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It Begins... Greece Demands An Emergency Meeting!
As expected, Greece was able to make the 750M EUR payment to the International Monetary Fund last Tuesday but in order to get its hands on the cash, the country had to force all of its public service departments to fork over the remaining cash they had left.
Source: Bloomberg
As we were warning in a previous article, even though the Greeks were able to pay the 200M EUR interest payment and 750M EUR principal payment, its future after these two repayments was absolutely unsure. Over the next three months, Greece will have to cough up an additional 7B EUR and as you can imagine, it just doesn’t have the money. It doesn’t even have a fraction of that money as we’re estimating Greece’s financial possibility to repay more debt to be less than a billion Euro. That’s why Greece wants to schedule another meeting with the Eurogroup before the end of this month (and this was confirmed by a government official). This indicates the country really is running on fumes here.
Time to ring the alarm bell once again as the ‘negotiations’ between Greece and the other European counterparties don’t seem to be resulting in a solution. The problem about these negotiations is that they will aggravate the situation. The longer it takes, the more urgent the situation gets and it wouldn’t surprise us to see yet another quick but temporary fix the evening before a large payment is due. This is just kicking the can further down the road and the same problems will re-surface 3 or 6 months later.
The Greek minister of Finance was hinting at the possibility the 27B EUR of bonds that are currently being held by the ECB (as part of its Securities Markets Programme) should see the maturity date being extended. Again, this is just another temporary fix as the bonds will be due someday. Extending the maturity date by just a few years won’t help at all.
So why would Greece deserve more time to repay the debt it owes to the international community? Because things are brightening up and its economy is looking stronger? Think again, as Greece has re-entered a recession once again.
Source: TradingEconomics
The country’s GDP has been shrinking again for two consecutive quarters and even though the drop is relatively small (0.4% and 0.2%), it surely doesn’t look like the economy is picking up again. Greece’s hopes will be focused on this year’s summer seasons which should draw a lot of tourists, but it’s a bit pathetic if a country needs to count on tourism to temporarily get it out of its cash crunch.
The fact Greece is asking for another emergency meeting says heaps, and the Euro-system could very well collapse sometime in the next few weeks on the back of this Greek drama.
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Start your charts from zero on Y axis, or do not draw a chart at all.
But a 30% fall in 5 years wouldn't look nearly as dramatic. Besides, how many of those German spent euros on beach holidays in the next few months will actually make their way into government coffers? I'd bet next to none.
They'll continue to circulate in the hands of the populace and out of the watchful eyes of central planning institutions for the most part. There’ll be very little change from one day to the next.
Imo.
The only ONE solution is for each and every person in Greece to just kill themselves. Then and only then will the banksters really understand they're not getting their money.
Next will be emergency funds.
Alrighty then, the great divide continus between the Hardworking/Hardsaving North Eu continues against the Party/Party Till Its Over South EU.
Of course it cannot end well.
But what, what if the parties of the South were invested in the savings of the North?
What if your holidays in Greece, Italy, Spain, Portugal were offset by interest payments?
So you spend 1 Eu in Athens and your bank account in oh lets say Dresden gets a 0.04 eU credit.
Hmm?
Does this mean Greece might not default?
More likely it means that the country will not be able to pay the salary to Tzapass and ViralFukus without outside funding. Also not being able to pay the salaries to the Syriza politicians could hasten a leadership change. Burning buildings in Athens was how the public responded to the past country leadership. I predict a lot of work for the firefighters, if they get paid.
Whenever I hear of the conflict between Zion and their Greek farm, I always hear in the back of my mind this:
"Relax, " said the night man,
"We are programmed to receive.
You can check-out any time you like,
But you can never leave!"
"And in the master's chambers,
They gathered for the feast
They stab it with their steely knives,
But they just can't kill the beast"
Never fails. I hear it every time. (Does that count as "voices?")
Liberty is a demand. Tyranny is submission..
https://www.youtube.com/watch?v=lrfhf1Gv4Tw
if the greek govt had one ounce of loyalty to its people, it would demand from the EU proof of the loans it was given, actually came from a "worthy source" like Gold backed currency & a "name behind it", While all nations service these ficticious debts, we know who's really pulling the strings of humanity.
tipzaris or whatever the c*nt is called, if he was anything of a leader he'd do what iceland did, write it off & demand proof of sound money, obviously he's a shyster of the first order & has no alligiance to the people he claims to represent.
Rigged... & while ZH keeps talking / publishing jots about greeces debt, they by default give it creedance.
F*ck teh EU & all who say otherwise
@HarryB
. . . creedence muddy(clear)water revival.
. . . asking for accounts gets one offed.
I demand to see Papandreou's & SamarAzz's blow and hooker's account. Only Pimp Goldilocks SuckMe have those fine details, well them and the NSA.
Greece demand emergency meeting, can is kicked. Greece demands emergencymeeting, yadda tadda yadda, Greece defaults.
The EU has to bail Greece out. They may demand harsh terms, but bail out they will. The reason is geopolitical. If Greece doesn't get bailed out, they just go over to the Russian camp. The EU and NATO can't afford this.
I vote with you, plus the one world crowd will not allow a backslide from their goals. They are not playing with accepted rules, they are the banker of the Monopoly board and with 500 trillion of funny money, what's another trillion when they are creating it anyway? Their objective is deeper than this charade and the Greeks are equally aware of it. This is pure theater.
IMO, the Greeks are going nowhere except for refresher courses in acting.
Greece "demands" a meeting? Goooood luck.
The first "mistake" was arranging for Greek inclusion into the EZ/Euro system. The next mistake was not realizing the first mistake and initiating Grexit back in 2010. This latest situation is so idiotic, so beyond the pale of even a scintilla of reason, that's it's become a parody of a tragicomedy. When one gets to the point Greece has arrived at, you stop (making payments). Sooner or later -at this stage, probably sooner- no can kicking will be possible, so cut your losses now. The fact that the the Troika-now the duo- have encouraged Greece to engage in this hopeless endeavor is ample reason for a Grexit, but, at this point, however many reasons there are, the fact that Greece can't pay the loans, except through extraordinary acts of cannabalism, is all the reason they need to stop the madness toute suite. Were this a chess or boxing match the contest would have been called long ago as the outcome became certain.
There is much more debt: Mainly you forgot the Target-2-Salden which is the balance between Greeke and that Euro-countries, which got no payment to their national bank from the greek national bank - via ECB. May be around other 500 billions (That means the delivered material to Greek has been paid still by the deliverers).
But also other figures are too low. There is a lot more Greeke have to repay plus intersest and interest on it. So Greek surely has more than one Euro-Billion, that means over 1000 US-Billions, to repay. This is more it will ever efford. And for the next few hundred years this will not be reduced but multiplicated.
We all see the end of the Euro. All states under this currency will carry the same great problems - as an creditor or an debitor. Never in history souvereign states could efford an common currency. All went wrong - without any exception.
Anything that will drive up interest rates is good. Because rising interest rates spell death for the ponzi-backed bond and stock bubble. Sooner or later, they will fuck it all up, either on purpose or by accident, it doesn't really matter anymore.
The important thing is to have dry powder ready (of all possible kinds).
Blah, blah, blah...don't give me this shit, just tell me how much does Soros stand to lose?
What would the Fed/EU/IMF/Central Banks do if all was normal and not newsworthy? What would Wallstreet do if they couldn't churn the news? What would the media do without them? Are we all stuck in their chaotic fabricated financial world?
Watch them extort tourists to help them with their cash crunch. Its just like US cities paying for their sports stadiums by taxing tourists to death on motels and car rentals. I doubt Greece will be an affordable place to visit.
Forever bonds as Greece will be screwed forever.
Greece, the lamprey eel of the EU.
This one has been entertaining to watch. It looks like we are nearly at the end of the rope, but I've said that before.
Yawn.
Wake me when they default.
If they just can declare bankruptcy,
shouldn't that cancel any debts owed to the EU?
Default.
Declare all external debt null and void.
Withdraw from the EU, the Euro and NATO.
Issue new drachmas. Arrange for it to be backed by Russian oil. Somehow.
Invite Russia to build a naval base on Crete and charge heap big rent.
It's not much of a plan, but what else have they got?
They don't have to withdraw from the EU, the Euro and NATO to do all those other things.
Doing them does mean they won't be getting another cent from Brussels.
But they won't be getting another cent from Brussels anyway even if they did withdraw from the EU, the Euro and NATO
>> what else have they got?
Sell the Port of Piraeus to the Chinese?
Governments do not go bankrupt, they become insolvent. Only war can force a government to pay up.
Greece needs to hold a referendum vote on whether staying in the Euro is worth the price of austerity. Because that's their choice. They can't have it both ways...to remain in the Euro requires the citizenry to commit themselves to the Troika's demands. And since it's their money (more or less) they get to set the rules.
Of course, Greece doesn't have to continue playing if it doesn't like those rules, they are free to quit. And this is what they SHOULD be doing. But apparently the people are not so sure. This is why they need to hold that vote, now.
In the Euro or out? Yes or no. If it's in, then STFU about austerity, because that's the price of membership.
If it's out, then prepare to hunker down for some hardship short-term, then be willing to get together and rebuild something resembling an economy from scratch.
The first option is slavery for the sake of convenience.
Only the second option allows Greece a fighting chance at recovery. But one must be prepared for some hardships along the way, and be willing to fight through them.
Syriza was elected by a people frustrated and seeking change. Now let those same people put their money where their mouths are...piss or get off the pot! Tell those Greeks that they either stand behind them in defying their overlords, or they (Syriza) will 'retire' and you folks can pick some other sucker for this job that no one wants them to actually DO but are prepared to crucify them for failing to do...
Make up your minds, Greeks! This is getting old, the audience is getting bored, and restless. You can't be doing this bi-polar shit, pick a position, stake it out, and go with it for the day, okay?
>>> Greece needs to hold a referendum vote on whether staying in the Euro is worth the price of austerity. Because that's their choice.
Not so. That is what the troika wants them to do.
They cannot be expelled from the Euro and they can default. All it takes to do both is a willingness to let the Greek banks go bust.
And then start again with new banks. Or with old foreign banks that are new to having branches in Greece.
Greece might be able to pay off its debt if it auctioned off
Miss Greece - Ria Antoniou
http://www.glamgalz.com/index.php/supermodels/miss-greece-ria-antoniou.html
Austerity won't get it done. Greece is well and truly KO'd. But at least three of the participants are pretending that there is still viability in the match, but there manifestly isn't. As a descriptor, surreal may not do this thing justice.
The problem of too much debt has occurred around 700 times and so far Austerity has never worked. The same is true of money printing, which any fool should understand cannot fix the problem of too much debt. What has worked 700 times in row has been debt write off.
Anyone wondering how many Zerohedge postings start with "It begins"? Just curious , so I looked it up on Google.. 1710 articles have "it begins" in the title. Just a little useless Zerohedge trivia.
...to be continued
lol
"So why would Greece deserve more time to repay the debt it owes to the international community? Because things are brightening up and its economy is looking stronger? Think again, as Greece has re-entered a recession once again."
If things were looking up, why would they need more time? It's precisely because they are in the crapper that they need the leeway...
Why does capitalism DO this? Punishing a deadbeat is one thing, but what good does it do anybody to completely bury a debtor who is experiencing hardship? Don't you WANT the guy to be able to pay you back?
But the ones having problems get their loans accelerated, or the interest jacked, etc...If the debtor couldn't make his regular scheduled payment, what would make anyone think he could afford to pay it all off, or budget for a higher interest rate? He needs a break, a little breathing room.
Greece should have had their loans either written down, or completely re-worked to provide payments out of Greece's SURPLUS...this would provide incentive to HELP Greece get its economy back on track, as the better they do, the more you get paid.
But this way is just plain stupid. And dragging the drama out for months and years is also stupid. At this point, the markets are more harmed by the continuing uncertainty than they ever would have been by a straight default.
"Why does capitalism DO this? Punishing a deadbeat is one thing, but what good does it do anybody to completely bury a debtor who is experiencing hardship? Don't you WANT the guy to be able to pay you back?"
The Troika knows Greece cannot pay its debts. BUT - if the Troika and its banks write down the Greek debts, that will show up on the EU balance sheets which are already in perilous territory for lack of capital reserves. As long as the Greek debts (and the debts of the rest of the PIIGS) are not marked to real value, they can remain on the balance sheets as capital reserves. This illustrates the dire straits of the Euro zone banks. The only answer to the overall debt mess of the Eurozone countries that the financial ministries and Troika have is to "extend and pretend" - i.e. continue to put off due dates, roll over existing debts, and lend more money to the debtor so the debtor can meet payments. Ludicrous, but pretense is the only strategy they have. Syriza has enraged the rest of the Euro zone by stating the obvious - that Greece is bankrupt, does not see increasing debt as a long-term remedy, and does not like asset sales to creditors, does not like the "market and budget reforms" demanded, and does not want to go along with the media circus of extend and pretend. Italy and France, which continue to play extend and pretend, have been given relief from the EU budget deficit limits, but not Greece.
At the same time, the Greek populace want to stay in the EU and keep the Euro. Syriza's election mandate was to keep the Euro, stay in the EU, and seek write-downs of the debts. It remains to be seen whether Syriza will call a referendum or election to seek a mandate to threaten to leave the Euro and/or EU, and whether the Greeks will give up their dreams of retaining the Euro and EU membership in exchange for debt freedom.
Germany, as the country that has benefited most from the single-currency system by exporting its manufactured goods to the rest of the EU, with its banks having financed much of the EU consumption, and its citizens being on the hook if Greece and/or the PIIGS default, is most hostile to Greece for stating the obvious situation of so much unpayable debt in the Eurozone. The Fiscal Stability Treaty, by which all Eurozone countries guarantee the debts of all others, is now seen not as a great lifeline but as a common noose around all their necks.
The Troika, I believe, wants to make an example of Greece for the rest of the PIIGS by making any debt write-down as painful as possible for the Greeks.
Perhaps what has kept Syriza plundering its accounts for money to meet payments is the continuing supply of cash by the ECB to Greek banks to meet the run of withdrawals. As soon as the ECB stops the cash deliveries, the banks in Greece will run dry of Euros. What will happen then?
I hear the term "deadbeat" thrown around a lot in these circles.
Isn't a "deadbeat" a person who voluntarily chooses not to pay their debts? What is the correct term for one who cannot pay their debts?
Isn't a "deadbeat" a person who voluntarily chooses not to pay their debts? What is the correct term for one who cannot pay their debts?
Broke Ass.
A deadbeat.
Dude, capitalism would have harpooned and beached this ugly thing a long long time ago by making Greek debt valueless. What makes you think the powers want to help Greece anyway? Its only stupid to you because you aren't playing this grotesque game of juicing the bond markets. If they want to drag this drama out they will do that, they don't care what is rational or reasonable and they are not capitalists eithEr
The elites have murdered tens of millions of people in Europe over the centuries and in Russia as well plus Asia.
You think they give a shit about the Greeks?
THe Greeks will stay in because the govt workers, govt worker pensioners, cops, army like those Euros. They could give a shit about the other Greeks eating garbage.
If Greece stays in the euro, most of them (other than the miltary) will become ex-current status, because those are the conditions of the eurogroup.
They'll stay in because the elite (top 10%), who also control the media in Greece, like the euros.
"THe Greeks will stay in because the govt workers, govt worker pensioners, cops, army like those Euros. They could give a shit about the other Greeks eating garbage. "
Please explain how the politicians and bureaucrats, MIC and praetorians, subsidized contractors, propped criminal banking syndicates, lobbyists, susidized institutions and industries, or the 'social services' dependent in United States are in any way different.
Yep and as Hayek pointed out, this is what drove nazi success in Germany, it was those working class on the outside looking in. Golden Dawn is next if they won't default
Although it has been recommended that Greece should default on the TROIKA "debt",
I doubt that many have recommended completely depleting
all of Greece's public accounts prior to any default!
What the hell is going on?
Is it Syriza's plan to now accede to some TROIKA "deal" on the grounds that
the hardships of default would now be too great
because the absolute worse conditions for default
have been (deviously?) made by Syriza ?
is Greece going to roll over?
Two weeks before the end of the month and the pensioners will need feeding.
paper debt is as sound as the fiat paper backing it. .gov has debt across the globe..the usa is more in debt than is greece, yet greece has a problem??
all fiat debt is fiction. when nations treat it as such and do it in public,( libya and gold back currencies for example )..they get justice from the barrel of a gun.
all debt is fiction act like it greece and perhaps with the right friends (russia & china) you will escape Libya's fate.