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Europe Has A Modest Proposal For Greece: "Don't Pay Wages For One Or Two Months"
The Greek liquidity, pardon "cash flow" problems are so bad, not only Zero Hedge, but also Bloomberg has launched a daily maturity tracker of how much money Greece has to pay either to the IMF or to prefund T-Bill rollovers. This is what Bloomberg blasted out earlier today:
Greece is preparing for another week of hurdles that ends with a ~EU2b repayment on March 20. Most economists say that it will be difficult for Greece to get past end of March without fresh EU funds. Here’s a timeline of the most important events scheduled this week:
- Monday, March 16: Greece to repay about EU577m in IMF loans
- Wednesday, March 18: Greece’s debt agency PDMA to sell 13- week treasury bills
Which explains why as we reported yesterday, Greece passed a law to plunder pension funds, one which would allow the government to fully invest reserves of pension funds and other public entities kept in Bank of Greece deposit accounts in Greek sovereign notes.
None of this is news: that Greece will run out of cash absent another check from the Troika, pardon Instituions, pardon creditors, is clear. The only question is what happens after, if Europe indeed leaves Greece hanging.
Today, the Greek media is ablaze with just what Europe's proposed solution to this issue may be. As Protothema and Capital report, the Troika proposed that Athens halt the payment of salaries and pensions for one to two months. This, according to Europe, would promptly tackle the problem of liquidity and find a solution to Greek problem of how to pay back bailout loan tranches to creditors when suffering from liquidity problems.
Via @capitalgr: Creditors suggested2 #Greece govt “if u face liquidity problems,dont pay wages for a couple of months http://t.co/HJMum0FINT
— Efthimia Efthimiou (@EfiEfthimiou) March 13, 2015
As Keep Talking Greece reports, the creditors’ proposal was revealed by Varoufakis’ aide Elena Panarity at an event of the Deree College on Thursday and was confirmed by Finance Ministry officials on Friday.
“When we say that we have liquidity problems, they tells us to make no payment of salaries and pensions for one or two months,” Panariti said as quoted by Greek media.
The creditors made this proposal at the side talks the Brussels Group meeting in Brussels on Tuesday.
Panariti did not reveal which one of Greece’s creditors ECB, IMF and EU made this proposal. She is part of the Greek team negotiating with creditors the reforms that Athens has to fulfill in the next months.
In seems that the proposal was made to Finance Minister Yanis Varoufakis who rejected it right away, describing it as “shameful”.
Shameful indeed, but the question remains: where does Greece, which tax revenues continue to suffer, find the cash it needs to fund upcoming payments not just to the IMF but all other creditors?
So to summarize, once again, the peculiar debt payment dynamics in Greece: first the "anti-austerity", "ultra-leftist" government is about to use what little Greek pensions are left, and now - if the Troika has its way - will stop paying government salaries for a month or so, so that Greece can find enough funds to pay the IMF, which then can promptly use the same funds to pay the US muppet government in Kiev which is just as broke as Greece, and needs to pay Gazprom yesterday to keep gas deliveries coming, with Gazprom promptly remitting the funds into Putin's personal money vault.
Rinse repeat.
Meanwhile, Greece, where apathy just hit unseen levels, will end up so poor it can't even afford to conduct the next elections in which, as many have warned, none other than the neo-nazi party may finally take power.
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How about the banksters give up two months' salary and donate it to Greece.
Blaming games aside, how could the greek problem be solved? The greek question! One of the most pressing issues of our time.
Bankster hunting season.
Not a serious answer. I mean it could be part of a plan, an important component even, but its too vague to be taken seriously.
BS it is the answer. Dance around it all you want. That debts that cant be paid wont. Perp walking bankers is a far better choice than WW3.
DEFAULT.
Serious answer.
Handle issues and consequences as they come.
It is not complicated.
That would help. That would relieve them of a large burden. But would it solve all of the proeblem?
Greece has a large trade deficit. It seems quite a bit is related to the collapse in shipping. How can greece regain a trade balance?
Trade protection policies that favor Greek producers.
You are looking to engineer what happens next. So is everyone. Greeks have to do that for themselves.
If there are not enough resources in an area to support yourself, leave.
Lower your standard of living if you stay.
Start up businesses locally, support them locally.
If foreigners want to come in and invest, they do so with no backstopping, no special breaks. I bet some would come. Nice waterfront property there.
If the Greeks want to sell Russia or someone the right to set up a naval base there, charge them for the service.
The whole thing was able to drift out of balance because of intervention. Let the market do what markets do. Hands fucking off already. Leave them alone to work out their own problems UNLESS you would like to give them a loan because you think you could profit. Otherwise we all need to stay out of it. Malinvestment deserves to fail.
Bingo. Hold the bankers to the same standard as everyong else. Its called being a grown up.
Leaches should not be a protected species.
ZHer TruxtonSpangler yesterday came up with this "They wont grexit and they wont be kicked out. THey will default within the EuroZone. Thats the plan." I can't see how this will work ( I didn't get a reply when I asked him to elaborate)
and when the people get hungry enough, they'll eat these FN bankers
Greece is the poster boy for why a country should NEVER give up control of their own money and thereby sovereignty. Some of the poorest shithole nations around the globe aren't in this much of a pickle.
Zerohedgers will praise gold as money one day and the right for sovereign nations to mint fiat the next.
Not this ZHr.
Sovereignty is pretty much a arcane idea in the world of the UN, IMF, World Bank, and trade treaties. Even the US, especially via the Executive Branch, has circumvented the Constitution to make international laws and conventions superior to the nation state.
I see the troll's posts have been corzined - applause !
I have a better proposal . When the Troika buffons come to visit , put the on trial for crimes against humanity and throw away the key !
Why do you need a key?
His thinking is based on stock phrase permutations. He mixed them up due to his enthusiasm.
Gallows don#tneed a key.
How about taking them as hostages?
so... it's actually a proposal to let the Greeks works as slaves for the Germans...
nice....
well... if a bailin isn't a option... slavery is...
Greece needs a week long Purge.
Police and military stand down for one week.
Winners take all.
....the neo-nazi party may finally take power.....
well they are at power in Tel Aviv, in Kiev.
Why not in Athens?
As someone said earlier.
The 'debt' was created from nothing.
Therefore no person will suffer loss, as there was NO debt to pay.
....
The phrase .... 'a debt is a debt...' is fundamentally absolutely untrue.
Grexit then Drachmas then shortages then riots then total Totalitarianism.
What's Greek for Hope and Change?
Syriza talked a good game. Gelded from day one
Tsipras and Whatthefuckis should nail gun each other for the weak sauce capitulation
Default or fuck off
Let's see what the Nazi Dawn has in store
They're socialist scum as well, just a dash of nationalism to differentiate them from the neo-communists. The more things change....
greece could be used as a backdoor way to integrate the euroasia economies behind the back of the usa. a secret tryst between merkel and putin. oh, the image.
This story is boring
Greece wants to remain in the EU at the cost of debt slavery. How much groveling and noshing on Merkel's cock will it take to realize there is no one coming to the Greek's rescue
Come on Tsirpussy, put on your big boy pants and DEFAULT or just keep feeding your people into Germany's meat grinder
Bunch of fucking losers. It's embarassing
Correction---stop paying doctors and teachers. Stop paying the soldiers and they'll empty an Uzi into Tsipras' head.
First rule of any tyrant hell-bent on austerity: austerity is for civilians. Never, ever, EVER fuck over soldiers or cops.
Instead of Tsirpussy on his knees fellating Merkel, how about kindly reminding their Euro masters that when Turkstream comes on line, Greek terminus transit payments will be in New Drachmas only
that is why i think greece is the key to eurasian integration. i think merkel is secretly fanatsizing about putin being her master as the kinky couple who conquer europe.
The sooner Greece leaves for Russia and China the better off they'll be. This is like kicking a dying dog.
Just print up some Euros. Some may say it's counterfeiting but in reality it's fake money anyway! Run the presses.
Does this mean that Greek civil servants would only be paid for twelve months of the year instead of the usual fourteen?
The ECB banksters know that eating and having a roof over your head are both items that are overrated!
Some like THIS government, and think THAT one is the cause of all the world's ills.
Some like THAT government. and think THIS one is the cause of all the world's ills.
But one thing is certain.
Authoritarianism is rising everywhere.
When you do not pay the working slaves, they become more aware they are slaves.
Just shows how more advanced we are in the U.S. Here, the Fed buys Treasuries and pays the interest earned back to the U.S. government. There ya go, zero interest rate and because the Fed keeps buying more, unlimited duration. We're just smarter here.
This is the historical equivalent of Mary Antoinette's "Let them eat cake", except it's a much more teutonic, "Let them eat air and starve for two months". Talk about blunt.
Otherwise a good piece except the stupid herd mentality propaganda quip about Gazprom being a personal money vault of Putin - first disseminated in an article by the Peterson Institute for International Economics, a Washington DC think tank.
(Lynn Forester de Rothschild, the wife of EVELYN DE ROTHSCHILD, is a director of the Peterson Institute for International Economics. The Carlyle Group (whose subsidiary patent-holding engineering employees disappeared with MH370) and Blackstone Group (The biggest landlords in the world) are all related to the personnel running this Washington think tank)
the Troika proposed that Athens halt the payment of salaries and pensions for one to two months
If Greece had done the right thing with an unaffordable debt 5 years ago this would have happened then and from then you start rebuilding. That the Troika suggests this is laughable.
5 years ago do this, plenty of fat on the people you could have survived a few months and start making progress to expect this now is to ask those in concentration camps not to eat although they are already starving.
If Tsirpussy and Whatthefuckis spread their cheeks for non payment of salaries, the only option for the Greek workers is a universal General Strike and boycott of German goods
Syriza couldn't be any worse. Give the people hope and then fold like a cheap card table.
No more empty promises fom the Austerity Left.
Nothing really to see here. We all, even the Greeks, knew that public employee pay and benefits would have to be cut. It's inmaterial how those cuts happen.
My cure for Greece's problems:
1. Round up ALL the socialists & communists and recycle them. Elimination of these living pathogens will reduce the source of the disease AND reduce the expenses of subsidizing them.
2. Fire all the government parasites and predators who BOTH make life impossible for entrepreneurs AND consume wages, benefits, retirements, etc.
3. Stop trying to defraud others out of their money thru bogus borrowing, ie theft.
4. Start producing stuff that others want to buy, ie develop an economy based upon your own production instead of fraud, theft, parasitism, socialism, etc.
5. Ban that absurd obsolete language that is a huge impediment to effective & efficient operation in world markets and adopt English, German and Chinese as the national languages.
6. Stop blaming others for your own stupidity, corruption & incomeptence. Plenty of small countries with little natural resources - that were also invaded & plundered in WWII, eg Singapore - that are infinitely more successful than the Greek thieves, parasites & chronic whiners.
Two out of six, you still better then the the Krugster. 3 and 4 are a good place to start.
1.) It is now a known fact that Greece became eligible to join the EU and Euro Zone based on INTENTIONAL FRAUD by a former Greek government administration, the EU, the ECB, the IMF and (WHO ELSE?) Goldman-Sachs, which was paid over $900 million USD to "cook-the-books" regarding the Greek government's financial assets and liabilities. In short, the Greek government entered into contracts for EU and Euro Zone membership based on FRAUD. Therefore, are not those contracts re: EU and Euro Zone membership NULL and VOID "ab initio" (from the beginning). Further, since the LOANS to the Greek government from the ECB and others were a consequence of this FRAUD, are not those loan contracts (as bonds and whatever) equally NULL and VOID? Some ancient MAXIMS of law come to mind:
a.) Concealment of the truth is (equivalent to) a statement of what is false.
b.) Suppression of fact, which should be disclosed, is the same in effect as willful misrepresentation.
c.) It is a fraud to conceal a fraud.
d.) Gross negligence is equivalent to fraud.
e.) Once a fraud, always a fraud.
f.) What otherwise is good and just, if it be sought by force and fraud, becomes bad and unjust.
2.) Leaving aside the arguments about fraud (above), it is also accepted as fact that the Greek government can NEVER re-pay its debts; and has been relying on additional ECB and IMF loans and bail-outs to simply pay the interest on its debt. Even IF the EU and Euro Zone membership is lawful, do not the following ancient MAXIMS of law invalidate the Greek government's debt?
g.) The law does not seek to compel a man to do that which he cannot possibly perform.
h.) The law requires nothing impossible.
i.) The law compels no one to do anything which is useless or impossible.
j.) No one is bound to do what is impossible
k.) Impossibility excuses the law.
3.) Finally, since these 2 sets of maxims appear to conflict in the case of the Greek government's debt, would not the following two ancient MAXIMS of LAW give greater weight to Item (2.) above: that the debts are INVALID simply re-paying them is IMPOSSIBLE?
l.) Where two rights concur, the more ancient shall be preferred.
m.) Nothing against reason is lawful.
John-Henry Hill, M.D.
retired physician
Dont see any probem with that,, 2 month vacation,...
what, you expect me to work.
Fuck off