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After Greece Warns It May Get Funds From Russia Or China, Europe Said To Propose 6 Month Extension

Tyler Durden's picture




 

Did Europe just fold?

Moments ago Bloomberg blasted a headline which has to be validated by other members of the European Commission as well as Merkel and the other Germans (and may well be refuted, considering this is Europe), which said that:

  • COMMISSION TO PROPOSE 6 MONTH EXTENSION FOR GREECE - SOURCES.

So did Greece just win the first round of its stand off with Brussels? It remains to be confirmed, but congratulations to Greece if indeed it caused Merkel and the ECB to fold.

But what caused it? Well, it wasn't the laying out of the Greek "ask", which as we noted earlier, was the following:

Greece will seek about 10 billion euros ($11.3 billion) in short-term financing as it tries to stave off a funding crunch while buying time to push its creditors to ease austerity demands. Greece’s Finance Minister Yanis Varoufakis will present a proposal at a Wednesday meeting of euro area finance ministers in Brussels that will ask for an 8 billion-euro increase in the stock of Treasury Bills the country is allowed, said a government official who asked not to be named as the negotiations are confidential. It will also seek the disbursement of 1.9 billion euros of profits that euro area central banks made on their Greek bonds holdings.

No, that's not it. What emerged as the biggest point of leverage overnight was the following threat reported hours ago by Reuters, citing the Greek defense minister Kammenos, who essentially threatened to go to Russia and/or China if Europe decline to cooperate. Per Reuters:

Greek Defence Minister Panos Kammenos said that if Greece failed to get a new debt agreement with the euro zone, it could always look elsewhere for help.

 

"What we want is a deal. But if there is no deal - hopefully (there will be) - and if we see that Germany remains rigid and wants to blow apart Europe, then we have the obligation to go to Plan B. Plan B is to get funding from another source," he told Greek television show that ran in to early Tuesday. "It could the United States at best, it could be Russia, it could be China or other countries," he said.

Of course, it clearly wouldn't be the US which would never act against the interest of its European "allies", so the real threat was very clear: converting Greece from a member of the Eurozone to an expansion of the Eurasian economic zone and a landing pad for both Russia and China into Europe. This is also a possible outcome we hinted at two weeks ago in "Putin's Unexpected Victory: Europe Furious That Greece Is Now A Russian Sanctions Veto."

More:

Kammenos is the leader of Independent Greeks, a nationalist anti-bailout party that is the junior coalition partner of Prime Minister Alexis Tsipras' radical left Syriza party. 

 

Greece is seeking a new debt agreement with the euro zone that will allow it to shake off much of the austerity that has been imposed by a European Union/International Monetary Fund bailout since 2010.

 

The euro zone, particularly Germany, has shown no willingness to ease its requirement that Greece make deep budget cuts and economic reforms.

As noted above, this is after all Europe, which means Eurozone ministers always float trial balloons headlines ahead of major meetings like the one tomorrow, gauge the market reaction, then quickly retract them. Well, the market test has been conducted...

  • U.S. STOCK INDEX FUTURES HIT SESSION HIGHS ON REPORT ON PROPOSAL FOR SIX-MONTH EXTENSION FOR GREECE

... with the EURUSD jumping 50 pips, and US equity futures surging by nearly 1%. And now, we await the denial of the "trial balloon" because when it comes to the way Europe operates, some things never change.

* * *

Update: Not even an hour later, the trial balloon has just been popped, courtesy of Reuters:

  • EUROPEAN COMMISSION SAYS THERE IS NO FORMAL PROPOSAL FOR GREECE BUT TALKS ARE INTENSIVE

But at least the Eurogroup knows that for the algos, Greece staying in the Eurozone is a EUR positive.

* * *

Update 2: More attempts to pop the trial balloon, this time from Italy:

  • ITALY'S PADOAN SAYS HASN'T SEEN ANY PLAN YET FOR GREECE

By now it doesn't matter: the momentum has been ignitied and risk is trading well above where it would had Europe not "trial ballooned" first thing this morning.

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Tue, 02/10/2015 - 08:24 | 5765568 GetZeeGold
GetZeeGold's picture

 

 

Hell of a plan!

 

Totally didn't see that coming.

 

Why 6 months? Hell....just make it forever.

Tue, 02/10/2015 - 08:27 | 5765582 Max Damage
Max Damage's picture

Yup, just more debt, to pay debt, thinking this time it will work. Well all we have to do is press the print button.......

Tue, 02/10/2015 - 08:29 | 5765591 PartysOver
PartysOver's picture

What, no last minute drama.  BORING!

repost

Mon, 02/09/2015 - 11:36 | 5762198 PartysOver Be careful of a last minute "Skate Save".  If that happens (coin flip) stocks will will launch.  Risky times.  Just have to think about how many times in how many countries over the last 6 or so years  that a last minute deal sent stocks on a wild ride north.
Tue, 02/10/2015 - 08:33 | 5765602 mvsjcl
mvsjcl's picture

More can kicking. What they need to do is REPUDIATE the debt!

Tue, 02/10/2015 - 08:36 | 5765618 stocktivity
stocktivity's picture

Futures soaring on the news. This is all such shit. Why I waste time each day reading how the markets are over priced and the end is near. there is only one way these fat pig banksters will let the market go and that's UP. It's all Bullshit!!!

Tue, 02/10/2015 - 08:46 | 5765644 Occident Mortal
Occident Mortal's picture

The options are thus;

 

1). Give Greece EUR 5 billion (on a soon to be frequent basis).

2). Get used to Chinese aircraft carriers in the Mediterranean Sea.

 

 

Tue, 02/10/2015 - 08:57 | 5765667 Headbanger
Headbanger's picture

WHAT FUCKING DIFFERENCE DOES IT MAKE WHEN GREECE STILL CAN'T MAKE THE PAYMENTS!?

 

Ooops... Did I just quote Hillary?

Tue, 02/10/2015 - 08:58 | 5765673 Latina Lover
Latina Lover's picture

 Portugal, Italy, Greece, Spain,   Revenge of the PIGS is coming, LOL

Tue, 02/10/2015 - 09:06 | 5765707 Headbanger
Headbanger's picture

No,  I think what it really says is

THIS IS A SURE SIGN OF HOW FRAGILE AND SCARED SHITLESS THE ECB AND EU ARE NOW KNOWING IT REALLY IS THE END WITH GREECE

THEY KNOW THIS IS THE END OF THE EU AND ECB

Tue, 02/10/2015 - 09:11 | 5765725 Self-enslavement
Self-enslavement's picture

Time to throw out some more Greek Politicians then.

Tue, 02/10/2015 - 09:18 | 5765741 agent default
agent default's picture

Time to throw in almost every politician today.  Except for those who came up with this Euro idea.  They deserve to get hanged.

Tue, 02/10/2015 - 09:59 | 5765870 eclectic syncretist
eclectic syncretist's picture

To be real, Greece was always going to get bailed out, because the few billions it costs are chump change meaningless paper credits anyway, that will allow the banksters to keep the rape the public gang-bang game going.  The only issue has been how to make the bailout happen without making other countries demand one too.

edit: The other bankster dilemma now is how to stop the demand for an end to austerity measures.  Obviously the populace of the PIS members of PIGS are now going to be much incentivized to vote in anyone running an anti-austerity platform that threatens succession from the euro. The costs associated with anti-austerity, basically free money for everyone, are obvious, and bring forward the endgame for the banksters, who should be getting very alarmed right about now.

Tue, 02/10/2015 - 10:02 | 5765906 rccalhoun
rccalhoun's picture

just pass a law that a stock can never trade down.  either buy it or leave it at neutral.  and the fed will buy any stock at neutral...for liquidity.

Tue, 02/10/2015 - 12:03 | 5766466 Debt-Is-Not-Money
Debt-Is-Not-Money's picture

Is this the re-incarnated Uptick Rule?

Tue, 02/10/2015 - 10:02 | 5765907 SWRichmond
SWRichmond's picture

Why did EU cave?  Why the proposed can-kicking?  Why the game of chicken?

ISDA

Tue, 02/10/2015 - 10:37 | 5766057 giovanni_f
giovanni_f's picture

SWRichmond, this is correct. The shitheap of collateralized Ponzi paper must not be turned over.  I suppose the highly financialized US and UK would have an issue at least as big with a Greece walking away from its debts as the EU.

Then, for EU bureaucrats this is not caving. These "people" can live for years discussing, implementig makeshift-solutions, discussing again. Even our feathered friend Tsipras will excel in this art.

I am so sorry for all those EU-apocalypse now tourists. There ain't gonna nothing happen.

Tue, 02/10/2015 - 10:55 | 5766170 HardlyZero
HardlyZero's picture

Isn't Cyprus setting up Russian air base and signing agreement in 2 weeks ? 

Cyprus is looking for income.

Russia already has naval base in adjacent Syria, and to the north in Crimean Black Sea.

Isn't that new to-be-Russian base positioned further to the west than the existing UK air base ?

Encroachments for everybody, all around !

(blowback)

Tue, 02/10/2015 - 12:14 | 5766475 Debt-Is-Not-Money
Debt-Is-Not-Money's picture

The Russians ere encircling Ukraine.

Is this the "middle game"?

Nest stop- Italy?

Tue, 02/10/2015 - 11:04 | 5766206 FreeMoney
FreeMoney's picture

The Greek finmin has already telegraphed what his next move is.  He wants interest payments to be coupled to GDP, and has suggested a haircut of 1/3...1/2....2/3? of the total debt.  This is the plan Greece will put on the table after the 10Bil gets in their hands.

 

What I'm surprised of is that there hasn't been any tragic car accident, or surprise terminal disease.  Makes me think this is the path the banksters want followed.  they have unloaded all their toxic to the IMF and ECB and found a way for the US taxpayer to backstop the CDS when it takes a shit.  This is the setup to the big crisis that justifys the move to one world government.

Tue, 02/10/2015 - 11:50 | 5766394 gatorboat
gatorboat's picture

Lol, it just hit me, Goldman got Greece into the EU to blow up the Euro.  :)

Tue, 02/10/2015 - 12:13 | 5766510 BraveSirRobin
BraveSirRobin's picture

LoL. Possible. Greece has been in default for half of it's modern history. This should have been expected.

On another note, from a purely straetgic point of view, Europe should love to have Russia and China pile in a bunch of money into Greece. All that will do is transfer Russian and Chinese money to European bankers and leave the Russians and Chinese with loans they will never recover.

Tue, 02/10/2015 - 12:13 | 5766511 BraveSirRobin
BraveSirRobin's picture

LoL. Possible. Greece has been in default for half of it's modern history. This should have been expected.

On another note, from a purely straetgic point of view, Europe should love to have Russia and China pile in a bunch of money into Greece. All that will do is transfer Russian and Chinese money to European bankers and leave the Russians and Chinese with loans they will never recover.

Tue, 02/10/2015 - 09:27 | 5765768 Bangin7GramRocks
Bangin7GramRocks's picture

There is an easy explanation. It's not money, only a digital construct. How else could the U.S. continue "aiding" half of the countries in the world when it is $50 trillion in debt? It's all fake, so grab as much as you can!

Tue, 02/10/2015 - 09:56 | 5765880 ZH Snob
ZH Snob's picture

absolutely.  the EU is offering this for their own good, not greece's.  they really expected to scare them with ultimatums but all they did was to corner themselves.

Tue, 02/10/2015 - 09:10 | 5765719 Self-enslavement
Self-enslavement's picture

Greece and the PIGS are stuck supporting Socialism for the rich Europeans. They should just take care of themselves and let the rich socialists get real jobs like the rest of us instead of being such parasites off the good Greek people.

Tue, 02/10/2015 - 10:12 | 5765951 Terminus C
Terminus C's picture

That would be true if the govenment of Greece was guided by the intwerests of the Greek people.  Syriza, like any government in power these days (likely at any point in history) is only guided by self interest (of the individual politicians) and they hope to join the "rich socialist" club that is feeding off the people of Europe.

When viewed with that lens, the actions of the new Greek government make sense.

Tue, 02/10/2015 - 11:31 | 5766306 julian_n
julian_n's picture

You forgot Cyprus.

Tue, 02/10/2015 - 08:58 | 5765675 Self-enslavement
Self-enslavement's picture

They get extended for six more minutes. Then what? More drama. Instead they should print the Drachma. Screw the Chosenite parasites.

Tue, 02/10/2015 - 08:58 | 5765669 GetZeeGold
GetZeeGold's picture

 

 

The options are thus;

 

3). Walk like an Icelander.

 

Issue arrest warrants.....use them.

Tue, 02/10/2015 - 09:00 | 5765679 Self-enslavement
Self-enslavement's picture

Arrest all the American politicians and bankers too

Tue, 02/10/2015 - 09:44 | 5765767 Debt-Is-Not-Money
Debt-Is-Not-Money's picture

World-wide debt cancellation, a Jewbilee.

"As I have said, we need Debt Cancellation. Catherine Austin Fitts said Wall Street stole $40 trillion from us and will steal tens of trillions more. It is only fair that we fund Debt Cancellation by arresting the Bankers and seizing their assets."

https://vidrebel.wordpress.com/2015/01/25/ending-bankers-uber-alles/

Tue, 02/10/2015 - 10:10 | 5765939 Sinnedi
Sinnedi's picture

Cool federal govt meme.

 

Make the enemy of the people the opposite religion when your Christian. Make Islam the second biggest enemy. What do you have then ww3 and end of global religions. What are going to blame after religion is gone, the people who have been in control before. The same who are going to be in control after. The Illuminati

 

"The Third World War must be fomented by taking advantage of the differences caused by the "agentur" of the "Illuminati" between the political Zionists and the leaders of Islamic World. The war must be conducted in such a way that Islam (the Moslem Arabic World) and political Zionism (the State of Israel) mutually destroy each other. Meanwhile the other nations, once more divided on this issue will be constrained to fight to the point of complete physical, moral, spiritual and economical exhaustion…We shall unleash the Nihilists and the atheists, and we shall provoke a formidable social cataclysm which in all its horror will show clearly to the nations the effect of absolute atheism, origin of savagery and of the most bloody turmoil. Then everywhere, the citizens, obliged to defend themselves against the world minority of revolutionaries, will exterminate those destroyers of civilization, and the multitude, disillusioned with Christianity, whose deistic spirits will from that moment be without compass or direction, anxious for an ideal, but without knowing where to render its adoration, will receive the true light through the universal manifestation of the pure doctrine of Lucifer, brought finally out in the public view. This manifestation will result from the general reactionary movement which will follow the destruction of Christianity and atheism, both conquered and exterminated at the same time." 4

 

Tue, 02/10/2015 - 10:19 | 5765975 Terminus C
Terminus C's picture

Sounds like a likely story...

I don't doubt that there are devil worshipers in the halls of power but this isn't about religion, this is about control.  Governments and people who seek power use religion is a tool to control people.  They play on the insicurities of hummanity and usethe  divide and conquer strategy to destabilize those to be controlled.

Religion is one tool these people use for control.  The quote you posted above is one tactical play to achieve the overall goals.

Tue, 02/10/2015 - 09:00 | 5765681 cnmcdee
cnmcdee's picture

So this is a six month default and stocks rally like its good news..

Is this like where they crack open another case of champagne on the titanic as they watch the nose drag beneath the water?

Tue, 02/10/2015 - 10:57 | 5766188 RealityColin
RealityColin's picture

My desire to see that is exceeded only by my suspicion that Tsipras has a fatal "accident" in his future.

Tue, 02/10/2015 - 08:57 | 5765670 Latina Lover
Latina Lover's picture

Italy, Spain, Portugal,  take the hint :-)

Tue, 02/10/2015 - 09:20 | 5765750 onewayticket2
onewayticket2's picture

exactly.

 

Tue, 02/10/2015 - 09:10 | 5765721 RadioactiveRant
RadioactiveRant's picture

China only has one aircraft carrier, comissioned in 2012, its only ever built two.

Lots of landing craft though.

Tue, 02/10/2015 - 09:24 | 5765762 redd_green
redd_green's picture

Oh yeah.  And with a billion and a half mostly pro-government crazed 'patriots', they could keep coming long after the bullets run out.   Never underestimate the power of cradle to grave conditioning.  

Tue, 02/10/2015 - 12:17 | 5766538 ZHrnh
ZHrnh's picture

not counting the ten active carriers being operated by the USN.

ever patient, the PLAN is waiting for another Clinton to be 'elected', at which point it can repo them.

Tue, 02/10/2015 - 13:56 | 5767195 researchfix
researchfix's picture

After using their hypersonic antiship-rockets that may be the two aircraft carriers floating.

Tue, 02/10/2015 - 08:51 | 5765653 PartysOver
PartysOver's picture

The big picture is really not complicated stuff.

Know the rules of the game.  But more importantly know who sets the rules.  Understand that all technical studies with data pre 2008 is all BS.  Before 2008 there was sometining closer to "True Price Discovery", not so much today.  Know that the 0.01%'ers are in survval mode and they have the means to outlast those that think the Boom is imminent.  Understand that the best stock trading (not investing) strategy is to buy the "Most Shorted" when attempts at new lows fail.  What better way to inflate the market then the good ole Short Squeeze.   Wash, rense, repeat until the Banksters and the 0.1%'ers start cannibalizing each other.  When the infighting of the elite begins then IMO the show is over.  As an example, why do you think that a Credit Default event has not happened with all the junk bonds?  Maybe because that would mean the banksters will turn on each other to get paid off?  Just a thought.

Tue, 02/10/2015 - 09:56 | 5765879 thinkmoretalkless
thinkmoretalkless's picture

Capitulation works both ways.

Tue, 02/10/2015 - 08:40 | 5765621 GetZeeGold
GetZeeGold's picture

 

 

Got a whole long list of countries after Greece.

 

What....oh what will they do?

 

The suspense is killing me......who's gonna pay for all this socialism?

Tue, 02/10/2015 - 08:52 | 5765660 j0nx
j0nx's picture

Yup. Spain and Italy already drafting their demands as we speak if Germany capitulates. Barcelona or Naples would make a nice Russian Med Sea jump off point. Moral hazard is a bitch.

Tue, 02/10/2015 - 09:02 | 5765687 Self-enslavement
Self-enslavement's picture

Greece is stuck supporting Socialism for the rich Europeans. They should just take care of themselves and let the rich socialists get real jobs.

Tue, 02/10/2015 - 09:04 | 5765700 GetZeeGold
GetZeeGold's picture

 

 

Backwards.....but close enough.

Tue, 02/10/2015 - 10:15 | 5765961 eclectic syncretist
eclectic syncretist's picture

And right on cue the Podemos party is leading in the run up to Spanish elections.

https://www.thespainreport.com/category/politics/elections-in-spain/

Their platform? "Podemos originated in the aftermath of the 2011–12 Spanish protests against inequality and corruption. It is a left-wing populist party that seeks to address the problems of inequality, unemployment and economic malaise that followed in the wake of the European debt crisis. Podemos has called for a renegotiation of austerity measures and seeks to curtail the Treaty of Lisbon"

http://en.wikipedia.org/wiki/Podemos_(Spanish_political_party)

Wed, 02/11/2015 - 14:39 | 5772393 papaclop
papaclop's picture

Who's gonna pay? The printing press of course.

Tue, 02/10/2015 - 08:42 | 5765632 kaiserhoff
kaiserhoff's picture

Yes, Congrats to Greece?????????????????????????

Has ZH gone full retard or just full Commie?  When are kicking the can and denial ever the answers?

And when did an openly Marxist regime ever improve anything?

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