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Greece Told To Have A Deal Ready Before Monday Meeting; Tsipras Submits Revised Plan With No Pension Cuts
Update: the farce must go on because according to Bloomberg the "final final" Greek proposal never made it, and was, ahem, lost in tranmission: EU HAS RECEIVED NO NEW PROPOSAL FROM GREECE YET: EU DIPLOMAT - BLOOMBERG
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With just under 24 hours until Monday's final summit after which even JPMorgan now agrees the ECB will be forced to use a nuclear option and limit or cut Greek ELA thus imposing capital controls as a "negotiating tactic", earlier today both France and Germany told Greece it must have a reform deal agreement with the Troika finalized and delivered before a crucial leaders’ summit between Athens and its creditors on Monday; in other words before trading opens on Monday.
According to the FT, with the Greek cabinet meeting on Sunday to consider compromise proposals, François Hollande and Angela Merkel both telephoned Alexis Tsipras, the prime minister, to remind him he needed a “staff level” agreement with the European Commission, IMF and ECB ahead of the summit.
They told him the summit was not for “negotiations” — which anyway would be all but impossible in a forum including all 19 eurozone members — and urged him to reach a deal with the institutions.... If a deal is reached, the two leaders said the parties could then start discussing a third bailout at the summit. France is believed to be open to discussing debt relief and restructuring for Athens, a top priority for Mr Tsipras, whose radical leftwing government won office in January setting Greece on a collision course with its creditors.
As a result, the Greek cabinet has been summoned to a meeting at Tsipras’ Maximos Mansion residence on Sunday morning for a last-ditch meeting to hash out the government’s strategy. Here they are expected to discuss how Mr Tsipras can bridge his two seemingly intractable electoral mandates: to end austerity and block further cuts in spending while also satisfying creditors’ demands for reform to keep Greece in the Eurozone.
And while the Greek negotiating position is one where any spending-cut compromise will be seen as a defeat for Tsipras - just yesterday the Minister of State Nikos Pappas used an interview with the country’s Ethnos newspaper to reiterate the government’s firm opposition to cuts to pension plans or wages - moments ago the Greek Prime Minister presented Greece's proposal for a deal during phone talks on Sunday with German Chancellor Angela Merkel, French President Francois Hollande and EU Commission President Jean-Claude Juncker, according to Reuters.
"The prime minister presented the three leaders Greece's proposal for a mutually beneficial agreement that will give a definitive solution and not postpone addressing the problem," it said in a statement.
Bloomberg has the bulk of the proposed details:
- Greek plan to unlock bailout funds includes proposal to eliminate early retirement options starting from Jan. 1, 2016, a Greek government official says, asking not to be named.
- Plan includes levy on companies with more than €500,000 in annual profits
- Plan includes increase in “solidarity levy” for individuals earning more than €30,000/yr
- Creditors ask permanent fiscal measures equal to 2.5% of GDP, Greece proposes measures equal to 2%/GDP; proposes to cover difference of 0.5%/GDP with “administrative measures”
- Greek govt would agree to target demanded by creditors for 1%/GDP primary budget surplus
- Greek govt insists on 3 bands for VAT rates; creditors want 2 bands; Greek govt proposes to move more products to higher band of 23%, in order to cover fiscal gap
- Greek govt has proposed zero deficit clause, debt break for Greek budget; clause would include automatic spending cuts in case threshold is breached
- Greek govt would be willing to adopt additional fiscal measures, if agreement with creditors includes commitment to debt relief
A quick frame of reference: in the US, Obama's "fairness doctrine" tax hits above $250,000; in Greece the "solidarity levy" fairness threshold is €30,000.
In summary: promises for higher revenues (which is problematic considering the Greek track record and the fact that it just spent 5 months haggling with the Troika instead of implementing even one actual reform) and none of the pension cuts so demanded by the Troika. Why are the country's pensions such a sticking point? To paraphrase the IMF's Olivier Blanchard from his blog post last weekend:
Why insist on pensions? Pensions and wages account for about 75% of primary spending; the other 25% have already been cut to the bone. Pension expenditures account for over 16% of GDP, and transfers from the budget to the pension system are close to 10% of GDP. We believe a reduction of pension expenditures of 1% of GDP (out of 16%) is needed, and that it can be done while protecting the poorest pensioners.
For Tsipras pension cuts are clearly a non-starter because as we said last week "he would almost certainly be promptly swept from power as Syriza renegs on its most solemn pre-election vow."
This is what else we said:
With Greek tax revenues imploding and the hope of even a 1% primary surplus long gone as a result of the Greek economy grinding to a halt. Which in turn means that in order to be sustainable (and whatever happened to the IMF's "sustainable" 2022 Greek debt/GDP forecast anyway), Greece has no choice but to cut both wages and pensions.
Only the Greek government knows that such a move would be the start of the endgame, and will lead to either another technocratic government, a puppet of the Troika, or to an even more extremist government, this time from the ideological right.
Overnight, Germany's FAZ agreed with that assessment, noting that Greece creditors estimate country’s budget gap of €2b to €3.6b this month. The shortage won’t allow Greek government to repay IMF (even with a new injection of cash by the IMF) unless it cuts pensions, salaries as expenses amount to €2.2b by end of June.
Based on the "final final" Tsipras proposal, these cuts are still missing,which in turn is a basis for a "non-starter" response by the Troika.
As a result, Greece just played its final bluff. And now, as Yanis Varoufakis also wrote in in Germany's Frankfurter Allgemeine Zeitung, Angela Merkel faces "a stark choice" ahead of the crucial summit of European leaders in Brussels on Monday.
In other words the Greek parliament has washed its hands of the Greek fate, and a Grexit - if it happens - will be blamed on Merkel, if only in Greece.
As a final reminder, with the fate of Greece clear to pretty much everyone, the only question is who is served with the blame for the unwinding of the "unbreakable" European monetary union. The game of final posturing continues.
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The obvious neocon/illuminati effort to start WWIII will fail. At this point, all the Chinese, for example, have to do is to announce their actual gold holdings and/or in conjunction with a re-pricing of precious metals independent of the futures market. The support pillars of the neocon empire will crumble in rapid succession, leaving, in all probability, many thousands of US military personnel stranded overseas.
If you weren't around during the collapse of the USSR, then you may not have a grasp on how quickly it can all come apart. Expect the same for US.
Not as long as the FED, BIS, IMF, SWIFT and the World Bank have anything to say about it.
I suggest they allow Turkey into the EU, full membership, just for the pure entertainment of watching the Turks do the same thing Greece is doing.
Greece! Wake the fuck up!
The EU/IMF only offers more debt slavery and humiliation!
Is there an example anywhere in the IMF Universe where negotiating terms with these international financial operations led to any long term economic independence for a country?
Nope.
All these guys do is buy-out a few select insiders so they can retire to London for some late might caning.
It's all about getting more debt injected into your veins, seizing control and buying the few worthy assets at rock bottom prices.
Default. Stop more debt. Threaten to leave NATO if you don't get what you want.
Yes your economy will tank, but it will still be YOUR economy.
5 minutes before the scheduled meeting's due to take place with the Gestapo and they're all sat around the Dentist Chair ready to Extract more cuts, fax through an unsigned copy of the Creditors Wishful Thinking List having earlier taken a huge dump on it with a Selfie.
The shock will buy you another week's deadline. Apologise saying you were pissed up on Ouzo.
This is becoming increasingly clear that this isn't about Greece at all - it's all about the European Union and holding it together. Greece must be made an example of what happens if you don't abide by the rules of the controlling sociopaths. Greece REALLY needs to get the fuck out of there and never look back.
the European Union is not about what i sbest for europeans - it is about what is best for banks, large corporations, and the global financial elite. Period. Full stop.
They ought to be dragging Rothschilds and Lazars from their beds and throwing them in jail.
That was not done even during WW1 or WW2. You must be an anarchist. (sarc)
For those wondering what "concessions" the Greeks offered on pension "reform"... The retirement age would increase by by .2 or .3 years every year for the next 25 YEARS. Reaching a retirement age of 67 years in year: 2040.
This is just for regular retirement. Early retirement starts at 56 and does not get to age 64 until 2040!
25 years to get to where the rest of industrialized Europe is already at. Surely Greece will keep these commitments over the next 25 years.
Regular:
2016 = 60.6
2017 = 61.5
..
2020 = 63.1
..
2025 = 65.1
..
2030 = 66.5
..
2040 = 67.0
Early:
2016 = 56.3 (!!!!!!)
2017 = 56.7 (!!!!!)
..
2020 = 58.5 (!!!!)
..
2025 = 64.4 (!!!!)
..
2030 = 65.4
..
2040 = 64.4
meanwhile over in Ukraine - Lithuania has decided, under orders from NATO, of course, to arm Ukraine "against Russia" i.e. to help the US puppet regime in Kiev attack ethnic Russians in East Ukraine, whether or not they're actually separatists, in an effort to make the bloodbath so egregious Russia is forced to send in regular troops to defend civilians, which NATO and the Anglo-Zionist press will report as "aggression" and a violation of sovereignty which the US and NATO, of course, hold absolutely sacred.
http://uatoday.tv/politics/lithuania-to-become-first-country-to-arm-ukra...
Vlad should grant citizenship to ethnic Russians who wish to leave Ukraine, ask for UN help, send cameras to film the refugees, then dig trenches along the entire border with ukraine and defensive positions.
this will still be reported as aggression, but it will be harder for even Americans to take seriously as such.
? voice from Greece.
I want to know.
This should be the actual slogan. From where do we learn what has happened? From rumors, half-truths, leaks, conflicting statements, fragmentary news, guided "reports" from foreign or domestic media . And based on these information , we "shape" our view.
They tell us that cuts and new measures hav been requested. Juncker Denies , Athens re-denies, Varoufakis confirms , the IMF denies. Who thw hell finally is telling the truth? And about what kind of truth are we talking about? To hell with secret diplomacy.
All this concerns me and you. And my children and your children.
That's why I want to know what was said. prcise and verbatim. I want to know who called what, who denied and why. I demand the eligible right to KNOW . The demand goes to Juncker, to Ntaiselmploum to Lagarde, to Varoufakis, to Tsipras, to everybody. I will not sign to a blank check anymore to anyone.
After all they blame the people "who ...knew and voted the rong way"
All you need to know is that Greece is digging her own grave as fast as she can, and plans to murder all of her children and throw them in before jumping in after them and blowing her own brains out. The rest is theatre.
Run.
Better description for Ukraine
Better description for Ukraine
you can say that again...
so on your planet the media still reports things. nice
It's like any divorce, neither side wants to be the first to say it's over.
NO SHIT!
Is this really coming to an end?
We'll all wake up Monday morning to find Greece got bailed out. Come on, this is a movie we've all seen before.
maybe....but will be bailed forward, not out
The demand that Greece decrease its pension expenditures by 1% of the 16% spent (i.e. roughly a 7% decrease) is largely a red herring because had they not destroyed the Greek economy by 25% over the last 5 years the already decimated level of pensions would have been fine.
Expectations by Europe to increase VAT is also counterproductive as it simply means that all the cash withdrawn from banks will simply ensure further evasion as noted by others above.
The only way for Europe to deal with this issue is to give in to SYRIZA but only for a limited period of say 2-3 years, so as to allow for the possibility of GDP growth being able to meet the percentage targets.
In this way, neither side is seen to be giving in and Greece is not pushed into the abyss with Europe possibly close behind.
Its not Greece's problem.
Let the Euro fail.
Drachmas and everything in Greece will be GREAT in 1-2 years. . . meanwhile Europ will be throwing stones at eachother....
This is perhaps correct but the temptation is for Greece to keep on printing if its currency does not have braod acceptance in which case its devaluation will lead to painful inflation internally. So one way or another Greece cannot avoid austerity and reform although I feel that internally imposed austerity and reform would be more palatable.
If you look at the records of Greece you will see that they do not have any records showing how many banknotes were printed from the 60's onwards whereas those records still exist for the period before hand.
Beautiful day today. Think I might take the old rowboat out for a spin.............
Beautiful day today. Think I might take the old rowboat out for a spin.............
EU bankers holding a gun to their own collective heads and then demanding money from the Greek people or they'll shoot?
No one said bankers are smart.
In-fact bankers are some of dumbest people on earth.
Its the filth the floats to the top.
Cleavon Little in one of his more memorable performances.....
https://www.youtube.com/watch?v=Z_JOGmXpe5I
SO... Germany wants to get paid.
The only way Germany can get paid is if Germany loans Greece money so Greece has money to pay it back.
So the net result is, Germany wants a loan (to itself) but it wants to shift the liability onto Greece.
The solution for Germany is simple, and doesn't even need politics.
Simply print debt free money, and give it to yourself you fucking morons.
This has nothing to do with keeping Greece in the EU.
It has everything to do with Germany finding beneficial ways to fund itself.
It also knows that if Greece leaves the Euro it will probably lead to cascading defaults across the Euro Zone, which will inevitably lead to Germany holding a giant bag of worthless irredeemable Euros.
Isn't that called QE?
Here I simplified whats going on in paint:
http://postimg.org/image/ts2dy1g1r/
Good chart, however, you left out the printing press for the "$" of the ECB.
Without it one might miss that Greece is actually transferring real work, production, and titles upwards, while Zion's ECB is transferring printed paper and ink claims on the Greek's real work, production, and titles downwards.
Ditto in the DC US.
Liberty is a demand. Tyranny is submission..
The sane way forward for Tsipras and Greece is to prepare for and then default without discussing any of it beforehand with the Troika, Mutti, Hollande and Uncle Tom Cobbly. Any other way just prolongs the agony (for us) by new proposals being tabled by everybody and their aunty.
"The sane way forward for Tsipras and Greece is to prepare for and then default without discussing any of it beforehand with the Troika, Mutti, Hollande and Uncle Tom Cobbly."
Yes, but then they know that all of a sudden they have WMDs, are harboring ISIS "terrorists," killed another Lieutenant Robert Paz, are disrespectful to the Kardashians, and don't watch enough Honey Boo Boo.
"Operation Greek Freedom" (Really Operation Liquidation)
Liberty is a demand. Tyranny is submission..
So, the only thing they need to do before defaulting is to do a deal with Putin. He'll protect them...
Meet the new Humpty Dumpty - $54 trillion in Deutsche Bank derivatives....
Does it matter? You are driving the straight course at salt flats and are on a course to hell. Nudge the steering wheel and you die.
rumours of deal all over twitter, huge gap up to take Fridays shorts out almost certain this evening
In Greece I am not worried about the banks closing because the people have already drawn enough cash to continue operating. What I am worried about is the supermarkets closing.
Peter, an honest question. Why are you still in Greece? You're a smart guy with good English. What's keeping you in Syrizastan?
Perhaps the people he loves, family, friends and a place called home.... something most Americans are not familar with those concepts......
What color will the Greek "revolution" be?
Liberty is a demand. tyranny is submission..
"Langley and Glilot Junction spent a furious few nights going through color swatches together."
If pensioners here have to work, why not in Greece? It would be easy to cut their pension costs if only they allowed Walmart to open there. Is there not a need for greeters in Greece? MacDonalds is already helping out the economy there, so let in Walmart and Costco. I can't understand why those nice leftists don't want to help.
Isn't it enough that they slaved for 28 hours a week, 44 weeks of the year, for 20 years? It's not like these greeks are Ontario school teachers.
No cuts for old people? The old people must be cut, they are the biggest problem, they are old and of course must be cut ;-)
Cut the banksters, preferably where it hurts, in the wallet!
The Greeks are getting weak. If they choose against their own sovereignty and freedom from debt slavery they will end up redefining Stockholm Syndrome.
So we want them to follow the American model. Destroy everyone's pension so everyone has to work until they die on the job. Get with the program Greece. You people...
Yup
Blah blah FN blah.
i.e. "*This* time it's *really* **REALLY* ***TRIPLE-FN-DOG*** SERIOUS !!"
Right.
How many hundreds of times have we seen the same headline ???
Wake me when there's an "ED" in one (as in something actually happenED).
Another week, another kick at the can.
Greeks get another week to withdraw Euros.
SNAFU
Solution to the Greek problem is to cut the pensions by 40 % first year, then another 15 % next 4 years.
Raise taxes by 25 % and collect deadbeat taxes or jail time.
There is enough specificity in the various pieces of a deal being bandied about that I suspect an 11th hour deal is near.
Tsipras: Just don't show up.
Declare 100% default.
And say "see ya".
I just signed on to say that.
I'd add "Fly to Moscow and dine with Putin."
I wonder if Tsipras has diddled Merkel yet?
both Dax & Dow spike 100 ish points on the open BUT the Euro is doing fuck all up 10 measly points, also Italian futures are still red pretty unconvincing either way at the moment
It's Greece that is holding the axe. If the EU Ministers don't come to their senses, Greece will default and that will be the beinning of the end of the banks and the financial markets, world wide.
Pensions and s.s. are fiat scams
Meanwhile, gold - should we say JP's gold paper - is cool, calm and collected Sunday night.
So what now? They have about 2 hours to make a deal?
The basic goal of the bureaucrats is to maintain a level of continuing uncertainty in the "news" sufficient to ensure most of the sheeple delay taking drastic steps for economic survival. Smart money is already in remote havens, and bankster/gov contingency plans have already been drafted and approved. Finally the hammer will "suddenly" come down and it will be too late for the remaining victims to escape.
If one is attempting to cast blame on someone for this sorry state of affairs, they would be doing no one a service by pointing either in the direction of the current Greek government, or Germany. All eyes should be turned towards the international bankers and a small set of corrupt Greek politicians who guided Greece into an economic situation that they knew beforehand would be an unsustainable burden for both the EU and Greece.
Apparently, these bankers and corrupt officials are getting off scot free, just as bankers across the spectrum since 2008 have enjoyed immunity from the public eye and the legal process everyone else has to abide by.
Focus on the right target, people.
What about the Negro? How blame worthy is he?
Does he plead rank stupidity or is he getting a cut?