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Greek FinMin Proclaims "Worst Is Over" But IMF Warns "Rich Not Paying 'Fair' Share"

Tyler Durden's picture





 

As the IMF delivers its first 'health check' on Greece since 2009, the beleaguered nation's finance minister proudly proclaims, "the worst is over," and the country had reached its economic trough. However, while the finance minister appears unaware of the people living in caves, the record youth unemployment (that is rising still), and the accelerating non-performing loans (no green shoots there), the IMF remains a little less confident, "Greece's debt remains much too high". As the Sydney Morning Herald reports, Stournaras added that ''in May 2014, the loan installments will come to an end and the country has to be in a position where it can go on its own to the markets.'' We can't wait (with GGBs under 10% yield to see which greater fool snaps up those beauties). The IMF is a little less sanguine warning Greece of its "insufficient structural reforms," and worries of the "socially painful recession." The last jab, in line with the new normal 'template' (that is not a template but really is), "very little progress has been made in tackling Greece’s notorious tax evasion," as the IMF demands, "the rich and self-employed are simply not paying their fair share."

 

Via SMH,

...

 

Yannis Stournaras said ''the worst is over'' and the country had ''reached the [bottom of the] trough''.

 

...

 

Mr Stournaras said attempts to fix the country's parlous public finances are starting to bear fruit, and could allow it to return to financial markets as early as next year.

 

Athens is on course to deliver a primary budget surplus - which does not take into account debt payments - a year ahead of schedule. He added the country had already pushed through two-thirds of the reform measures needed to address the huge holes in the nation's budget. Interest costs on Greece's massive debt have been sharply reduced by the debt restructuring the government has made.

 

...

 

''Whether Greece is able to take the first step of independence from the troika will depend on all that has to happen by then,'' Mr Stournaras told Greece's To Vima newspaper. ''In May 2014, the loan instalments will come to an end and the country has to be in a position where it can go on its own to the markets.''

 

He told Germany's Frankfurter Allgemeine Zeitung that there were indications that the worst is over. ''For instance, the central bank of Greece told me industrial production is stabilising. Production isn't falling any more and we appear to have reached the trough.''

 

Well if the Central Bank of Greece told you then it must be true!!

 

Via WSJ,

...

 

Greece's debt remains "much too high" and European commitments to lighten it are welcome...

 

...

 

The IMF's recommendations in its latest review of Greece's bailout program bring to the fore the need for future "official-sector involvement" in Greece's €173.5 billion ($227.5 billion) bailout, meaning that governments could in some way forgive some of the money Greece owes them. This so far has been a no-go topic for many of Greece's euro-zone partner countries, Germany in particular.

 

...

 

The IMF said Greece's banks should be fully recapitalized by mid-2013, cautioning against "undue government interference." It added that the whole banking sector should focus on containing and reversing "the mounting tide" of loans in the red.

 

...

 

While Greece will need to find more savings through to 2016 to reach a targeted primary surplus of 4.5% of gross domestic product, the IMF said there is "no room" to tax Greeks more and there is hardly any space left for more cuts in discretionary government spending.

 


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Mon, 05/06/2013 - 17:30 | Link to Comment fonzannoon
fonzannoon's picture

LOL the worst is over. Now look forward to the dark ages.

Mon, 05/06/2013 - 17:37 | Link to Comment McMolotov
McMolotov's picture

Yeah, way to jinx it, buddy. He just made this the part of the horror movie where the big-tittied coed breathes a sigh of relief right before catching a meat cleaver in the back.

Mon, 05/06/2013 - 17:59 | Link to Comment malikai
malikai's picture

It would be awesome to see a compilation of finance ministers declaring "The worst is over".

Mon, 05/06/2013 - 18:18 | Link to Comment bank guy in Brussels
bank guy in Brussels's picture

Greek FinMin says this while Greek children tragically are going hungry so taxes can go to pay the Troika and banks ... Begging other schoolchildren for food on schoolday mornings

Yes, the Troika are thug gangsters, but the local Greek leaders who betray those hungry children are the ones who should face the full wrath of Greek citizen fury

As cruel, self-serving and tyrannically domineering as the EU and German leaders have been, it strikes me more and more, that, instead of Mediterranean citizens focusing their hatred on Germany, the better focus of anger and hatred would be their own quisling governments, in Cyprus, Greece, Spain, Portugal (and Ireland too) ... their own traitorously corrupt leaders who are submitting to the EU - Troika extortions and mauling of their populations

EU leaders in the Mediterranean who serve the EU, banks, the Troika and the Germans, while local children beg their schoolmates for food, should ponder the December 1989 death of Romania's Nicolae and Elena Ceausescu in a hail of executioners' bullets. Or the similar fate of Vidkun Quisling himself before a Norwegian firing squad in April 1946.

Mon, 05/06/2013 - 18:39 | Link to Comment Yes We Can. But...
Yes We Can. But Lets Not.'s picture

''Worst is over"...
'Peace in out time'...
'Mission Accomplished'...

Mon, 05/06/2013 - 18:51 | Link to Comment flacon
flacon's picture

Greece? Oh, that was just the pre appetizers. Just you wait until the schnitzel arrives for the main course! Keep in mind it's a bazillion course meal, the more you eat the more you owe and the more you owe the more courses there are to keep your mouth sedated. 

 

Any moment now the ocean will turn to lemondade.

Mon, 05/06/2013 - 19:32 | Link to Comment notbot
notbot's picture

Rich not paying their fair share. Has such a familiar ring to it.

 

Only in the case of Greece, it actually might be true.

Mon, 05/06/2013 - 19:06 | Link to Comment asteroids
asteroids's picture

The FinMin is a "malaka". Look it up.

Mon, 05/06/2013 - 22:45 | Link to Comment Go Tribe
Go Tribe's picture

Instead of complaining about rich people, why don't the politicians just be honest about it: look, you freeloading corporate queens are rich because we give you tax breaks and subsidies and preferential legal and trade treatment, so stop bitching while we take some of it back.

Mon, 05/06/2013 - 17:47 | Link to Comment Renewable Life
Renewable Life's picture

One banks/Governments "fair share" is anothers confiscation!!!

I guess it all depends on the defination of the word "fair", right?

Mon, 05/06/2013 - 17:31 | Link to Comment Manthong
Manthong's picture

Beware rich Greeks baring grifts.

Mon, 05/06/2013 - 17:44 | Link to Comment New_Meat
New_Meat's picture

"Beware rich Greeks baring grifts."

eeeeeewwwwwwww!!!!!!!

Mon, 05/06/2013 - 17:44 | Link to Comment Manthong
Manthong's picture

My way of doing flaming Greek Kaseri cheese is to use Japanese Sake and add an ounce of Everclear to enhance the ignition...  

I call it flaming Greek Nagasaki.

Oopa!

Mon, 05/06/2013 - 18:52 | Link to Comment flacon
flacon's picture

Only the rich use Everclear. The rest use kerosine. :)

Mon, 05/06/2013 - 17:33 | Link to Comment CCanuck
CCanuck's picture

The worst is over so the worst of the worst can start.

Opaaaah

Mon, 05/06/2013 - 17:49 | Link to Comment Stuck on Zero
Stuck on Zero's picture

Yep.  The worst is over for the rich.

 

Mon, 05/06/2013 - 18:02 | Link to Comment Seahorse
Seahorse's picture

The darkest hour is just before more darkness.

Mon, 05/06/2013 - 17:35 | Link to Comment JenkinsLane
JenkinsLane's picture

I've got some magic beans for sale that the Greek FinMin is going to be very interested in;

all he needs to do is plant them in Athens and Greek GDP will grow by 10% every year!

 

 

 

Mon, 05/06/2013 - 17:43 | Link to Comment Its Only Rock N Roll
Its Only Rock N Roll's picture

you don't have to plant them, just promise to plant them at a future date and GDP will sprout forth

Tue, 05/07/2013 - 04:12 | Link to Comment Popo
Popo's picture

You don't even need to promise to plant them, just promise to discuss the possibility of planting them at a future date.

Mon, 05/06/2013 - 17:37 | Link to Comment kito
kito's picture

they now count restaurants serving cannibals in their gdp...............

Mon, 05/06/2013 - 18:04 | Link to Comment malikai
malikai's picture

I read that as "restaurants serving cannabis" and thought good for GDP.

Then I reread it..

Mon, 05/06/2013 - 18:08 | Link to Comment kito
kito's picture

the last thing people in a country with a limited food supply want to do is stimulate the appetite for food.................but then again, being lit up might make for tastier human..........

Mon, 05/06/2013 - 17:38 | Link to Comment JenkinsLane
JenkinsLane's picture

I want to get my hands on some of what Yannis has been smoking - must be good stuff.

Mon, 05/06/2013 - 17:49 | Link to Comment THE DORK OF CORK
THE DORK OF CORK's picture

All of the Greek capital (oil) ration must flow toward the chief IMF shareholders..............

 

The US , UK ,France etc want it all.

 

You are worth more dead then alive in the euro non state.

 

The rich Greek  taxes will not flow into Greek coffers.

 

Therefore from a political viewpoint they are no longer Greek.

There is no Irish , there is no Spanish - rich or poor you are dead meat.

 

Debt is but a instrument -  especially in a world without final settlement.

Its all about real goods consumption when the banks behind these states cannot make a income from the money supply they loan out.

Tue, 05/07/2013 - 09:47 | Link to Comment falak pema
falak pema's picture

buddy, welcome to world oligarchy empire. 

Mon, 05/06/2013 - 17:41 | Link to Comment monad
monad's picture

"the rich and self-employed are simply not paying their fair share." translate: kill the middle class! kill them all!

Mon, 05/06/2013 - 17:42 | Link to Comment Goldilocks
Goldilocks's picture

Tony Bennett & Diana Krall, The Best Is Yet To Come
http://www.youtube.com/watch?v=7tX4rjHMBCQ (3:05)

Mon, 05/06/2013 - 17:43 | Link to Comment JenkinsLane
JenkinsLane's picture

How the fuck can you say you are running a budget surplus when you ignore debt payments?

I know, I'll go out and buy three homes, ignore the repayments and I'll be a fucking millionaire.

 

I've just grasped Buckler's point from yesterday - it is a world of children, in fact, it's Peter Pan world.

Mon, 05/06/2013 - 18:53 | Link to Comment Peter Pan
Peter Pan's picture

.

Mon, 05/06/2013 - 18:52 | Link to Comment Peter Pan
Peter Pan's picture

Thank you for acknowledging
it's my world.

Mon, 05/06/2013 - 17:43 | Link to Comment dracos_ghost
Mon, 05/06/2013 - 18:40 | Link to Comment Parrotile
Parrotile's picture

She (and others) are not "little people" - the ones who DO have to pay taxes on pain of incarceration or worse.

Seems quite a few of the Big Boys are well above the law (or operate a policy of "do as I say, not as I do". For example, Starbucks, Google and Amazon for US Starters - http://www.dailymail.co.uk/news/article-2232532/There-profoundly-wrong-Britain-little-people-pay-taxes.html

This Corporate behaviour has also (finally) gained the attention of the Mainstream press, e.g. http://opinionator.blogs.nytimes.com/2013/04/14/a-tax-system-stacked-against-the-99-percent/ 

An older (but interesting) list of the Top Ten Tax Dodgers. http://www.time.com/time/specials/packages/article/0,28804,1891335_1891333_1891317,00.html All very comfortably wealthy, all could pay a greater contribution to the good of everyone, all determined not to. Seems a few came from California too (which may ring a bell or two!)

 

Tue, 05/07/2013 - 09:41 | Link to Comment falak pema
falak pema's picture

definition of global oligarch : rule maker of rules that DONT apply to their own elite. Just like Caesar of old or Queen Victoria.

Mon, 05/06/2013 - 17:43 | Link to Comment booboo
booboo's picture

We don't call them "caves", They are Random Spatial Energy Efficient Nature Dwellings. REITS are already onto the trend and will be relocating the "squatters" as soon as a few more billionaires get the bums rush out of their Villa's.

Mon, 05/06/2013 - 17:43 | Link to Comment kito
kito's picture

stability makes sense.....everything has hit zero............zero businesses open.... zero people working........zero people alive...................

Mon, 05/06/2013 - 18:19 | Link to Comment IridiumRebel
IridiumRebel's picture

Sustainable!

Mon, 05/06/2013 - 17:54 | Link to Comment Temporalist
Temporalist's picture

"I don't think the heavy stuff's gonna come down for quite a while."

http://youtu.be/pmm-ZGNCv-8?t=24s

Mon, 05/06/2013 - 17:54 | Link to Comment Joebloinvestor
Joebloinvestor's picture

Is this guy a realative of the Iraq Saddam era who said no problem and bombs were going off around him?

 

Mon, 05/06/2013 - 18:06 | Link to Comment astoriajoe
astoriajoe's picture

That guy was really good at his job. I can't imagine how he kept it together, but he played it straight right to the end.

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

 

Mon, 05/06/2013 - 22:31 | Link to Comment StychoKiller
StychoKiller's picture

Tariq Aziz != Baghdad Bob

Wed, 05/08/2013 - 11:16 | Link to Comment astoriajoe
astoriajoe's picture

my mistake.

Mon, 05/06/2013 - 18:00 | Link to Comment monopoly
monopoly's picture

This place is better than Saturday Night Live.  "The worst is over for Greece". Got it. Good to hear. LOLOL.

Mon, 05/06/2013 - 18:04 | Link to Comment prains
prains's picture

"the rich aren't playing fair" but,but,but.....what taking everything and fuck the rest isn't how they're supposed to roll, shockedface. what are you a damn marxist!! this is free enterprise,the rich should be free to fuck everyone over. They're smarter, work harder and will trickle it down to the plebes when need be. What you know about crapitalism?

Mon, 05/06/2013 - 18:04 | Link to Comment Kirk2NCC1701
Kirk2NCC1701's picture

I suspect the IMF is right, when they say that "The rich are not paying their fair share".  They should know...

The Rotschilds have never paid their fair share.

Mon, 05/06/2013 - 18:10 | Link to Comment williambanzai7
williambanzai7's picture

Stupid Greeks should be going after their politicians instead of foreigners. Last time I checked, most tourists are foreigners and Greece is a tourist economy.

Mon, 05/06/2013 - 18:17 | Link to Comment Yen Cross
Yen Cross's picture

 The worst is over as Stournaras heads off to China to get some Greek for Juanism... What a blatant liar!

Mon, 05/06/2013 - 18:29 | Link to Comment IridiumRebel
IridiumRebel's picture

Welcome to Thank God It's Cannibalism! I'm Vlad, can I offer you a Blood Sausage App today?!?!?

Mon, 05/06/2013 - 18:23 | Link to Comment Element
Element's picture

 

 

"The worst is over" in Greece

I think I heard that in ... May ... 2010 ... 2011 ... 2012 ... and 2013.

How's 'bout that!

Mon, 05/06/2013 - 20:12 | Link to Comment Kirk2NCC1701
Kirk2NCC1701's picture

Dear Greeks, zee Wurst is yet to come.  - A. Merkel

Mon, 05/06/2013 - 18:49 | Link to Comment Peter Pan
Peter Pan's picture

Maybe the worst is over because it's ALL over.

Mon, 05/06/2013 - 19:40 | Link to Comment q99x2
q99x2's picture

The Nazis fixed everything.

Mon, 05/06/2013 - 20:09 | Link to Comment Kirk2NCC1701
Kirk2NCC1701's picture

I've been inspired by a Heavenly creature to start a new world religion.  Not because religions are protected from taxation.  It's based on ideals of what's good for free people.  And not because religions are protected from taxation.  It's based on ideals of what's good for good people.  And not because religions are protected from taxation.  It's based on ideals of what's good for honest people.  And not because religions are protected from taxation.  It's based on ideals of what's good for working people.  And not because religions are protected from taxation.  It's based on ideals of what's good for respectful people.  And not because religions are protected from taxation.  It's based on ideals of what's good for local people.  And not because religions are protected from taxation.  It's based on ideals of what's good for global people.  And not because religions are protected from taxation. 

Peace & Freedom, Good, Honest, Working and Respectful People.  Locally and Globally.

New members are welcome to join the Universal Church of Man.  Contact author. 

Mon, 05/06/2013 - 20:56 | Link to Comment suicidalpsychologist
suicidalpsychologist's picture

I'm sure all these rich people will be perfectly fine wether SHTF or not.

Tue, 05/07/2013 - 00:39 | Link to Comment dunce
dunce's picture

One corrupt organization that funds crony capitalists with other peoples money is criticizing another corrupt organization (the greek government ) , not for crippling its victim, but for failing to draw enough life blood from it. Government survival is rated more important than the national economic survival.

Tue, 05/07/2013 - 07:14 | Link to Comment AgShaman
AgShaman's picture

Just write some "Equalization of Opportunity Bills" and "Fair Share Laws".

None of the "Soylents" are bright enough to 'catch on' to the scam....they will "go along" with any plan going forward....so long as they don't have to 'tax' their brains.

The last bubble to pop in society will be the largest....a bubble in apathy 

Tue, 05/07/2013 - 09:17 | Link to Comment falak pema
falak pema's picture

It looks as if it will be an awesome battle now between Statist <Oligarchs and Global Oligarchs; lets see if they can find a way to consensus at the global level; as all consenus is impossible in US Congress. Looks like we are in for a long slog of market doldrums and tax ramp-uppings for the next five years in dormant and apathetic first world.

Obammy as chief statist oligarch along with the FED and the ECB will now pull the rug towards more taxation as will the ECB; all the while stepping on the gas of more print liquidity for the banks to stave off financial Calamity Jane; and the MIC will be boot strapped to do the same in the world's mulitple and oligarchy generated hot spots of radicalised rage.

Divide to conquer but keep that act together, as Machiavelli would say! 

Thats the compromise :  "we will feed the public investment trough and try and restrain the cave in of social safety net all the while we ask the FED to prime the private markets; now totally subservient to OUR central bank controlled wishes. We as big government will now run the FIRE market via the FED and keep the radicals at bay with our military acumen." 

Obammy now can impose on the private oligarchs more pain. 

As he can say : "its that or its cataclysm; and the last five years have shown we have fewer options with every day that passes!"

Will the first world sheeple resist such an awesome reset that is now plain to see to all?                                     Awesome question on both sides of the first world pond!

What will the global oligarchs say to that? Their agenda is not that of Obammy! Or even Mutti's more "Deutsch" centric version.

They don't have much latitude as they caused the problem in first place and Paulson aggravated it to save them. As, if and when the fiat pump stops they lose all, in deflationary fall from oligarchically levitated beatitude, under austerity God's angry call to reality.

Pray and hope oligarchs of both camps, and we sheeple along with them, that you (the splintered oligarchs) don't break the market beyond redemption by thieving each other to point of no return; and that the sun also rises one day to real economic growth, once the fiat cancer has abated;

but when...? 

ZH has always said that eventuality is IMPOSSIBLE...reset inevitable, all the more acute as time flows by.

What ZH had not integrated in its analysis, in the 2009/2011 period that forged its libertarian bias as we have all perceived, is the inevitability of return of big state, the stifling of the market and more central planning to starve the private oligarchy beast and feed the statist one on taxation. To their evident credit is the fact that this awesome, global CB print to infinity of Krugmanist "aliens to the rescue" dimensions is a first time bet of incalculable dimensions. Only time will tell. 

This all began wiith QE/ZIRP and the ECB followed suit caught in the same financial vice. But the tax increase option, BAIL INS instead of just BAIL OUTS,  was not possible in the first Obama presidency. He didn't have the congressional backing then, neither did the EU realise the private to public socialised debt spiral that ensued like a forest fire in Club Med. 

This financial throttling of the banks and their backers by big state should have happened as of 2009 with Obammy election. On both sides of the pond. But I guess he didn't have the bullets to fight the Paulson/GWB cabal legacy. He didn't want to end up like Lincoln...and JFK.

Mutti/Sarko/Brown didn't have the guts nor the ethical honesty in Europe to take on the CIty clowns either.

But I think the penny has now dropped. Just my take BTW. Remember Politics is about REAL options NOT textbook ideology in our western world of democracy, even if this precious construct is fast becoming a fading mirage today.

The world now has a choice between the frying pan of statism on more fire of oligarchy mayhem.

Sisyphus we stay as neither is resolution.

 

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