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White House Refutes European Complacency: Warns Grexit Threatens Global Economic Recovery
Despite our exposure of the contagious risk increases in peripheral bond spreads, "many European officials believe a Greek exit would be manageable, and in contrast to 2010-2011, we wouldn’t see the same cascading effect on countries like Spain or Ireland,” according to the European Centre for International Political Economy in Brussels and EU Chair Jeroen Djisselbloem even noted that "the Greek situation can be isolated."
Germany also confident...
- *SCHAEUBLE: EUROPE WON'T TAKE RISK TO ENDANGER GLOBAL ECONOMY
- *SCHAEUBLE: EURO ZONE HAS OVERCOME CRISIS, THERE’S NO CONTAGION
However, it appears America is getting nervous at Europe's apparent complacency... White House economic adviser Jason Furman says a Greek exit from the euro zone would present "VERY LARGE AND UNNECESSARY RISK FOR GLOBAL ECONOMY."
- WHITE HOUSE ADVISER FURMAN SAYS "GREXIT" INVOLVES LARGE TAIL RISK, COULD IMPEDE INVESTMENT, CREATE UNCERTAINTY IN MARKETS AND THREATEN ECONOMIC RECOVERY
And UK Chancellor George Osborne is not so complacent:
“The situation in Greece is the one at the moment that’s the most worrying for the world economy,” Osborne told reporters.
“A misstep could easily return the world economy to the situation we were in 3 or 4 years ago”
* * *
Still we are sure everything will be fine...
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Obama to blame Greece now. Whodathunkit!
we blamed some folks
Anything to give cover to keep from rising interest rates.
Kabuki theater.
Will the US allow gold to rise to "support" this claim ?
I'm currently in a cafe in Athens, everything seems hunky dorey
When you get your bill..does it have a tax included....or are you just paying cash....
Ya, taxes are on the bill
Just think. If Obama were to fork over $10B to hand to Greece it would buy more good will than $1T in bombs dropped on the Middle East.
Yeah really! Why doesnt the FED just print like 5 billion or what ever and hand it to the ECB? Who cares? Right? Problem solved.
Sarc off/
Both the Greeks and the Germans should tell DC to piss off. Let Europe deal with it.
WWHD
What would Hillary Do?
Make a secret deal for big bucks and then delete her emails...
Hopefully Hil made a deal to BUY Greece while she was over there.
Billion, schmillion what's the difference - Back door Fed bailout on the way
....supporting socialism across the globe.
Ya, taxes are on the bill
That's called a tip if you pay cash.
On taxes, Greece is the only place in the World where you pay two taxes on property:
first, 23% when you buy the property upfront.
second, yearly property taxes, which comes with the utility bill.
Dont expect to learn the truth from MSM ... even at ZH, one of the Tylers (i suppose based in UK from the time of its postings) kept saying "Germany throws up on latest Greece proposal" ... how low can you go???
Nope, not the only place.
well, may be one of the few ...but, i do not know of another one.
there are two property tax systems, either you pay upfront usually 20-25% or the other system (followed in US among others) you pay yearly taxes 1-3% or so ...
Because no one has a job to care about?
by a danger to the US, they of course mean a danger to US banks. My guess is that said banks have derivative exposure buried so deep they can't even estimate the potential undermining of their scheme a Greek default would cause.
Behold the latest scapegoat, nice try fellas.
Quite the queen
He looks like he just queefed.
Do they really believe their own lies??
Spliiting the alliance consensus.
Good.
They can't all be right.
OK, I have to admit there might be SOME upside to the rest of the world not giving a shit what Obama says any more.
ISIS is going to set up a Mediterranean division in Greece. Rita Katz said so.
pods
They wont like the nude beaches for their beheadings...especially the girls...
Us Europeans blamed the US for our recession some years back, so, have this one on us !
#...And the wheels on the bus go round and round, round and round.....
The USA doesnt care about Greece - they care about Russia and their Greek relationship - with the pipeline in coupled with Turkey - the anitrust action against Gazprom is off the table since all assets will be outside the EU until Italy picks up the connection at the border of greece on the west side for their own account - plus NATO to follow inevitably
the Greeks have much better future outside the EU and renounce the debt as criminal conspiracy with the politicians and Germany and move on - leave the 300 billion behind along with the US and NATO
Be realistic. The USA couldn't find Greece or Russia on a map. The chances of finding the USA are slim as well.
"A misstep could easily return the world economy to the situation we were in 3 or 4 years ago"
Oh, come on. 2011 wasn't that bad. It was pretty much exactly like every year has been since 2009. One year of 'recovery' blurring into the next.
U.S. taxpayers to bail out Greece to save Europe to save Japan to save the Ukraine in 3...2...1...
The Grexit contagion will spread through the EU. Greece will host new Russian naval base in Aegean.
I love how USUK jumps at the chance to blame anything (Greece, Russia, China, ISIS) but the financialization monster that it created.
Same as it ever was.
In other news, somewhere Hegel is smiling at the upcoming systhesis of a EU fiscal union.
Time to break out the Jack-boots, kids!
Greece crash greater impact than China crash???...uhhhh....okley dokley
Just another scape goat for the administration to blame the collapse on. Obama had everything fixed until........ Fill in the blank.
He starts the excuses.
THERE IS NOTHING WRONG WITH GREECE AGAIN , IS THERE?
Bring back the spiderman towels.
how strong is a recovery when it relies on 1 small country?
Aye Captain, it shows you how precariously the financial/economic system is weighed when the fate of one rather small economy elicits this level of political attention.
Bullshit!
off topic, but probably of interest to some :
This night the European POLITICO went online :
www.politico.eu
( Maybe it will relieve Ghordius a bit of endlessly explaining what the EU is and is not )
You can bet your investment porfolio on Italy..Spain..Ireland ..all thinking about getting out also.....there is a party that will be elected to do this in the future i think...
Spain has a party that's just over a year old. Leftist and a much bigger threat if the Greece domino falls.
Expect the market to hit a new ATH on this news
Of course Grexit will be a hard kick in the crotch for Wall Street. That's why Syriza will be overthrown long before it happens. The army of the Hellenic Republic, a NATO member in good standing, will see to that. That's why Schaeuble isn't concerned in the slightest.
Nobody leaves the Fourth Reich alive. The example of Greece will encourage the others to think twice before trying.
you are missing the trends - the baltic states hate the US ditto Poland to come and Lithunia - they see the vassals in brussels and dont want to be part of this - EU hasnt the money for the major bribes to the people to keep them alive - all will leave eventually and the conscripts to Ukraine from Lith / Poland / Rumania / etc will inevitably fall apart - the Ukranian conscripts ask the Separatists to take them prisoners rather than fight so they dont have the Asov Batallion shooting them in the back and die as cannon fodder
the game has no legs for US or EU - the people are getting the charade in Germany and France as well
Oh, I know the EU will collapse like a house of cards once Russia's patience comes to an end. Nobody in the jokes that pass for Europe's armies wants to be the last to die for the Fourth Reich.
It'll be far too late to save Greece, though. Then there's those 59 nuclear power plants in France alone that can be rigged to meltdown at the first sight of Russian troops.
3 or 4 years ago everything was awesome and we were in the midst of an uprecedented recovery. Allow me to preview a sound byte from 2 years from now for you:
of course they say that. like everyone else, they are invested in status quo and greek failure and servitude.
Greece is doing a reverse Robin Hood...
they are robbing the poor municipalities of their last funds -
when in fact they should rob the World Bank and IMF and Troika -
and give to the poor municipalities and people in need for funds.
what sort of left socialist Government is this ?
If I was Greek Finance minister, I would just tell the Eurocrats what they wanted to hear and then take another few billion off the IMF & Troika,
then hire Goldman Sachs as Tax consultants and get them to cook (balance) the books. Then I would sue Germany for War Reparations.
there, problem solved!
WR;)
When all the US Gov stats are proven a sham (recession, still and evermore) - it's the black swan in the form of Greece. Nobody saw it coming and it ain't our fault!
'THEY' bitched about the US letting Lehman slide down the chute. Now it's tit for tat?
As always, the US should STFU!
nobody cares what the wh thinks anymore
grexit just another bogeyman to explain the ongoing collapse
We need a short war to bloody the nose of US Saudi and Israel... then that should get the western people to pull back, then we can have economic growth as US markets will flush out.. sink a few US fleets, tap Israel on the nose. no more ISIS, US puppet governments will crash as they run for cover.
Amazing what some temporary Russian and Chinese bases in Iran can do, Cyrpus too.
USA waning, Russia, China, India rising.
Grexit is "the Emperor is Naked" moment. It shows that debts in Western countries are too large to ever be repaid. The continuous intervention by Central Banksters has lulled bond investors into a false sense of safety.
Grexit will shatter the illusion of safety created by Central Bankster lies and interventions. The US has debt and unfunded liabilities of $1,400,000 per taxpayer and should be worried that the illusion of safety of US bonds can be easily shattered by the impossibility of US ever paying off its debts.
The solutions is a simple one. Have Germany invade Greece... , Oh, wait a second... .
the euro and the greenback the most leveraged HFs to bulwark the eurobond and US stock markets, in a commodity age which finds no growth rage to prime corporate profits?
What has the Oligarchy world become.
No wonder in this race to bottom the Yuan is now flying under its own flag !
Time to hoist the Jolly Roger on all continents!
White House warns if Greeks stop paying the Banksters other EU nations will follow Greece exit and stop paying the Banksters too.
As Victoria Nuland says, "Fuck the EU".
Notice how that ZIO HAG has disappeared off the front pages recently?
Musta been reading a few choice comments directed at her on ZH.
can't have bankers losing money now can we.
It's not the Global Economic Recovery that is being threatened, it the Global Ponzi Scheme pretending to be an Economy that is being threatened.
So at least the White House has unkowingly admitted, you can't taper a Ponzi Scheme.
Lehman anyone? AIG?
These 2 must have graduated from the University of Bozo with a degree in balloon artistry. The list of countries that defaulted on loans in the twentieth century alone could fill this entire page and includes Germany twice, Brazil 9 times and every South American country at least 3 times.
Politicians have got to the point where their stupidly is overwhelming their lies. Hey morons the entire planet is bankrupt. Let's stop pretending its not.
I guess when you choom your way to your next exotic multi-million dollar free vacation every three or four weeks, you might be inclined to think there's a global recovery going on.
What recovery?
re WH Says Greece Threatens Global Economic Recovery....
Translation: Greece Threatens Continued Viability of USSA Financial Abattoir..
It's all an academic exercise...
Until someone wants to get paid back.
Then we'll see how deep the derivatives go. Schnauzer could be right and Greek losses could be contained.
As long as a few folks are willing to take it in the ass.
Good luck with that.
Greece must be punished - so that "government of the banksters, by the banksters, for the banksters, shall not perish from the earth."
IMF needs to correct its big Greek bailout mistake
By Ashoka Mody
The Greek government's mounting financial woes are leading it to contemplate the unthinkable: defaulting on a loan from the International Monetary Fund. Instead of demanding repayment and further austerity, the IMF should recognize its responsibility for the country's predicament and forgive much of the debt.
Greece's onerous obligations to the IMF, the European Central Bank and European governments can be traced back to April 2010, when they made a fateful mistake. Instead of allowing Greece to default on its insurmountable debts to private creditors, they chose to lend it the money to pay in full.
At the time, many called for immediately restructuring privately held debt, thus imposing losses on the banks and investors who had lent money to Greece. Among them were several members of the IMF’s board and Karl Otto Pohl, a former president of the Bundesbank and a key architect of the euro. The IMF and European authorities responded that restructuring would cause global financial mayhem. As Pohl candidly noted, that was merely a cover for bailing out German and French banks, which had been among the largest enablers of Greek profligacy.
Ultimately, the authorities' approach merely replaced one problem with another: IMF and official European loans were used to repay private creditors. Thus, despite a belated restructuring in 2012, Greece's obligations remain unbearable -- only now they are owed almost entirely to official creditors.
Five years after the crisis started, government debt has jumped from 130 percent of gross domestic product to almost 180 percent. Meanwhile, a deep economic slump and deflation have severely impaired the government's ability to repay.
Almost everyone now agrees that pushing Greece to pay its private creditors was a bad idea. The required fiscal austerity was simply too great, causing the economy to collapse. The IMF acknowledged the error in a 2013 report on Greece. In a recent staff paper, the fund said that when a crisis threatens to spread, it should seek a collective global solution rather than forcing the distressed economy to bear the entire burden. The IMF’s chief economist, Olivier Blanchard, has warned that more austerity will crush growth.
Oddly, the IMF’s proposed way forward for Greece remains unchanged:
Borrow more money (this time from the European authorities) to repay one group of creditors (the IMF) and stay focused on austerity. The fund's latest projections assume that the government's budget surplus (other than interest payments) will reach 4.5 percent of GDP, a level of belt-tightening that few governments have ever sustained for any significant period of time.
Following Germany's lead, IMF officials have placed their faith in so-called structural reforms -- changes in labor and other markets that are supposed to improve the Greek economy's longer-term growth potential. They should know better. The fund's latest World Economic Outlook throws cold water on the notion that such reforms will address the Greek debt problem in a reliable and timely manner. The most valuable measures encourage research and development and help spur high-technology sectors. All this is to the good, but such gains are irrelevant for the next five years. The priority must be to prevent Greece from sinking deeper into a debt-deflation spiral. Unfortunately, some reforms will actually accelerate the spiral by weakening demand.
On April 9, Greece repaid 450 million euros ($480 million) to the IMF, and must pay another 2 billion in May and June. The IMF’s managing director, Christine Lagarde, has made clear that delays in repayments will not be tolerated. “I would, certainly for myself, not support it,” she told Bloomberg Television.
Inevitably, debt relief will be provided -- but in driblets and together with unrelenting pain. The Greek government will need to withhold payments to suppliers and workers, and will raid pension funds. Five years from now, the country's economic and social stress could well be even more acute. The question will be: Why was more debt not forgiven earlier? No one is willing to confront that unpleasant arithmetic, and wishful thinking prevails.
Having failed its first Greek test, the IMF risks doing so again. It remains trapped by the priorities of shareholders, including in recent years the U.K. and Germany.
To reassert its independence and redeem its lost credibility, it should write off a big chunk of Greece's debt and force its wealthy shareholders to bear the losses.
[Bloomberg]
http://www.ekathimerini.com/4dcgi/_w_articles_wsite3_1_21/04/2015_549287
WR;)
1.) There has been NO "recovery" in the U.S. On his web site "www.ShadowStats.com John Williams calculates CPI (Consumer Price Index or “inflation rate”) and other statistics based on the criteria used by the U.S. government starting in 1990. The Bureau of Economic Analysis (BEA) of the Department of Commerce began to revise these criteria greatly beginning in 1980, but John Williams uses the 1990 criteria - presumably to prevent the "people taking to the streets with pitchforks".
The fact is that, using the more "forgiving" criteria used in 1990, the true CPI is consistently about 4 points higher than the "official" CPI figure put out by the government and splashed all over the media. Since true GDP (Gross Domestic Product) is calculated by subtracting the CPI from the raw GDP, then the true GDP has been NEGATIVE since 2008. In other words, the U.S. has been in a true DEPRESSION since 2008. (Raw GDP - True CPI = True GDP)
As John Williams also illustrates, the true Unemployment rate is about 18-19 points higher than the “official rate” when calculated using the 1990 criteria. (This figure is reflected in the extremely high “Labor Non-Participation Rate”.)
2.) The U.S. government is terrified of the political and social upheaval that will occur once the American people realize that their U.S. dollars (whether invested, in a bank or elsewhere) have become nearly worthless. (The Federal Reserve, a private bank whose KNOWN real owners can be found in 5 charts downloadable from either:
http://www.lawfulpath.com/ref/federal_reserve.shtml
OR the link located at the end of the essay at:
http://johnhenryhill.wordpress.com/2014/07/26/the-federal-reserve-who-really-owns-it-7262014/
also have a great deal to worry about financially. But they (as the charts reveal) are mostly unknown by the general public and are probably already prepared for the “crash of the U.S. dollar” through their extensive ownership of real assets (as the charts also show).
The more visible politicians and high-profile bankers will be the people whose “heads will roll”. If I were a “Washington Insider”, I would be scared, too!
John-Henry Hill, M.D.
http://JohnHenryHill.Wordpress.com
JohnHenryHill@Yahoo.com
Do you realize how retarded this is? One TINY country THREATENS the global economic system?
I keep hoping that someday I'll wake up from a bad dream. Day n+1 of ZH- "You can't make this stuff up"
Yes, this after Greece was downplayed for the past 5yrs as a non-event.
No, one Tiny Country threatens their global scheme of universal looting and pillaging.
There is no "global economic recovery" to threaten.... so Greeks have nothing to lose by leaving.
The "Don't Doit Because It will threaten the global economic recovery" card has been played so many times, that they are just looking for something to point to , so that they can blame their failed central bank policies on that event (beit grexit or whatever), anything it doesn't matter so long as the "global recover" doesn't fizzle out on its own (since it doesn't even exist).
"...Threatens Global Economic Recovery"
HAHAHAHAHAHAHAHAHAHAHAHAHAHAHA.....
who do they think they are fooling with this bullshit?
If US is worried why FED won't just buy one trillion USD worth of greek bonds, and greek comedy can keep on runing for free for next 20 years. Ofc everything unofficialy not to show greeks debt/gdp ratio at 1000% :)
Most nations are drowning in debt, any of them could bring the system down, so they're each pointing the finger at each other already so when it does come down the dumbed down masses will blame whomever their politicians have told them to blame thus saving their own scrawny little necks. The simple fact is should Greece fall they wouldn't be causing the collapse, they're just a symtom of the problem. The first to fall will get the blame.
HAHAHAHA
Yeah, Greece is the fucking lynchpin for everything.
I kind of want to see them manipulate a Greek default into a economic equivalent of a mass murder.
Translation........ The White House is setting the stage for another money laundering scheme to enrich themsleves and thier friends.....
That is not a rational assesment of a Grexit and its after effects, it is merely the WH threatening the EU into supplying all the QE necessary to kick the can further.
Unspoken subtext: Just keep giving Greece more debt to avoid some vague problem in the future. Easy Peasy Japanesy.
What does this have to do with Greece? Just bailout the friggin Banksters already!!!
You can try refuting the reality of the problem - Fukushima style!
Fukushima style - Mutation Style
Buildin' reactors on the beach right near a forest.
Meltdown on MOX plutonium Hey baby can we abort this?
All we need is just a bit of luck to cover up this
Cleaning up? We can't afford it!
Cesium under here. Just like Chernobyl Russians hid the truth over there
Blew up a load of cesium Chased the media out of there
But rads got into kids' hearts They lost their hair
Nothing to see here...
When you're with G.E. you get a disease
So now d'ya know where you plan to go?
When rads are flowin' you better listen
So you know we gonna show
Making sure you well informed before cancers grow...
Fukushima Style - Mutation Style
Fuk - Fuk - Fuk Fuk - Fukushima Style
Back on the ground, they layin' rads All through the forest
Turning off the rad meters so All the sheeple will ignore us
We foul up oceans bit by bit And we don't welcome bloggers
But they still tryin' to expose us
Like a psycho here, killin' babies Spreading cancers everywhere
Zombie media layin' BS all around So we eat with care
Best you leave the cities And take only the clothes you wear
While you watch us here
Obama not carin', Monsanto rising Puttin' G.M.O in your potato
Look at my girlfriend She's now a mutant!
So grab your gold and some ammo And run away 'fore they put your ass in GITMO!
Fukushima Style - Mutation Style
Fuk - Fuk - Fuk Fuk - Fukushima Style
Irradiate some more till you kill them all
Eugenics eugenics baby That's what they are pushing for
Watch TV some more Idol's such a bore
When you find the CIA controls Al-Qaeda See the game they playing?!
Fukushima Style - Mutation Style
Fuk - Fuk - Fuk Fuk - Fukushima Style
https://www.youtube.com/watch?v=iwG8qwGU3-s
So to get to my point, Greece is not a scapegoat. It's deliberately targeteed for 'rising some cash' - de gré ou de force.
Like said, the blowback from the Californian drought is grossly underestimated, as is the blowback from sustaining lower oil prices, the blowback from a strengthening dollar, the blowback from ultra low rates, the blowback from U.S. waged wars around the globe, the blowback from the toxic dollar, the blowback from the whole Greece affair and so on and so forth ...
Investors may be ignoring potential ‘collateral damage’ from Greece
20 April 2015, by William Watts (MarketWatch)
http://www.marketwatch.com/story/investors-may-be-ignoring-potential-collateral-damage-from-greece-2015-04-20