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Greek Debt Crisis Coming To Head - Contagion?
Greek Debt Crisis Coming To Head - Contagion?
- Greece Rapidly Running Out Of Cash - Soon Must Fold To Troika Or Default
- IMF Rebuff Greek Suggestion To Delay Repayments
- ECB's Draghi Warns Potential "Grexit" Puts EU In "Uncharted Waters"
- Despite Threats, Greece Remains Defiant, Won't "Budge On Red Lines"
- ECB Considering A “Second Currency” For Greece
The Greek government and its "partners" appear to be reaching the end of the road in their negotiations to release the final €7.2 billion of its €240 billion bailout deal.
- Greek drachmas
Eurozone countries are demanding that the new Greek government produce a list of reforms that prove its credibility before releasing euros to them. However, Finance Minister Varoufakis is suggesting that Greece will not retreat from its red lines and did not rule out a referendum or early polls if talks remain deadlocked.
Greece is rapidly running out of cash with which to pay public sector wages, pensions and welfare payments. At the same time Greece is expected to pay €930 million which is due over the next few weeks.
It would appear as though the moment of reckoning is fast approaching.
The Greek government will likely maintain the support of the Greek population as they have have engaged with the Troika to the bitter end. If and when Greece finally defaults it will be able to place the blame squarely at the feet of the European elites.
"We will not sign up to targets we know our economy cannot meet by means of policies that our partners should not wish to impose," said Varoufakis.
"We will compromise, we will compromise and we will compromise in order to come to a speedy agreement … But we are not going to end up 'being' compromised. This is not what we were elected for."
Various representatives of the Troika have tried to portray the Greek government as naive, unintelligent and disingenuous.
The consistent official narrative has been that Greece's "radical left-wing government" has not put forward realistic proposals for restructuring the government to reassure the Troika that it would meet its repayment obligations in the future.
The discussions have been private and the specifics of Greece's various proposals since Syriza came to power in January have never been made public.
The track record of the Troika however, particularly with regards to Ireland, would suggest that their mandate is to protect the interests of banks - at the expense of citizens - at nearly any cost.
With reference to a Greek request to delay its payments to the IMF Christine Lagarde told reporters, "It's clearly not a course of action that would actually fit," adding "We have never had an advanced economy ask for payment delays."
Such intransigence is hardly appropriate at such a crucial time for the future of the Eurozone.
Draghi played down the effect of a potential "Grexit”. Draghi stated, “The short-term danger of contagion [from a Greek exit] is difficult to assess, but we have enough buffers in place. And even though they were designed for different circumstances, they are sufficient." However, he did acknowledge that "we are entering uncharted waters.”
The European Central Bank has analyzed a scenario in which Greece runs out of euros and starts paying government employees with IOUs, creating a second currency within the euro bloc, people “with knowledge of the exercise” have told Reuters.
The ECB are considering the possibility that Greece will default in work undertaken by the so-called adverse scenarios group. Any default by Greece would force the ECB to act and possibly restrict Greek banks' crucial lifeline access to emergency liquidity funding from the ECB.
Contagion is an increasing concern. The IMF's Poul Thomsen warned “Nobody should think that a Grexit would not be without problems.” Bank “holidays” and capital controls are likely.
It is highly unlikely that the ECB has enough "buffers in place." European banks fared badly in the Federal Reserve’s stress test report released last month on the basis of poor risk management.
The fallout from a Greek default is difficult to assess especially with the strong political will to hold the Euro together. But the potential for contagion in the bond markets and through credit default swaps is very real.
The outcome of such a development would like lead to bank failures across Europe. Bail-ins are now the rule and as was seen in Cyprus and now in Austria, bank deposits are no longer sacrosanct.
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MARKET UPDATE
Today’s AM LBMA Gold Price was USD 1,203.25, EUR 1,120.34 and GBP 806.31 per ounce.
Friday’s AM LBMA Gold Price was USD 1,204.55, EUR 1,113.83 and GBP 801.86 per ounce.
Gold rose 0.46 percent or $5.50 and closed at $1,204.50 an ounce Friday, while silver fell 0.18 percent or $0.03 closing at $16.26 an ounce. Gold and silver both finished down for the week at 0.31 percent and 1.39 percent respectively.
Gold held steady above $1,200 an ounce on a softer dollar today. In Singapore gold was unchanged at $1,205.30 an ounce in late morning trading in a tight range of $4.
China ramped up its QE program by slashing its reserve requirement ratio (RRR) by 19.5 percent to 18.5 percent for its largest banks, for the second time this year. In efforts to increase bank lending and prop up the falling Chinese property market and struggling Chinese economy.
The India Times noted that due to the low gold prices they expect to see at 25 percent increase in jewellery sales in Akshaya Tritiya.
A ‘Grexit’ may still be on the cards and the Eurozone finance ministers are scheduled to meet on Friday in Latvia. This should support gold this week.
The world's largest gold ETF, the SPDR Gold Trust or GLD, had an inflow of just under 3 tonnes on Friday, bringing its total weekly inflow to 4.8 tonnes, the biggest since early February.
In London gold for immediate delivery in late morning trading is up 0.04 percent at $1,204.40 an ounce. Silver is up 0.11 percent at $16.27 an ounce and platinum is up 0.16 percent at $1,165.89 an ounce.
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"If and when Greece finally defaults it will be able to place the blame squarely at the feet of the European elites. "
Because the European elites forced them to take more debt.... Oh wait, the Bankster Front recognised that they would not be able to pay off their debt and therefore restricted debt.....
European elites are scum for backing their Banksters but sustainability has to be an issue for Greece, eventually.
"...when Greece finally defaults it will be able to place the blame squarely at the feet of the European elites."
No, you ignoramus, euro-trash, pig-fucker, shit-breath, c*nt.
Your ass-fucking, commie, greek dummies did this themselves.
when you pull your boyfriends schlong out of your ass or mouth for a long enough time to go get a GED, THEN come give us your gaybar toiletstall opinion
Germany said they could take Greece "for five billion."
APPARENTLY NOT!
They want their gold back?
NO PROBLEM.
I just keep accumulating P.M.s on the dips. No rush, no hurry. PMs manipulated? The evidence is there. So, why buy something that is being manipulated?? Only answer to ME is because it sure worries a LOT of people for just being a 68 cubic meter pile of shiny metal that pays no dividends. Why manipulate it then? Same for silver. I do happen to be a multi trillionaire ,with over 200 trillion $, in assets. Sadly, 200 Trilion is in Zimbabwe currency. History repeats, and will with the fiat currencies Worldwide, this time. My Grandparents, ex German, Russian, left the Crimea, went to Germany, sold Sterling silver and some gold, to get out of Germany during Weimar days. German Currency became worthless, and PMs in any form were the REAL money, and saved them. I believe there will be a fiat currency adjustment based on a Country's debt to GDP, assets etc. Guess we will all have to wait and see what our paper,cloth will be worth, as decided by the BIS, IMF, etc. etc. Central Banks sure seem to be accumulating more Gold, except maybe for stupid countries like Canada maybe? Why have it, store it , protect it, if it has no REAL value?
When people tell me that the only people who buy gold and silver are people who refer to "the Crimea" and "the Ukraine", I tell them no, not so.
There are many people in "the united states" who buy silver and gold. Just that most people have less money than before....
Greek contagion my ass.
They always tell you to stay the fuck away from a flailing drowning person as they will latch onto you and drown your ass to.
Greece, the lamprey eel of the EU.
And now we are finally coming to end of all the Kubuki scripted theatre. The can has been kicked down the road until there is almost no more road left. "China has formally requested the inclusion of the renminbi currency in the SDR basket composition. She also stated that Chinese efforts towards economic reforms, such as opening up capital accounts, has been supporting the case for the yuan."
"The expansion of the membership list of the Asian Infrastructure Investment Bank and the growing framework of the Eurasian Development Bank, with probable regional currencies, is creating additional leverage on both America and the IMF to ensure that quota and governance reforms are implemented and that the yuan is included in the upcoming SDR review.
The momentum which has built up internationally surrounding the multilateral mandates can no longer be ignored by the American administration. The yuan will only require a 70% vote to be included in the SDR composition. The US veto falls short of this which means that it is all but certain that the renminbi will be added to the global reserve basket.
The emergence of the BRICS Development Bank and Reserve Fund, along with both the AIIB and Eurasian Development Bank, including a large membership of American allies, has created a political situation for both Democrats and Republicans which can no longer be ignored or postponed.
All of these institutions and their representatives have officially stated that they do not wish to create a new monetary system outside of the existing IMF and World Bank model, but wish to enhance and expand what they feel has been a USD dominated framework to more fairly represent the economic realities of a multilateral world.
Whether or not America agrees with the multilateral transition and reforms to the IMF no longer matters. The leverage and Plan B framework has been established and is fully capable of bypassing any resistance and gaming by the United States. Further inability by the US on enacting the required legislation to support the transition will only hurt their political and economic interests internationally.
The level of volatility and instability which Americans will experience moving forward from this point will largely depend on the responses and collaboration of their government. But the average citizen will have opportunities available to help themselves transition through this period. When the international institutions and central banks have been building a method leveraging the SDR as a means to provide monetary stability, we have been working on a method by which private citizens can also leverage this non-private asset towards the goal of wealth retention and financial stability."
Me thinks it's coming close to either "Go Time" for the War they want or a pass.... Bilderberg meeting in June should answer that imo.
The Pope calls for an end to the slaughter of innocent refugees while NATO & the US COUP in Libya caused the destabilization & fear to refugees to want to flee the War torn destabilized country the US / NATO caused.
"We can't impeach Obozo he's the first Black president." I never bought that story to begin w/ or gave Congress a pass for that lame ass excuse. And now the can has been kicked to the end of the road...
The stoopid burns & it's so obvious...
And now we are coming to begin the ...
http://www.mintpressnews.com/new-details-on-syrian-kidnapping-of-richard...
EU-ministers zijn in Luxemburg akkoord gegaan met een actieplan om 'schepen te vernietigen'!?!?!?
http://nos.nl/artikel/2031432-eu-verdubbelt-budget-voor-aanpak-vluchteli...
Het is voor netwerk @SuperWil inmiddels duidelijk geworden dat de huidige EU-ministers nog steeds niet willen inzetten op het systeem 'Leven en Laten Leven'. Dit betekent dat het vertrouwen van de mensheid in de huidige machthebbers met de dag vermindert. Natuurlijk is netwerk Juncker niet alleen verantwoordelijk voor de werking van het systeem 'Liegen om te Leven', maar is dit voortgekomen uit het SCHULD=H00P-principe.
Ook de bestuurders van de EU zijn over het algemeen academici, die het gedachtegoed van Spinoza niet hebben begrepen. Doordat de westerse wetenschap nog steeds het geloof heeft dat 'de absolute waarheid' niet kan worden gedefinieerd, zitten we met 'T0P'-bestuurders die de 3e SpinozaGolf niet willen (h)erkennen.
http://www.parool.nl/parool/nl/30700/OPINIE/article/detail/3968343/2015/...
In de optiek van @SuperWil wordt het welzijn van studenten bevorderd door les in de 'Logica van de 1'. Zo kan er een vruchtbaar werkklimaat worden geschapen, om de cultuur van waarheiddelen te vervolmaken.
I think that the SDR has been part of the US plan for a long time. It allows the US to kick the can to another FIAT financial system. Each time the US does this it avoids the need to declare itself insolvent.
Absolutely. The stupidity of the monetary policy cannot be accidental. You would think even a born idiot like Steve Liesman knows they are simply kicking the can towards disaster. Nope, this is designed as a slow fail and then the savior will be some kind of global currency. Watch and see
I'm not sure if I am the delusional one here.
You might not be but I am. Gold is manipulated. It is so because the US ESF is legally allowed to do so and it does so. Go to GATA and see for yourself. They admit it. They need the price of real money down so the fiat looks strong. Plain and simple. But market forces will prevail. The whole fiat system is dependent on confidence that the underlying bonds and other paper will pay back. They will not. People are deluded to think otherwize. It is in their intrests to buy every cheerleader on the face of the earth to say so. Now everyone is cornered because there are few places left to hide the impending down stroke. And with 401k money pouring in every day the sellsiders are pumping that along with all the free money into every freaking etf, stock and bond fund and screaming "Look! Its going up! Get in now!"
All gonna end in tears except for the few (here in the US) who lost a lot of PM in a terrible boating accident.
Is gold a commodity metal with supply and demand value or is it just another fiat currency?
LOL! Gata? I'm not sure who is more delusional, you or Bill Murphy. The amount of denial on ZH leads me to believe the gold bottom is still a long way off.
I'm a BIG buyer of gold.
At $724.
That's my calculated bottom for this cycle. I was being sarcastic above about it being manipulated.
Yeah ... if you look at the charts, then somewhere between $650 and $850, depending on when it bottoms.
I'm looking for $450 or maybe lower. Problem is when it gets down there, will it ever really rally very much? Probably not although might be good for a double to $900.
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I don't see a Grexit necessarily supporting gold. An argument for the opposite case could easily be made. Gold looks very weak now and likely to fall over the next few years certainly in $ terms and probably in most other currencies as well.
You're delusional, naive or paid to be both. Gold looks weak because they manipulate it to look weak. The dollar will head for the floor once the shift away from its use is completed globally, and the only safe haven on the other side of that trade is real PM's.
Why would anyone want to own a commodity that is manipulated?
Name one that is valuable that is not manipulated. Oh... you can't. One would want gold for the day the manipulators lose control of the mechanisms by which they manipulate as gold is manipulated down and it will never spoil or rot.
Sure, and how do you know that this process won't take another decade or more? "manipulated to look weak"? I'm not sure if I am the delusional one here.
Someone who is honest would admit gold is manipulated as the price is set by paper not gold. Thus by definition, gold is manipulated.
Hey Felching Mellish...everything is manipulated clown. Your daughter probably manipulated you at the damn dinner table last night to stay out later. EVERYTHING is manipulated, the question is to what degree. The answer for PM's is TO A VERY EXTREMELY LARGE DEGREE, as the PTB (TBTF Banks) have both the motivation and means to do so. Get it, yet?
The butt clowns in Brussel's knew Greece was a tragedy when it joined but they wanted one big happy EU family, no matter what. Then they started huge wads of cash at Greece, then act surprised when it turns into a giant cow turd. The thing is that the other indebted countries are looking at the disaster and wondering if their next. the EU might barely get through this without falling apart but when Italy or Spain can't pay, then what?