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Bank Of Greece Pleads For Deal, Says "Uncontrollable Crisis", "Soaring Inflation" Coming
The situation in Greece has escalated meaningfully since last week. After the IMF effectively threw in the towel and sent its negotiating team back to Washington on Thursday, EU and Greek officials agreed to meet in Brussels over the weekend in what was billed as a last ditch effort to end a long-running impasse and salvage some manner of deal in time to allow for the disbursement of at least part of the final tranche of aid ‘due’ to Greece under its second bailout program. Talks collapsed on Sunday however as Greek PM Alexis Tsipras, under pressure from the Left Platform, refused (again) to compromise on pension reform and the VAT, which are “red lines” for both the IMF and for Syriza party hardliners.
By Monday evening it was clear that both EU officials and Syriza’s radical left were drawing up plans for capital controls and a possible euro exit with Brussels looking to Thursday’s meeting of EU finance ministers in Luxembourg for a possible breakthrough. That seems unlikely however, given that Athens is sending FinMin Yanis Varoufakis whose last Eurogroup meeting ended with his being sidelined in negotiations after putting on a performance that led his counterparts to brand him an amateur, a gambler, and a time waster. For his part, Varoufakis says no new proposal will be tabled in Luxembourg as Eurogroup meetings aren’t the place for such discussions, which is ironic because Jean-Claude Juncker said something similar not long ago when the Greeks were trying to get a deal done at the very same Eurogroup meetings.
Perhaps realizing that pinning everyone’s hopes on a Thursday breakthrough is a fool’s errand, the EU will reportedly convene a high level, emergency meeting over what we’ve suggested may be a “Lehman Weekend” for the market.
Against this backdrop the war of words heated up on Tuesday with Tsipras delivering yet another incendiary speech to parliament in which the PM claimed the IMF has “criminal responsibility” for trying to “humiliate an entire people”, which is ironic because if anyone should be humiliated here it’s probably the IMF given that Athens employed the old “one move and Greece gets it” routine to force the Fund to pay itself €730 million in May and now faces the uncomfortable prospect of being railroaded into disbursing €3.5 billion in doesn’t want to disburse so that Greece can make June’s payments which have already been delayed and which Athens now wants to put off for another six months. Meanwhile, Jean-Claude Juncker has dropped the “Tsipras is my friend” routine altogether, saying he “doesn’t care about the Greek government” but rather about “the Greek people.” Juncker (who once famously opined that "when it gets serious, you have to lie") took it a step further on Tuesday, blaming Athens for misleading Greeks: “I am blaming the Greeks for telling things to the Greek public which are not consistent with what I’ve told the Greek Prime Minister,” Juncker said. “Juncker either hadn’t read the document he gave Tsipras…Or he read it and forgot about it,” Varoufakis quipped, in a terse response. Finally, France’s European commissioner, Pierre Moscovici, brushed off Tsipras' contention that the troika's demands are "absurd," saying creditors' push for pension and VAT concessions is "far from crazy."
And while the politicians engage in one-up word battles and play an endless game of headline hockey, analysts, bankers, and economists are busy speculating on what capital controls and a Greek exit will look like. Here’s UBS:
It would not be the first time that capital controls have been introduced in the Eurozone – there is the precedent of Cyprus, which restricted capital flows between March 2013 and April 2015. Yet, importantly, in the case of Cyprus, capital controls were imposed as part of a Troika bailout with the aim of protecting the Cypriot banking system while it was being stabilised and restructured. In contrast, in Greece capital controls would be imposed in the absence of a deal – as a result of stalemate in discussions over broader issues of economic policy. Against this background, we worry that capital controls in Greece would be another step towards an uncertain course of events and possibly a harbinger of worse things to follow.
Relative to Cyprus, capital controls in Greece might also be more painful. Compared to Cyprus, Greece is a more closed economy (Greece's export quota is 33%, Cyprus' is 56% (2014)). A larger part of economics activity is dependent on domestic drivers and the economy can rely much less on trade driven currency inflows to finance external payments. As a result, recessionary dynamics are likely to get worse in the domestic economy (and potentially even in parts of the export sector). Exporters short in cash and reliant on bank credit would face difficulties to transact (this might include even part of the tourism sector). Import activity would gradually be rationed to the extent that outflows match the inflow of Euros from abroad. The domestic cash business would decline in size and financial conditions and lending activity will tighten. Counterparty risk would pick up domestically, with collateral in domestic sectors rationed by firms' capacity to generate cash. In addition to the cash constraints, heightened uncertainty would make economic actors very cautious (potentially affecting payment morale), thus restricting economic activity.
And from Bloomberg:
How would capital controls work?
They would hurt. No one knows the specifics for Greece, but here’s what happened in Cyprus: ATM withdrawals were capped at 300 euros a person per day. Transfers of more than 5,000 euros abroad were subject to approval by a special committee. Companies needed documents for each payment order, with approvals for over 200,000 euros determined by available liquidity. Parents couldn’t send children that were studying abroad more than 5,000 euros a quarter. Cypriots traveling abroad could carry no more than 1,000 euros with them. Termination of fixed-term deposits was prohibited, while payments with credit and debit cards were capped at 5,000 euros. Checks couldn’t be cashed.
How would capital controls be put in place?
An element of surprise helps. In Cyprus it started with a long bank holiday, between March 16 and March 28, 2013. That gave the country time to negotiate an accord with euro-area member states and the International Monetary Fund. Banks re-opened with restrictions in place and a recapitalization plan for the country’s financial system, which included the imposition of losses on deposits.
How long might it last?
There’s no real limit. Cyprus kept controls in place for two years, even though they were supposed to be a temporary emergency measure. Limits on transactions gradually eased over the two-year period, before being lifted completely in April 2015. Experience from other countries, including Iceland, shows that once in place, they can only be removed gradually, after a long period of time. Iceland’s government presented a bill this month to lift capital controls implemented in 2008.
But perhaps the most dire assessment came from the Bank of Greece, which warned on Wednesday of an “uncontrollable crisis” in the absence of a deal. Here’s more, from the press release:
Failure to reach an agreement would, on the contrary, mark the beginning of a painful course that would lead initially to a Greek default and ultimately to the country's exit from the euro area and – most likely – from the European Union. A manageable debt crisis, as the one that we are currently addressing with the help of our partners, would snowball into an uncontrollable crisis, with great risks for the banking system and financial stability. An exit from the euro would only compound the already adverse environment, as the ensuing acute exchange rate crisis would send inflation soaring.
All this would imply deep recession, a dramatic decline in income levels, an exponential rise in unemployment and a collapse of all that the Greek economy has achieved over the years of its EU, and especially its euro area, membership. From its position as a core member of Europe, Greece would see itself relegated to the rank of a poor country in the European South.
This is why the Bank of Greece firmly believes that striking an agreement with our partners is a historical imperative that we cannot afford to ignore. From all the evidence available so far, it seems that a compromise has been reached on the main conditions attached to this agreement and that little ground remains to be covered. Besides, the lowering of the primary surplus targets is a decision of paramount importance that significantly extends the time needed for fiscal adjustment and allows for additional degrees of freedom in the conduct of fiscal policy. Equally important will be the reaffirmation and articulation in more specific terms of our partners’ willingness to provide debt relief, as initially stated at the Eurogroup meeting of 27 November 2012. What we need today is a viable debt deal which will spare future generations burdens that we have no right to saddle them with.
To get an idea of how far apart the two sides are, consider the following from Tsipras (via Bloomberg):
“Our proposals fully ensure that we meet the budget targets that creditor institutions have set for 2015 and 2016,” Greek PM Alexis Tsipras tells reporters in Athens after meeting Austrian Chancellor Werner Faymann.
Savings of EU1.8b in 2016 alone from pension system aren’t possible; Greek proposals lead to savings of EU300m. There’s no room for additional pension cuts.
“Our proposals fully cover the extent of fiscal consolidation demanded, but Greece is a sovereign state. The Greek government has a recent mandate and it is its own competence to decide how to tax and where will it find themoney. The demand to find the savings asked from pension cuts is incomprehensible.”
“If Europe’s political leaders insist on this incomprehensible demand, they will assume the cost of a development which will not be beneficial for anyone in Europe.”
Government will assume responsibility to say “the big No” if no viable agreement is on the table.
And then of course there's the incomparable, incorrigible Mr. Schaeuble:
- SCHAEUBLE SAID TO TELL LAWMAKERS PREPARING FOR NO GREECE DEAL
If all of this sounds unequivocally bad to you and if it seems that capital controls and some manner of dramatic political and social upheaval are now an inevitability in Greece, you're not alone, but because we like to preserve our reputation for staying positive, we'll leave you with the following reassuring words from Tsipras:
"The real negotiations are starting now."
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The question should be "How much worse will this be because we kicked the can for 4 years rather than biting the bullett back in 2011?" Of course that will never be asked or answered by TPTB.
Fuck the Greek bankers wanting the EUR gravy train to keep going for them. A few dozen people at the BoG are prospering at the expense of their country. Shameful, and the government, if it has any sense about it should do the exact opposite of what the BoG says.
Throw those pathetic Greek deadbeats out of Europe already.
Idea : reduce spending
Idea : Reduce taxes.......................so Greeks can spend
It's a chicken or egg situation.......................once debt gets to large
Idea2 : Outlaw politicians and bankers.
Great Idea.....................who do we get to run the country?
I must admit with the advent of the Internet.......................we called all just present laws etc and vote on it.
But someone has to be in charge of Militry, Civil Cervants etc
You've been sufficiently programmed, haven't you? Free your mind, citizen.
@Meat Hammer
What are you rambaling on about....................Speak properly
You'll have to free your mind and delve into some deep thought about a land without government, without using the mindset of someone who has been programmed to believe that government is necessary.
And at what point did I say government is necessary????
I would rather not have government at all
But someone or group has to run the shit show.
Have you read "Lord of the flies" ??
Oh, the IMF has a lot of “criminal responsibility” in their history, but humilitating an entire people is akin to charging them with jaywalking. How about mentioning some of their real crimes!
XAU XAG, how many people would you kill tomorrow, if there was no statute telling you not to kill?
Sure it might be good to have some appointed guys in charge... you could even pay them if you wanted...... but forcing you to pay with a threat of voilence is a fundamental wrong.....
Nixy
Not sure if my post is being read wrong.
Never said there should be no LAWS
We already have appointed guys in charge..............and we are paying them
When did I mention forcing anyone to pay with threat of voilence????
Idea3
Have Greece leave the EU and the Euro gradually- over the course of 2 years. slow and controlled switch to the Drachma. Any Euros in the country can be exchanged for silver and gold backed Drachmas and all Euros collected get handed back over to the ECB.
wont cause a wicked shock to the system and there wont be any massive bank runs as the new currency will have value since its backed by something of real value- not promises. Greece gets out from under the thumb of the ECB and the ECB gets all their precious fiat currency back.
everybody is happy.
Vote up! 0
Vote down! 0
Throw those pathetic Greek deadbeats out of Europe already.
Guess if they throw all the deadbeats out............................who would be left????
Zee Germans.
Not even them. All of them are dead beats now.
We are deadbeats, just ask China.
Imagine what would happen if we demanded that all debt be paid back, globally, now.
Oh wait, they might do that this weekend you say?
1-800-YELLEN
The European Union theme song
"The Deadbeat Club"
The B52s
https://www.youtube.com/watch?v=vRfMc_Q5SYU
Get a job? What for?
Mommy Government will take care of you.
Get a job? What for?
I was thinking...
I was good, I could talk
A mile a minute
On this cocaine high I was on
We were stealing everything'
We were stealing every day for hours
Cause we belong to the deadbeat club
Anyway we can
We're gonna steal anything
We'll rob in the Market
Unbalanced Bankster sheets without pain
We'll rob in this Market
The Derivatives crash without shame
Without shame
We're the deadbeat club
We're the deadbeat club
We're the deadbeat club
We're the deadbeat club
Going down to Brussels for
A One trillion dollar hit
And the Germans scream real loud
"It's the Greek's fault", do you hear
We're wild Nations ripping off the weak
Wild Nations and Banksters going out for the last time
We're the deadbeat club
We're the deadbeat club
We're the deadbeat club
We're the deadbeat club
Let's go crash this Market down
In Brussels town tonight
Then we'll go on begging'
In the World Markets all right?
We're wild Nations ripping off the weak
Wild Nations and Bankers going out for the last time
Anyway we can
We're gonna steal anything
We'll rob in the market
Unbalanced Bankster sheets without pain
We'll rob in this market
The Derivatives crash without shame
Without shame
We're the deadbeat club
We're the deadbeat club
We're the deadbeat club
We're the deadbeat club
Oh no! Here they come
The members of the deadbeat club
Deadbeat club
Oh no! Here they come
The members of the deadbeat club
Deadbeat club
Oh no! Here they come
The members of the deadbeat club
Deadbeat club
Oh no! Here they come
The members of the deadbeat club
Apologies to the B52s.
https://www.youtube.com/watch?v=vRfMc_Q5SYU
Go, Alexis ! Be strong, stand still, face them bastards and kill the serpent ! You are the grain of sand in the transatlantic partnership and all the other monetarist crap , dont hear the sirens who just want you splashed in the rocks !
...but, it isn't really soaring inflation. It's life with a currency that is seeking a market value based on the productivity of it's citizenry. The key is always productivity. But the Greeks aren't focused on productivity....and don't tell me how wonderful Greek people are, I've been to Greece multiple times and I like Greek people....but their Government is most concerned about pensions....which any way you cut it = payments to people for non-productive activity. So...even though I have been anti EU anti EURO from day one, the Greek people will one day have a day of reckoning. (like all the rest of us...eventually)
Don't be a hater, Greece is playing their cards perfectly and they will string along the EU for as long as they can and then when they jump ship the joke will be their economy will actually improve too.
Can you imagine what would have happened if the central planners had achieved their goal of banning cash in Greece. The Greeks would have lost every penny. I wonder if anyone will learn the lessons of the freedom provided by cash. I think not, and in the coming years they will manage to ban cash making our money easier to track and steal in various ways.
Please sir, I want some more.
https://www.youtube.com/watch?v=sZrgxHvNNUc
They can try banning cash, but they can neither ban nor confiscate bitcoin.
FBI Says It's Seized $28.5 Million In Bitcoins From Ross Ulbricht
"The real negotiations are starting now."
Code for
4 PLAY IS OVER
FUCKING TO COMMENCE...........................not sure who is fucking who..............or will it be classed as Rape of the Greek people
The Rape of the Greek people has already occurred, particularly by their own (former) government(s). The pertinent question now is will there be sloppy seconds......or thirds?
CD
CONCUR
LOL at the Sloppy seconds...........ot thirds...................Perhaps we should call it a continued "BANK BANG"
Because the best blood of the turnip, is the last drop.
The Rape of the Greek people has already occurred, particularly by their own (former) government(s).
No one Raped the Greek people.
They have been and still are firm believers in Communist lies and Socialist Fairy Tales. The last election confirms that they have not recognized that those systems are failures. Until they do change their beliefs, they will continue to rot from self inflicted failure. Delusions can continue for many years. Will they b to carry it oew more weeks, months, or years? Sure, as long as they are able to find someone who will let the Greeks spend the money for them. It seems that the list of fools willing to do that has become very short.
They have been and still are firm believers in Communist lies and Socialist Fairy Tales.
How cute.
And that only applies to Greeks?
Russians are also easily fooled.
"which included the imposition of losses on deposits."
Otherwise known as bail-in's. I would suggest highlighting this Tyler. This is how things are going to get paid for regardless of which way this goes (IMF bailout or Grexit). Difference being that the bail-in money stays in Greece in the Grexit scenario. This is why Greece should exit.
2011. I can´t believe we are still watching this shitshow since the outcome/solution should have been obvious back then to anyone with half a brain.
I am predicting an 11th hour can kicking, so the shit show can go on.
imho, there will not be can kicking...the 11th hour has passed.
The CHF decouple from EUR in January is perhaps an indication most of us still don't get it.
All these since is kabuki...dragging towards the big day (in September?)
Borrow and promise too much for too long and now it's "uncontrollable?" No fucking way. Who could have seen that coming?
criminal responsibility bitchez
Issue arrest warrants for Blankfein and Dimon and issue the Greekcoin gold backed crypto-currency.
Long live Zeus.
A gold backed currency will be suicide. Look what happened to the greats that stood up to these Jesuit Zionists. JFK, John Lennon, Saddam Hussain, Gandi, Hitler, Gaddafi..... The list is endless
Gandi? You mean that buttboy for the Rothies?
Greek PM to Spend Time in St.Petersburg Working on Pivot:
http://winteractionables.com/?p=21877
Iceland has had capital controls since 2008 and is still above sea level.
Greece used the Drachma for a number of years before using the euro, whom every informed person knows is not a future currency.
The idea of Greece not being able to exist outside of this EU mafia or its currency is nonsense.
Some people say that it is impossible to leave the EU for some reason, but Greenland did just that in 1985. It had no lasting impact on the country, and was clearly a good decision.
The central bank of Greece along with all other central banks in the Eurozone, is just an ECB franchise. They have less authority on what to do or say tan a McDonalsds joint. Just to clarify what the opinion of the Greek central bank is worth.
Freedom for the people vs slavery to the banksters. Easy choice.
The people are only slaves to the bankers IF they borrow, or allow their politicians to borrow in their names.
Fiscal responsibility is freedom from banksters individually and collectively.
I think they are finally starting to get it....too late.....they should have been saying this when they were borrowing all of that money...now its time to pay....or not pay...but if you dont pay your bills..there is no food....
Greece will keep producing olives and cheese and fish. So I'm not too worried about starvation to be honest. Maybe no more spending on BMWs or Mercedes in years to come or less military equipment but that will hurt good old Schäuble more than the Greeks.
Well, the idea to counteract cutting pensions and increasing VAT was the proposal by the Greek government to cut weapons supplies instead. But of course, weapons>people so Europe denied this option. Talk about hypocrisy...
Tsipras really seems to be working for the people and not the bankers. At least this is what his behavior in recent week indicates. And Brussel autocrats are becoming more anxious by the minute it seems.
Now we shall see how much it will really hurt banks if Greece leaves, without looking at a single balance sheets we will easily be able to know judging from the reaction of EU ministers in the coming days!
I think the operative word is
"seems",
and then only if one ignores the fact that
Tsipras has been steadfastly negotiating for a way to sell out the Greek electorate
to the TROIKA banksters,
while all the time steadily weakening Greece's position
by continuing to pay IMF loans, depleting Greek finances,
losing original enthusiasm from SYRIZA supporters,
and thereby further allow the NATO/TROIKA-backed opposition to strengthen.
I see it a bit different. Greeks did not want to leave the Euro by a wide margin in January and still don't now altough they are already less convinced (that is if you believe offical surveys). How can he actually convince them that leaving the Euro is the only option? The only way is to tell them that he tried everything negotiating with Brussels.
What do you think would have happened to him politically if he had chosen to leave the Euro in January? Greeks would have only remembered the subsequent hardship and blamed it all on him and his party for not trying to stay in the Euro. No, this game needs to be played in a way that the population realizes that there was no other choice...
There are no guarantees how events will turn out.
Portraying bad policy as instead just clever politics is self-defeating.
A sizable percentage of Greeks would have supported a Greek exit from the euro.
How many more Tsipras could have persuaded by explaining that the only choices were long term austerity with the TROIKA or short-term austerity with an exit
--- now remains forever unknown.
Instead, he has spent time "persuading" everyone that the best course of action is to "negotiate a deal".
Should an elected leader attempt to persuade the electorate to implement needed policies, and failing to do that, resign and call for new elections?
Or should he/she just continue with a critical harmful policy in an attempt to make voters suffer enough until they see the error of their ways,
all done in an attempt to cynically manipulate voters?
Will such cynical manipulation only disillusion voters and give rise to other negative political forces?
And is there no possibility that such political interpretations (inventions) as you endorse could be simply false excuse-making for bad leadership? (e.g. Obama is good, he's just making the 'only' choices possible - OR - Tsipras is just cleverly doing the expedient)?
who cares about the the capital controls ? If I was Greek, I would be dead worried about losing my LIFE SAVINGS, just like it happened in Cyprus.
What sort of moron would keep their life savings in a bank?? Bank accounts are for online bill pay.
Gets out worlds smallest violin.
Bank of Greece sides with international Bankers, who would have believed it!
Bankers of the World United in ripping eeveryone off.
The obvious solution for the Greek Government?
Jail the Bankers starting with the traitors in the Bank of Greece, maybe for a laugh, hang some of them.
they just now figured that out?
Cypriots were blindsidded overnight. Greeks have been moving their financial assets out of reach of the banking system for years. Greek banks are running out of assets to leverage. Banks are insolvent, surviving on leveraging Greek Gov't payments thru the system. Estimating greek deposits at 85billion is just a number which makes bank books palatable to their lenders. There are no greek deposits left, just day to day transactions.
The "financial elite" is the Government.
They cut the check.
This is not about how to get the Bankers to pay but how to get the Government to pay.
The bitter irony is that interest rates have never been so low.
As with everyone else we all still wonder "after all the trillions spent where is the growth?" Right now there isn't any.
thursdays hamberger deal? tuesday burger came and is eaten. ha, and what do the cows say?
Mooooooooooooooooooooooooooooo
This sounds more like a drugaddict who is out of fix and needs just that one...just "one" more fix....I swear, it's the last time!
They've pulled every socialist, childish tantrum dirty trick bullshit brinksmanship negotiating ploy in the book .... now, they whimper .... help me .... I'm not well ?
Absolutely! F-ing Banks know ALL the tricks and aren't afraid to use'm.
!
The only "crisis" will be in the "Just Us" group, their minons and state parasites.
The banksters did no work creating that fiat trash they call the Euro why should the Greeks do any work to pay them back? Screw them. Default.
Barter to get things started and then create a unit of trade that has tangible real value.
Yes and build Hotel Greece on tourist dollars. Be the showcase of the Underground Economy. Monies in pensions funds are not in your control. If the storm settles, these funds will shift to Others' treasuries through financial engineering, economic BS, etc.
The Greeks have hidden their assets .... so, let's go after the hard working German families !
Again, Cyprus subjected itself voluntarily to capital controls forced on them by the institutions.
If the Greek gouverment doesn't and they are forced upon Greece it is an act of war !
"Greek central bank making wild assertions of no economic precision, that it cannot possibly back up. Astonishing"
"My advice to Greek central bank. Stick to poetry and drama. Very good at it."
"In my (33) years covering world affairs, don't think I've ever seen anything like it from an official body"
- Ambrose Evans-Pritchard (on Twitter)
A certain someone Central Banker will be invited to the next BIS dinner party..
The ECB cannot force capital controls. What they can do is turn off ELA support which will lead the Greek gov. to implement capital controls so as to avoid bank runs. Still, this could be construed as a hostile act and as a reason to default on the ECB-held bonds.
Fasten your financial seat belts. As the Wicked Witch of the West exclaimed in the Wizard of Oz “….my little party's just beginning”. Western (US, EU, Japan) economies as a whole are in precarious shape. Despite the fact that financial problems in Greece are continuously making headlines, there are plenty of more Greece’s in the EU. These include Spain, Italy and Portugal, with France not far behind (see: www.economist.com/blogs/graphicdetail/2015/05/european-economy-guide). Expect continuing economic stagnation/decline, increasing deficits, high unemployment and continuing austerity, conditions leading to increasing social instability.
I think this would be a No Shit Sherlock event when you borrow that much money with no possible way of paying it back.
Were you talking about Greece and its IMF crook loans, or US Student loans? Well, I guess it applies to both.
I didn't read the fucking article - just plain tired of all this shit.
Move on already
I just wanted to ask -
If the government stops paying employees and pensions because it has no money to fund them -
Wouldn't that cause deflation?
Where does inflation come from if no one is spending?
So they at least have that going for them.
There would be No Euro's
Some articals sugest Parralel currency...................That would be inflationary
If the Greeks issue thier own currency.................I guess that would be inflationary..............short term
Inflation is a psychological phenomenon that requires access to lot's of cash. Even if folks had the will, they don't have the way without decent jobs. So you're right...they can't create inflation...All you can do is create an illusion of inflation by trying to print money. But all you'll get out of that is bubbleized asset prices and increases in the cost of living...the spending itself doesn't really change. You just put bigger numbers on the bills and voila! Bill Gate's house just doubled in price, and so did a gallon of milk and a tank of gas...That's 100% inflation! But the same amount of shit is being sold...maybe less now that the price has gone up...People are actually spending LESS, not more...It isn't inflation, it's some mutant illusion of inflation.
You're just fooling yourselves, that's all.
North Angola
Reap the whirlwind!
What are the clowns at the Bank of Greece that worried about? If Syriza were serious about revolution they'd already be dead.
What they should really worry about is Greece's suffering the sane fate as the last "poor country in the European South" who dared defy the banksters and the House of Saud.
If what they want is Syriza overthrown and liquidated, and replaced with a German king, NATO can guarantee that---nothing else will satisfy Schäuble. What they can't do is guarantee the safety of anyone at the Bank of Greece who doesn't flee the country before the jets scramble.
<<<<<You made shitty loans to deadbeat riffraff who won't pay up...get over it.
<<<<<You have lived beyond your means for far too long, won't pay your bills and no one will loan you money...get over it.
Pure ignorance.
Do you think the United States could meet its debt obligations if it not have complete control over its own currency?
I've been to Italy and Spain. The people there are suffering too. Not because they are deadbeats, but because the eurozone was a terrible idea from the start.
The EU was a terrible idea. But Italy and Spain sucked before the EU and they would have sucked regardless. Do you not remember the Lira? These countries suck because they have continuously builit anti-business economies, and yes, the people are less than enthusiastic at putting in 40 hours a week working. If anything, the existence of the Euro currency held back double digit inflation and a faster cratering currency than they otherwise would have experienced. They would have still over spent on welfare and shamed business into moving elsewhere.
The statement by the Greek CB is a political statement, particularly with its reference to Greece being forced out of the European Union and not just the EZ.
Tsipras needs to get rid of the people running the Greek CB because it is clear they have (surprise, surprise) aligned themselves with the ECB rather than the Greek people or the Greek government.
Do whatever the Bank of Greece is begging you not to do...
At this point it is still "only" rhetoric. It seems things ARE heating behind and in front of the curtains though. Will they paper it all over or is this time the real deal? Guess we will find out soon enough.
This is how the EU/IMF 'conquered' Cyprus - bypass elected politicians and go right to their fellow banksters. Syriza needs to clean these guys out before they open the back door and let the EU/IMF in.
This is not Blazing Saddles.
More like Resevoir Dogs.
Those crazy greeks have Germany by the ballz .. bet Deutsche Bank didn't think the game of chicken would get this far along ;) Go Greece .. Blow-up those MF'ers.
It would seem TPTB are getting nervous. They have given one of their lackeys at the BoG a tap on the sholder and told him to get vocal.
I hope that this time things could really be different, that Syriza gets either more money for free to pay the bankers and turn the tables on their ruse or is cut off completely and forced to default. Either way the Greek people will win. ( well i the long run)
Max
They still have Olives and Ouzo. Coffee may get a little expensive though. Fish from the "Med" and with a very weak drachma plenty of Tourists willing to spend Euromarks.
Let's turn this into a drinking game
Whenever you see any of the following words/phrases in a new story, drink!
- last ditch effort
- deadline
- crisis
- final proposal
Hey mom, the dog peed on the carpet again. You better clean it up quick. It stinks!
'Soaring Inflation' Coming -- I thought the Europeans were more afraid of deflation, and have struggled to fight deflation, -- so 'soaring inflation' should be a good thing??
"Paging Mr. Swan, Mr. Black Swan..."
Papandreou and Samaras arses are still soar from the fucking they got by the Troikas weeping cock.
But if you need lightbulbs, ask Samaras. Twat.
Wait! Tsipras just got done blaming EVERYONE for Greece's problems, but Greece, and now they're begging for a deal? Isn't there anyone mature enough to manage communications in this country? You can't go chastising everyone one day and the next coming hat in hand begging for money. This is riduculous! You blame everyone when you've made the decision to break from the EU. Enough of the bi-polar behavior. We need some adult behavior here. Why not just Hire a stable 13 year old girl to manage Greece's communications with the world?
... a note to Greek PM Tsipras: kicking the can further and more dra(ch)ma would do no good ... just default and be debt free ... then sign Putin's Russian agreement for that Gazprom oil pipeline passing through Turkey and Greece to Europe ... then you'd get your needed funding for the next decade ... (it could be this simple :) .
There is more to this than meets the eye with SyriZa in such a panic according to the press we are receiving. Threats to people? Or of unknown consequences? SyriZa needs to have a brew put on some Coltrane and relax while they call up the Icelandic government and ask for some timely advice. That advice will probably run along the lines of "Let them fail, then investigate, lay charges, try and jail" "The Dracma can then be issued by the government and the Greeks will have no interest to pay to no one and prosperity will evenyually return as Greece will be in a better monetary situation than anyone else.... excepting us Icelanders and perhaps Canada if the COMER suit is successful in retoring the Bank of Canada to its constitutional role as lender to the people's governments" etcetera....
They could schedule sporting events - give the Greek people something fun to watch while their economy sinks deeper and deeper into the shit.
Put those fancy Olympic stadiums to some good use. Sell it on PPV or do a deal with Netflix.
I think these would be a good start
Alexis Tsipras VS Angela Merkel - bare knuckle no hold barred
Yanis Varoufakis VS Jean-Claude Juncker - razor blades and ice picks to the death
Bankers VS lions (blindfold the bankers to make it fair)
Bankers VS machine guns
Naked Politicians VS pensioners with machetes
what is likely to happen:
Greece will introduce temporary national currency and mandate its use ( you must sell your goods for our drahmas )
this currency will devalue alot during the next one-two years
after that (when wages and pensions are down sufficiently in real terms) new stable currency wil be introduced and pegged to euro
cue the massive unbelieveable greek outflow charts...again
Now let me get this straight-the ECB is printing 60 billion a month in Qe, but refuses to include Greece? What kind of fucked up alliance is that? What, we only have obligations, but no benefits? On the other hand, Ukraine(a.k.a Sorosland) has been granted support even though it meets nobody's criteria. Talk about double standards................So, on behalf of the Hellenic people around the world, I'd like to say something: FUCK YOU MALAKA!
Will they be able to naked short the drachma when it's reintroduced?
it's not like you have to own it to sell it, is it?
hee hee.
TA DA
Greece begging for more Debt they can't repay
And the loan sharks begging them to take on more Debt they know they can't repay. But your already printing money to pay your own debts, so where are you getting the money from to loan them.
I love it, when a plan comes together.
What color will the Greek's "revolution" be?
"Mr. Syriza, you just got a box from Langley that only had some color swatches in it?!"
Liberty is a demand. Tyranny is submission..
If I were Greece, I would seriously consider having all the bankers involved offed, and damn the consequences, which couldn't be worse than submission. Such an act would have enormous corrective power.