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Spiegel Greek Hit Piece #2: Bailout Troika Finds "Greece Missed All Fiscal Targets" - Next Steps: Game Over?

Tyler Durden's picture




 

Germany's Der Spiegel seems hell bent on getting sued to hell and back by Greece. After a few weeks ago it "broke" the news of a secret meeting that would consider the expulsion of the country from the Eurozone, it is once again stirring passions with an article claiming that Greece has missed all fiscal targets agreed under its bailout plan, according to a mission from an international inspection team, putting further funding for Athens at risk, Reuters summarizes. "The troika (aka the International Monetary Fund, the European Commission and the European Central Bank) asserts in its report to be presented next week that Greece had missed all its agreed fiscal targets," weekly Spiegel magazine reported in a prerelease. In other words, this could be the political game over for Greece, whose fate as has been disclosed recently, is intimately tied with the perception that it is following the troika's demands for fiscal change. If the three key bailout institutions are already leaking that Greece is done, next week could well be the beginning of the end for the €. In about 48 hours, even as America is enjoying a Monday off (or precisely because to that, to avoid a market panic), the European market could be digesting a very bitter pill of testing just how well pre-provisioned all those German, French and Dutch banks really are.

From Reuters:

The mission will be holding meetings next week before an expected finalisation of the report.

"The deficit in the public budget was higher than expected," the magazine said, referring to the report's findings.

"The reason is that the Greek government still spends more than agreed in the aid programme. On top of that tax income is still lower than demanded."

The IMF has already said it cannot release its part of a 12 billion euro aid tranche to Greece next month if fiscal conditions underpinning the bailout are not met and the European Commission's top economic official was quoted as saying the EU was setting the same conditions.

"We Europeans have the same conditions as the IMF," EU Economic Affairs Commissioner Olli Rehn was quoted as saying in the same prerelease for Monday's Spiegel magazine.

"We will decide on the next tranche after the troika's report. The situation is very serious," Rehn added.

There is, however, one possible last ditch rescue: a firesale, pardon privatization, of Greek assets.

EU officials have asked Athens to step up
privatisations urgently and suggested setting up a trustee institution
to help oversee the process, similar to the body that privatised East
German companies after the fall of communism. Spiegel magazine also
said the troika's experts estimated Greece had assets worth 300 billion
euros, which it could sell off to meet its targets.

That said, good luck selling the idea that Greece has to sell the Cyclades only to provide another year or so of banker bail outs, now that virtually everyone knows who the only benefactors from the can kicking exercise are.

And not even an hour has passed since the article that Greece has already had to issue a formal lie:

Greek Finance Minister George Papaconstantinou on Saturday denied a German magazine report that an international inspection team had concluded Greece had missed all its fiscal targets.

"Reports such as the one in Spiegel have no relation to reality. Negotiations continue and will be completed in the next few days. We have every reason to believe the report will be positive for the country," he told Greek Mega TV.

Wrong again. And confirming that it is basically game over should the troika wash its hands, is the latest note from Goldman's Dirk Schumacher:

Eurogroup head Juncker said yesterday that the IMF would probably not be able to make the next disbursement disbursement, as the re-financing of Greece over the next 12 months is not secured (the €26.7 billion Greece was supposed to get from private investors in 2012). By August 20 the Greek government has to redeem €7 billion in debt falling due, though there are of course other payments the Greek government has to make, implying that Euro-zone governments need to come up with a solution fast.

There are two issues Euro-zone governments have to deal with. First, whether (and how) to bridge the funding hole that will open up over the next couple of months if the IMF does not disburse its tranche. Second, what to do about 2012, ie, should there be a second package and under what conditions?

There are in principle several options available for how to replace the IMF money for the next tranche if governments were to deem the risk for the financial system of any early debt restructuring too big – the ECB has been vocal over the last couple of weeks with respect to these risks. Stepping up the current bilateral loans would be one option, though politically difficult as this would need to be approved by parliaments, at least in some cases. Also, several countries will find it rather unattractive to fund these loans right now in the market. Tapping either the EFSF or the EFSM to replace the missing IMF money would be easier, as – with the exception of Finland – parliaments would not need to be asked. One open question, however, is whether an end of IMF money flows, even temporarily, means that access to EFSF money also needs to be declined, as the EFSF should only provide money together with the IMF.

Whichever option is chosen, this will create some noise in several countries and the official explanation for why the IMF is no longer funding will be crucial in that respect. If it is indeed only the question of guaranteed funding over the next twelve months, Euro-zone governments may argue that the IMF will return once an agreement has been found over the second package. However, if the troika’s assessment states that debt sustainability is not given and/or the slippage in terms of implementing the reforms has been too big, it will be difficult even to come up with bridge financing for the next months.

With respect to the second package, a necessary, though not sufficient, condition, seems to be that the troika will still conclude that Greece can “make it” in principle and the slippage has not been too big – and that the Greek government will intensify its efforts. The question in that case, however, is still what the second package should look like, i.e. to what extent should the private sector participate? It is noteworthy in that respect that the German finance minister has backpedalled from his earlier calls for a soft-restructuring in conjunction with a second program for Greece, stressing the risks associated with this, though he also said that once the ESM is in place, private sector participation will be necessary.

It is difficult to say at this stage how important it will be to have the participation of the private sector in order to overcome public resistance in some creditor countries to another aid package. In any case, without more credible efforts from the Greek government to reform/privatise, this hurdle could be too high to overcome, and there might be not a second package.

The first task at hand for Euro-zone governments is to find a replacement for the IMF money if the IMF does decide it is not in a position to disburse the next tranche.

Otherwise, we may get a Greek debt restructuring much faster than previously thought.

Conclusion: for those who did not sell in May, selling in June may be the next best option, or at least until Jon Hilsenrath reports QE3 is imminent (October/November).

P.S. we continue to hold our breath for Handelsblatt to issue an apology for fooling millions of its readers into buying Greek bonds.

 

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Sat, 05/28/2011 - 14:09 | 1319505 takeaction
takeaction's picture

So many countries are going down the tube.  I hope people here on ZH are ready. Look at this video from Spain yesterday. (Graphic Violence)

http://www.youtube.com/watch?v=Geg_6Xoy04s&feature=autoplay&list=PL0442B...

Sat, 05/28/2011 - 15:03 | 1319582 Vuvuzela
Vuvuzela's picture

Did you notice how well fit those fags beating on peoples are.

I dont think they are the regular police, but some specila military forces incorporated in the police force

what says you ?

 

Sat, 05/28/2011 - 16:02 | 1319659 CH1
CH1's picture

Police employees picked for this job.

Sat, 05/28/2011 - 18:20 | 1319874 Re-Discovery
Re-Discovery's picture

Spain has more surviving self-identified Fascists than any other European country.

Sun, 05/29/2011 - 00:25 | 1320236 tiger7905
tiger7905's picture

Don Coxe touches on Spain in his latest Basic Point for May 2011. Says Spanish debt will soar when local government financial fudging is revealed.

For Highlights see here:
http://goldandsilverlinings.com/?p=1085

Sat, 05/28/2011 - 16:08 | 1319663 IdioTsincracY
IdioTsincracY's picture

Until people realize that they are being raped by Bankers who have their tentacles wrapped around politicians, this will not go anywhere.

They are protesting the wrong entities .... pillage the banks ... and then will talk!!

Sat, 05/28/2011 - 23:10 | 1320195 Michael
Michael's picture

What Europeans fear the most about a Greek debt default and no more bailouts is a severe depression in Greece that drives down the prices of real estate and other asset classes, making Greece the most reasonably affordable place in Europe to live. Greece will become the 1st ultra competitive country and best place to do business leaving the rest of Europe to envy them. At the same time it will lead to a depression in real estate prices throughout the rest of Europe in time.

Sun, 05/29/2011 - 05:20 | 1320340 Dismal Scientist
Dismal Scientist's picture

You are assuming that the Greeks will be allowed the luxury of exiting the Euro, devaluing hugely and then becoming competitive. This is not going to happen, until the northern Europeans and their bankers have looted the place properly. As for Greece becoming 'the best place in Europe to do business', have you lost your mind ? Corruption is endemic, the population are livid and the government is desperate. No company would do business in such an environment; and we haven't even discussed capital controls yet.

Not buying your thesis at all.

Sat, 05/28/2011 - 16:07 | 1319665 Danielvr
Danielvr's picture

Regular police in riot dress. Don't feel too sorry for those student protesters, they're mostly bored privileged kids looking for a day of comradery and excitement while their less well-off peers are working hard to make ends meet and pull their nation out of the crisis.

Sat, 05/28/2011 - 16:59 | 1319742 topcallingtroll
topcallingtroll's picture

So perhaps not every european is living better than the americans, eh?

Sat, 05/28/2011 - 17:04 | 1319751 Rodent Freikorps
Rodent Freikorps's picture

Maybe the pics of Sicily I saw were not representative of normal, but those pics looked more like Tijuana than San Diego.

Sat, 05/28/2011 - 18:26 | 1319886 Danielvr
Danielvr's picture

No, in the PIGS nations youth in particular is suffering from high unemployment. But at least they're not $100K in debt (American students should consider going to college/university in Europe - all sorts of courses are available in English, tuition is only $8K/Yr or so, you'll get a decent education, see a bit of the world, and your resume will stand out).

Sat, 05/28/2011 - 17:02 | 1319747 Bay of Pigs
Bay of Pigs's picture

Yeah, beating on defenseless civilians. Sounds great dude. Glad to see you come down on the side of police brutality. Those police are a bunch of meatheads abusing their authority.

No need for any of that kind of violence, but apparently you think it's okay.

Sat, 05/28/2011 - 17:18 | 1319753 Rodent Freikorps
Rodent Freikorps's picture

I do have to admit seeing socialist parasites get whacked with a stick by the employees of socialists, because they demand to be saved from socialism by even more socialism, did amuse me greatly.

Sat, 05/28/2011 - 20:25 | 1320030 NOTaREALmerican
NOTaREALmerican's picture

> whacked with a stick by the employees of socialists

Country First!

Sat, 05/28/2011 - 18:40 | 1319894 Danielvr
Danielvr's picture

Boo-hoo. Look, as a former activist I'm not very impressed by the level of angst and violence in that vid, OK? I didn't see any bricks and molotov cocktails flying, I saw no tanks, no tear gas, no cops on horseback trampling the protesters -- just a few patient officers giving a few 'protesting' youth a few mild punches so they'd get on their feet and clear the street. If you think this was a riot, let alone police brutality, you aren't used to much. Just wait till the livelyhoods of large groups of people are actually at stake -- then you'll see what riots are, and what police brutality is.

Sat, 05/28/2011 - 19:36 | 1319969 Bay of Pigs
Bay of Pigs's picture

I never said it was a riot. These people had no weapons. They were not a threat to anything. I said it was wrong of the police to beat on them. What the fuck is wrong with you anyway?

You certainly talk a big game as a "former activist". 

Sat, 05/28/2011 - 17:13 | 1319761 breezer1
breezer1's picture

you must be right . what are these shifty lazy citizens doing? don't they have jobs to go to. they are probably on their lunch break just trying to make trouble for those hard working policemen. did you see that one hippy bastard hitting the policemans baton with his head. he should be thrown in jail with all those other criminals who break the law.

i can't go on with this......  you are one fucked up asshole.

Sat, 05/28/2011 - 18:47 | 1319904 Danielvr
Danielvr's picture

Pity, you were on a roll. Again, these are basically bored, self-important privileged kids who enjoy playing 'Gutmensch' for a day and feel all warm and fuzzy about themselves for being so progressive and caring about their suffering fellow humans. I know because I was just like them 20 years ago. And twenty years from now, many of those same kids will be running the Wall Streets of this world. Fuck them and their faux bourgeois social engagement.

Sat, 05/28/2011 - 17:50 | 1319824 desgust
desgust's picture

Fuck you, asshole!

Where do you want to know that from?

Triplefuck every hole!

Sat, 05/28/2011 - 18:48 | 1319908 Danielvr
Danielvr's picture

Sounds good to me, let me have it! :-b..

Sat, 05/28/2011 - 22:00 | 1320126 lawrence1
lawrence1's picture

¨Bored priveleged kids ... ¨  Think you´re wrong.  Unemployed kids who know they cant find work and no longer believe that voting counts.  Hear Gerald Celentes recent interview on king world news, his prediction of riots throughout Europe this summer.

Sun, 05/29/2011 - 06:54 | 1320375 OldPhart
OldPhart's picture

I saw quite a few geezers in the mix.  One of them looked a hell of a lot like me.

Sun, 05/29/2011 - 11:16 | 1320540 topcallingtroll
topcallingtroll's picture

Obviously many who junk you have never seen a real protest, not the scared pussies who run when they get hit a couple of times by the baton. And yes most of them are bored priviliged kids. They may not have a job but they dont need one to have food on the table and a little running around money from mom and dad.

Sat, 05/28/2011 - 15:46 | 1319638 CrashisOptimistic
CrashisOptimistic's picture

Until gunfire starts administering headshots, it's just a bunch of people sitting meaninglessly in the street.  If they aren't willing to kill, then they don't really have any commitment to their concerns.

Sun, 05/29/2011 - 10:05 | 1320473 downwiththebanks
downwiththebanks's picture

... says the Keyboard Cowboy.  Yours are the tactics of the agent provocateaur.  

Revolutions never start with murders.  They start with the masses taking the streets and succeed or fail depending on whether the military (and police in some cases) will switch sides.

The easiest way to guarantee it doesn't happen is to attack violently the very people you're trying to turn.

Sat, 05/28/2011 - 16:20 | 1319678 Sudden Debt
Sudden Debt's picture

Not more dangerous like a peacefull protest. Can't have that right?

If they would have fought back on 1 cop, they would have had the right to shoot on the crowds with rubber and use more force.

But yes... the police had to. They wanted to organise a Fifa open air football spectacle for the tourists.

And all they did was provocing every youngster in Spain.

 

 

Sat, 05/28/2011 - 16:37 | 1319702 I think I need ...
I think I need to buy a gun's picture

thanks for posting because i haven't seen this in mainstream media

Sun, 05/29/2011 - 10:02 | 1320469 downwiththebanks
downwiththebanks's picture

Countries are only going "down the tube" if they insist on remaining slaves to the Banker-Gangsters rather than fighting them.  

The obvious question, when faced with a hit-piece from a Banker-Gangster vessel, is "we're in debt to whom."  

Why does a 5'8" 155 lb.  weasel that shines shoes for a living and can't butter bread get to determine the fate of nations?

Sat, 05/28/2011 - 14:07 | 1319509 Troy Ounce
Troy Ounce's picture

 

Yeah, firesale

Yeah, balance sheets

Yeah, bankruptcies

Yeah, derivatives

Yeah, dominos

Yeah, entitlements

Yeah, burning parliaments

Yeah, PM

Yeah, TV, beer & chips

Yeah, Stone Street Advisors explaining this shit ;>(

Sat, 05/28/2011 - 14:08 | 1319513 Parth
Parth's picture

I am keen to see how the Germans and French collect from Greece. If the black swan was Middle East Jasmine revolution and the tsuname; the mother of all black swans is a resurgent Germany starting forced collections in Europe. In other words the real WW3 starts again in Europe. Of course we shall liberate them again. And so the great game continues, and oddly America wins again.

Sat, 05/28/2011 - 14:44 | 1319561 cosmictrainwreck
cosmictrainwreck's picture

agree, conditionally. having to really rub my eyes to see how "America wins". USA is ripe for it's own shit-storm

Sat, 05/28/2011 - 16:23 | 1319683 margaris
margaris's picture

Yes, but this time, the main driver of WW I and WW II, being PETROLEUM has peaked and is declining.

Maybe I hope that you cannot start and maintain WorldWars for a long time without CHEAP ENERGY?

 

Ok, sad part is: All nuclear missiles are filled up and ready.

Sat, 05/28/2011 - 17:45 | 1319819 Ben Dover
Ben Dover's picture

Here's something that will help you sleep well - http://www.latimes.com/news/la-fi-new-bomber-20110522,0,260684.story?track=rss

Don't let the bed bugs bite.

Sat, 05/28/2011 - 18:14 | 1319868 Ag1761
Ag1761's picture

Wow, I just bought 100 Baird and Co Monarch of the Glen Rounds, they look like phantom ray drones when you angle them up to the light

Sat, 05/28/2011 - 22:12 | 1320149 cosmictrainwreck
cosmictrainwreck's picture

wow...that's sooo awwwsum I just shit myself. when's the video game come out? /sarc

Sat, 05/28/2011 - 16:32 | 1319698 Danielvr
Danielvr's picture

Hahahaha! I don't know if I should be amazed or amused by some of those outlandish American comments on the crisis in Europe. Germany is just about the most war-averse nation on Earth. They won't "collect". But they're damn right to squeeze the thumb screws tighter on the Greeks, who haven't even begun to curb their government spending, get rid of the nepotism and corruption, or restructure their economy to bring it more in line with what they actually can afford.

Anyway, most Europeans are still living from summer vacation to winter ski trip while Americans are living from paycheck to paycheck or foodstamp to foodstamp. I wonder what inspires you to get so excited about Europe - it's not like you own a couple of trillions in EU debt, so, maybe it's just Schadenfreud, or a welcome diversion from the problems at home.

Sat, 05/28/2011 - 16:53 | 1319735 margaris
margaris's picture

greece is and always was a poor country with not much to give. So , this thumb screwing you are talking about.... is this simply to inflict pain? Or do you really believe greece has something else to give then their freedom and land ???

Sat, 05/28/2011 - 19:01 | 1319920 Danielvr
Danielvr's picture

You're almost right, Margaris. Greece should be a poor country because it isn't producing much of value and it is consuming much more than that. Thanks to fraud and cheap credit, many Greeks are leading lives of wealth and abundance. The older generations and government workers in particular have taken very good care of themselves -- but they have left their own children very deep in debt. It's time those people took some responsibility instead of expecting their children and the rest of Europe to pay for their privileged lifestyles.

Sun, 05/29/2011 - 07:24 | 1320392 margaris
margaris's picture

No one of my greek relatives is near wealth and/or abundance. All working for a shitty wage or recieving an abysmal pension.

All of which has been cut severely again and again....

Okay, they have land, ... land they inherited from their parents etc... not much more..

So again, cant you people just understand that all money/wealth/excesses went to the banks (best friends of greek politicians scum)... and were done by the banks.

And that now that the greeks have nothing left then a little land those said Bankers are trying to steal even this last piece of remaining wealth?

 

How is it allowed for foreigners to steal native homeland anyway? I predict that many greeks (if not nearly ALL) ... will go THIS IS SPARTA -Style on those bankster asses....

Sun, 05/29/2011 - 10:06 | 1320478 downwiththebanks
downwiththebanks's picture

"Wealth and abundance"!  HA.  So little concern for unemployment.  So much little concern that an economic system in terminal decay cannot provide for the needs of anyone in the world, save a select few partying with high-priced hookers.

And yet, so much concern over debt.  So much interest in making sure Banker-Gangsters get paid.  So much concern over austerity - just not for those who need it most.

Sat, 05/28/2011 - 22:07 | 1320142 lawrence1
lawrence1's picture

Agree that the US elite-media use Europes problems to divert attention from the US which is clearly more serious.  Sounds like a bit of Schadenfreude coming from you..Enjoy your summer vacation... but be careful where you go... black swans have been seen circling Europe too.

Question ... Do you think that, since gold constitutes a major portion of the backing for the Euro, that the authorities might make use of that? 

 

 

Sat, 05/28/2011 - 18:14 | 1319865 Ag1761
Ag1761's picture

I really love those Kalamata Olives, reckon I could collect a couple of acres soon for a monster box, well if they are talking of a sell off.....

Sun, 05/29/2011 - 11:24 | 1320545 topcallingtroll
topcallingtroll's picture

Then the greeks will tax the shit out of you so you always lose money. They will fine you for wage and labor violations until you cant stand it and sell at a fifty percent loss.

Sun, 05/29/2011 - 12:00 | 1320590 Ag1761
Ag1761's picture

Yeah, didn't think of that, and there will probably be hoardes of rampaging starving zombies trying to  get in to my fields. I'd probably run out of ammo at some point.

I think a total world wide default and reset is on the cards in a couple of years after the asset stripping.

 

Sat, 05/28/2011 - 21:16 | 1320086 TK7936
TK7936's picture

Atleast you acknowledge the parasitic nature of the american eco model. For a while there it seemed americans actually believe there ww2 participation was altruistic.Nazi Germany was the only black swan to rise against Banking Rule -the only. And it wont happen again cause Germany is now a bank too.

Sat, 05/28/2011 - 14:08 | 1319514 ATM
ATM's picture

Perhaps it is the Greeks that really hold the cards. If they go belly up the rest of the Euro banks go belly up too. They have a gun to their own heads and Europe should be quaking.

Sat, 05/28/2011 - 14:29 | 1319546 Coke and Hookers
Coke and Hookers's picture

Quite right. Greeks do hold the cards. However, there's not a single government anywhere that's not held by the balls by someone else - i.e. the banksters and their EU enforcers. Even the Icelandic government has been busy handing the country over to hedge funds while trying to hand over public property to the EU. Everybody is either working for the EU/banksters (and against their own people) or being invaded or coerced one way or another (Lybia, Syria, Iran, Thailand etc.). Globalism has gained enough strenght to either outright own more or less all governments or force them do do their bidding. Seems they even have a military force now to clean up stragglers like Gaddafi.

Sat, 05/28/2011 - 16:03 | 1319655 Muir
Muir's picture

scary thoughts

Sat, 05/28/2011 - 16:03 | 1319631 Urban Redneck
Urban Redneck's picture

The ECB & IMF might try to fire-wall Greece and burn it, then turn to direct bailouts of the very institutions they are trying indirectly to bailout through the Greek government and then QEeuro the cost (sort of like the Bernanke OpEx murder only far more vicious).

Sat, 05/28/2011 - 14:08 | 1319515 sunny
sunny's picture

Don't stand in front of any Greek fans!

sunny

Sat, 05/28/2011 - 14:21 | 1319523 emsolý
emsolý's picture

2011 is like the Olympic Games in the disciplines of racing to the bottom and can kicking, and we can't deny that all contestants are giving their best and it's going to be a close finish for sure. But in the end, just like at the Miss USA pageant, everyone's a winner!

Sat, 05/28/2011 - 14:16 | 1319526 oogs66
oogs66's picture

You had articles saying that restructuring was likely to happen sooner than later when all the investment banks and media were spouting that restructuring debt or default was years away!

Sat, 05/28/2011 - 14:28 | 1319540 kaiten
kaiten's picture

Germany wants to kick Greece (and other laggards) out of eurozone. That´s why they are so tough on them. And, it´s only a matter of time when it happens, I think.

Sat, 05/28/2011 - 15:47 | 1319635 Rodent Freikorps
Rodent Freikorps's picture

They should probably quit giving them money, then.

Sat, 05/28/2011 - 17:51 | 1319826 kaiten
kaiten's picture

Small price.

Sun, 05/29/2011 - 10:11 | 1320480 downwiththebanks
downwiththebanks's picture

Then how can Greece afford to pay off those whose shoes you shine, NaziRat?

Come on - know you're priorities.

Sun, 05/29/2011 - 11:25 | 1320549 topcallingtroll
topcallingtroll's picture

Why is free money always so important to socialists?

Actually it is never free. It is always taken from others. Maybe germany has decided no longer to throw good money after bad.

Sat, 05/28/2011 - 17:11 | 1319759 johny2
johny2's picture

I would say at most, one month before they do that. It is going to be very interesting summer. 

Sat, 05/28/2011 - 14:35 | 1319542 Use of Weapons
Use of Weapons's picture

This must be an American thing again.

Did you forget that the ME revolutions started with someone pouring gasoline on themselves?

Or this famous icon for your very own Vietnam:

http://filipspagnoli.files.wordpress.com/2009/04/burning-monk-self-immol...

 

TPTB work on the game theory that one allows a victim an acceptable 'out' and provides the victim with the seeds of their own destruction. The game is played with the victim as a bloodsport - the victim is kept unaware of the game until the reveal / blood taking is in place, and so they can see how their own actions brought their demise. The "out" is the "correct" or desired action that TPTB wish to be taken, however if the victim can forge themselves a successful other 'out', then this has to be respected. The ultimate return is to show that the victim was in fact aware of the game, and manipulated the players whilst still giving the illusion that the game was effective, and forcing a reveal at the end that ties an 'out' with the actual goals of the victim.

These are rare, and ironically sought after by TPTB as novel game playing is more unusual than blood letting.

Hint: This is what happened to DSK - he was trapped by his own weaknesses, and assumed his usual 'out' (too important to be subject to law) would hold.

One solution to this is to refuse to play the game [at which point one will be eliminated from the game by TPTB, jacuzzi style] or you can play their game using the the Chinese game of 'Go' as your basis. As in 'Go', TPTB react slowly to kikashi followed by a myoushu, as they concentrate game skills within Western edicts [see further: "The Glass Bead Game"].

 

In summation: often self-sacrifice (there are many forms) should be considered as a play within dangerous games, especially if you do not countenance any other move being successful.

 

http://en.wikipedia.org/wiki/Go_terms

 

 



Sat, 05/28/2011 - 16:03 | 1319661 Muir
Muir's picture

"Always look on the bright side of life"

Sat, 05/28/2011 - 17:45 | 1319812 Use of Weapons
Use of Weapons's picture

"Play the game"

 

http://www.youtube.com/watch?v=NnAZTItYxUQ

 

 

 

Sat, 05/28/2011 - 23:31 | 1320206 cosmictrainwreck
cosmictrainwreck's picture

"follow the bouncing.... uh...er..."

Sat, 05/28/2011 - 14:39 | 1319551 agent default
agent default's picture

The Greece bailout plan was the result of a committee, no wonder it failed. Unfortunately for the greeks, Greece will not be allowed to default, period. To big to fail and all you know.

The  financial genocide of the country will continue at all costs.  The banksters want their money back dammit!

Sat, 05/28/2011 - 18:52 | 1319916 Mentaliusanything
Mentaliusanything's picture

The banksters want their money back dammit!

I just don't understand the Banks?

If someone can't afford the debt they have, then offering "More debt" by way of bailouts is not going to increase the chances of repayment.

All it does is allow the payments on the past to be made with credit of the present.

In the end it fails under the weight of debt.

File for Bankruptcy Greece - have some pride in yourself as a sovereign country

Sat, 05/28/2011 - 19:22 | 1319948 trav7777
trav7777's picture

the banks lent money they didn't have...this is why usurers get run out of countries throughout history

Sat, 05/28/2011 - 14:38 | 1319554 richard in norway
richard in norway's picture

german manufacturing orders plunge and then the german press starts bashing the greeks sending the euro lower, without the piigs the euro would be two to one against the dollar and germany would be stuffed as an exporting nation. its just an interesting twist on the competitive devaluation game

Sat, 05/28/2011 - 14:43 | 1319556 HamyWanger
HamyWanger's picture

Greece won't default. Greece is fine. 

The European Union/IMF/PigMen will do whatever it takes, including absurd, counter-productive and ruinous decisions to avoid a restructuring. A restructuring would mean that the "status quo" is impaired, so it can't happen. 

There are people out there who are willing to kill entire nations to maintain the precious status quo. 

I engage my personal honor and reputation with this prediction. If Greece defaults, then I quit Zerohedge. 

Sat, 05/28/2011 - 14:46 | 1319565 cosmictrainwreck
cosmictrainwreck's picture

thanks, Hamy - ain't seen your insightful commentary in a while. can't believe we're 5 minutes post-your-post without any junks. lol. HAH! you got yer first whille I was typing hahahaha gotta love this place

Sat, 05/28/2011 - 15:19 | 1319601 cosmictrainwreck
cosmictrainwreck's picture

junked me ? like I said... ya gotta luv this place

Sat, 05/28/2011 - 15:53 | 1319641 Subprime JD
Subprime JD's picture

I gave you the junk, tee hee

Sat, 05/28/2011 - 16:13 | 1319671 cosmictrainwreck
cosmictrainwreck's picture

pervert. btw - it's not just newbies; what kills me is people with some time tangle with him, too LOL

Sat, 05/28/2011 - 21:45 | 1320112 Calmyourself
Calmyourself's picture

Exactly 30-40 weeks in and they are arguing with Hamy, ha.. I used to correct, now I enjoy..

Sat, 05/28/2011 - 14:47 | 1319567 Subprime JD
Subprime JD's picture

C'mon now Hamy don't say things like that (quit ZH) I love your posts as they crack me up. Your sarcasm is brilliant snd I love how the newbies fall for it time and time again. Haven't seen you post in a while either.

Sun, 05/29/2011 - 01:11 | 1319578 plocequ1
plocequ1's picture

Nothing too big that the Bernank couldn't handle. The master maestro  is on it. Rally on. 

Sat, 05/28/2011 - 16:02 | 1319654 ebworthen
ebworthen's picture

You are probably right; TPTB will rob the American taxpayer for another 100's Billion(s) (whatever it takes) with new IMF leader proclaiming their character and moral authority to continue to rob the citizenry of the world to make the bansters solvent and keep the bonuses flowing.

The EU may just decide to side with the Sino-Russian alliance at the expense of the US to keep the union whole.

Sat, 05/28/2011 - 18:34 | 1319888 Fiat2Zero
Fiat2Zero's picture

HW sacrificed as a (replicant) pawn for the cause.

Don't worry HW, I'm sure you'll be resurrected as some other member of the replicant sock puppet brigade (robo trader, Ning, Texas gunslinger).

As for reputation, why not shoot the wad when you've got nothing to lose?

Sat, 05/28/2011 - 20:33 | 1320041 WonderDawg
WonderDawg's picture

We'll miss you.

 

Sat, 05/28/2011 - 21:21 | 1320091 Mr.Kowalski
Mr.Kowalski's picture

Be careful Hamy-- Greece has a history of becoming ungovernable, shortly followed by military government. My guess-- at some point (your guess is as good as mine) the Greek people will begin to riot, protest and strike so often and violently against this foreign mandated "austerity", shorly followed by the news of a military takeover and a "bank holiday". 

Sat, 05/28/2011 - 14:42 | 1319557 onarga74
onarga74's picture

Just keep in mind that Greece and Ireland have their shoelaces tied together.

Sat, 05/28/2011 - 15:06 | 1319591 Azannoth
Azannoth's picture

Yes this is a house of cards, you pull 1 out and ...

Mon, 05/30/2011 - 13:30 | 1322781 boiltherich
boiltherich's picture

And they just stepped into a pile of some Portugal too.

Sat, 05/28/2011 - 14:43 | 1319558 Jack Sheet
Jack Sheet's picture

...."suggested setting up a trustee institution to help oversee the process, similar to the body that privatised East German companies after the fall of communism ..."

Yeah well, Germans with a memory for 1990 know how that worked: the "Treuhand" flogged off the East German "assets" fast and at bargain basement prices to private companies and presented them with huge subsidies to keep the workers employed. They had to be sold off so rapidly because they had become uncompetitive after the East German mark was converted to the DM at 1:1. The white shoe boys then sold off the real estate and sent the companies into receivership at a huge profit. There was incredible corruption too within the Treuhand. Good luck Greek assets.

http://www.sueddeutsche.de/politik/ddr-treuhand-anstalt-ausverkauf-der-r...

 


Sat, 05/28/2011 - 15:09 | 1319588 Azannoth
Azannoth's picture

Need to load up on silver/gold today! (buying 24/7 online)

Sat, 05/28/2011 - 15:09 | 1319590 slewie the pi-rat
slewie the pi-rat's picture

May 23 – Bloomberg (Abigail Moses and John Glover):  “Government borrowing costs may rise if Greece restructures its debt without triggering credit-default swaps because investors will lose faith in their ability to protect against losses, according to JPMorgan…"

no shit.  isn't that great?  i read that last nite on doug noland's weekly Credit Bubble Bulletin: PrudentBear ,which has a good summary of the various "positions" involved, not just the banksters'.

Sat, 05/28/2011 - 15:34 | 1319621 Sudden Debt
Sudden Debt's picture

To many Europeans who don't believe in a breakup.

Europe is almighty remember?

It will take months before the markets start to realize what's going on, so don't expect any massive selloffs in the EU market.

Sat, 05/28/2011 - 15:37 | 1319625 Rodent Freikorps
Rodent Freikorps's picture

Did ya ever think that maybe the troika's demands where the smoke screen?

 

Sat, 05/28/2011 - 15:39 | 1319626 Atomizer
Atomizer's picture

The 11th hour is approaching, as stating earlier this week regarding Greece.

Are you familiar with the farris wheel in London? We call that the global steering committee. That financial wizard pressing the go/stop button has been sleeping on the job. All is good until the white hats arrive.  Winks...

Another AVATAR bites the dust. Things where good for awhile, until the snake began eating its own tail.

History never changes, just new actors selling the same snake oil...


DEAD CAN DANCE >>> AVATAR

Sat, 05/28/2011 - 15:41 | 1319628 A Man without Q...
A Man without Qualities's picture

the problem with the privatization plan is the same as everything else in Greece - too many hidden debts.  Even the assets that are actual businesses have very little equity in them, with debts that you don't see (because they aren't public).  Sometimes it's even worse, because the debts are to the state, who recognize the asset on that side.

It seems simple, but better to throw the Greeks to the wall - kick them out of the Euro, write down the debt by 70% (i.e. re-denominate Drachma and devalue by this)  and then inject capital into the Eurozone banks.  Anything else is just letting the farce continue.  Greece is a kleptocracy, nothing will change that.

Only then will the Greeks realize that their pensions have been stolen by politicians, banks and trade unionists.  

Sat, 05/28/2011 - 15:57 | 1319651 Sudden Debt
Sudden Debt's picture

There are totally not cheap. On every "asset" there are social chains attached to them.

If you take a greek government company and want to buy it, you take all the staff with you.

Turning those companies into profitable once will cost double as much as you pay for them, even if the unions would allow you to change it. There's a 99% chance you buy one of those companies and they go on strike untill your bankrupt and have to sell it back to the greek state for peanuts.

 

Sat, 05/28/2011 - 16:15 | 1319676 A Man without Q...
A Man without Qualities's picture

In my experience (it was only one Greek government company), it's hard enough to get the fuckers to turn up, even though they get paid on average 60k a year.  Terms like "balance sheet" are greeted with a knowing smile and cash flow management involves calling a Greek government department each month to make sure they get the cash to pay the bills.  

Sat, 05/28/2011 - 16:54 | 1319731 Sudden Debt
Sudden Debt's picture

Did you also see the BBC documentary about that?

Whole departments where only 1 fucker showed up in the morning to punch in for everybody and than he went home to come back in the evening.

Or those government workers that didn't even know they had a office :)

It was like O MY FREAKING GOD! THIS MUST BE SLAPSTICK! Just to unreal.

 

Sat, 05/28/2011 - 16:57 | 1319744 Rodent Freikorps
Rodent Freikorps's picture

Jeez. No wonder the Greeks are pissed.

Can you imagine the horror of getting up everday and having to do work?

 

Sun, 05/29/2011 - 10:15 | 1320485 downwiththebanks
downwiththebanks's picture

Good thing you're a Banker-Gangster serving other Banker-Gangsters then, right NaziRat?

Stave off having to work for a while that way.  Unless you're asked to spit shine one of your boss's Bentleys.

Sun, 05/29/2011 - 05:32 | 1320343 Silvarouvres
Silvarouvres's picture

Link would be appreciated

Sat, 05/28/2011 - 17:22 | 1319774 CrashisOptimistic
CrashisOptimistic's picture

Suppose the swaps on greek paper are global?

They are largely opaque.  It almost doesn't matter if the swaps really do impair banks.  It only requires that other banks believe that they do.

Then they won't do overnight lending and presto, Lehman.

Sat, 05/28/2011 - 18:52 | 1319917 kaiten
kaiten's picture

Totally agree with you. Greece should be kicked out long ago. I can only hope that germans finally grow some balls and kick them out. That country doesnt belong to Europe.

Sat, 05/28/2011 - 15:54 | 1319644 Lord Welligton
Lord Welligton's picture

1 Der Spiegel is receiving leaks.

2 They are true (?)

3 Who leaked? Are there two sides maneuvering for position?

4 If the "kick the Greeks" side win over the "kick the can" side, have they got a plan?

5 Have they had sufficient time to immunize core Euro banks?

6 Or does it all go pear shaped?

 

7 Do the British and Americans know what's coming?

8 Is that why they were in Ireland last week?

9 Ireland re-joins the Sterling area?

 

I'm confused.

 

 

Sat, 05/28/2011 - 16:10 | 1319664 Sudden Debt
Sudden Debt's picture

3 Who leaked? Are there two sides maneuvering for position?

There's akways somebody who craves after attention and can't keep his mouth shut.

99% sure it's the greeks themselves who send out the message. They want to default, no sell their assets. And if you can devide the opposition into 2 camps like they did now, they've won.

 

Sat, 05/28/2011 - 16:23 | 1319687 Azannoth
Azannoth's picture

Creative destruction, sure the  Greeks won't sell them selves out like a cheap crack whore

Sat, 05/28/2011 - 19:33 | 1319933 kaiten
kaiten's picture

"They want to default, no sell their assets."

Absolutely. That´s what they play for. I think Germans should make it clear to them: If you default, you´ll be kicked out of both EU and eurozone. No more free money. Now, you can choose.

 

I mean, should Greece leave the eurozone, their new currency would drop by some 70-80%* and their living standard(GDP per capita) would go back in time by 3-4 decades. If not more.

 

* Greece is generally considered to be in worse situation than was Argentina in 2001. And peso dropped by 70% when they de-pegged it from dollar.

Sun, 05/29/2011 - 00:19 | 1320232 M.B. Drapier
M.B. Drapier's picture

I think Germans should make it clear to them: If you default, you´ll be kicked out of both EU and eurozone.

Absolutely not. Greece has no obligation as a member of the Eurozone or EU not to default. In fact the Eurozone basically mandates default: since devaluation is impossible in the Euro and transfer payments are (basically) banned by the EU treaty, that leaves one alternative for states in budgetary crisis. The fact that other EU states now find the rules of the Euro an inconvenient obstacle to bailing out all banks doesn't change the fact that these are the rules they agreed to - in fact insisted on, in the case of some countries.

Greece did have an obligation not to lie about its deficits. But the other member states have a diminished right to complain about this since they first turned a blind eye to it, then chose to deal with the consequences by gavaging Greece with even more debt, trampling on the rules of the EU and IMF in the process.

Sun, 05/29/2011 - 05:46 | 1320351 kaiten
kaiten's picture

Im not talking about rules or obligations, Im talking about common sense. Why should EU continue pouring money into Greece when they get nothing in return? Since Greece joined EU, they´ve contributed absolutely nothing. Solidarity is not a one way street, you know.

 

The greek economy is completely messed up and they are unwilling to do anything about that. You see it by yourself. Instead of making some reforms finally, they just demonstrate day and night. They got a bailout a year ago and did absolutely nothing since. Pouring money into greek economy is like pouring water into bottomless pit. It just makes no sense. Should Greece default, then 10-15 years from now, they´ll be in the very same situation as they are now. By kicking them out, EU would spare itself a lot of troubles 1-2 decades down the road. EU dont have any leverage to force Greece into reforming its economy. EU can tell Greece to do this or that, but if they are unwilling to do, there´s nothing EU can do about that. So why should EU keep such a country inside? Again, it just makes no sense.

Sun, 05/29/2011 - 10:18 | 1320490 downwiththebanks
downwiththebanks's picture

Allowing the Banker-Gangsters to continue their assault on the Euro, redoubled after victory, is not the right plan of attack.  

They're like piranhas - it will only encourage them to attack differently.

Sun, 05/29/2011 - 05:51 | 1320353 kaiten
kaiten's picture

(double post)

Sun, 05/29/2011 - 00:01 | 1320209 M.B. Drapier
M.B. Drapier's picture

3) /Spiegel/'s track record over the past 12+ months suggests strongly that they are briefed by/act as the megaphone for one faction in the German finance ministry or the Bundesbank. The leakers seem to be fairly anti-bailout and not very loyal to Merkel. I recall /Der Spiegel/ itself had an article a while ago (second half of 2010, I think) saying that the German government/civil service was split into several opposing camps over policy in the Eurozone debt crisis.

Mon, 05/30/2011 - 11:48 | 1322521 boiltherich
boiltherich's picture

Very well could be, but will a return to the punt be linked to sterling or to the dollar?  I am thinking the dollar for a couple reasons, one the IMF part of their bailout has the US heavily invested in the situation, and that means support from the USA not to call those "loans" and perhaps even lend more support to the Irish would potentially require closer ties to the US. 

Another reason, Irish trade (read income and employment) is heavily weighted to US Pharma and IT Cos. doing offshore business there.

Another, there are more Irish in America than in England, at least decendents, in the region of 50 million of us.

Another, if and when Ireland dumps the Euro and returns to the punt it will need a lower value ForEx rate, the sterling at $1.60+ is just too high for there to be any real advantage in that. 

Ireland will need income fast and US tourism has always been a great source till recently with high priced airfares, and the Euro above $1.40 has done a lot of damage to American tourism for them.  A dollar linked punt would allow tourism to regain some of it's past strength.

But you are right, I had thought it odd that both the Queen and Obama made state visits almost simultaneously, especially since it is the first royal visit in the history of the Irish Republic.  Especially given the threat of that Icelandic ash cloud.  Something is up. 

Sat, 05/28/2011 - 16:00 | 1319647 Sophist Economicus
Sophist Economicus's picture

Germany's Der Spiegel seems hell bent on getting sued to hell and back by Greece

...Or, is in the back pocket of socialist and communist union groups across europe and wants any and all deals killed ...   just a thought...

BTW - I don't care for these austerity plans either, but my motives wouldn't jive well with socialists, communists and their fellow travellers

Sat, 05/28/2011 - 15:57 | 1319648 ebworthen
ebworthen's picture

 

Yup.

Let the SHTF so there is a nice correction, spook the public (non-insider) investor out of equities, BTFD by the big boy and girl insiders, then commence FED dump #3 while talking about "austerity" and "responsibility" and a "strong dollar".

*cough*

 

Sat, 05/28/2011 - 15:59 | 1319649 Muir
Muir's picture

"Conclusion: for those who did not sell in May, selling in June may be the next best option, or at least until Jon Hilsenrath reports QE3 is imminent (October/November)."

___

Ahhh, hmmmm....

Can't help but notice you just pushed the date down 6 months for QE(n+1)

And yes, I can post the link from ZH on the last prediction, but I prefer that someone challenge it first.

___

Seems there's a scarcity of paper money around (after all, at one point in 08 confetti was collateralized)

Mon, 05/30/2011 - 11:56 | 1322551 boiltherich
boiltherich's picture

I had missed any predictions of an earlier announcement of QE3 here at ZH, but I have been saying it will not be announced prior to October 1 because the government needs a summer downturn with full blown commodity drops (especially food and fuel) in July, August, September (3rd quarter).  Because that is the quarter when they take a CPI snapshots to determine government and SS COLA's, once the QE free summer shows a lower CPI, and it is in the books they will be free to run another few trillion into QE3. 

Sat, 05/28/2011 - 16:19 | 1319677 sethstorm
sethstorm's picture

I can hear Bender saying "You're Boned." in Greek right about now.

Sat, 05/28/2011 - 23:00 | 1320184 StychoKiller
StychoKiller's picture

Bite my splintery, wooden ass!

Sat, 05/28/2011 - 16:38 | 1319705 cosmictrainwreck
cosmictrainwreck's picture

hahahahaha...... that's a good one! what I esp like is the strong defense/counter he makes with "negotiations continue...." these spin-meisters... its a global contagion (the spinning), not just USA

Sat, 05/28/2011 - 22:53 | 1320181 Yits and the Yimrum
Yits and the Yimrum's picture

Blythe's minions are rumered to be FEDX'ed into Greece this weekend with counterfiet Euros, metal detectors and crow bars

do they have arms in Greece, or are they sitting ducks like the poor English?

Sat, 05/28/2011 - 16:37 | 1319696 RobotTrader
RobotTrader's picture

Greece will go down as an afterthought.  The whole country can implode and no one will care.  Just look at what happened in Argentina in 2002, the entire system collapsed, and the  stock market down there promptly took off and skied from 200 to 3200.

http://chart.finance.yahoo.com/z?s=%5eMERV&t=my&q=l&l=on&z=l&p=s&a=v&p=s...

Same thing happened to Russia.

Wash, Rinse, Repeat, Reset.

It will simply be another money making opportunity for the optimists and opportunists.

More obscene profits will be made.

And the sales of Coach handbags and Tiffany jewelry will climb even higher.

Sat, 05/28/2011 - 16:45 | 1319721 Tyler Durden
Tyler Durden's picture

Argentina was part of how many monetary unions?

Sat, 05/28/2011 - 17:34 | 1319797 Muir
Muir's picture

Lest I forget, another fucking brilliant post!

Kudos again to ZH.

The final collapse we may differ as to it's form, but brilliance goes to you, my good Sir.

Sat, 05/28/2011 - 22:48 | 1320178 Yits and the Yimrum
Yits and the Yimrum's picture

agreed! thanks ZH for real time coverage of the machinations of the machines; a good front seat here at ZH and some "real" reporting for the human class

 

Mon, 05/30/2011 - 11:58 | 1322563 boiltherich
boiltherich's picture

One, they fixed the peso to the dollar.

Sat, 05/28/2011 - 17:10 | 1319756 buzzsaw99
buzzsaw99's picture

Coach handbags and Tiffany jewelry? The trappings of bourgeois losers.

Sat, 05/28/2011 - 17:16 | 1319771 Muir
Muir's picture

"Coach handbags and Tiffany jewelry? The trappings of bourgeois losers."

Yes, because IBankCoin / TheFly readers would never go for such things, right?

Sat, 05/28/2011 - 17:33 | 1319789 buzzsaw99
buzzsaw99's picture

I found that link at calculated risk. I used to troll the Fly quite regularly but tired of it long ago. Fly can dish it out but he can't take it. Besides, I suspect that ibankcoin is on about the thrid or fourth "Fly" by now.

Sat, 05/28/2011 - 17:31 | 1319793 Muir
Muir's picture

Ahhhhhhhh....

My sincerest apologies, my good Sir.

Have a most pleasant day.

Sat, 05/28/2011 - 17:40 | 1319801 buzzsaw99
buzzsaw99's picture

No sweat Muir. We (mostly) all have blog skeletons in our closets. As for Coach bags, not so much. One may as well flush hunits down the toilet. Some of the pretenders carry a $600 bag with nothing but maxed out CCs inside and no cash. lulz

Sat, 05/28/2011 - 19:32 | 1319963 trav7777
trav7777's picture

noboby buys fuckin Coach bags anymore...LV and shit are the rage.  If you are a baller, you have Hermes

Sat, 05/28/2011 - 20:50 | 1320060 buzzsaw99
buzzsaw99's picture

I did some quick research out of curiosity.

 

Coach - $200 & up

Gucci - $500 & up

LV - $600 & up

Herpes - $2500 & up

 

I don't have herpes. lolololololol

Sat, 05/28/2011 - 17:26 | 1319775 CrashisOptimistic
CrashisOptimistic's picture

What kind of global swap exposure existed on Argentine debt, before they were even popular, vs Greek debt now?

They are opaque, and Tyler and I have a discussion going as regards whether or not they are truly extensive, but it largely doesn't matter if they are or not -- because they are opaque.  It would lock up interbank lending after the rumors started that DeutscheBank was insolvent due to swap trigger . . . or whatever.

Bottom line, 2002 Argentina is ancient history, financially.  There is no parallel.

 

 

Mon, 05/30/2011 - 02:49 | 1321965 boiltherich
boiltherich's picture

Liborhas been a useless tool since 2008 because banks no longer lend to each other on the overnight markets, not in any serious facility anyway, they are so well stuffed with central bank lines of credit and "excess reserves" posted at the Fed/ECB that there is no longer any need for over night lending to each other, even if they could trust the solvency of other banks to repay.  It was that distrust that froze the credit markets in 2007 and 8 that caused all the political panic that led to our new economy of government bailouts and fed/ecb largess. 

I used to rely on Libor a lot as a barometer of the health of credit markets in general, any time Libor rose above 30 you knew there was a shitstorm on the way.  I no longer bother to check it but when I am watching the ticker and see it for the last couple years it has been in the mid 20 bps.  Why should it ever move now that banks do not lend among themselves?  Central banks have replaced interbank lending.

I don't want to get between you and Tyler re derivatives and solvency of any bank or nation, but from what I have managed to pick up over the years the derivatives market was large, is huge, bigger than ForEx.  But I am also not sure it is relevant.  For years now we have been waiting for these "weapons of financial mass destruction" to go off and devastate all economies in a flash of blinding economic light and smoke and yet we have seen sovereign defaults, flash crashes, blacks swans by the flock, MENA unrest and wars started, oil supply disruptions, the doubling and tripling of key commodities, whole countries banking systems collapse and get bailed out, or just collapse and not get bailed out (Iceland), even the threat of a default by the United States resulting in a downgrade of the financial outlook of America! 

Nothing, no implosion, no cascading avalanche of derivatives burying the world, and as far as I can tell none have even been utilized to make a transfer from one entity to another which was their underlying purpose wasn't it?  Insurance in case of these things above happening?  Opaque, so opaque I never really understood them at all, nobody did well enough to offer us a cogent explanation of what they were or who is doing all those quadrillions in trading of them.  So opaque they do not matter in the end.  I think essentially derivatives have no real legal claim on anything and so are nothing more than a scam.  Might as well be anyway, because they seem to need an asteroid the size of Uganda to hit before any are activated. 

Sat, 05/28/2011 - 19:31 | 1319961 Boston
Boston's picture

the  stock market down there promptly took off and skied from 200 to 3200

OK, but where was the stock market at 1 yr or 2yrs before the 200?

Sat, 05/28/2011 - 21:24 | 1320093 Mr.Kowalski
Mr.Kowalski's picture

How many hundreds of billions of CDS's were written by already insolvent banks on Argentina ?

Sun, 05/29/2011 - 02:28 | 1320250 PeterB
PeterB's picture

Who would have thought Leo's & Robot's reflation trade call would generate such returns. The irony is that gold & siver crowd got their bit right too but still want to argue about whose trade is more right or ethically correct. Seems if they both went up together than maybe they'll both crash back down together.

Sat, 05/28/2011 - 17:12 | 1319754 Volaille de Bresse
Volaille de Bresse's picture

-

Sat, 05/28/2011 - 17:11 | 1319755 Volaille de Bresse
Volaille de Bresse's picture

i'm just listening to a radio show about Greece with Greek people describing how their country went to shit... partly because of the crooked banks and their plastic easy money but also because of the rotten Greek mentality. Corruption everywhere (in daily life you have to bribe everyone from the doctor to the school teacher to... the undertaker. Otherwise noone will pay attention to you). 

People prefer to go the supermarket and buy expensive shits while they copuld go to the local market and get products for half the price...

 

In Greece there's no cadastre so that means you can bribe the local guy in charge of the state-owned forest and "buy" the right to build a house within that piece of land.  

And the cherry on the cake? They got 200 billion € from Brussels and the Greek put the blame on... the Europe. Great huh?

Greece is the wart on the ass of Europe.

Sun, 05/29/2011 - 10:18 | 1320493 downwiththebanks
downwiththebanks's picture

Don't you just love how, no matter the situation, Banker-Gangsters blame the victim.

It's so much easier than looking in the mirror and realizing, "Hey, you know what?  I'm the problem here!"

The failure of Capitalism to provide jobs and income stands at the center of this crisis, yet whiny little Banker-Gangsters continue to yammer on and on and on and on about all the money that MUST be handed to the Banker-Gangsters.

Mon, 05/30/2011 - 12:07 | 1322578 boiltherich
boiltherich's picture

Sounds like the Florida of the EU.  Sunny, southeastern corner, good old boy network, haven for wealthy expats, nobody paying reasonable taxes etc.

Sat, 05/28/2011 - 17:08 | 1319757 Coke and Hookers
Coke and Hookers's picture

It's important to keep in mind that the EU and the Euro financial system are the same power bloc. The political wing of this bloc (Brussels) are socialists who want to abolish nation states, democracy and individual freedom. The financial wing wants monopoly in the area and wholesale asset grab, turning the workers into their slaves. Different motives, same goal. A threat to the banks (member states defaulting and shit like that) is a threat to the whole thing, including the political wing. A political threat (uprisings in member states) is also a threat to the financial wing. This is an unholy merger of unaccountable and unelected state power and corporate monopolist power - i.e. fascism.

The situation in the US is identical.

We are all bitchez now.

Sat, 05/28/2011 - 20:18 | 1320019 NOTaREALmerican
NOTaREALmerican's picture

> The situation in the US is identical.

Good description. Fascism / Socialism / Crony Capitalism - all the same motives and players (at least until the end game when there's a glorious purge and one "side" captures the "ring").

Sat, 05/28/2011 - 22:17 | 1320148 Rynak
Rynak's picture

While the motives and overal roles (i.e. the import/export schism) are similiar, there are two important differences:

You say they WANT to abolish national autonomy.... correct, they want to do that. They have not managed to complete this process yet - by far not. Contrast this with the USA-china situation... two giant centrally controlled meganations. In europe, there is no complete central control - as much as individual nations may be stuck in the web, they are still nations - politically, economically and culturally.

Can you imagine a single state in the USA contemplating a default and leaving the USA? Well, thats what's happening in the EU right now - and not just for one state, but multiple ones. In the USA, such a thing wouldn't even be considered.

Secondly, as i described elsewhere, the deep-rooted affinity to socialism in europe not only is one aspect that caused the mess, but additionally also is one reason for the current unrests.

Consider this: In the USA, is there something like a deep-rooted contract between the population and the state? Some kind of deal everyone acknowledges, that says "You do this, and we in turn do that. You don't do this, and we don't do that"? Do you have such a thing in the USA?

Well, in europe, we have this. It's called socialism :) To put it really simple, the deal is: "We are docile sheep, who pay stupidly high taxes and put up with all the crap, but in return, you guarantee each one's survival and health." This isn't just some theoretical gov promise - it is considered a RIGHT. More than this, people treat this insurance as something they OWN. Once there is poverty and a gov does not deliver on this promise, it is considered a crime, and removal of justification the state's power monopoly. Phrased another way: Once the gov doesn't deliver its part of the contract, the matter is treated as illegal. THIS is the second reason why there are now revolts in europe, but not in the USA.

You may dislike socialism all day, and consider it disfunctional (which indeed has some logical justification) - doesn't change however, that there ARE differences regarding national autonomy and socialism, between the EU and USA-China. The overall setup of the problem is similiar, yes.... but the "territory" is different.

Sat, 05/28/2011 - 22:40 | 1320173 Coke and Hookers
Coke and Hookers's picture

Good analysis and I agree with it. However, there are two issues here.

1. A culture of dependency and entitlement has been engineered in America with great success. A great part of the population now believes they are entitled to government handouts - and they are getting them. The government uses this sentiment to guarantee votes and to cause division in society - a kind of engineered class warefare.

2. The probability of a state leaving the union is not as remote as it used to be. The federal government has been busy usurping state rights for years and eventually they might go too far - which will result in an attempted secession by one or more states. This is being discussed openly now, which is significant. The power grab by the US federal government is to some extent similar to the power grab of the EU in Europe. In the US it's state sovereignty, in Europe it's national sovereignty.

In both cases the goal is centralization of power and diminished individual freedom along with continent-wide asset grab by the financial system.

Sat, 05/28/2011 - 23:11 | 1320191 Rynak
Rynak's picture

Thank you for this update. I wasn't aware about those developments.

From a top down POV, this is quite interesting, because contrary to how stuff developed in recent history, this may hint at the first signs of non-USA western nations no longer just following the USA, but instead all western nations - including the USA - transitioning to something else.

If this trend indeed continues, then we're not just in an economic global transition, but also a political and cultural.

Mon, 05/30/2011 - 03:04 | 1321982 boiltherich
boiltherich's picture

"A culture of dependency and entitlement has been engineered in America with great success. A great part of the population now believes they are entitled to government handouts - and they are getting them."

 

A) you and most people exaggerate the size and depth of the dependency/entitlement issue in the US

B) there is a social contract in the USA that USED to go something like this, I promise to work hard and maintain high integrity, treat others well and teach my own kids good ethics, I will pay my fair share of taxes without whining and bitching about every last dime of it, pay my bills and abide by the laws of the land.  That hard work and good behavior will reward me with all I need to get by in dignity on my own, and eventually if I am responsible to have a better life than my folks did or theirs before them, healthcare will be affordable, basic costs of living will be affordable, and no working person will face bankruptcy for a medical bill or homelessness because they lost their second job. 

That was what I was taught from the day I was born in 1958, it turned out to be all lies.  So, do not be surprised when your neighbor turns out to have a meth lab in their garage.  Any wonder people give up?  Become self destructive?  When they just lost their 4th or 5th minimum wage job to undocumented workers and they are OK with that because they could not feed themselves or pay the rent on what they were making anyway?  America USED to be such a wonderful place, but sugar that is way long gone. 

Sat, 05/28/2011 - 17:26 | 1319779 johny2
johny2's picture

Go Greece! Let the bankers eat the paper.

Sat, 05/28/2011 - 18:42 | 1319898 Racer
Racer's picture

So why was the euro pumped up so much yesterday if insiders knew all th is bad news about to HTF?

Sat, 05/28/2011 - 20:02 | 1320001 Roger Knights
Roger Knights's picture

I think it was a rumor about China coming to the rescue & buying some peripheral bonds.

Sat, 05/28/2011 - 19:32 | 1319962 robertocarlos
robertocarlos's picture

Did you know that Enzite is a TSA approved product?

Sat, 05/28/2011 - 20:02 | 1319998 honestann
honestann's picture

Reality to Greece:  DEFAULT.

Cut spending to be LESS than revenue.

Cut spending even more.

Cut revenue a bit more.

NEVER BORROW EVER AGAIN.

Do not give banksters your assets!  DEFAULT.

Sun, 05/29/2011 - 10:23 | 1320498 downwiththebanks
downwiththebanks's picture

A Banker-Gangster's message to Greece:  "Because White Capital fails to provide people with jobs and income, genocide is the only answer."

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