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Greece Is Imploding!
The yield on Greek government debt is blowing out this morning, yielding almost 27.5% on a 2-year Greek government note!
At the same time, the Athens Stock Market went into crash mode!
Something’s got to give, as this is becoming an untenable situation!
Any ideas on the Greek Meltdown, or even witnessing the Greek riots in real life @ Athens, tell us your thoughts below...
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I think all those gloating over the PIIGS wind down as promised by RM and his eye opening presentations will gloat less and cry more when this financial tsunami melt down comes to USA as it will...There will be no winners amongst the DCs.
What is happening in Greece will happen here in the U.S.
The best part is it does not matter if you are a Dem, Repub, or nothing.
When there is no money to pay for the B.S., everyone will go without.
It will not be until this happens that people will realize the free gravy train is over.
They can riot, loot, scream whatever. If there is NO MONEY, then it will not matter what happens. Because of decades of pulling demand forward through the extensive use of debt, the majority of money generated now goes to servicing this debt vs helping those in need. As the economy worldwide slows down, the tax revenues get lower but the debt service remains the same. This causes an even bigger drop in the amount of money available in the public piggy bank.
taxes fall middle class becuase they don't have the means to escape them as do the rich nor do they have the influence to have a pro-middle class agenda heard. Thus the rich get tokeeep heeps of money and siphon off wealth for the poor thruu stealth taxes which go to the poor and then since the rich crafted the legislation they pat themselves on the back and say "arent we great."
For starters let's End The Fed, ECB, IMF, Bank of England and all other central banks.
Governments issue currency backed by gold & silver (or oil).
Reinstate Glass-Stegall.
Sure, it's simplistic but give it a chance. Given our present syestem, why not?
Flight to safety has benefited the US in the past, but I fear there are better options to captial now. Including gold.
Now things are getting truly interesting. Let the games begin!
Burn baby burn! - Disco inferno!
Burn baby burn! - Burn that mama down
Burn baby burn! - Disco inferno!
Burn baby burn! - Burn that mama down
Burnin'!
OR perhaps a little Ike Turner.
All of the chaos in the world is interesting to watch in a sick sorta way and I'm interested to see how it plays out. I am somewhat worried that another Hitler/Mussolini will rise in some desperate country after all is said in done, as people tend to follow anyone who promises them a bright future when all appears lost. Guess we'll just have to wait and see. Until then, buy gold!
That's happening now. His name is George Soros. Read about Agenda 21!!
Soros worked in Hitler's army at the age of 14. Said it was most informative years
of his life.
Too much Glenn Beck?
am somewhat worried that another Hitler/Mussolini will rise in some desperate country
Historically, that IS due right about now, but I think the floodgates have been opened for global popular revolt. We're starting to see it with Anonymous hacking the IMF, with Bitcoin, the Facebook and Twitter revolutions, open source sofware, and soon, manufacturing. Centralized governments and their constructs are about to become passe, we're just experiencing growing pains. Cool time to be alive.
+1
I hope you are right.
We have to have some authority or management over the commons to avoid a completely toxic environment and degradation of common property, like the atmosphere, but we could do with a lot less government.
The main problem and eventual undoing of centralized government is the abstraction of personal responsibility. Bankers and politicians don't feel bad pillaging Main Street because they don't live there. This prevents shame from kicking in, which has always been a fairly powerful mechanism for controlling human destructiveness. The internet is spreading the shame around, and people are getting pissed off a the audacity of the ruling class. Greece is the first example.
Poor Greece, they deserve better.
The lack of imagination on the part of EU management is appalling. The rates being charged the Greek government are actually market votes on Merkel/Strauss-Kahn/Trichet/Webber/that French dude's ineptitude.
Next step is the inevitable bailout. And so it goes, a tragic farce without end.
The easiest solution is for Greece to use the drachma as a purely domestic currency with a floating rate to the euro which the Greeks could use within EU markets.
The Greeks are currency- starved, the drachma could be issued by Greek government -- not another goddamned bank -- with a currency basket or 'public assets' as liability basis. Surpluses in drachma could be freely convertible into euros to allow debt service.
Drachmas in circulation parallel w/ euros would allow Greece to wean itself from international finance.
Believe me, the currency black market in Greece (euro/dollar, euro/sterling, euro/swiss franc) is lively and the market for drachmas is there, waiting.
The ECB could be a central banker for once in its life and put a time period on the 'dual currency regime' until a percentage of euro debt is retired -- 2 or 3% -- and euro rates decline. In general the drachma would be self- liquidating which would remove the productivity trap that has embraced Greece like concrete overshoes.
This has been done before, duel currency regimes are inflationary (which Greece needs) add stringent energy conservation (remove half the carz from Greek roads immediately and sell for scrap) and you are out of the woods.
Great idea Steve , your posts are always well thought out logical journeys.
"Poor Greece, they deserve better."
I have no sympathy for businesses or able bodied adults that have lived off their gov for decades. They are parasites. It is time they become productive or starve. They've had ample warning and have done nothing to prepare. Rioting is simply blackmail by the parasites. Don't give in to them.
Oh, I don't know so much about that. It's not difficult to feel sorry for someone just before shooting them in the head. Kinda like putting down an old family dog. It's just better to get it over with. Do it with love, of course.
Well, with Greek rates at 25% +, it looks like Paul Volcker has finally resurfaced. Thank God he's still alive.
The Greeks should just default and get rid of the EU debt -- then print their own Drachma backed by new sovereign bonds at a mere 15-20% and partially backed by their gold reserves. They'd be much better off.
And by all means, get rid of the shithead communists and socialists so they can do the much needed restructerings.
In the end, all this will play out in the streets...the one place the oligarchy doesn't want to go......which is why the whole system colapases within a decade or less. Those who think this trouble is only for the Greeks or the Spanish or whoever and NOT for the USA are strung out on hopium.
Flight to safety has always benefited the USA.
It gives us more room to monetize at the expense of the rest of the world.
It is possible in the USA we do pull it off and again have another American century, but it will be because of the subsidy coming from the rest of the world.
I don't make a moral judgment on this. Just stating what has up until now been factually correct.
While it is true that the US has benefitted from having "flight to safety" status, how long do you think that we will enjoy it? I believe another century is way too optimistic. Sometime in the near future, the bond vigilantes will attack the US and drive up rates to the point where they consume a majority of our budget. Then it's game over.
I like how some of the "all is fine" camp refer to Greece as inconsequential. Yeah, the birthplace of western civilization is inconsequential because of their cap/GDP. Reminds me of the fucks that tried to say that Iraq could be "civilized" by the American invasion. Yeah, Babylon, the birthplace of LANGUAGE and CIVILIZATION needs to be civilized by the fucking United States!! Goes to show the mindset of these ignorant fucks! Greece IS the alpha and omega!
Iraq has been civilized! They can kill each other much more efficiently now.
dupe
http://www.ecb.int/press/key/date/2011/html/sp110615.en.html
The Master's have spoken.
http://www.youtube.com/watch?v=JihDfdSBqyE
Please continue the anarchy in a orderly and fashioned way.
I don't bother to see the end of this movie. It's like watching the last 20 minutes of Titanic.
Portugal is more interesting as is Spain.
Violent clashes are already happening in Spain, but the MSM ain't reporting it.
Parliament in Barcelona is under siege by protesters. The politicos have to arrive by helicopter.
Full unmasked no pretenses fascist force will be unleashed onto the unarmed civilians.
http://politica.elpais.com/politica/2011/06/14/actualidad/1308054979_810...
King Juan Carlos knows his days are counted. But he has opted to engulf Spain in a bloodbath before stepping down, just like his syrian kin, Assad.
"Man will never be free until the last king is strangled with the entrails of the last priest." Denis Diderot
The state must never be used to enforce hereditary privilege.
Destroy all monarchy now. Even if he is a nice king it is still an evil. He may be succeeded by a bad king at some point. Even if he is a figurehead he must be destroyed.
The bolsheviks understood you must destroy the entire family or the monarchy could be reconstituted.
I cant wait for the sequel, starring spain and portugal.
Spain is going to be the game changer. I'm interested to see how the ECB handles it.
http://www.youtube.com/watch?v=nuysYXlJ43I
"I recommend you panic"
I love listening to douche Jeffrey Sachs talking about how Greece is not a problem.
I am so thrilled to be alive to watch the death of socialism and the end of parasitism as a way of life.
The greeks think that by their actions they can maintain their socialist status quo. It fills me with joy that they are inadvertently hastening its demise.
Productivity should be rewarded.
Non productivity should be punished.
Long live individual liberty!
Call it any kind of "ism" you like, but a jack boot upside the head is still a jack boot upside the head.
Power flows to power....Power corrupts....when the power finally becomes absolute, the corruption does, too. When rebellion starts to rise up against the corruption, repression begins in earnest.
Repression has already begun in America and the Department Homeland Defense (that name gave me chills the first time I heard it) spawned by the Patriot Act (another scary name) laid the foundation for repression to be expanded on a grand scale.
This is why we need to stop bailouts, limit taxes, limit the size and power of government, and make it illegal for governments to deficit finance.
No jackboots if there isnt enough money to pay for them.
To produce or not produce, that is the question.
Aggregate value should be rewarded, substractive value should be punished.
The Native Indians have warned that mankind has forgotten how to live with the earth. All these "isms" could be avoided if we simply adhered to the teachings of the elders. "Take from the earth what is needed and nothing more. Enjoy life's journey, but leave no tracks".
In essence, we should all be living in harmony with nature, and we're clearly WAY off track arguing over silly ideologies.
That in itself is an ism.
But a noble one.
yes, by all means. obey the dark god of the bankers. work and die, expect nothing from government, and get nothing but shit.
I am quite confident i need not steal money from my neighbor to have a good life.
Relax, its transitory - remember?!
The yield wouldn't matter if the Greeks didn't want to borrow MORE.
it wouldn't matter if they didn't NEED to borrow more. had they funded everything out to 10 years when they had easy access they would have paid a couple % more per annum but have so much more breathing room, but the appeal of low cost short term funds is hard to ignore.
banks, countries, and corporations all borrow too much short term and not enough long term so are always at the mercy of the market to roll over their debt....the risk they add versus saving a couple % on their debt costs is not well thought out - ooops, maybe it is, because they get bailed out when they fail :(
but what are the funding with the money they are seeking to borrow, it is not all debt refunding, so they have little leverage over those they want to borrow from.
I don't believe in any change until I see bureaucrats jumping from ECB tower.
Didn't you mean, "being thrown" off the tower, mate?
lololololol nice
Looks to me like they imploded in April.