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Greece Observes Plunge In Bonds, Panics, Backtracks on Demand to Remove IMF From Bailout Group, Issues Statement
The insane asylum has issued a statement. G-Pap has seen that his country would be Friendo'ed if Greece does not agree to austerity (which was part of the original agreement but whatever) and so has issued the following statement.
"Responding to questions by journalists regarding actions taken by Greece to change the recent EU summit aid mechanism, the Greek Finance Minister clarified that there has not been any action on behalf of our country to change the terms of the recent EU Summit agreement. The agreement is important for Europe and for Greece because it sets the framework under which a country will get support, under specific conditions, from its EU partners.
However, as we have repeatedly said, Greece has not asked for activation of the aid mechanism. The fiscal course of our country depends on the implementation of the Stability and Growth Pact, and the Greek government continues to implement this pact without any diversion. The budget is being executed normally and within the targets it has set, and has in the pipeline structural changes in the taxation system, the execution of the budget, the insurance/pension system, state operations...These changes will ensure the reduction of the public debt, will control its course, and will revive the Greek economy."
Not a bad way to conduct a market test. Of course the opportunity cost to continuing with IMF-type austerity is that G-Pap can start looking for a job.
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Don't back down G-Pap! You tell the world how they can best service you, I'm sure they will line up to have you dictate bailout terms to them :)
And correct me if I'm wrong but by his statement is total insolvency part of the budget plan that they are so expertly executing?
At least that is one part of the plan they can deliver.
G-Pap knows that once the IMF IV is inserted, the fluids will begin flowing out, not in. The IMF is simply the advance team for the really serious big time national gang rape of Greece. Even the stinking filthy alcoholic doesn't deserve to be rolled, robbed and raped in the back alley.
BTW, that's the purpose of the IMF, to bring respectability to the beating, killing and rape. Think of the IMF as serving upon Greece the Financial Rules Of Engagement (FROE) before the killing begins. I promise you that once the IMF is in, a bunch of Fortune 500 CEOs will be firing up the company jets to get in on this bloody feast. Who wants the textile industry? Do I hear a bid on the auto industry? Who wants to run health care in the interest of "cost savings"?
This style of plunder was perfected in Africa and South America and is coming to a country near you soon.
Yep. If the people had any sense they would scream for a default and self imposed austerity then let the IMF in. It's so clear what they do I don't know why people go to them. I would rather go to a loan shark, more respectable, probably better terms to.
But the people rarely do have any sense, do they? Mostly they refuse to see the problem at all, and will follow any smooth talker with a pain-free plan. And if they can manage to see the problem, they are unwilling to see their part in it... it was the other guy. Make him suffer... not me.
You are so right CD...
Link to text of a Max Keiser interview with a Greek radio show (and reproduced in a Greek daily newspaper) warning them of the danger, as only Max can... causing a bit of a stir over there (which is a good thing).
http://maxkeiser.com/2010/04/05/the-imf-flag-reads-economic-slavery/
Why don't the Greeks just show everyone how serious they are and simply pay up instead of roll it over at a rate they don't like?
The nutty comments about the IMF gang rape are just great. They have been on a spending and party binge of rape their own economy for over 30 years. The era of greeking each other is over and the bill is due. They can no longer get any one else to agree to put money into the game so that it can continue. The IMF is not rapeing greece, it is simply withdrawing the free coke lines.
I totally agree with you, once IMF gets in the fluids will come out not in. What IMF acts like is a bill collector and servicer of Greek assets. It will find ways to make whole (which is relative, it really means to see how much you can get or take from the country) the banks and countries who loaned money to the nation. I guarantee you that many countries and banks are looking at the 1,173 islands that aren't inhabited by Greece (has approximately 1400 islands and only 227 are inhabited). They see all that prime real estate and want a piece of it. Greece has only 11 million people and all that land area and coast area.
They will make it costly for the Greeks and when they start to see how bad it will be, the IMF along with the banks and other countries will say (look we can make a deal and forgive this amount of your loan or that amount of your debt in exchange for certain islands (which they will already have picked out). Greece may not like it, but out of sight and out of mind is better than rioters trying to get at t he govt. officials over the severe austerity measures.
As Kenya emerged from its British colonial past and assumed its putative status as an independent nation in 1963, like many other third world and developing countries, the fledgling African state found itself under the regime of a developing world economic order crafted in 1944 by English and American economists at the resort town in New Hampshire in the United States called Bretton Woods. The agreements of these lords of western finance were to exert an influence which in its own way supplanted the old political and military dominance with an economic hegemony which was to prove even more restrictive and repressive than the suffocating dominance of colonial empire. The establishment of the World Bank and The International Monetary in addition to the fiscal policies of Keynesian economics would all but assure that leveraged debt would be the stranglehold that would be applied to developing world economies.By the time that the IMF had arranged more that $200 million in loans to the government of Danial Arap Moi in 1995, IMF austerity measures and the infamous structural adjustment arrangements had brought nothing but misery to the majority of Kenyan people. The signature of the international agency was writ large in the devastated Kenyan economy. Unemployment, hunger, child poverty, crime and the degeneration of social services were ravaging the country. True to form, the IMF suspended the massive injections of funding when the results of their economic depredations had brought about the intended objective of bringing the nascent economy to its knees.
Kenyan political and social organizations united in opposition to Arap Moi's Kenyan African National Union (KANU) and launched a campaign against the resumption of IMF aid in the common acknowledgement that the money was a "slush fund for the tyrant" productive of nothing more than propping up the "deformed capitalist system" that had ransacked the country for the past 40 years and transferred millions of Kenyan schillings from the government treasury to the pockets of the coterie of well connected insiders and ministerial agents surrounding the president. This was not to speak of the enormous outflows of capital circulating back to "donors" amounting to 25% of national resources as opposed to the meager 6.8% to education and 2.7% to health services.
The results were predictable. To restructure a public debt of more than $2.2 billion in an economy whose entire GDP in 1995 US$ was little over $10 billion and which was experiencing a sever drought resulting in massive energy and water rationing, the Kenyan government was offered $198 million in IMF, and an additional $150 million in World Bank loans on condition of privatizing the power generating facilities of the Kenya Power and Lighting Company and the Kenya Electrical Company, selling its port authority and railways outright, selling a third of the Kenya Commercial Bank and a 49% stake in the national telo-communication firm. Good Luck Greece.
If a company behaved this way would it have any business issuing public or private debt?
Uh... unfortunately the answer to that question is "yes". (And it's stock would be soaring).
....and for probably generations.
One of these days G-Pap is going to get out of his car to find out why it will not move and discover that all 4 of the tires are flat at the bottom.
I would encourage anyone who is interested in this situation to read the history of the last Argentinian debt crisis. This situation is playing out pretty similarly. Expect more stops and starts before this is over, but the ultimate result will be the same - bondholders will take a haircut.
No, no... in the happy 21st century version of the story, the bond-holders are made whole and the US taxpayer foots the bill for the whole thing.
That was not a pretty story, and really still isn't over 15 years after it began.
The only real moral from that tale is: be the first to panic. Only the folks who got their assets out of the country and converted to dollars early managed to keep what they had, as I'm recalling.
Just declare bankruptcy, stiff the idiots who bought your bonds and GET IT OVER WITH ALREADY.
They can't. If they did so they would not be able to continue to deficient spend into infinity and would have to enter market imposed austerity. They would probably rather see yields break 10% then have to live within their means.
Only if you have to borrow from banks.
Last I checked, us humans give the banks that right.
That's why we have a MONETARY system, and not a CREDIT system. In monetary world, what the banker says, goes. In a credit system, you can tell the hoes to blow. Why? Because you can create it yourself without the bankers being able to do crap.
SO do we want destruction of the world economy, and real economy to pay off the bankers swindles under the fear that they will not lend us anymore money?
Or do we tell them eff you, and if you don't want to loan us money, we'll create our own. Not only are the bankers playing with fire, since they're whole job is redundant, but they're trying to sink everyone and everything to save themselves.
Of course, a lot of people, need to get a lot more pissed off, before any of this happens. A lot of current pissed off people have yet to realize the fact that this struggle is entirely escapable by ending the monopoly of money creation by monetarist bankers who engage in all of the above we've seen.
The constitution states we are to be a 'Credit System', why? Because the same crap monetarism was pulled on our colonies, and that's why we had a little revolution. It wasn't just about not having representation and taxes. The core was monetarism, and what the bankers would do to save themselves.
Sound familiar? It should.
Look at the leadership of Greece, or really the Western world and you tell me they have the guts to stand up to the banks. Politicians are the best ROI on Earth and special intrest groups know that. The banks who can make money out of nothing know this and bought them off. And if a politician tried to stand up watch the media demonize them or an "accident" befall them.
If hte people woke up then maybe, but the people have been hypnotized by the media and the media has a vested interest in keeping the status quo. No fix is possible until after a total melt down. The people have to feel enough pain that no amount of TV, porn, beer, or donuts will cover their anger.
Just gotta love the Gekko, doesn't pull any punches and asks for no quarter.
Since the people with any real wealth have pulled out to head for greener pastures they might as well default already.
The only people truly interested in maintaining the illusion of a supra-regional currency, all live in Belgium and go by the name Brusselcrats.
Greece should should just default, dump the Euro, along with the European Union, and go back to the drachma.
Who in their right mind would want to invest in a country that produces nothing more than a bunch of lazy, dancing, wine swilling anarchists, and stupid movies like My Big Fat Greek Wedding.
It's the cradle of democracy! Have some fucking respect. Thus, it's a country that produces nothing more than a bunch of lazy, dancing, wine swilling former ochlarchists, and stupid movies like My Big Fat Greek Wedding.
You guys are too funny. The mix of sarcasm, pop cultural references and brilliant IDs/avatar, which are sometimes all in play at the same time, make my sides hurt from laughing too hard. My secretary pokes her head into my office a dozen times a day wondering what I'm laughing about.
Cradle of civilization, (former) ochlarchists and My Big Fat Greek Wedding is just priceless.
ZH should have ratings that rival 'Idull'. But then again, the underground always reigns supreme.
Lords of the Underground - Chief Rocka:
http://www.youtube.com/watch?v=YFbLRZCExBkI don't think Greece is allowed to dump the Euro, so while it could in theory bring back the drachma, it would be no more valuable than a California IOU.
The Germans own the Euro and the Eurozone. Everyone else obeys. According to Vincent Gave, the entire Eurozone is going to become a German protectorate under the dictates of German politicians.
tell me this wasnt the sole reason for the 6mo to move from 6.094% to 3.46% EOD....
I tried the Greek (race) Google Translation edition and it came up with; "Huh? Gurrgle mumble, harrrumph. Uh huh."
When a country's leaders seem to be in competition with Monty Python, that's not good, is it?
Oh, does this mean the market will go back to 9,800? Wasn't "Greek Resolution" the latest and greatest reason behind the most recent moon-shot in equities?
This is pathetic. If we ran our businesses like this, giving conflicting message after conflicting message, we would be TOAST long ago!! Pathetic.
I love reading these daily episodes of The Decline of Greece, Part III. It makes me feel so much smarter.
So many U turns this guy has no idea what he wants anymore.
I spoke to a relatively comfortable friend in Athens today - the lifeboats are being deployed post haste. Anyone with any money whatsoever is getting it the fk out and seeking emmigration possibilities. Mood is bad to worse. Their politicians have unsurprisingly lost all credibility with the public.
Default is impossiblt to avoid. Why anyone holds any debt longer than 6 months in that country is beyond comprehension.
When refering to the Greek Prime Minister I suggest using the acronym "GAP" (a.k.a. George Andreas Papandreou) is the best way to describe the absolute gap inside the insane asylum.
the poison pill was planted in the euro from its inception, you have to marvel at how ws operates. This was no random event.
This is, ultimately, good news. Greece is a beautiful country, with truly idyllic views. I envision ever-cheaper real estate possibilities, especially for those of you making your own exit plans...
Very thoughtful. Insightful. +100
And they'll be a lookin' for boat loads of Ex-Pats.
Yes!
Dancing and drinking aimlessly till the sun fails to rise or the debts get repaid. Brilliant!
virgilcaine - poison pill? Interesting. The Western oligarchs think in terms of decades so I am wondering what you see.
How exactly was it planted?
THE IMF WANTS YOUR SOUL! So does facebook.
make Max Keiser King of Greece and burn the bankers at the stake. Thats a Silver Bullet Solution :p
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