mon, 06/27/2011 - 12:28 | 1405665 scratch_and_sniff
scratch_and_sniff's picture

google adds...probably detected the word Greece a few times.

Mon, 06/27/2011 - 12:28 | 1405677 gigeze787
gigeze787's picture

Will they balance their budget by selling all hot Greek women under 30 via an ECB auction?

Brings new meaning to the term Dutch auction, though the German bankers might bid higher...and the Chinese the most.

In fact, they could auction off lots of islands with X Greek women/hectare as the only inhabitants. The men could be shipped to China to learn how to work.

Mon, 06/27/2011 - 12:41 | 1405701 Global Hunter
Global Hunter's picture

I get date Japanese girls on Fukushima stories, to the first reply, I think its keywords.  I'd date them though if my wife let me in the dog house since Saturday night but I may be out now if I play my cards right.

Mon, 06/27/2011 - 12:24 | 1405666 Alea Iacta Est
Alea Iacta Est's picture

When IS the vote? Tommorrow or wednesday? I have seen conflicting reporting.

Mon, 06/27/2011 - 12:40 | 1405700 earlthepearl
earlthepearl's picture

I was wondeirng too

When is the vote going to happen?

Mon, 06/27/2011 - 13:32 | 1405885 MS7
MS7's picture

Apparently, the austerity package vote will be on Wednesday, and the steps to implement it will be on Thursday:

http://www.iol.co.za/business/markets/commodities/brent-falls-ahead-of-k...

According to the head of one of the Leftist parties, A. Tsipras, this is a trick that will allow some PASOK (ruling party) members to vote "Yes" on Wednesday and to register discontent by voting "No" on Thursday, at which point the other major party, New Democracy, will pick up the slack and vote "Yes". 

Mon, 06/27/2011 - 13:29 | 1405871 Silver Dreamer
Silver Dreamer's picture

The easy answer is once they have the votes to make sure it passes.

Mon, 06/27/2011 - 12:29 | 1405668 Robslob
Robslob's picture

Well Robo...once you get everyone into stocks it is MUCH easier to steal their money...so you may be right in a wrong kinda way...

Mon, 06/27/2011 - 12:42 | 1405694 Jovil
Mon, 06/27/2011 - 13:00 | 1405743 Franken_Stein
Franken_Stein's picture
In Heidelberg wächst das Herz aus der Retorte heran

In Heidelberg, the heart from the shelf is being grown

 

Organe aus dem Labor – das ist ein Wunschtraum von Wissenschaftlern und Patienten.

In Heidelberg wächst in einem Bioreaktor ein umfunktioniertes Schweineherz.

Inner organs out of the laboratory - that's a dream both of scientists and patients.

A modified pig's heart is being grown in a bioreactor in Heidelberg.

 

First they strip the pig's heart from all cells, until there's only the framework structure left that gives the heart its shape, a grid made of proteines.

After that they put it into a nutritional solution and inject stem cells taken from the patient and let them settle and grow on the hollow supporting frame structure, hoping that they will form a new functioning hybrid heart, half pig, half man, avoiding rejection by the patient's immune system.

 

http://www.welt.de/gesundheit/article13453106/In-Heidelberg-waechst-das-...

 

Mon, 06/27/2011 - 12:59 | 1405747 DNB-sore
DNB-sore's picture

Pressure has been building up for the parliament but however I'm afraid they are not people that have a view on the bigger picture, and when they do have the picture what keeps them from voting the easy way; politicians for politicians. On the background there be a lot of lobbying, corruption included

There is one word that maybe is going hand in hand with austerity and that is Spartanism, still in full use in modern language. For example a spartanic car goes like a bat out of hell and is going to hurt you unless you give up or you manage to get on top and manage the menace. Austerity means living more on basics and no excesses. Life is hard and you better get on top of it or loose.

Loosing independance, culture and forced to live spartanic must get a lot of people sparked, we have seen all the "soft" peacefull protests with a real hart of trying to soften austerity. Last vote was bringing the matter to a flashpoint

When you recreate spartans you will have some problem in the short term but create a real problem on the long term. Greece is not going belly-up

Mon, 06/27/2011 - 13:23 | 1405855 AnAnonymous
AnAnonymous's picture

I know in this US driven world, the world is awashed with US propaganda.

But it does not mean losing all contacts with reality.

Spartans led an opulent life with stuff like mandatory banquets and all.

Mon, 06/27/2011 - 13:09 | 1405778 redpill
redpill's picture

It will pass.  I'll take action from anyone who says otherwise.

 

Mon, 06/27/2011 - 13:30 | 1405875 Dr Zaius
Dr Zaius's picture

Agreed, this can shall be kicked. It's simple human nature to avoid pain now, even if there is obvious greater pain in the future.

Mon, 06/27/2011 - 17:09 | 1406553 edotabin
edotabin's picture

It most probably will but they are scared.....really scared and with some parties insisting this is an open vote those MPs are hating their life right now.

 

Mon, 06/27/2011 - 13:56 | 1405960 vegas
vegas's picture

I wonder what Leonidas would think of his own Greeks, if he could come back for a day on Wednesday?

 

I'm betting he would puke his guts out and then wish he had given the world to Xerxes.

 

If not now, when? If you can't take a stand for the principles of your civilization and the generations of people, yet unborn, who will be under the yoke of the bankster criminals, when do you stand up and say enough? This idea of private gain but socialized losses is bullshit.

Mon, 06/27/2011 - 15:29 | 1406316 Buzz Fuzzel
Buzz Fuzzel's picture

"Special Purpose Vehicle"?  "Take them off the balance sheets of the participating banks"?

These people are making mistakes of Biblical proportions and I am afraid the resulting pain will be of Biblical proportions as well.

There is a special place in Hell for people who design "Special Purpose Vehicles" and hide liabilities "off the balance sheet".

Mon, 06/27/2011 - 15:56 | 1406381 agrotera
agrotera's picture

Buzz Fuzzel--funny, you said what i was going ot say...

SPV's should have been OUTLAWED a long time ago, IF we had a legislature that wasn't paid for by the owners of the world's biggest corporation (public or private it's the biggest folks)--the privately owned corporation called THE FEDERAL RESERVE.

Mon, 06/27/2011 - 16:06 | 1406404 Eireann go Brach
Eireann go Brach's picture

So tomorrow we will see a carbon copy of the US political system whereby we will see monkeys throwing their own poo at each other just like they do at the zoo. Banzai you are up to show us a picture of politicians flinging dung at each other across the aisle!

Mon, 06/27/2011 - 16:41 | 1406482 Herbert_guthrie
Herbert_guthrie's picture

The bankers own the politicians.
The politicians vote.
The people lose.

Easy, figuring out the bankster moves.

Mon, 06/27/2011 - 20:44 | 1407198 nicxios
nicxios's picture

G-Pap the bankers cunt has threatened his own party members thinking of voting against the austerity measures with summer elections(which they would undoubtedly lose) if PASOK doesn't muster 151+ votes. Not total votes, just votes from his party.

2 whores from ND have stepped up to the plate to "put country first":Papadimitriou and Bakoyianni(she's ex-ND but still a fucking whore).

 Papadimitriou looks like the female Pangalos: http://2.bp.blogspot.com/_3g9ZZ64nv98/S9s30tF-YnI/AAAAAAAABGU/7BOoP5h0iys/s1600/elsa.jpg

Mon, 06/27/2011 - 20:46 | 1407204 Buck Johnson
Buck Johnson's picture

You are correct, the SS Ponzi is taking on water.  Eventually it will get to a point that no amount of money that is thrown out to save whatever will work.  They system has to flush out the bad, and the govt. and banks won't allow it.

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