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Meanwhile, Greece Is Quietly Printing Billions Of Euros
Earlier today we showed why Greece is now literally living on borrowed time. The combined €2.9 billion in ELA cap increases ‘generously’ bestowed upon the flailing Greek banking sector by the ECB last week looks to have been barely enough to keep things from “ending very differently” (to quote Kathimerini) at the ATMs on Friday.
But perhaps more importantly from a big picture perspective, Greece may have already breached the upper limit of its borrowing base. JPM calculates Greek banks’ eligible collateral at €121 billion (€38 billion in EFSF bonds €8 billion in government securities, and €75 billion in “credit claims”). With Friday’s ELA increase, the country’s total borrowings (that’s OMO plus ELA) amount to some €125 bilion. Why would the ECB allow this? Because it knows the breach will be promptly limited or reversed on Monday, or there will be a deal.
So, it is literally “deal or no deal” time, because if JPM is correct and eligible collateral was either exhausted two weeks ago or, in the best case scenario, is right at the limit, capital controls will need to be put in place as early as Tuesday at which point the ATMs will officially stop dispensing freshly-minted euros which, incidentally, brings up an important point. As Barclays notes, during the same period over which Greek banks lost nearly €30 billion in deposits, banknotes in circulation jumped by some €13 billion. In short, because Greeks are increasingly prone to stuffing their euros in mattresses, a large proportion of the deposit flight has come in the form of hard currency withdrawals, meaning the Bank of Greece is forced to (literally) print billions in physical banknotes:
A large part of the deposit outflows is in the form of banknotes, whose usage has increased significantly since the end of last year (+44%). Indeed, out of a deposit outflow of €29bn (from the end of November 2014 to the end of April 2015), banknotes in circulation in Greece have increased by €13bn.
But hard currency printed in excess of NCB quotas (set by the ECB) represents a liability to the rest of Eurosystem and so must be added to Greece’s negative TARGET2 balance to determine the EMU’s total exposure to Greece:
The amount of banknotes in excess of the quota for Greece (about €27bn) represents a liability of the Central Bank of Greece to the Eurosystem in addition to the net liabilities related to transactions with the other Central Banks in the Eurosystem (Target 2 liabilities). As of the end of April, net liabilities related to the allocation of euro banknotes were €16.2bn and the Target 2 balance was negative by about €99bn. Therefore, the total exposure of the Eurosystem to Greece was around €115bn. This corresponds to the amount of borrowing of Eurosystem liquidity (OMOs + ELA), as shown in Figure 4. Taking the increase in the ELA ceiling as an indication of the deposit outflows/usage of banknotes and the increase in Eurosystem funding, such exposure might have increased to about €125bn currently, we calculate.
Of course, given Germany’s massive TARGET2 credit with the ECB, a liability to the Eurosystem is, for all intents and purposes, a liability to Germany:
So we can add the quiet printing of some €13 billion in banknotes to the list of reasons why German FinMin Wolfgang Schaeuble, a growing number of German MPs, and, increasingly, the German people have run completely out of patience with Athens.
As for all the Athenians who have recently tapped the ATMs, check your euros. If the serial number starts with a "Y" that means it was printed by the Bank of Greece and you should probably hang on to it because you might soon be able to sell it at a premium to a museum.
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The hyperinflation will balance out to all printing presses, no need for alarm.
They should print enough to pay off their target 2 debt.
Uh ohh.. Nobody is allowed to print fiat other than the slavers.
Fig. 4 resembles a Jesus fish.. The Rapture must be soon.
How is this "model" any different than what the US and the Fed do?
The US monetizes its debt thanks to the Fed buying half of everything.
They both are just printing money regardless of the long term liabilities and structural under-employment.
Greece is the US, the US is Greece.
That Perception just has not caught up with enough people.
Nor will that perception catch up with enough people. When it goes bad in the end we are going to have a whole lot of people here asking questions like "what happened"?
Ironically, the ignorant, apathetic populace is cause for the abuse in the first place. We're all going to get what we deserve in the aggregate regardless of our ignorance level - I suggest keeping some vodka around to blunt the frustration on occasion when the shit hits the fan.
so what are you going to do next as a greek citizen when you get the first wiff that just perhaps those clean crisp Euro notes in the mattress might not be going to hold their value? .....currency is a confidence trick after all. Just ask yourself what would YOU do?......hang onto 50000 pieces of paper, or...........................?????????
It doesn't matter. The greek pleb is just as retarded as any other nations.
Ask yourself that same question about the US. They are recorded as spending more than they bring in for thirty or forty years and they print the difference and more. What other country can pull that off for so long?
The US is the inflation key to watch. If he world loses faith in the value of the buck, then the shit really hits the fan.
LOL!
Greece is stealing via "printing" from the grifting banksters and their Zionist masters.
Print on my Greek friends, Print on.
Liberty is a demand. Tyranny is submission.
Y Y Y Delilah
Y Y Y Delilah
So before, they come to break down the door
Forgive me Delilah I just couldn't take any more
This is how you really fuck over the EU.
http://www.spiegel.de/international/germany/precious-metal-scrapped-euro...
German investigators say they have discovered a massive scandal involving the reintroduction of euro coins that had been taken out of circulation and sold as scrap to China. The scheme, said to have cost Germany's Central Bank €6 million ($8.5 million), involved airline employees -- including Lufthansa flight attendants.
On Wednesday, authorities searched homes, businesses and offices, including those belonging to Lufthansa workers. Six people were arrested, according to public prosecutors in Frankfurt.
The scam was not complicated. Every year, tons of damaged euro coins are taken out of circulation, "destroyed," and then sold as scrap metal. Often, however, one and two euro coins are merely separated into their component parts -- the inner core are outer rings -- prior to delivery to scrap metal dealers in China.
A group in China would simply reassemble the coins.
...
You have to wonder how many slugs or supposedly out of circulation scrap ready to go to wash those Y Euros with before they are declared null and void. If the Greeks play this one right the ECB is going to have to recall all currency, coins included and reissue the mythical "red currency" to keep faith from being lost outright due to legit 'counterfeit' money. Fungibility of the money is called into question if they ban Y euros only.
Remember full faith requires that legal tender is equal throughout the system, You can't have legal and nonlegal tender of the same note type. It is either is counterfeit or it isn't, they have to honor everything printed prior or faith is called into question. If there is a way to date the bills then the Greeks really have them by the balls if they have a few pallets printed and hidden for a just in case scenario and they flood their banks with it the second the ECB bans Y euros.
For those that are curious.
http://www.zerohedge.com/article/red-money-conspiracy-theory-11
Thank you for reminding us of that ZH article.
I think back at my macro- and monetary econ profs and shake my head. They should be ashamed of themselves for keeping us in the dark. I spent 4 years learning about theater without even knowing it.
I would say full faith requires that the sheeple be kept in the dark, ignorant of the fact and workings of how unequal the legal tender is throughout the system.
We Z/H'rs should ALL be HAPPY. Everything's unraveling before our eyes as the Actors in this Mecca Ponzi have been forced to expose the fragility of their Dancing with the Stars, You've been Framed, SPIN the WHEEL , Jeopardy Cubed, Paradise Lost NEVER to be Regained, Yank My Dick Rumour in the House of Cards in Real Time Slow Mo.
This whole episode just smells bad. And by bad I mean a mixture of teenage boy feet & whorehouse stank pussy.
It's the place where bad smells go to die.
woah
Ive been checking lately and the Banknotes dispensed in Athens are all German X notes. I believe the Germans have been sending the Money train for months now
Either that or the Germans are trying to wash the Y euros out of Greece as fast as the Greeks can print them with X euros instead.
it would be a really delicious irony if the ATM's in Germany are dispensing all Y notes !
I believe a plus 44% use of banknotes is a little more than just significant
The title of the article is provocative...
Personally I have my doubt that "Y" notes would be invalidated without compensation in case of grexit. Because not only retails hold onto the cash, every entity all around the europe like banks, posts, supermarkets, shops - anything dealing with money may have "Y" in their cash counters.
As I said above, the Greeks are no longer EU Citizens after Grexit, and they no longer have any travel privileges or any rights within the EU. Notes that are in Greece will have a very hard time leaking out if a short deadline is imposed. The ECB simply sets a deadline, say 2 weeks, and orders all EU citizens and businesses to exchange the "Y" notes for some other flavor before rendering them all null and void.
Yes, I also think that is more likely scenario.
Say it ain't so, Greece printing EUROs and not telling anybody? Sometimes you have to lie...
If you hold one of the Greek euros up to the light,you can clearly see the F.U.C.K..O.U.printed there also..
For want of a promise the voter was lost
For want of a voter the politican was lost
For want of a politician the bond was lost
For want of a bond the bankster was lost
For want of a bankster the pensions were lost
For want of the pensions the functionaires (bureaucrats) were lost
For want of the functionaires the country was lost
And all for the want of a 2-cent vote
Greek debt is Booooooring!
It would be a deliciously ironic and uproarious conclusion to this not-so-funny comedy of errors (well, fraud actually), if in the end Greece Weimared the EU.
ALL stimulus is fungible. This will continue around the world and only accelerate every time a bank tries to stop people from accessing their money....
I would not be to surprised if the Bank of greece printed their new euros with a different letter than "Y".
how could the ECB stop them?
The Greek government does not actually print the notes. ECB contractors do, and they may not actually be printed in Greece.
It seems that the availability of toilet paper is a critical indicator of the economic situation.
Best to have the ATMs be able to provide as much as needed to calm the economic fears.
Lets face it. The plates they use for printing Euros will be blank where the Identifying number is ment to go. Obviously this number is added in a later step of the printing proccess. No harm in adding an X instead of a Y
shalom everyone
greece should not be able to enter eu
a loan was given to greece, without informing the inspection of eu, so it can enter the eu by faking the numbers - and they did
you will wonder, who gave money to greece in form of a loan
goldman sachs
"Goldman was born in Trappstadt, Bavaria, Germany, the son of Ella and Wolf Goldmann, a former schoolteacher and cattle dealer. His family was Ashkenazi Jewish. He immigrated to the United States from Frankfurt am Main, Germany, in 1848 during the first great wave of Jewish immigration to America, resulting from the Revolutions of 1848 in the German states."
(im shure) germany knew about the credit, they have their secret agency and they know about the budged of any country
but
they want greece in the eu and actually they want a crisis in the eu, it would make the way open for reformation and if you force a country into debt you can do with the country something, you couldnt, if there wasnt a debt.
secundary profits: -a long term low valued euro will help in currency wars
-speculations possible (stocks, low prises on real estate, etc)
-stealing tax-money from eu members in a legal way
(btw is was not legal, a pact to not to help a eu-member was made and simply ignored later)
therefore some jewish individuals are directly fault for the greek-crisis, which wouldnt be possible without kosher money
The Troika could just cancel any Eur note that start with Y.
Hey, fuck you Greece! only we print money out of thin air.
Wonder how that would go over??
It is a little more complicated than that, because "Y" notes are circulating all over the EU. If there is a Grexit, Greece must exit the EU as well - as it is not allowed to just exit the Euro. That means Greeks will no longer be EU Citizens, and will no longer have travel privileges within the EU. The ECB could order all EU citizens to turn in all "Y" notes and exchange them for valid notes by a deadline, and then invalidate all "Y" notes after that moment. That way the "Y" notes in Greece will become worthless paper, but remaining EU citizens will have a chance to unload theirs.
Likewise, Greek citizens will no longer have any rights in the EU, and the ECB could order all EU banks to confiscate any bank account registered to Greek citizens and to hand it over to the ECB. The EU Commission could order the confiscation of all Greek owned land, buildings, securities, and ships as well, whenever those assets touch EU jurisdiction.
I do NOT think The State of Greece has many IF any assets abroad, but meanwhile an awful lot have assets IN GREECE including one Rothchild in Corfu.
The other thing is they control the Main sea routes to and from East to West of the Mediterranean Sea.
Oh! and I forgot The Greek Shipowners THRIVE IN SMUGGLING.
Example in the late 18th century they put Russian Flags on their Sailing ships and the Turks could do nothing.
Ain't got nutin' ta do wit me. I'm 'murican. That there boolsheet is over in 'nuther wurld... not'n muh wurld.
I'm buyin' the dip ya stoopid muthafufookers. I undrstand the risk and I iz smarter'n all of yoose.
I have a question.
If Greece comes out of the Euro, what happens to all the Euro notes prefixed with the Y denoting Greek origin because you can be sure thay are not just in Greece. Too many people travel across Europe for them not to have crossed many borders many times.
Does someone buying a newspaper in Paris, a meal in Milan, a Guiness in Dublin or a train ticket in Munich have their money confiscated if Greek Euro's are declared null and void ?
I genuinely don't know, does anyone else ?
Nobody knows, because that is a political decision of the EU and ECB. No EU State has ever exited the "burning building with no exits" before. It all comes down to how bad does the EU want to punish the Greeks?
If they really want to get nasty, the EU and IMF could order the confiscation of all assets owned by Greek citizens outside of Greece, and not just invalidate certain banknotes.
EU and IMF could order the confiscation of all assets owned by Greek citizens outside of Greece, and not just invalidate certain banknotes.
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It's just nonsense from the world's media to intimidate the Greek population and pressure on the Greek government.
This means that: If I am not an EU citizen, I do not have the right to hold a bank account in any country of the EU?
Or do I have the right to keep their money in the bank of the EU, but my money at any time they can be stolen by the authorities of the EU?
After 1971, the whole world monetary system rests on trust. If trust disappears, the world monetary system will collapse.
Leaders of the EU authorities, which is actually located in Washington are not so stupid, so as to shoot himself in the head so mediocre and so stupid.
I'm setting up collection containers on EU country street corners for all those valueless Y notes.
We would not like to see a littering problem get out of hand.
--Green Party, Democratic Republic of Germany
Greece must know that all Y notes will be pulled. To shove the boot in, hopefully they will print A-X notes. what a clusterfuck that would be.
Seriously, how hard can it be to change a single letter... <lulz>
so, cash is king. good luck with that.
Best thing for Greek citizens to do is convert their Euros to GOLD/Silver ASAP.
Those Greek denomintated Euros will be Null-Voided by the rest of the Euro Zone in short order as retaliation.
That being said. . . it would be a pain to Nullify the Euros off the bat, because I am sure there is GEuro contamination all accross the EuroZone . . . (Greek euros in all nations in the union).
What would likely happen is, in nations outside of Greece they would have to have a Grace period to turn in the notes and exchange them for a credit/EuroZone member Euro Note...
Which means they cant just flat-out null them at a moments notice.
So in the meantime, the Greek Central bank should print print print , and maybe launder them outside of the country for notes denominated from different origins.... or it should attempt to buy gold while the notes still hold value.
This is going to have a ripple effect accross the Euro zone, because it would essentially amount to Euros going to ZERO.
If one nations Euros go to Zero Value, than all the Euros will shortly follow.
Germany needs to make a concession / appeasment to prevent hyper inflation of its own currency..... Germany will fall if Greece leaves, maybe not tomorrow, or next week . . . but eventually.
O/T
Pope's encyclical on climate change:
189. Politics must not be subject to the economy, nor should the economy be subject to the dictates of an efficiency-driven paradigm of technocracy. Today, in view of the common good, there is urgent need for politics and economics to enter into a frank dialogue in the service of life, especially human life. Saving banks at any cost, making the public pay the price, foregoing a firm commitment to reviewing and reforming the entire system, only reaffirms the absolute power of a financial system, a power which has no future and will only give rise to new crises after a slow, costly and only apparent recovery (emphasis: grunk).
Doesn't like carbon credits; OK w/GMO's.
One old school religous leader jealous of a new upstart faith based eco religion. Nothing to see here.
What if that old school leader bailed out Greece, thus healing the schism between east and western Churches?
The roman church would rather steal the eastern church's gold.
The roman church is stacking for zion.
The only damn thing I'm missing this weekend is popcorn.
I stocked up Friday on an assorted twelve pack from Stone Brewing Co. and a couple of bottles of Cabernet Sauvignon.
Standard Disclaimer: Sometimes it is best to watch the shitshow unfold while knocking back a few...
This is a clusterfuck on so many levels the Troika must be shitting themselves.
They cave by Mon am.
They have to. They cannot allow Greece to default. They wouldn't be able to stop the CDSocalpyse as they did last time. However, if Greece does force a default, and exits from the EU, then they must be destroyed. If things go well for them then all the other PIIGS will make a run for it, and that would be the end of the EU.
I gotta watch "Weekend at Bernie's" this w/e so I can keep up on this shit.
I'm sure Spain and Italy are watching with "bated breath".
Although my macabre sense of humour is mostly worn out from over use, nevertheless, the story above tickled that humour.
Now, the magnitudes of electronic frauds means that all of the printing frauds combined are relatively trivial!
Good news everybody!
I just bought the Parthenon for pennies on the euro.
Bugger, They sold that to me yesterday.
So who do you think - has got the real Parthenon??????
I held out for the mineral rights.
The actual Parthenon is made from minerals, so there you go.
Russia to provide Greece .... with new German made .... enigma note printers .... which scramble the serial numbers .... using Bitcoin protocols ! LOL
Catch is, is only can obtain vacuum tube replacement of Russia supplier.
I'm POSITIVE that one of my distant ancestors used to eat stuffed grape leaves. Could you please give me a mail-in address for the Greek Central Bank?
Thank you kindly!
This is a run on all Euros .... a run by dilution .... run-a-way inflation .... the only defense is for all Euro members .... to print like crazy .... to maintain their "market share" of Euro notes .... no, I'm not an economist !
They should have contracted .... with the American Banknote Company .... they do beautiful work .... gold mine stock certificates, bonds, bills, notes, S & H Greenstamps, food stamps, etc. !
Just keep printing and hand a pile of paper fiat to the IMF.
Don't just stand there, Yen Cross .... say something profound ?
I think you missed the joke ... urban dictionary .... bate
bate .... as in the young Master Bates .... yeah, I missed that .... hell, I sometimes miss the whole lead story ! LOL
The secret is to print so much money,so fast,that before the IMF knows what hit it,everyone in Greece will have a million dollars in an unnumbered Swiss bank accout..
Tangible money is no longer seigniorage spent by government. Tangible money is just a representation of credit money on a banker's ledger.
So, I don't see how the "printing" of Greek Y notes means anything at all?
In other words, all money today comes into existence as debt money within the private banking system. If the money is in tangible form or digital, it is sourced from a debt instrument.
To pay off debts a money supply needs exogenous money, not banker endogenous money. The Y notes are endogenous.
There could be some small benefit in that the Y's might hang around in the Greek economy and not be drained away as fast... to pay debts outside of Greece.
It seems that this has all been an interesting experiment in the creation of money. The central banks thought they created money, and that is why they print, but it doesn't appear to be true, since that money never makes it into the economy as intended. It appears that banks make money when they issue a loan, but we are running out of good collateral, so we've reached the limit of our banking systems ability to produce money, and that is why the banks of the world are having difficulty blowing the next bubble. Will the central banks resort to direct payments, and if so is that the horn that signals Armageddon?
Once you make the decision .... to shaft your creditors .... the rest is easy .... even fun .... dare I say ? LOL
They ran out of spare islands to sell to GS banksters.
If every country in the Euro zone starts printing currency notes, the end of the game is near. Patient is on a ventilator, oxygen cylinder is now empty and the doctors are on strike. No, it is not my grandmother I am talking about.
If every country in the Euro zone starts printing currency notes, the end of the game is near. Patient is on a ventilator, oxygen cylinder is now empty and the doctors are on strike. No, it is not my grandmother I am talking about.
This is crazy. Most people are blissfully unaware of serial numbers and what the 'Y' means. If the powers that be make them acutely aware of 'Y', what stops people from speculating: "Gee, I should avoid Portugal or Italy designated euros too/Gee, let me collect German designated euros"? Seems to me they'll put in motion the destruction of the euro; people will be looking for deutchemarks/discarding escudos and liras.
If I am Greec, I would change my Euro's NOW, TODAY, for USDollars.
That's funny. I'm trying to dump my USD for hard asssets.
There is no legal way to distinguish Greek euro and any other one. It's exactly the same situation as with dollars issued by for example NY FED and Georgia FED. You cannot invalidate one dollar and keep the other one valid. The letter in serial number plays the same role as indication which FED division issued specific banknote.
There were also the article here at ZH on this several days ago, with the same conclusion.
The inherent trickle up of Capitalism:
a) Those with excess capital invest it and collect interest, dividends and rent.
b) Those with insufficient capital borrow money and pay interest and rent.
The rich get richer and the poor get poorer; it’s built into the system and today’s rawer Capitalism really highlights this effect.
In an organisation like the EU the richer countries lend money to the poorer countries so they can carry on consuming and buying products from them. The rich get richer and the poor get poorer.
Eventually you get to the end phase when the poorer nations cannot borrow anymore; e.g. Greece.
This system is also playing out globally and within nations.
The US consumer was kept consuming by being fed credit and given the illusion of wealth with housing booms. This also has played out in most other Western nations.
Globally Chinese capital has fed back into the US and the UK with loans and debt to keep their consumers going.
When US; UK and other Western consumers went on to life support after 2008, China had to issue debt to themselves to keep the whole thing going.
As time moves on more and more debt sits with those least able to afford it.
The day of reckoning is near.
No one seems to spot these concentrations of risk within the system.
Now we see most of the mountain of debt sitting with those least able to afford it.
In 2008, we found one company, AIG, holding nearly all the hedging risk (CDSs) for sub-prime.
Sub-prime goes wrong, AIG blows up, and all those hedges have to be covered by the Government.
The Governments are now maxed out on debt.
The Central Banks are maxed out.
Where do we turn next time?
"Anti-Equity" derivatives....
A friend in France who has an online business correctly percieved about 3 months ago that BNP Paribas was uttrly insolvent and liable to fold at any time.
He therefore keeps less than 100 eiro cooupons in his account there now and has withdrawn over 80,000 ponzi vouchers in the meanwhile.
Buying and selling constantly, dealing only in cash, he estimates the entire 80,000 has been turned over at lkleast 3 times.
Checking his entire stack of filthy coupons, he informed me that 17% are porinted in Greece.
All with a Y.
It wiould appear that more Greek vouchers are out there than some are admitting to. and as a consequence I would love to hear the howls all acros Europe if they did decide to cancel the Y coupons
Gresham's law. Even before 2008, there were anecdotes of Germans and Austrians hanging onto the notes printed up by northern member central banks, while depositing or spending those from the southern members. After 2008, I know for a fact that there were Germans, Austrians, and Swiss doing it.
Greek printing is wonderful - stealing from the banksters, as it were.
They should print themselves into a new prosperity, and entirely new currency - Krugmanrands.
Made of recycled paper, and security threads made of cat hair.
I love it...has fuckhead's face on the front and his hairy ass on the back.
And Greec should continue to print Euro , the EU does so why not Greece ? It is all FIAT money with no backing . Greece should increase the printing of fake money until the debt is extinguished .
If Greece were smart they would date every new Paper Euro with 2010 rather than 2015. The ECB could declare 2015 Greek Euros as 'not legal tender' but any Greek Euros from earlier years are already circulating all over Europe and would create chaos to recall.
Interesting that the banksters are trying to minimize the use of paper cash, while at the same time insolvent countries are printing MOAR paper fiat. Makes you wonder if the banksters fear losing control of a country's currency if a country can 'actually' print rather than have their central bank control all electronic transfers and money creation.
The day draws near, hang on to your physical and keep stacking if you can!
That day draws near,indeed.
So what's the point of stacking physical PMs?
"They will throw their silver into the streets, and their gold will be treated as a thing unclean. Their silver and gold will not be able to deliver them in the day of the LORD's wrath. It will not satisfy their hunger or fill their stomachs, for it has caused them to stumble into sin." - Ezekiel 7:19
Don't accept Euros with the Greek symbol in the serial number. They are worthless.
Edit: The Greek Euros are Y. I thought they'd be X.