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Stunned Greeks React To Initial Capital Controls And The "Decree To Confiscate Reserves", And They Are Not Happy
Earlier today, following weeks of speculation, Greece finally launched the first shot across the bow of capital controls, when it decreed that due to an "extremely urgent and unforeseen need" (ironically the need was quite foreseen since about 2010, but that is a different story), it would be "obliged" to transfer - as in confiscate - "idle cash reserves" located across the country's local governments (i.e., various cities and municipalities) to the Greek central bank.
Several hours later the decree which was posted in the government gazette has finally percolated among the population, and the response to what even ordinary Greeks realize is now the endgame, is less than exuberant.
Bloomberg reports, that "as Greece struggles to find cash to stay afloat, local authorities say they oppose a government decision to use their reserves for short-term financing."
“The government’s decision to seize our reserves not only raises legal and constitutional issues, but also a moral one,” said George Papanikolaou, mayor of Glyfada, the third-largest municipality in the metropolitan region of Attica after Athens and Piraeus. “We have a responsibility to serve our citizens,” Papanikolaou said by phone on Monday. Glyfada has about 16 million euros in cash reserves, he said.
George is unhappy because as recently as tomorrow, he will find there is precisely zero euros in his public bank account, as all the money has now been forcibly sequestered by the government in order to repay future Troika, pardon, IMF obligations.
Sadly for Greece, this is the only option left as the money has now fully run out: Greek Prime Minister Alexis Tsipras ordered local governments and central government entities to move their cash balances to the central bank for investment in short-term state debt.
From Bloomberg:
The decree to confiscate reserves held in commercial banks and transfer them to the Bank of Greece could raise as much as 2 billion euros ($2.15 billion), according to two people familiar with the decision. The money is needed to pay salaries and pensions at the end of the month, the people said.
“It is a politically and institutionally unacceptable decision,” Giorgos Patoulis, mayor of the city of Marousi and president of the Central Union of Municipalities and Communities of Greece, said in a statement on Monday.“No government to date has dared to touch the money of municipalities.”
It took the radical leftist one all of 2 months since coming to power.
And the punchline is that the use of confiscated proceeds is unclear: the government says it is to pay pensions and wages, but recall that the same government recently confiscated pensions to repay the IMF, so according to the chain of logic, the government first raided pensions, and now municipalities, just to repay the dreaded Troika.
The Athens city council and the union of municipalities and communities in Greece will convene tomorrow to debate the order, a press officer of the mayor’s office said.
And one everyone realizes what just happened, expect the riot cam and the Greek Pay-Per-Riot channel, which has been on hiatus since the summer of 2012, to be fully reactivated.
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At least Russia has a future. The only future the Latvians have, much less deserve, is on a god-forsaken Siberian reservation when Russia decides to reclaim her Baltic coast.
How many times did you toast Adolf Hitler last night?
I must live in a different Greece to the one reffered too in this article as..non of it is true and this is the first time I hear about it.
Are you sure this blog is owned by humans???? I think its owned by the Cottingley Fairies !!!
So, how long have you been living in a culvert under a highway?
This is completely unrelated to the discussion --- but nonetheless --- important.
Might I put forward a motion to reward those who operate this fine website:
Every Friday from 1600 - 1800 EST all users of this site are to visit and click a minimum of 10 different banners.
And the ZH staffers can tally up the take from the Pay Per Click sponsors --- take the money --- and buy booze, coke and multiple sexy hookers -- and hunker down in a 5 star hotel for the weekend.
And the person who clicks the most banners each week gets an invite
If your post is meant to be sarcastic:
Get yourself Add Block Plus, an extension app. It will save your sanity. It'll stop these banner adds in their tracks, incredibly simple to use and it's a freeby.
Otherwise:
A great idea I'm all for it. I'll disable my Add Block Plus.
No I am absolutely serious.
I have no problem with the banners - rather bad form to expect a good web site to remain online if everyone blocks the ads.
in fact I usually click a few banners each visit even though I don't give s shit about the offer.
There --- I just clicked all Sponsored Financial Content ads on the right... clickety click clickety clack...
Magooo, you are right this is a fantastic website. You've made me feel guilty. To abolish my sins, I'll donate some cashola once in a while. however, I think I'll keep the Addblocker running. These damn adds are annoying. Although I do like those pretty young Asian ladies looking for rich husbands.
Wait until the government makes 'em line up to donate a kidney. All for the EU of course.
all yEUR bank account are belong to us
This could become a short term pain for gains and a breakaway from the IMF. Now, court challenges for the Legality....and a Revolt World Wide that Hopefully will bring down the Banksters.
Bitcoin users are not affected.
I kick your drum, hayyyaaa!
This Greek tragedy is about the government trying to fund itself. Not rid bad loans or restructure the economy. Public worker pensions/salaries first and foremost.
Greek Prime Minister Alexis Tsipras just cut his own throat !!!!
Anyone who has a substantial amount of money in ANY bank (including U.S. banks) is an IDIOT !!! It can - and will - be considcated in the blink of an eye.
Many Greeks had been withdrawing all the money (what little they had) from their bank accounts for months. They saw what happened in Cyprus and knew it was just a matter of time before a "bail-in" occurred in Greece.
Many Greek towns have set up "local currencies" which they use instead of Euros.
This is just another example of why it is best to own precious metals (GOLD and SILVER) and hide it away where no one else can ever find it. They can take your land, your house and all your other property, but thay can NOT take what they can NOT find - or even know you have!
AS gorvernment services dry up , Health , Hospital, buroaucracy , army , Navy , Air Force , Police , all without money , the social contract is gone . NO services , NO taxes .The end of the Government , When will it happen ? Eat the banksters ?