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Greece To Run Out Of Cash In Under One Week
One month ago, we wrote that the biggest threat to Greece is not so much the disastrous situation facing the country's banks - after all that is merely a domino that would bring down the bulk of Europe's insolvent banks and as such the ECB would certainly step in to prevent a full out collapse, blustering rhetoric and posturing on either side notwithstanding - but the fact that Greece no longer appears able to collect tax revenues. As in even more than before.
Back then we cited Kathimerini which said that "budget revenues have slumped over the last few days as a result of the upcoming elections and taxpayers’ uncertainty about the future."
The Finance Ministry has recorded a remarkable slowdown in applications for settlement of debts to the state through the 100-installment program, as well as a reduction in revenues from the single property tax (ENFIA), while the payment of arrears to social security funds appears to have stalled. Most taxpayers have chosen to delay their payments... The dwindling state revenues will not only hamper the next government’s fiscal moves, but, given that the fiscal gap will expand, also negotiations with the country’s creditors.
Speaking to Kathimerini, a top ministry official confirmed the major slowdown in the rate of applications for debt settlement, and referred to post-election consequences from the shortfall in state revenues. The tax collection mechanism appears to be largely out of action while expired debts are swelling due to taxpayers’ wait-and-see tactics and the reduction in inspections.
Less than two months later, the worst case scenario for Greek state cash has materialized, and as Kathimerini reported overnight, Greece now has less than one week of cash left!
To wit: "February 24 is expected to be the first crucial day for state finances, as projections of cash flows see state coffers starting to run dry on that date."
Of course, conceding that Greece is out of funds would also mean it is fully out of leverage and give the ECB all the bargaining chips ahead of today's critical ELA decision, so Greek officials quickly tried to spin the reality: "Finance Ministry officials, however, assure they have identified resources they could tap if a small extension on Greece’s bailout obligations, up to the first week of March, is granted from the eurozone."
More:
The state of cash reserves – not robust before – has deteriorated further in recent days due to a shortfall in revenues, as a 1-billion-euro hole in January revenues is putting the execution of the state budget in jeopardy and hampering the management of cash reserves.
According to figures released yesterday by the Bank of Greece, in January the net cash result of the central administration posted a deficit of 217 million euros, against a surplus of 603 million in January 2014. Budget revenues reached 3.1 billion euros, against 4.4 billion in January 2014, while expenditure dropped to 3.2 billion from 3.6 billion last year.
Given these figures, the Finance Ministry estimates that cash reserves will run out next Tuesday. It has the option, however, of using the reserves of general government entities kept in commercial banks in order to cover short-term needs next week. However, the problem that cannot be addressed as things stand concerns needs for the first week of March.
Unless something changes drastically to the country’s funding, Greece will not be able to fulfill all of its March obligations.
It would appear that among all the other things Samaras was lying about when touting the Grecovery in 2014, the Greek primary budget surplus was one of them: a surplus that only exists as long as the local population feels like paying its taxes. Which, nowadays, it does not.
In any event, what all this means is that the Greek D-Day of February 28 will have to come much sooner, as Greece simply does not have the funds to last that long. The only question is whether the Syriza leadership will finally fold to Europe (most likely within the next 24-48 hours), or exit the Eurozone.
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I got used to it. I run out of cash every week too.
So they are having a going out of business sale?
Default....Bring it on !
Merkel blink time.
Drachmas, Rubles and yuan as well as all other currencies will be accepted everywhere in Greece soon.
Maybe Yanis V. can can convince his adopted country Australia to also pitch in.
Whatever.
Just do it already.
Here's an interesting angle that would blow the head off the squid if it came to fruition.
It is time for Greece to face music and declare a bankruptcy. For the last 20 years, Greece was a parasite lying, cheating and stealing money from its neighbors.
Without military-strong Germany NATO id doomed. US military capabilities are very limited. It is already have failed in Vietnam, Iraq, Afghanistan, Libya, and Syria. Now, the Obama administration has blinked to Putin aggression in Ukraine making the rest of NATO very uncomfortable.
US national interests are on a collision course with China and, without military-strong Japan, the USA is doomed in Asia.
Same shit dfferant day ,Greece is going to fall ,Greece is going to pop, Greece is not going to do anything is all a load of shit , this has been going on snce 09, boring.
They're having a yard sale. Whaddaya want for that Parthenon?
It's got Sony guts.
Why doesn't Greece just print fake Euros to cover any shortfalls? Belgium does.
How can it be counterfeiting,
when it isn't really money?
"Greece will run out of cash in under a week"
So will my wife!
Just think about how much that GREXIT will cost you!
Germany may actually want Grexit thinking it will cause so much suffering in Greece that Italy, Spain,etc won't even think about doing the same.
So Grexit will happen
This is all smoke...whats keeping Merkel in the Euro? DExit !!!
I thought this a few weeks ago -
If you are a loan shark and some small time borrower decides to not pay you back - starts talking tough - making demands - not giving you proper respect - you have two choices.
Let him stiff you - and then get ready for everyone else to stop paying you
Or kill them in the most violent way possible - and while you are at it kill their family too - write off the small debt but also sending a message to your other debtors that they better pay up.
Finally someone gets it. +1
just doesn't seem like the Greeks are going anywhere. Syriza hasn't even threatened that.
That is the way I see it shaking out. Kill a few chickens to scare the PIS (left out the G cause they are gone) out of them.
I'm thinking Germany is hoping Greece, and other countries, will leave the Eurozone so that Germany can leave too. Because of this agreement called the Eurozone we have Germany being forced to loan money to insolvent nations, Greece, and this isn't beneficial for either country. Germany knows that Greece doesn't qualify for loans but it has to loan them money as some part of Eurozone self-maintenance apparatus. Greece is getting stuffed with debt it cannot pay and it's starving the people and the real Greek economy with greater and greater interest payments. I don't think austerity works for either side. I think Germany would rather be able to make loans as it pleases instead of being coerced into poor financial endeavors by their groupmates.
I just don't understand the point of articles like this. Next week will come and Greece will get another extention/bailout or whatever, and then you'll be salivating over the "next" deadline.
Unlike Wall Street insiders, Greece cannot expect to get any TARP bailout funds. How sad.
Sad? The sooner then better. This is a legitimate chance for Greeks to get off their collective ass, and set things right for once.
That's why the BRICs was invented.
#PrintDrachmas
Translation....48hrs
right after SPY opex on friday. what a coincidence. remember, everything is awesome. until the second everything fucking blows up.
Which is why they should leave the EU, print Drachma and say fuck you to the banksters. they are bust so why prolong the agony for the people who have already said no more
No problem:
Prepare for Grexit and return to national currency
are Greek Mortgages owed in euros?
Legislate that all Euro denominated debts are converted to Drachma on a one to one basis. Then print enough Drachma to pay off all the debt. Then devaluate the drachma and move on to having a sustainable economy.
surey, that is one option thought.
IC why not legislate all mortgages are forgiven and move on.
Tick-tock-tick-tock....
Cash isn't needed. Money is what you make have value as a medium of exchange. Start to use air as your medium. Problem solved.
If that were the case, the Tribe would print Air futures, Air derivatives, and manufacture Air from air. All the while lying, skimming, and selling out the everyone for their profit. Any questions?
EDIT: Not to mention they'd create the Central Air Bank to manage it all.
The Greek sure know how to starve the beast.
Exit. Today. Get rid of the banksters now.
Naive,
You are one of those that think a reset means anything. Even if they default, they still have their own bankster to enslave their population. Even worse, they still have their owen corrupt politicians that will collude with banksters.
Your naive!!!
The banksters ONLY have the power they do, because the current Ponzi scheme is 65 years old now!!! When that blows up, their fake wealth evaporates overnight and they are left standing before an angered population like Ghadafi and the rest where!!
This "power" you allude to takes decades to consolidate, any reset blows it up
Can't they just mint a few 1 trillion euro coins...
Putin will help them out.
The greeks won't run out of cash. Only the banks....
They might have to start laying off more fat, lazy government workers *gasp*. Some of them might even have to start working a full 40 hr work week *double gasp*
With 30% unemployment, whoever is laid off will not find a job easily, let alone a 40h/week job
Don't blame Brother Man-In-The-Streets for a shite currency gone bust. That will only propagate evil. Lay that finger squarely where it belongs.
This will shake itself out just like it did back in 2011, or the US fiscal cliff. All financial matters are just smoke and mirrors at the end of the day, Greece will not somehow shut down on the 24th, just lots of posturing by both sides, while in the meantime backroom deals will be struck to keep the system running, enrich the leaders of both sides and the banks, and keep the rest of the population just above water.
Lol didnt they say they were running out of cash last week... and the week before... and the week before didn't they admit they were bankrupt? This shit is a fucking joke. FFS leave the euro to die and lets get this fucking party started. Tired of these clowns dicking around for "extensions". LET IT BURN.
Best thing current Greek leadership can do is admit the truth, cut all but essential services, and default on their entire debt. As the effects are felt throughout Greece, people will rise up to the challenge, things will normalize over time, and Greece will pull itself out of this mess. Same has occured thoughout history time and time again across virtually all nations.
It is pretty simple, default, flip the bird to EU. Cut all pensions 25%, wages same, increase taxes and start repo's of properties and businesses in default over looking the mediterranian sea. Rehab, rent them out to tourist, sell trinkets, come see our beautiful beetches bitchez. And
Gold Bitchez...I pick up pennies
A+B damn well better equal C
Yes but they like most countries have been kiting cheques for years. This Reality is dawning on people at long last..........there are too many unmatched liabilities
Can you say DRACHMA? Print baby print!!!
Vlad! Vlad! Did yo uhear that?
Who is the greater debtor anyway? It seems Germany is.
http://ec.europa.eu/eurostat/documents/2995521/6616449/2-10022015-AP-EN....
The Fed needs to send fiat dollars to Greece rather than Israel .... because of socialist fraternal solitarity.
How much has the US donated to the chosen people in the last 60 years and what does that work out as a percentage of the total US debt?
Bartertown in 3... 2... 1.
I'll call your yogurt and raise you one liter
olive oil.
For Greece it is ironic for the birth place of democracy to destroy the central banks, this is very simple the Greek government needs to issue the drachma interest free and deem it legal tender for all debts in the land.
Democracy is mob rule. The mob just voted in a regime that promised them a return to part-time and more free shit. Not ironic at all. My question is: Ultimately who's fault is it, the drug dealer or the person putting the drugs in their own body? Seems to me Greece made a "deal with the devil", now it's not happy with it's golden fiddle.
The top 1% of any country never have a thing to worry about as it pretains to lose of their "money". However the average citizen does and if they have not withdrawn everything from their banks by now, then they are seriously crazy!
Banksters Inc. will clean then out!
Very good. Someone that has a clue.
No matter the situation, even in a reset, the 1% do okay and it's the serfs that pay.
If I'm a billionaire and I lose half of my wealth, I'm still doing okay at 500 million. But you serf, if you lose 50% of your income for years, well, your fucked.
Beware the Ides of March!
Yesterday ZH had the article accusing the EU of promoting bank runs by providing the facts on Greek bank cash.
Today's article seems to make it OK for Greek offiicials to announce that there is less than one week before government collapse. Note that, again, Greeks are responsible as they won't pay their taxes to support their elected government. The only purpose of a Greek government has been to get other EU countries to pay Greeks for being members of EU.
Seeing a socialist get mugged by reality is getting interesting.
All this smoke and mirrors. Never and ill repeat never will greece be let off the hook of he banksters this is a show for the sheeple. Give me a break......
The collapse will create the ideal conditions for a real communist
state. I'm sure the Greeks will love it.
Define cash. IMO, let them you stupid fucks.
I want the first Drachma on my block!
Learn to give good BJ's and I'm sure your wish will be granted.
That's the ticket .... BJ's and selling "Loosies" .... that will get you through the rough patch !
WTF .... I run out of cash .... every month .... usually about a week .... before Social Suck day ?
What have they got to lose bar the bankster ball and chain.
They have the people in Syntagma Square requesting Grexit.
FFS some of these people are already living out of their cars!!!
Fuck the banksters.
Throughout the entire Greek banking crisis, and from the beginning, one man has set the stage for the no-compromise position of the banks. It’s Josef Ackermann who emerged from the 2008 banking crisis as the most powerful banker in Europe.
A former head of Deutsche Bank through mid-2012 and now chairman of the Bank of Cyprus, Ackermann hasn’t been at the forefront lately on the Greek question but the powerful leverage he had put in place recently has strengthened the resolve of bankers and European politicians to oppose debt relief for Greece.
"Josef Ackermann became renowned at Deutsche Bank for shifting the style of management from a conventional mode to one that focused on the needs of shareholders and on international expansion…By 1999 Ackermann's leadership of the global operations and institutions department generated 60 percent of Deutsche Bank's year-end revenues.
"Ackermann was then appointed to succeed CEO Rolf Breuer, who charged him with building a truly global investment bank. Ackermann's vision for globalization focused on shareholders and international performance."
A NYT’s profile story by Jack Ewing and Liz Alderman in June 2011, “Deutsche Bank’s Chief Casts Long Shadow in Europe,” details comments whereby Ackermann set the stage for the banks and European lenders to protect banking interests in their relations with Greece.
Here are a few paragraphs:
But it is no secret where Mr. Ackermann’s financial allegiances lie: with the banks. For instance, he has insisted that providing some sort of debt relief for Greece would be a huge mistake. Such a move — a restructuring, in banking parlance — would involve writing down Greece’s debt, which is now more than 140 percent of its gross domestic product, deferring payments and cutting interest rates.
What would be so bad about that? European banks, including German ones like Deutsche Bank, hold many billions of euros in Greek government bonds, and the banks would lose big if those debts were restructured. For the moment, Europe’s solution for Greece is, essentially, Mr. Ackermann’s: more bailout money and more austerity — an approach that some economists say only buys time without offering any hope of recovery.
Mr. Ackermann, like many of his counterparts in the United States, has also argued against tighter regulation of the post-crisis financial industry. His visibility as an industry advocate stems in part from his chairmanship of the Institute of International Finance, an association of the world’s biggest banks, including American ones like Goldman Sachs, Morgan Stanley and Citigroup. The group has released studies contending, among other things, that compelling banks to reduce their use of leverage — a move that would almost certainly reduce banks’ profits — would cause a credit crunch. That’s ridiculous, some economists counter.
“Most of the arguments made by the bankers and the I.I.F. in particular are just fallacious,” says Martin Hellwig, an economist and a director of the Bonn branch of the Max Planck Institute.
Even some of Mr. Ackermann’s peers in banking are uncomfortable with his positions. One senior European banking executive said he thought Mr. Ackermann’s zealous defense of banking interests failed to take public opinion into account. Like many ordinary Americans, many Europeans say they are paying the price for the excesses of bankers.
“As an industry, we have a reputational problem and we need to be aware of it and manage it properly,” says this banker, who did not want to be quoted by name for fear of damaging his relationship with Mr. Ackermann. …
Mr. Ackermann has offered advice to Mrs. Merkel and other political leaders on how to avoid spooking the markets with their public statements. Mr. Ackermann seems to enjoy a good relationship with Jean-Claude Trichet, the outgoing president of the European Central Bank, whose office is a few blocks from Deutsche Bank’s headquarters here.
But Mr. Ackermann has also said some things that have displeased Mrs. Merkel. Soon after European leaders fashioned a bailout package for Greece last May, he warned that the country might not be able to repay its debts. The very existence of the euro, he cautioned, would be jeopardized if investors lost confidence in other weak economies in the 17-member monetary union.
His comments sent financial markets reeling, and prompted a rebuke from Mrs. Merkel’s finance minister, Wolfgang Schäuble, who called them “irritating” and “unhelpful.” …
[Ackermann] called on European governments to devise a “Marshall Plan” for Greece that would offer more aid, while forcing the country to sell billions of euros’ worth of state assets, and provide a framework for rebuilding its economy.
European governments have largely followed that advice. At the same time, however, Mr. Ackermann has opposed the German government and sided with his friend Mr. Trichet at the European Central Bank in arguing against restructuring the Greek debt, which would force investors — and banks — to share Greece’s pain.
Any restructuring, Mr. Ackermann cautions, could be even worse than the crisis brought on by Lehman’s collapse. It could threaten the stability of major financial institutions, as well as the European Central Bank, which hold huge amounts of Greek debt, he says.
Worse, he says, there is a “very serious” risk of contagion in the euro area if the situation in Greece causes investors to lose confidence in other fragile European countries. “If you could isolate the Greek case, then we’d be taking a very different approach,” he says. (end excerpts)
IOW, the international bankers have a mob-protection racket: We’ll protect you and see that nobody hurts you; you just keep paying us back in assets and resources, and when you can’t pay us, give us title to your store.
And, now, the people are revolting, not only the desperate people, but the leaders that are leading the revolt.
QUOTED NOTES on Deutsche and Josef Ackermann 1948– Chairman, Deutsche Bank
? Josef Ackermann became renowned at Deutsche Bank for shifting the style of management from a conventional mode to one that focused on the needs of shareholders and on international expansion. Ackermann changed the distribution of power within Deutsche Bank, resulting in criticism from traditionalists and praise from those who shared his global focus, allowing him to become the most powerful man in Germany's financial industry. In his effort to turn Deutsche Bank from a bloated German lender into a lean global competitor, Ackermann eliminated 14,470 jobs, or 18 percent of the workforce, and cut costs by one-third by closing retail branches and outsourcing management of the bank's computer systems and real estate. He also sold assets totaling EUR 11 billion in worth. …
Ackermann merged Deutsche Bank's previously separate divisions for retail, business, and private clients who own between EUR 250,000 and EUR 5 million in assets, into one private banking unit in order to encourage cross-selling. Between 2001 and 2004 Deutsche Bank closed 272 of 1,042 retail branches in Germany and cut the size of the retail banking workforce by 19 percent, to 13,600 employees.
In 2002 Ackermann hired Pierre de Weck to run Deutsche Bank's wealth-management business for clients with more than EUR 5 million of assets to invest…
---Deutsche Bank was a big player in those toxic collateralized debt obligations that Wall Street sold during the American mortgage bubble.
…Deutsche Bank received the equivalent of a back-door bailout from American taxpayers when the United States government intervened to prevent the American Internatioanal Group (AIG), the insurer, from collapsing…
…Deutsche Bank continues to rely heavily on its investment unit for profit…based in London and a reported pretax profit of …about 85 percent of Deutsche Bank’s total pretax profit first quarter 2011 when the NYT article appeared.
...Deutsche Bank also belongs to a small circle of global banks that account for a huge proportion of international derivatives trading.
…It would be impossible to eliminate the risk of financial crises without hurting the economy, Mr. Ackermann says. “If you wanted to reduce the probability to zero,” he says, “we would have trouble financing the real economy.”
http://www.referenceforbusiness.com/biography/A-E/Ackermann-Josef-1948.html
Ackermann is discredited totally. He left Deutsche Bank a basket case which Achleitner is desperately trying to save. Ackermann is a Swiss national who drive the CFO of Zurich Insurance to suicide. Noone takes Ackermann as credible nowadays - he is the man that loaded $72 Trillion in derivatives onto Deutsche which cannot even earn its cost of capital
Ackermann’s banker connections these days aside, he delivered for the cartel, for Israel and for the bank domination of Greece when it counted.
His Zionist contributions are detailed in "Ackermann's Deutsche Bank as Tribute- Generator to the Lobby":
"This is how the Lobby system works. For this stellar performance Ackermann has been highly honoured by the Jewish power centers, either with the 'investment Oscar' or with hymns of praise by the German Embassy in Tel Aviv: 'This is how e.g., Deutsche Bank Chief Josef Ackermann, one of the most outstanding Jews in the German financial sector, including the entire management of the bank announced they will relinquish their bonus for the year 2008.'" (Press Review of the German Embassy in Tel Aviv, 28.10.2008)
Deutsche Bank is not Germany; it’s Wall Street.
Deutsche Bank, Germany's largest bank, is headed by Paul M. L. Achleitner who is a former Vice President of Mergers & Acquisitions of Goldman Sachs & Co., New York, and partner of Goldman Sachs Group.
Remember this from April of 2009?
“Without the government money, Goldman, Merrill Lynch & Co., Morgan Stanley, Deutsche Bank AG and other firms could have become some of the biggest creditors in a bankruptcy filing by AIG, the world’s largest insurer, because of the billions in losses on subprime bonds and corporate debt…” -- Bloomberg
No one seems to remember the lesson that Iceland gave the world concerning negotations with bankers and their demands for payment of illusory "debt."
I imagine the Icelandic people are far different from the Greek population. No doubt more willing to work their way back.
It ain't 'illusory debt' when u lend it!
How many ZH'ers would buy Greek government bonds just to show their fraternal solidarity ? 0.
At least one --just as soon as they're denominated in yuans.
Not I, but a cheap island would be sweet
I know the feeling.
Greece is running out of money? Or is the Greek government running out of money. Two completly different things.
If its just the state thats out of money thats not so bad for the Greek people. Now if Greece the country is out. Where did it go? How did it leave the country? Did it leave the country or is it in peoples pockets?
If the money is leaving the country? The thats something they best look into and correct like now. Stop importing any products that can be made in country.
If only there was something they could grow fast and produce things from. Or some way to boost tourisum. Or some way to reduce the energy imports. Oh thats right there are things they could do. Why havent they started down this path yet?
They have. They simply had to scrape the leeches off their collective neck first. Watch them bounce back to economic health in less than three years.
Since about half of the people with a job "work" for the government - you can be sure that the government missing a few payrolls will hurt -
First the government employees - then every other part of the economy gets hit when spending hits a wall.
let the fkers starve
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I knew this was coming...when these Socialists were elected..they said they had enough to go thru May....I knew that was not going to happen....I would bet the persons who write the checks have been paying themselves all their vacation pay for years in advance...and also their own salaries in advance....just getting while the getting is good...
bit like when Americans choose Socialism in Congress by voting Democrat and Republican......when was the last time the US ran a primary surplus or paid down Debt ?
bout 99 when clinto got to work sign bank reform(gone glas/steg) and world trading pacts. downhill since. could have a repuke too.. 911 was start of impossible state of financial balance. gone, 10 trillion fucking wasted... 10 trillion/320 million = ???.
we could all start fucking the dog with that kinda money...
1969?
I don't think a grexit possible, it wouldn't make any sense in the light of what the EU and the ECB have done over the past years. It's merely a question of who will turn out to be the winner of the bluff poker game.
A grexit will remain a sweet dream I'm afraid.
Fuck the EU and all it stands for.
there's lots of cash - check the mattresses of each home owner
What if the Eurogroup isn't interested in solutions that ever could reach the proposed targets? What if they prefer models that merely irons dependance and destruction of cash, just to get levels 4 workforce and production costs as low as possible over the next 1-2 years no matter how debt will deploy?
Sorry, it tribbled..
Hmm, double-post due 2 error on site? Is NSA already bypassing posts?
My $10 offer to buy Greece still stands. Alert the media.
I just want one of their islands for $10.
But the Greek people voted for more free shit -
Yet another sensational socialist/marxist success story! Chalk another one up for the commies!
Again?
They will both "cave", come up with language that saves face for both sides, and kick the can down the road until things really blow up. Clearly Syriza isn't prepared to leave the Euro and screw the EU bureaucrats.
The Greeks have not helped themselves by electing what will turn out to be a more deadly cure than the disease from which they are suffering. At the end of this most recent charade, Syriza will disappoint and cave. The Dear Leader of this ridiculous Leftist/Marxist hodge-podge called Syriza put it this way: "We do not support any sort of Euroscepticism" (http://www.tovima.gr/en/article/?aid=593303)
Just part of their visionary 'caring & sharing' (of others peoples money) DNA.
Running short of time to book 2015 Summer vacations in Greece.
EU probably will get their Grexit this week to get on Expedia in next few weeks...and get ultra-cheap vacations.
Watch out for Mr. Panos !
It looks like an example might be set by EU.
Hopefully there is survivable losses.
I'm arredy out til' d'foist, but tanks in advance suckahs...
http://www.kontranews.gr/images/pdf/VaroufTheseisEuro.pdf
The Greek government needs to go to the IRS school of theft,,
They should offer a debt free Drachma at par or above value of the Euro. Currency problem resolved.
With proof of a job and direct deposit tthe Greeks could get a pay-day loan in 15 minutes on-line.
Now, that's funny!
Yes its about time the Greek people woke up and smelt the Ouzo.
In a modern economy everyone has to work hard and pay tax.
The quicker they go bankrupt and leave the Euro the better for everyone.
They lied to get into the Eurozone.
Goldman and the Greek Socialist politicians did the lying. Greece with its long history of socialism was a failed state when it joined the Euro; it was ably aided by Goldman (not the people) to hid its corruption and debt to gain EU membership.
How Goldman Sachs helped mask Greece’s debt
Back in 2001, the Greek government was pondering how it could meet the conditions of Euro membership. A key requirement of the Maastricht criteria, five criteria that determine whether an EU country is ready to adopt the euro, was that member states show ‘directionality’ in their public debt.
This meant that the country’s debt ratio needed to be going down year on year: ‘The national debt should not exceed 60% of GDP, but a country with a higher level of debt can still adopt the euro provided its debt levels are falling steadily’.
The solution they came up with was not to cut spending or raise taxes, as Dunbar incredulously points out, but to attempt to hide their debt. Enter Goldman Sachs, global investment banking and asset management company.
Newsnight revealed that one of the Goldman Sachs bankers hatched an ingenious plan to strike a financial deal called a ‘swap’ with the Greek Government, using it to hide 2.8bn Euros of national debt. The deal was legal but completely secret.
http://www.thebureauinvestigates.com/2012/02/21/how-goldman-sachs-helped...
http://www.zerohedge.com/news/2014-11-09/broken-model-eurozone
Why was it legal? The bankers make the banking rules; it's called legal plunder.
I'm happy to do my bit...
I'll send the first 10 Greek folks, who successfully answer the following question (based on my sole, prejudiced and totally biased assessment), up to 10 Euros each...
Q: What causes gravity, answering in one, 10 word sentence?
No offence, love the pivot to Russia and anti-everything-stuff... Peace and prosperity, we are rooting for you!
Other conditions are applicable my me at random and under my sole discretion.
Mass; lighten up on banker debt and socialist disincentive.