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Greece Rejects "Totally Unacceptable" IMF Counterproposal Demanding Pension Cuts: Full Redline Comparison
As reported earlier and as tipped here on Monday, markets will have to call off the party for now because the focus of the Greek debt deal negotiations has now shifted back to Brussels after all eyes had turned briefly to Athens on Tuesday following reports which indicated a deal in principle had been struck. Here’s what we said less than 24 hours ago:
The IMF demands no tax hikes and pension cuts. Instead it will get almost exclusively tax hikes, amounting to 92% of the proposed measures, and just a few cuts, few of which actually impact Greek pensions. In short: the proposal is not only unsustainable, it is also unenforceable, something which the Germans - already facing a third Greek bailout - will be quick to point out.
Which is why tomorrow, after Tsipras is finished with the meeting with the Troika, he will have a new homework assignment: revise the "final final" proposal and come up with much less in tax hikes, much more in spending cuts: something which the already furious hard-line elements within Syriza will have a field day with.
And that is precisely what happened. As WSJ reports, creditors have decided to stick to their “red lines” after all:
Significant divisions remain between Greece and its international creditors over measures Athens must implement before receiving desperately needed bailout aid, according to a document seen by The Wall Street Journal on Wednesday ahead of a crucial meeting of eurozone finance ministers.
Key points of disagreement are corporate taxation, the overhaul of Greece’s pension system and value-added taxes, according to the document. For instance, Greece had planned to increase corporate taxes to 29%, but in the document creditors limited increase to 28%. That may cause new budget shortfalls that need to be plugged with other measures.
The Greek government has proposed increasing pension system revenues largely by raising social-security contributions from employers and limiting early retirement.
In the document, the creditors insist on savings worth 1% of Greece’s gross domestic product by next year and also call for eliminating a supplementary payment to the poorest pensioners, known as EKAS, by the end of 2017. The
Greek proposal wanted EKAS to be phased out only between 2018 and 2020.
The creditors also continue to insist on raising funds worth 1% of GDP from VAT, up from the 0.74 proposed by Greece.
And more from MNI:
One official said that the IMF disagrees with heavy taxation in businesses and the special corporate tax and wants more spending cuts in pensions and other public sector areas.
The International Monetary Fund sent its own version of a counter proposal to Greece's debt talks late Tuesday, a government official has told MNI, illustrating the growing dissent among the country's international
creditors.
The new proposal, sent to Greece late Tuesday, was deemed unacceptable by the Syrzia-led government, the official said, who used a Greek expression to suggest that receiving it was like "touching fire".
As indicated above, Athens isn't pleased with the IMF's position:
- GREECE OFF'L: IMF PROPOSAL TOTALLY UNACCEPTABLE TO GOVERNMENT
AFP confirms:
#BREAKING Greece rejects counter-proposal from creditors: source
— Agence France-Presse (@AFP) June 24, 2015
Put simply, the IMF has decided that allowing Greece to wriggle from under the troika's thumb by substituting unenforceable tax hikes for actual, sustainable fiscal reform would send the wrong message to Spain and Portugal ahead of elections this fall where Podemos in Spain and the socialists in Portugal may well score decisive victories at the ballot box.
So it's back to square one — or square four, or five, or whatever square the negotiations were on when talks were still mired in an intractable stalemate last week.
Of course that means the terminal Greek bank run — which had already driven the Greek banking sector's remaining deposits to a level below the Eurosystem's total claims on Greece — will officially restart after taking a breather on Wednesday morning. Sure enough, despite reports earlier in the day that Greece had not requested an ELA increase, the ECB has now raised the limit again in anticipation of further withdrawals. Via Reuters:
The European Central Bank approved the amount of emergency funding (ELA) Athens requested for its banks on Wednesday, a banking source with direct knowledge of the decision said, without disclosing what amount Greece had asked for.
"The Bank of Greece got approval for the ELA it requested. If necessary the ECB governing council will convene again in the next 24 hours," the source said.
So as we've said all along, the troika will get its pension cuts and VAT hike come hell, high water, or Grimbo, because that's the only way to keep the Syriza germ from spreading and it's also the only guaranteed way to ensure that any and all "radicalists" are purged from the Greek government. That is, if you thought The Left Platform was upset on Tuesday, you haven't seen anything yet, because when Tsipras comes to parliament with a deal that looks identical to what the troika put forth months ago, political upheaval will follow in short order and either Syriza will be transformed into a party that will accept Greece's fate as Germany's debt serf, or Greeks will demand a new government and a Grexit — either outcome is ultimately preferable, from the troika's perspective, to giving the rest of the EU periphery hope that austerity (or what passes for austerity in Europe) is negotiable. So, either the Greek negotiators will finally enact the "dreaded" pension cuts and VAT hike (in its originally proposed form), or else the Troika will be able to wash its hands of a Greek default and blame it all on Greek intransigence while sending a strong message to political sympathizers that they will get nothing from the institutions.
Reinforcing this point is the following from Bundesbank board member Joachim Nagel (via MNI):
Bundesbank Executive Board member Joachim Nagel said Wednesday that he opposes another debt relief for Greece at this point, arguing that such a move could encourage other EMU countries to follow the example.
A debt relief for Greece "sets the wrong incentive for other countries," Nagel said at a conference in Frankfurt. "At this stage, a second debt relief would set the wrong incentives, especially for governments that are already weak" and struggling with growing opposition to austerity.
Then again, maybe all of this is just an elaborate attempt to hide the fact that Greece's fate has already been decided by Mario Draghi, whose former employer suggested as much earlier this week.
Finally, courtesy of the WSJ, here is a redline comparison of the original Greek proposal and the IMF's counter:
The five-page document, which is still a work in progress, outlines the so-called prior actions the Greek government is willing to undertake, as well as the creditor’s feedback on several overhauls through the “track changes” function. Key points of disagreement are corporate and sales taxation and the overhaul of Greece’s pension system, according to the document.
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Looks like one of those deadbeats downvoted you.
I've had the same experience. I no longer loan any money to anyone.
My standard answer is "I'm sorry, but I'm not in a position to help you at this time."
Considering the irresponsible lending, which was once only confined to seedy side of town, between pawn shops and girly bars, shark loans designed to turn your customer into prey are what we have here. So what the fuck are you two talking about. A nation indebting its citizens to an unpayable amount is equivalent to a sentence of a lifetime of hard labor, and that is what banks have done to ALL nations, not just Greece. They seem to focus on one country at a time with these stories.
http://www.investorvillage.com/smbd.asp?mb=144&mn=150288&pt=msg&mid=1504...
EXCLUSIVE: Baron Rothschild indicted in France over fraud caseFrench police have been ordered to track down one of Europe’s wealthiest aristocrats over a fraud involving hundreds of British pensioners
FRENCH police have been ordered to track down one of Europe’s wealthiest aristocrats over a fraud involving hundreds of British pensioners.
INDICTED: Baron Rothschild Baron David de Rothschild has been indicted over the allegations after the victims, mostly expats living in Spain, bought into his loan scheme
...
The news coincides with the the hefty $11,5 million fine imposed to Rothschild Bank AG by the U.S. Justice Department, for helping Americans conceal assets offshore"
https://susauxbanques.wordpress.com/2015/06/23/le-baron-de-rothschild-ac...
I don't loan out money I'll miss and I don't buy anything I can't sell again.
my std answer is "that's funny, I was hoping you would lend me some"
this one gets them every time. lol
...poor baby
why did you lend to deadbeats.
everyone knew GR was a bad bet.
greed greedy greeedier
end of story
Wasn't it a Greek, Arianna Huffington, who said it best: social the risk, privatize the profit
The loans aren't for the Greeks, need to pay the banksters and hedgers off on their bad debts. LIke shit through a goose, Troika have to funnel money through the Greek system to pay Goldman and DB
Jamie "Cufflinks" Dimon, Greek not Jewish, dictates on the rules of the Bankster Casino: Heads I win, tails you lose
An unending game of Kick the Can, except no one ends up in "jail".
These creditors don't want their money back. What they want is to dictate how Greece is run.
Well, fuck you creditors. You are owed MONEY, that's all. The Greeks either have it or they don't. If they do, you may get repaid. If not, go pound sand.
But who the FUCK gave these jerks the right to start dictating how they run their country? If they didn't like how things were run they should have kept their damned wallets closed.
Money. That's it, that's all they are entitled to. They have NO say in how Greece is run, or whether they add 28 or 29 percent to this or that, or how they pay their pensions, or whether they pay them at all. They have no right to insist on labor "reforms", or to question the retirement age.
They have the right to collect their MONEY, if it is there to collect. That's IT.
I'm starting to think Golden Dawn might handle these negotiations better. Sometimes there's a need for a good, neo-Nazi thug, if just to introduce a little reality to the conversation.
right - they are "buying" greece - own it - its called dictatorship - return of the European Kings and serfs
some people are content to be ignorant sheep
According to Natixis:
http://cib.natixis.com/flushdoc.aspx?id=85583
Public debt ratios must be reduced, but how?
The high level of public debt is a permanent threat to growth: if interest rates rise, rapid tax increases or government spending cuts would be needed, with the risk of creating tax distortions and reducing potential growth. This threat may also drive private economic agents to build up precautionary savings.
It would therefore be very positive to reduce public debt ratios, but how?
- By keeping long-term interest rates lower than nominal growth, although this reduces the public debt ratio extremely slowly. In addition, it is dangerous from a financial stability point of view and may generate negative incentive effects;
- By monetising the public debt, i.e. by transferring it to the central bank’s balance sheet, and by cancelling it (actually or de facto); but one must then accept the risks linked to chronic excess monetary creation;
- By considerably extending the maturity of the public debt, by replacing it with bonds with a very long maturity (50 years, 100 years, perpetuity), by taking advantage of the very low level of long-term interest rates. This would considerably reduce the interest rate risk weighing on the public debt. The criticism often levelled against this method is that it shifts the burden of repayment to future generations;
- A more original approach: by cancelling the part of the public debt held by residents; there is then de facto neutrality: on the one hand, the residents receive interest on the government bonds they hold and, on the other hand, they pay taxes that finance the interest on these bonds. The cancellation of the debt eliminates both the interest on the debt held domestically and the taxes that finance it, resulting in macroeconomic profitability. The redistributive effects of this debt cancellation will still have to be corrected, which is possible. We obviously know that this possibility will never be used.
The solution really is simple. Pay off all debts with a new, fully fiat, non debt based currency.
Yes there will be a flood of currency moving around pushing inflation, however, banks will no longer be able to lend money they don't have. With that bank leverage removed the amount of currency in existance would need to be exponentially higher so this action would not be as inflationary as one might think. Once we have this world wide reset, we can start over and countries that do not keep a handle on their money supplies will pay the price in exchange markets. To keep trade fair, and to keep countries from printing in order for others to exploit their labor pools, import levies would be applied as neccesary to prevent this. I.E. No importing goods cheaper than they can be produced domestically.
Come on Greece, need to book a holiday for September....Drachma is the obvious choice for us Brits!
This is turning out to be quite the market rampin ordeal. Nasdaq at record highs happy BTFDers everywhere. What Yellen couldn't do Greece accomplishied.
According to RBC Capital Markets:
http://is.gd/ATYEGt
Greece - "timeo Danaos, et dona ferentes'*
In this edition of Generally Speaking, our geo-political and defense adviser, General Charles Vyvyan, provides commentary on the political dimension of the Eurozone crisis.
"You will all have read and heard masses of comment about the Greek euro crisis – and I have no wish to add to the avalanche of information available; but I do want to emphasize one aspect of the situation - the unusual political dimension which will determine its outcome. The strength of a currency is, of course, decided by the markets; but they are, equally obviously, operating within an environment determined by the politicians – so ultimately the fate of a currency is a political issue. This is nowhere more apparent than in the case of the euro today – and, most particularly, in the case of the ‘Greek euro’, if such a currency can be said to exist. Yesterday, as a resolution to the ‘bail-out’ impasse with Greece appeared increasingly distant, the future of the Greek economy and of the currency seemed in doubt; today, after the outlines of a deal seem possible, the markets have reacted with confidence and enthusiasm. However it would be wise not to react too precipitously, and to consider carefully how and why this situation has arisen, and how secure it is as a basis for longer term planning.
The euro is an unusual currency in many ways. Historically currencies are created by a nation state and ultimately backed by it; the euro, on the other hand, was introduced in advance of the intended creation of the ‘European state’; indeed it could be, and has been argued that it was introduced to hasten its creation, to provide the catalyst and the glue for its development, and that – crucially – it lacks the coherent, unified political direction which other currencies enjoy. Of the 28 members of the European Union, all – with the exception of Denmark and the UK, both of whom have negotiated opt-outs – have adopted the euro, or are required to adopt it when their economies meet the criteria for doing so; so the currency is very much the unifying symbol of the Union - and it therefore follows that if its integrity is endangered, so must be the integrity of the Union. (It is worth noting that while there are provisions in the Treaty of Rome, which effectively established the EU, for a member state to leave, there are no such provisions in the eurozone Agreement.)
Thus it may be argued that the creation of the euro was a political initiative to achieve a political end; obviously it would enhance the effectiveness of the ‘single market’, but its overall aim was to further the internal cohesion of the Union. Thus the ‘bail-out’ negotiations which the Syriza Government in Greece demanded after their election earlier this year, were on one level about fiscal, monetary, and financial/economic issues; but yesterday, when a resolution appeared increasingly unlikely, when the danger of Greece’s continued use of the euro, even her continued membership of the EU became all too real, the negotiations became all too political.
And all too political they will remain for the foreseeable future. Whatever the outcome of the current negotiations – which are likely to produce a short-term Agreement of some sort – the underlying bankruptcy of the Greek economy will remain until such time as the creditors – principally other EU governments and banks – agree on some form of debt relief; political and economic reforms can only achieve so much – debt relief is the only measure which will ultimately transform the economy and allow it to develop. So the issue is: at what stage, if ever, will the creditor nations, principally Germany, decide that they can no longer continue to fund the debtor nations in the eurozone, that the cohesion of the eurozone and of the EU are no longer a higher priority than their own economies – and accept the political consequences? It is likely that their electorates will give them the good news - and it may be sooner than many think. For a variety of reasons, some good, some bad, there is an unusual degree of concern among the populations in many of the ‘older’ members about the direction which the EU is taking; and it may well be that these concerns will be reflected in their Governments’ responses to the measures needed to put the euro on a firmer footing.
Conclusion
The eurozone is in trouble because it is having to reconcile a too diverse range of economies; the current Greek crisis represents merely the most recent of many other such debacles, such as those in Ireland, Spain, and Portugal during the last five years. They were resolved, as will be the current Greek one; but in this latter case it will be a matter of papering over the cracks – the underlying problems will remain. Certain distinguished commentators believe that the eurozone is inherently unstable and will, at some stage, implode. That may be so; but we may be sure that if, and when it does, its collapse will come as part of a much greater upheaval in the EU itself. Until such time as EU Governments are prepared to countenance such a scenario, the euro is likely to remain a protected, if endangered species."
*‘Beware Greeks bearing gifts’ – Aeneid, Book 2 referring to the introduction of the ‘wooden horse’, containing Greek soldiers, which precipitated the defeat of the Trojans.
"...the current Greek crisis represents merely the most recent of many other such debacles, such as those in Ireland, Spain, and Portugal during the last five years. They were resolved,"
Whomever authored this has a very odd definition of the word "resolved".
...and so the Euro Zone continues to use its best tool...
The Law Of Diminishing Marginal Market Impact to wind down it's Greek exposure and force Grexit.
"Careful monitoring by the EU is enabling us to determine that the impact of a Greek Exit or 'Grexit' on markets is, as we stated, not only manageable, but may be now welcomed by markets as a means of finally moving beyond the laboriously ongoing Greek government negotiations. In short, we believe that markets won't give a flying fuck about the impending unavoidable Greek exit in a very short time because all tail end *risk* and potential *contagion* has had sufficient time to be *priced in* by all parties at risk as we continue to drag this out for as long as we can."
Why should the Greeks increase their taxation on themselves when Lagarde doesn't pay any taxes? If things are that rosy in France maybe the French can help out for a few cases of ouzo?
aren't both sides just saying the same shit over and over
anyone try to craft a solution instead of merely issuing demands?
Corruption buying the rumors and rejections afterwards is all. Faux market moving using the 'news' to expand bank accounts.
Release the Kraken!
Freedom is NOT free.
this shitshow keeps going until civil unrest/civil war/bloody revolution puts an end to it
same as it ever was
Where the fuck are the so called leaders in Europe ? Not one guy to say fuck the IMF we have 20 billions freshly minted or you and let us decide the fate of the Euro ? Merkel, Hollander, Renzi they all shut up, not one has any guts to stand up and stop this slow killing !
its like this: the "bad guys" are in complete control, far outnumber the good guys, and any "good guy" who tries to make a valiant stand is either bribed & paid-off or killed
it only ends when a grass-roots type of uprising generates enough momentum to overcome the bad guys via civil war/revolution
same as it ever was
FFS I'm so fed up with all this EU bullshit...Ireland took the opposite direction to Greece yet the problems remain (just under the surface). The euro project is doomed but it will limp on for years crisis after crisis dragging everyone down with it.
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Here's how you fix Greece:
Eliminate 50% of the taxes for businesses within the EU that want to relocate there. If you want more business in Greece to generate more revenues, lower the cost of bieing there.
The rest will take care of itself.
actually here's how: kill the banksters, get back to gold & silver as money - until you do that it will never be fixed
Bring on the Grexit and the full repudiation of all odious banker debt.
Greece should seek economic advice from Iceland.
The EU will never allow Greece to exit the Euro. It would be too embarrassing.
EU/EURO is a house of cards and all cards are needed otherwise it collapses so they will do what needs to be done including physical intimidation and murder to get it.
The lie of perceived intransigence of Syriza, which already effectively surrendered, gave propaganda justification for all our war on Greeks. Such 25% drop of GDP occurring in Greece is historically associated with hot war where bombs, missiles are flying and national wealth in physically destroyed.
It is old invention, a silent war, silenced by MSM censorship.
The war is real and victims, mostly working people, are injured and/or dying daily. The young people massively leaving they towns and go to fight economic war in Germany and elsewhere, suffering horrible abuse and exploitation from their aggressors, and humiliated by forcing to say “danke” for their enslavement. The Brussels politics is genocidal; just compare IMF treatment of Greece and fascist (already admitted in MSM) Ukraine which already announced partial default and still IMF gave them money against IMF regulations.
To make things even more complicated Syriza, Podemos etc., actually have noting to do with left so calling them leftist is misleading. What they actually are, are segments of courtier class that have been downgraded and discarded by EU ruling elites as no more needed to control population rendered already defenseless, while tightening deaths grip, squeezes life out of Greek (and others) nations in oligarchs' fanatical lust for power and opulence.
The middle class i.e. mostly courtier class hence has no leftist revolutionary ideas but rather is aimed towards begging the rulers to give them a chance and once more accept them back onto their protection. In similar ways exploited servants in XIX century England rejected factory workers movement promoting submission as a way to improve living conditions and pay. Phenomenon of extreme radicalism of capitalist class is coming to fore front today. But today's moguls are not even capitalist; they rejected capitalism and went beyond into abyss of genocidal madness leaving their worshipers behind to face Armageddon alone.
With all that threats looming Syriza so far did nothing but prolonged misery of their people, paid off banksters and begged for mercy.
The last five months Syriza acted as a controlled opposition steered from Soros headquarters and Broookings institution under quiet acceptance of ECB playing the game.
The facts.
1. Government has no control over third biggest Army in EU, biggest Army per capita, no military cuts whatsoever, they even buying useless shit from US as we speak.
2. Government has no control over police, no cuts in pay or benefits no prosecution of rampant civil right violations by police against leftist parties and groups.
3. Government has no control over prosecutors and judges, only ONE investigation, related to theft of national treasure, of people connected to oligarchs and foreign banks was open while Syriza members made over thousand requests for investigations. No bankster in jail.
4. Government has no control over banks. It’s obvious because of ECB but Syriza members requested thousands of reports on banking activities or requests to stop oligarch from repatriating their stolen wealth abroad, no response.
5. Government has stolen retirement money and practically reneg on immediate election promises regarding increase of employment, while paying off so far troika gangsters against their own stated policies and election promises. Those money will never be returned to people.
6. Government did not nationalized state assets sold to foreign investors for peanuts as declared in their own stated policies that obtained parliament vote of confidence.
7. Government did not use Russia leverage in NATO context and as a sheeple followed with support for ridiculous and baseless sanctions’ extension and did not warm up frozen relationship with Turkey as extremely strong bargaining chip in current geopolitical situation potentially weakening of NATO southern flank. Why not?????
The Syriza violated their own manifesto hundreds of times during last 5 month proving that it is a fake political entity negotiating cash deal for their own leaders while collapsing their own country.
It’s pure political theater for “benefit” of raped Greek peasants.
Greece is bankrupt for over 7 years at least and EU denial of this broadly known fact in a sign of collective psychopathology of calcified or rather mummified EU bureaucrats and banksters.
As I said before on ZH no Greek blood on the street no revolution against EU totalitarianism disguised as brotherly love but just sad repeat of A. Papandreou betrayal from 1974.
False flag? Charleston shooting happened during federal active shooter drill.
Active shooter drill took place at same time as horrific Charleston shooting
(INTELLIHUB) —
RE INTELLIHUB
Instructor drills are class room settings. Who is Dalton Taylor on Facebook? That DHS drill ends June 29, 2015. Stop creating fear.
Maybe Greece can sell some more of it islands to the Goldman gang?
We're doing God's work.
What is interesting is that only the radicals in Syriza have drawn the proper conclusion to what is going on. That is it is better to default and hopefully put the Greece back on sound footing rather than continue to play this charade where Greece borrows money to pay the interest on money it previously borrowed in return for inflicting more pain on its public and ultimately not resovling the underlying structural problems that exist in Greece. Yes, the next couple of weeks would be hard on the greeks but ultimately it would pay off. The opposite is just a con. It's like a woman who has been beaten and humiliated by her partner and continues to stay with him. Someone needs to speak to the leadership of Syriza and get them focused on communicating to the public that it is not possible and a disaster to continue on the road desired by the troika. Only when they start to do that will the attitude and willingness of the Greek population to do the right things be oriented in the right direction.
Meanwhile Europe sitting nervously on 7% equity rally this week.
Let's see,up 200 on 'hopes', down 30 on reality.
At this rate we'll be at DOW 20k and a nuked Greece within a month.
It would be only fair for pensions to be cut to reflect the fact that government workers in Greece (and all other countries) haven't 'earned' them. Productivity in Europe at the senior level, all levels really, is ZEEEro.
So cut 'em. But simultaneously Jamie, Lord Blankfein, Dickie Fuld, Angelo Mozillo, Jimmy Cayne, and all the other useless motherfuckers that were bailed out have to give back all the pelf they took over 20 years, too.
One thing to bear in mind: if you were the Greek government and you were already convinced that a default was inevitable, then deliberately stringing things out for another few days, or weeks if possible, would be a smart move, right? Every extra day gives Greek bank depositors more time to front-run the ECB by pulling their money out before Draghi can pull his. If enough money leaves it might even give the ECB pause before deciding to crash the Greek banks and eat an increasingly large loss which can't be made up from raiding deposits. I'm not saying that this is what's actually happening: more likely Tsipras is either cynically managing the domestic politics of an eventual full surrender or just flailing. But bear it in mind ...
The EU and IMF goal has always been to crush all resistance to their full control - which in this case is to topple Tsipras. Like Smoky Bear says, "Only LaGarde can put out contagion fires".
LaGarde can leverage her silver anal beads to bail out Greece.
Excellent news! All unite in the hatered of Communists. Let this be a lesson for other leftists in the Euro trash area and beyond.
Optimism may have waned
Reality may have returned
But market hasn't given up
Borrowing money, to pay for borrowed money. There is no easier softer way to get out of that.
It's time to call in the military.
Tsipras and his part are just too stupid.
Greece could have gained more if it had defaulted
and exited the EU five months ago.
stick around, you may learn something
...and then maybe not lol
Defaulting now would be like closing the door after the animals escaped
Greece would rather remain Merkel's untermensch than be a junor parter in his "cousin" Volodya's Eurasian Eunion.
Choices have consequences. Catfood gyros. Yummmy
Hey Greece, try this one:
Since the French are outraged by finding out the US spied on them for the last 20 years or so, refuse to pay anything on any debt until the US "comes clean" about spying on the EU and it's members.
That ought to be good for a few days.
Ask the IMF to take pension cuts and except less money from Greece.
Only if the bankers and politicians will take the same average pay of every pensioner in Greece after the pensions are cut.
Why do we keep pretending that pensions are not going to be cut?
The Banksters cannot get rich if pensions are paid.
The Banksters will get rich.
Get used to it!
The IMF apparently wants all of southern Europe to break free of the Eurozone and turn communist. Because that's exactly what's going to happen.
the EU is between a rock and a hard spot.
I think the GR/RU/CN/ES/PT/IE know this.
It's coming baron and its about time.
you're losing in UE and now in EU.
tick tock
Did Tsipras just avoid civil war? He' ll still find a way to cave. Leftists are hung like gerbils.
Greece should counter with a large cut to pensions with a new direct tie to inflation........because we're gonna have abundant energy, low rates and deflation forever, right ECB?
The ECB will counter with no cuts no inflation and hyperinflation.
Greece is fucked they have to dump the EU in economic self defense.
Greece has already maxed out their credit cards, taken out a second mortgage, tapped their line of equity, taken out a loan against their car title, used the payday lender, checked every cushion in the house for loose change and exhausted their "reserve account" at the IMF that was backed by nothing so what's left? Garnishment of future wages or bankrupcy.
A global debt ponzi scheme canary in the coal mine for anyone who believes the can kicking road goes on forever.
Didn't Syriza fold yesterday?
>>These creditors don't want their money back. What they want is to dictate how Greece is run.<<
Oh yes..... it's nothing to do with repayment of the 'debt'..... but all about controlling those those who (wrongly) feel obliged to repay .
Almost, a kind of slavery....perpetrated by the clever bankers.
Cut the Army and turn it into an engineering core to fix goverment infrastructure and sell off most of the big weapon systems. This can be leased from neighboring countries as a fraction of the real cost.. China would really like those big old soviet hovercraft and Serbia, the S-300's... LoL, get rid of the waste and half the commitment to the EU dictated values.
Oh the horror of it there could be "massive bank runs."
https://www.youtube.com/watch?v=yTR7V-HhjOc
Give the Greeks a 50% haircut since there is a moral argument that you do no need to pay Predators. Let them do what they want with the cut even on condition that they get out of EU.
Not going to happen as the Predators know that Preys will suck up to less and perhaps can even fall into more clever traps. Also, Predators know that Preys are disorganized and force can be effective.
Greece has in substance defaulted. Markets shrug it off and no contagion except for some ineffective "fear" spins hoping to support shorts. The longer you protract, the calmer the markets get until a new crisis springs. Like Ukraine all the noises will diminish and be pushed into the peripherals.
Still too much bum kissing by the EU....Like wihen, Mayerweather kept Manny Pacquiao waiting forever for a fight. If polite Manny had pressed it and called Mayerweather a coward for not fighting, the match would have happened faster. EU officials should have gone to the Greek people through the media...and said "Your leaders are crazy and incompetent. Your banks & businesses are failing, and may still fail no matter what we do...because your leaders have delayed so long. Elect some leaders that understand the banking system and business reality. Your leaders refuse to work with us in obtaining new loans or obey previous loan agreements. So your country is doomed"