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Greece Becomes First Developed Country To Default To The IMF
Faced with almost impossible choices...
And just as promised earlier in the week, Greece has now passed the midnight deadline for repayment of the €1.6 billion bundled loans due to the IMF and in thus in default.
Yes we are fully aware that using the pejorative term 'default' makes us members of the ignorati, but what else do you call it when you fail to pay back a contracted debt in a timely fashion? (and don't say 'arrears') Anything else is semantics.
- *IMF SAYS GREECE FAILED TO MAKE PAYMENT DUE TUESDAY
- *IMF TO CONSIDER GREEK REQUEST FOR PAYMENT DELAY IN DUE COURSE
- *IMF BOARD INFORMED THAT GREECE IS NOW IN ARREARS
“I can also confirm that the IMF received a request today from the Greek authorities for an extension of Greece’s repayment obligation that fell due today, which will go to the IMF’s Executive Board in due course,” IMF spokesman Gerry Rice says in e-mailed statement.
This is the first time an advanced economy has defaulted to The IMF and is by far the largest default The IMF has ever faced.
Below is the full list of countries who are (ahem Zimbabwe) or have been in "protracted arrears" to the IMF in the past. Greece is now officially on this list.
And as AP reports,
Greece's international bailout formally expires, country loses access to existing financing.
What happens next:
And therefore Greece is poised between remaining a member of the eurozone or leaving it. In fact, as WSJ's Stephen Fidler explains, there are five possible future currency arrangements for Greece. Here they are...
1. Greece stays in the eurozone: This is the option likely to cause the smallest short-term disruption to the Greek economy. The Greek central bank would retain access to liquidity from the European Central Bank, and the Greek banks would stay on life support. This looks increasingly likely to be accompanied by some kind of further negotiated debt relief. To get it, Greece would almost certainly have to agree to more conditions of the sort successive Greek governments have found it hard to accept.
2. Greece keeps the euro, but sits outside the eurozone: Jacob Funk Kierkegaard of the Peterson Institute for International Economics in Washington calls this the “Montenegro option” and argues this is the most likely outcome should Greece exit the eurozone. This would not be “a new drachma, but Montenegro—i.e. Greece becomes just another relatively poor unilaterally euroized non-EU Balkan economy,” he writes here. In some ways, this would be the worst of all worlds because Greece would lose access to the ECB. Countries using a foreign currency as legal tender have no access to a lender-of-last-resort, which means that every bank liquidity crisis becomes a solvency crisis. They therefore tend to have stunted domestic financial sectors — which almost every academic study shows is bad for growth — or have a banking system owned by foreigners, which exports the lender-of-last resort role to other countries’ central banks. (Mexico didn’t adopt the dollar after the 1994-95 financial crisis — but in order to avoid an undue shrinkage of its banking sector, it allowed most of its banks to be bought by foreigners.)
3. A currency board: In this case, Greece would create a new currency but lock it to the euro – as Estonia did with the German mark in 1992 after it gained independence from the Soviet Union. The amount of new drachmas in circulation would be limited by the size of Greece’s international reserves: about $5.8 billion at the last count. Advocates argue that this would impose discipline on the Greeks — poor economic policies lead to an outflow of reserves and therefore of the domestic monetary base, which pushes up drachma interest rates, while good policies have the reverse effect. The drawback is that again the central bank is limited in its lender-of-last resort powers because it cannot create money freely. It also imposes discipline that, for now, may make it look unappetizing to Greece’s current rulers. It’s not much talked about, has a few enthusiastic and long-standing cheerleaders, but is a theoretical possibility. Here’s Steve Hanke arguing in favor.
4. A dual system: Here the drachma and the euro would circulate side-by-side. This has many historical precedents going back centuries. In practice, a dual system is likely to emerge when the Greek government runs out of euros and has to pay its domestic bills in government IOUs. The IOUs could at some future date be redeemed in euros, or could be eventually redeemed in drachmas, but they would initially be euro-denominated obligations of the government that would have a lesser value in the public mind than euro notes or coins. This state of affairs could continue for a long time, but there is an economic tendency called Gresham’s Law: ”Bad money chases out good.” Over time, euros would disappear from circulation because people would hoard them as a store of value – and people would spend the government IOUs. De facto, the drachma, whether or not it would so be called, would become the main means of exchange.
5. The new drachma: The move to the new drachma may well not come with a bang, but gradually — as described in 4 above. But an eventual formal switch of the currency would give Greece control over its own monetary policy. However, a new currency — which would likely float against the euro and other major currencies — would likely create enormous short-term disruption, not least because a heavy devaluation would follow and the banks would in effect be insolvent. Longer-term, it could be a motor for future growth of the Greek economy — because it would stimulate demand for Greek exports by lowering in real-terms the price of goods and services produced in Greece. Longer term, the effects of a devaluation depends on the quality of economic policies that accompany it. It will create inflation, by increasing the costs of imports. One important issue is how much the government raises wages and pensions to compensate for higher inflation. The more domestic wages and pensions are allowed to rise, the less impact the devaluation will have in simulating Greek exports longer term and the lower the benefits to economic growth.
Place your bets.
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yep.
WARpath
Is Greece going to Grexit?
Will Iran FINALLY agree to inspections (this is especially funny)?
Is Russian in the Ukraine or not?
Are the Palestinians and Jews going to come to a peace accord?
Is Jenner going to fk broads in the pink or guys in the stink?
Pre-terrorist clowns are burning the stars and stripes on the streets of NYC and no one is getting their head blown off?
Holy FK
Jesus Christ on a popsicle stick, men... talk about vascillation... no one can make a fking decision any more.
Am I the only real fking man left on the planet with proper testosterone levels? Since FObama started his reign of terror, I feel like I'm in a dream. All of a sudden, every world leader except maybe Trump and Cruz and Paul are epic pussies. These fking "world leader" guys sound like a bunch of middle aged women under hair dryers at the salon.
Let's grow some balls, people - Captain Moonlight 2016 (or Trump, Cruz, Paul...)
We need someone like John Wayne or wax paper...doesn't take shit off of anyone.
That is a very good summary for the average man on the street to answer. Keep reposting as appropriate.
It will depend however on what common knowledge men have AND what level of emasculation they have. The Wsest only wants men to show up when something is burning or needs rescuing.
No. No. Not. No. Neither. Correct.
And the reign of terror probably started with Nixon.
Go Drachma!
We need to wait another week and see if the EU will be able to put their own man in charge of Greece. They are still not giving up on that idea.
So when there's protest in Greece against EU offer than there is separate ZH article about it
http://www.zerohedge.com/news/2015-06-29/massive-greek-no-protest-front-...
But when there's protest in Greece for support EU offer than its not interesting for ZH owners to report its visitor's.
http://www.theguardian.com/business/live/2015/jun/30/greek-debt-crisis-d...
That doesnt correspond to ZH owner agenda. Where is ZH objectivity?
Look up I am reporting it. Yesterday were supporters of Syriza out on the streets and today supporters of corrupted mayor of Athens connected to opposition. What do you think, there are hundreds of thousands of Greeks that directly suck tit of EU and the don't give a shit about their own country.
I dont see in ZH article:
Massive Greek "Yes" Protest In Front Of Parliament - Live FeedWhere is it? Post a link.
Maybe there isn't a link to post?
first of all, let me apologize for the tylers and all of us here on ZH for this terrible ovesight.
so glad you brought this to our attention.
jeebus. the yes vote is not news. the no vote blows everything up. now do you understand why it is not important to report the yes vote support? probably not.
Only today ZH posted a guest article about the possibility of civil war in Greece. Surely that meets your craving for objectivity and fair space to the other side of the argument? And since you posted a few comments in that thread, you do remember it don't you?
It was not reporting about massive pro EU protest.
It was some putins propaganda about how US would be interested in supplying weapons to Greek people in order to start a civil war and make a profit out of it - idiotic report from ZH.
But where is this report abour Pro EU protest just as ZH had report about against EU protest?
where is ZH objectivity?
derp
Like I said yesterday, ZH generally caters for a particular thread of thinking which I happen to totally agree with. You know, all that stuff like free markets, financial rectitude, small govt, personal freedom/responsibility which socialists hate so much, even though it has been proven throughout history to be the only successful model. Why? because all those things are in mankind's DNA.
If I went to girl bar in Thailand, would I expect to find boys there just to maintain a balance? I don't think so. If I wanted boys I'd go to a boy bar. These girl/boy bars cater for a particular type of need.
Anybody who wants to watch/read balanced journalism should watch the BBC. Only it isn't actually balanced. Therein lies the great con. ZH contains no such con because it makes no secret of what it supports.
"ZH generally caters for a particular thread of thinking which I happen to totally agree with. You know, all that stuff like free markets, financial rectitude, small govt, personal freedom/responsibility which socialists hate so much, even though it has been proven throughout history to be the only successful model."
LOL
Once upon a time, perhaps, but in recent years ZH has drifted leftward in a major way.
They've been fellating the socialist government of Greece on a daily basis since it took power, and perpetuating the narrative that the crisis is all the fault of the bankers, or Germany, or the US, or the toothfairy, or whatever...never the fault of Athens' own long and retarded legacy of socialistic economic policies. It is always suggested that the solution is default, or going back to the drachma and printing, or becoming a Putin vassal (all to preserve the welfare-state gravy train)...never is it considered that Greece should undertake pro-market reforms.
I shouldn't say ZH is never on the side of free market capitalism (it varies by which Tyler is on duty, and there are some good guest posts), but the overall tone is increasingly shrill populist-leftism.
I hear what you say. Perhaps what you perceive as a leftward move by ZH is actually down to different Tylers with different views? I see no shortage of articles posted on ZH by the Tylers and guests which slam socialism and anything which smells like it. This very article is one example. Plenty of articles about Obola who has shifted towards Fascism/Marxism. And I can admit to not always agreeing with the ZH stance on certain subjects, mostly geo-political. So much of this comes down to what any individual considers to be Left or Right.
Should people on the Right automatically support banksters? I don't think so. Should they automatically despise Putin? I don't think so. Should they automatically support the global institutions like IMF? I don't think so, not least because what we used to know as "capitalism" has gone and is replaced by "crony capitalism", which of course is largely a Lefty phenomena. In fact there are people who won't accept the "crony capitalism" label because it is actually "state capitalism" that has/is taking over: ie: fascism.
As for Greece, I agree with you that it is now suffering a problem largely of its own making: years of corrupt socialism and politicians with their hand in the till. But that doesn't mean that the Troika and banksters are guilt-free in the current crises. Far from it. The EU/ECB et al created the system which gave rise to this crises and they knowingly allowed Greece to join the EZ regardless of its inabiliy to pay its way. Perhaps they thought they were creating a "transfer union" whereby Germany would hand €billions of its new found trading profits over to countries like Greece each year to keep them in the club.
Dont pop his euro union is awesome bubble . He is also a banana vendor in Latvia after all .
Fight Club
Not
Fair(y) Club
Go to Kos to get your pussy rubbed.
Best regards.
EU is a house of cards, nothing more just a shell filled with propaganda balloon, they need all paper cards in order to pretend and extend their autocratic rule.
The Greece situation is just a manifestation of true purpose of the money issued but supra-state oligarchs of ECB, namely to enslave body and mind as witnessed by thousands of EU controlled half conscientious, humanoid zombies begging for more rotten meat from Germans in Athens tonight.
EU banksters do not even care to be paid off just to enslave for sake of it, for sake of power. If they wanted money they would just make it up.
All power elites make sure that the purpose their financial system is to propagandize into peoples desire for money as means and/or ends to achieve something, they are told is important. The role of commercial propaganda is to instill unquenched desire for money, which people cannot create themselves (prohibited to) or produce in sufficient quantities. This combined with government requirement and/or threat to be paid dues with their "money” closes the circle of wage enslavement.
An honest and interesting discussion on origin of money within human society and its derivative namely financial system and its “products” can be found at:
https://contrarianopinion.wordpress.com/2015/04/14/plutus-and-the-myth-o...
And which is country you think is governed the best way possible for today? Which is that country and its government you admire?
Read 100 volumes of philosopher's writings, the answer to your rhetoric question is somewhere there. Unless you have all the answers.
IMO, all forms of government have a tendency to devolve towards tyranny and corruption. The problem is, there are too many sheep who want to be led and too many narcissists, sociopaths and control freaks who are all too happy to lead them. IMO, we're going to get a government, whether we want it or not. It's quite the quandary.
"IMO, all forms of government have a tendency to devolve towards tyranny and corruption."
Right on. And its usually because their policies fail but they still want to be in control of the levers.
Thats why government must fear the people and not otherwise.
And that means people must be active, responsible, well informed not manipulated - Thats why we need objective journalism not state owned propaganda. With their rights on free speech, protest, access to information and report others about facts. Real independent courts not crony ones that contolled by corrupt elite.
Well said. I've green ticked you on this because now you're talking my sort of language.
Keep this up and I'll plan a holiday in Riga-On-Sea. ;-) and invite a few ZH-ers too (!!!)
"And which is country you think is governed the best way possible for today? Which is that country and its government you admire?"
Singapore, I'd say.
Unfortunately, it's becoming more democratic, which'll sooner or later bring it back to the mean.
RIP Lee Kuan Yew, who should have gotten himself crowned.
"...
An honest and interesting discussion on origin of money within human society and its derivative namely financial system and its “products” can be found at:
https://contrarianopinion.wordpress.com/2015/04/14/plutus-and-the-myth-o...
...."
honest and interesting? how about hilarious and entertaining.
Olive oil backed Drachma floating rated redeeming per liter of olive oil. 1 Drachma is redeemable for 6 fluid ounces of extra virgin olive oil. That is about the equivalent to 1 USD. Floating rate is in the amount of olive oil to maintain a 1 to 1 to the USD or euro if they want the fluid ounce ratio. Manipulate the commodities all you want ratio of Drachma to Euro/USD doesn't change......
It is no different than petro dollar or what the Russians do if you nationalize the olive oil industry like Russia did with the gas companies. Those companies become your printing press.
Unlike all the scrip paper or digital out there this money functions as a business contract redeemable for a something tangible that is guaranteed to provide liquidity to the economy since olive oil is a perishable and consumable good (food,energy,raw materal for stuff like soap) and self sustaining unlike crude oil.
6. Greece adopts the Russian Ruble
I think that Greece as an exporting country also for tourism could use the same system Denmark follows witch is still keeping it’s own currency the Danish Krone.
As tourist you pay the Danish and the Greeks in Euro’s, in return you get useless local Viking currency with holes in it or tourist Drachmas.
The problem is that you could easily be attacked by hedge funds hyenas looking for a quick buck manipulating the currency up, breaking it’s Euro-Peg.
We have seen that happen in Swiss but this could also happen in Denmark or Sweden.
Maybe Greece adopting the Rubel wouldn’t be a bad idea at all since if Greece get’s it’s energy from Russia a rising Ruble will help to lift off Greece's economy because energy prices will be rock stable to build further the emerging economy.
Russian sanctions are simply too ridiculous, Europe is shooting itself in the head. Europe needs Russia and Russia needs Europe.
RUB very attractive and stable currency - last year lost only half of its value and nearly (nothing serious) escaped total collapse at X-mas. Yes, indeed good choice for Greeks to continue their adventures in seeking new ways to financialy ruin their country.
oh yeah their economy almost colllapsed and all that diatribe . have you seen the latest trend on ruble douchebag ? If you know nothing better shut up , unless you are being paid to write this shit .
You get 5 rubles per post? Like dutchboy?
i think the fact that the orchestrated attack on the ruble did not accomplish the stated goal of crushing russia's economy and therefore russia shows the resilience of the ruble, making it a safe haven. how long do you think the usa economy would last if china dumped all its usa bonds in a coupla weeks? the usa dollar would fold like a wet napkin.
Greece keeping the Euro outside the ECB could be problematic but necessary in the beginning.
Greece could start introducing the Ruble as alternative currency to the Euro in the short term. Because returning to the Drachma at once will cause a massive inflation shock. And the newly constructed Drachma would be an easy pray to hedge fund hyenas. Then Greek energy imports can be paid in Rubles which prevents an inflation shock.
Later a ‘tourist’ Drachma could be constructed as alternative to the Ruble and the Euro. This Drachma could be pegged to the Ruble in the beginning so that it doesn’t matter you hold Rubles or Drachmas and are easy exchangeable. Later the drachma could be pegged to the Euro if convenient.
Because now with the Drachma Greece got back it’s sovereignty, the power over money. But with sovereignty comes responsibility and Greece got to clean house meaning getting rid of government corruption and balance the books. Greece got back their power of devaluing the currency on which they use to heavy rely in the past as did Italy btw.
http://www.timesofmalta.com/articles/view/20150630/local/greece-says-it-...
Greece says it is willing to suspend referendum - PM
Opposition behind government 100% - Opposition leader
Greece has told negotiators in the EU it would be willing to suspend the referendum if negotiations were reopened and there was an offer and agreement on required prior actions, Prime Minister Joseph Muscat said this evening.
In a statement to Parliament this evening, Dr Muscat said this could be a breakthrough, a game by Greece to gain more time or political posturing.
He said it was too early for the Maltese government to pronounce itself on the matter as events were still developing.
Opposition leader Simon Busuttil said the Opposition was fully behind the government, the European Council and the Finance Minister's Council in their declarations and decisions of the past two days.
"There is no difference between the government and the Opposition.... There is just one voice - the Maltese voice," Dr Busuttil said.
I know these lazy bums only know to beg!!
From the options listed, I'd recommend Option 3 A Currency Board.
Anything that imposes discipline onto the crooked greek political elites has to be a good thing.
Notice how they leave out civil war, or junta 2.0 both viable outcomes. They also leave out regime change putting in Golden Dawn or a more eurocentric government which is even more likely to prevent civil war or junta 2.0.
and who just divided nation in two sides by pushing for referendum?
When the Greeks elected Syriza, they voted for no austerity and no Grexit. Those are some very unrealistic expectations, which will naturally lead towards division.
Unfortunately for us majority of greeks are unrealistic.
That's not unique to Greece...
Lol look who is callibg greeks unreal . A baltic scumbot twat . Funny .
unrealistic as fuck, just reading here than greece could use russian money after the euro while still in euro...
no need to say more.
There is no path for Greece.. These lazy bums only know to beg!
http://www.cnbc.com/id/102794738?trknav=homestack:topnews:1
Greece willing to call off referendum in exchange for loan deal: Reuters, citing sourcesHow did Greece get 5 options? Thought they were all out of options. At this rate of procrastination they'll have 20 options by next week, easy. Way to go!
"The longer you procrastinate the more time you have." -- Anonymous
OR ... In fact, the Syriza party was the economic Trojan Horse which was used by the Troika to implement the broader multilateral reforms and restructuring of the Greek banking system. Greek Prime Minister Alexis Tspiras and Finance Minister Yanis Varoufakis have clearly been positioned to sell further consolidation of the European economic zone to the Greek population. One of the main components of this restructuring is the “offer” to pass direct managerial control of Greek banks to the ESM/ European Stability Mechanism. This transition will include bank mergers and is to be implemented under the supervision of the ECB.... the PLAN ... he proposed policy defines four categories:
Debt Mutualization
Common Bank Supervision
Pan-European Investment Program
Pan-European Solidarity Program, which is segmented into the following:
Common Unemployment Insurance
A Basic Food and Electricity Security Program
A European Pension Union
A Topping-Up Program for Low Earners
A Common Minimum Wage
Yet the math will eventually win. The combined output of industry and agriculture of Greece cannot survive in a "stronger" european (really German GDP based) currency (during recessionary times especially). They are mainly a service-based economy with a side of extreme euro-socialism re: goverment benefits, healthcare; with a very fraudulent ridden tax collection system.
There is no "Greece staying in the eurozone" solution other than the stronger euro-GDP nations taking it on the nose re: Greek debt obligations or they say F U pay me.
They're not going to produce, grow, or beg their way out of this.
Its just a matter of time before the elitist, intelligensta, skittle shitting ECB realizes this.
I suggest the Cheese Standard: new drachmas redeemable in feta at a fixed exchange rate.
Long sheep and goats!
6 Immolation
7 nuke
Or it could just introduce the Rouble and really piss the ECB off.
Missed one path. Revolution, martial law, depression.
Article = run-of-the-mill Keynesian idiocy
"In some ways, this would be the worst of all worlds because Greece would lose access to the ECB. Countries using a foreign currency as legal tender have no access to a lender-of-last-resort, which means that every bank liquidity crisis becomes a solvency crisis. They therefore tend to have stunted domestic financial sectors — which almost every academic study shows is bad for growth"
"The drawback is that again the central bank is limited in its lender-of-last resort powers because it cannot create money freely. It also imposes discipline"
Longer-term, [new drachma and money printing] could be a motor for future growth of the Greek economy — because it would stimulate demand for Greek exports by lowering in real-terms the price of goods and services produced in Greece. Longer term, the effects of a devaluation depends on the quality of economic policies that accompany it. It will create inflation, by increasing the costs of imports. One important issue is how much the government raises wages and pensions to compensate for higher inflation. The more domestic wages and pensions are allowed to rise, the less impact the devaluation will have in simulating Greek exports longer term and the lower the benefits to economic growth."
tl;dr money printing = growth (!)
Of course, said "growth" is just a misallocation of resources: from their most productive uses (i.e. where the market directs them) toward less productive uses (where the state directs them via money printing), resulting in lower total output and lower standards of living (but also a nice redistribution of slices of that shrinking pie to the state and its cronies who get first access to the new money).
RUB very attractive and stable currency - last year lost only half of its value and nearly (nothing serious) escaped total collapse at X-mas. Yes, indeed good choice for Greeks to continue their adventures in seeking new ways to financialy ruin their country.
Ya, and russia sells in dollars and pays in rubles. Do some thinking on that.
You are thinking and pricing in dollars. Gold is value by itself as it goes beyond our fiat money system. The probelm is not the value of gold, but the value of everying else in gold.
Gcoin
Trillion-Drachma Pt Coins!
Greece has to make that 1.6 billion Euro repayment in 30 minutes or less.
It's official bitchez. Greece did matter.
:)
Let’s see if tomorrow evening is already the time to’do some bottom fishing if the markets crash.
I sure hope so, a small massive chock of 10% down would be great :)
You already owe vastly more than you can ever repay under any realistic scenario. Keep your creditors coming back to the table via the games you play (ex., promise reforms then don't atually make any). Grab as much money as you can and then do the inevitable and default if not allowed huge haircuts on what you owe because you know that those other countries liable for huge amounts of your debt like Spain and Italy (thanks to the transfer of private bank debt to the EU taxpayer tab) can't afford to pay either or at least can't pay without causing more economic dominoes to fall. You're going to suffer badly no matter what you do, so play it for as long as you can, and take as much money as you can in the process.
Not at all ethical, but neither is the expectation to make big bucks on bad loans you know will be placed on the taxpayers' tab WHEN, not IF, they go sour.
"If you owe the bank $100 that's your problem. If you owe the bank $100 million, that's the bank's problem." - J. Paul Getty
The Euros want their Union Dream.
The Greeks will sell it to them.
Bit by bit.
Still no mention of write-downs. The midddle class in Greece will wallow in stagflation until there are major write-downs on the debts of the people. They can't tax the people if they are broke. Any of these monotary arrangment would work if the people of Greece were out of debt. But of course everyone else in Europe would want a similar write-down of their debts too.
Deflation wipes our malinvestment and fraudulent assets. Nowadays deflation is inevitable. They can have a controlled deflation with a big write-down, or wait until all the banks collapse: uncontrolled deflation.
"They can't tax the people if they are broke."
And they can't pull a Cyprus on money that Greeks (who were smart enough) pulled out of their banks during the many months they've had to do so. Another reason it was and is smart for Greece to drag this out as long as possible. They're going to hurt no matter what. The strategy is then to maximize the potential hurt elsewhere to make some level of debt forgiveness more likely.
That does make sense, and it seems to be working. But everyone in Europe is going to want debt forgivness.
And why not? It's not like the banks had the money to lend out in the first place. It's printed out of thin air, and the only reason they limit printing is because too much printing undermines value and confidence.
But let's look at what exesive debt has done. Its past the point of payback. Debt levels are so high no-one has any liquidity or savings. We're way past the point in which there is more debt than there is money to pay it off. From that point of view this whole system is a write-off.
They are beating a dead Trojan horse for sure which they willingly allowed to be pushed through their gates by Goldman. Give it up already.
OT
That huffpost graphic made me think. Huffpost and it's denizens have done nothing but complain that austerity doesn't work and say it is bad. Now the leftists (American) are complaining that Greece doesn't want to do austerity anymore because it threatens their collectivist garbage mentality. It's super retarded.
ALL 5 OPTIONS ARE BASICALLY SHIT.. GREECE HAS BEEN FUCKED ON PURPOSE..
The same can happen to us, basically ordinary people can get shafted overnight by institutions. No matter what way you cut it depending on govt/institutions/banks etc is a fools game. Becoming sovereign as best you can is the only way to protect yourself. and the only way to become sovereign is to Own gold.
So what I am saying is GET INTO GOLD GUYS .... physical gold ownership on a long term deal.. speculate on comex paper if its short term gratification your after. . Physical ownership is the best protection plan.. why save in dollar/euro thats depreciating faster than a ford mondeo being used as a taxi...and dont even start with some 401k bullshit.. whereby you turn your wages over to some coke head to chase the ticker with... fuck me zerohedge readers are all intelligent professionals... this is basic stuff... save in bullion spend in fiat !!!
if people dont have the £$€ to save a bit of bullion each month then use the marketing system to earn commissions and acquire your bullion with that.. we are giving people both the bullion and the means to acquire it... we spout enough about gold and economics on ZH why not profit a bit from that knowledge by referring people to acquire bullion... but perhaps ZHer's are to aloof for network marketing ...sarc or maybe not!
www.teamramgold.com
Does this mean Greece is going to default?
If nothing else at least the IMF is pissed off! Hahahahahahahaha
Aunty Entity: We call it Underworld. That's where Bartertown gets its energy.
Max: What, oil? Natural gas?
Aunty Entity: Pigs.
Max: You mean pigs like those?
Aunty Entity: That's right.
Max: Bullshit!
Aunty Entity: No. Pig shit.
Max: What?
The Collector: Pig shit. The lights, the motors, the vehicles, all run by a high-powered gas called methane. And methane cometh from pig shit.
-- Mad Max Beyond Thunderdome
Right now, Greece would be much better off with pig shit than with the Euro and the European Union.
Or they get the Rubel or remimbi
Here is some powerful 'STRAIGHTEN-UP JUICE' for the USA. Show the people:
"Stop whoring for Wall Street."
http://www.showrealhist.com/yTRIAL.html
http://patrick.net/?p=1223928
Looking at that list one has to conclude that it's not a good idea to defy IMF and their masters... of course the best course of action is to avoid having to deal with IMF in the first place... but up until now it has been rather difficult, enslavement through debt has been taken to a whole new level.
What’s wrong with this picture?
Greece, a bankrupt country, misses a $1.6 billion payment to the IMF and the interest rate on their loans goes to about 15%. If I miss one $100 interest payment on my credit card my interest rate goes to 29.99%.
Maybe I should open 100,000 credit cards and borrow more to get my rate down.
Well, when you owe $100 it's YOUR problem, when you owe $300 billion it's THEIR problem...
If you had taxpayers and central banks guaranteeing repayment of your loans, then that could happen.
"IMF, dirty MF, takes away everything it can get. Always making sure that there is one thing left, keep them on the run with unsupportable debt. And they call it democracy."
Bruce Cockburn
Greece should open trade with Iceland.
Trade dates and figs and yogurt culture for lava and geothermal technology, as example.
It comes out to 250 million blow jobs,10 million virgin sacrifices,and 2.5 million castrations,and the IMF will cancel the Greek debt by 2020..
A bargain!
Athens red-light district, High school graduations and divorce court will have payment complete by 2018!
If there is a big selloff around the world tonight/tomorrow then I am inclined to believe that there will be a deal made this coming weekend. And if there's massive fed/cb pumping the rest of the week, I am inclined to believe that there won't be a deal. Do the opposite of what the market does tonight/tomorrow. I hope we crash hard tomorrow and I close out my short term options and then I'll buy puts on UVXY and stay mostly in cash.
But I thought Tsipras had said "don't worry" about the IMF payment.
What is "IMF? Ignorant Mothe...
It is for "I MAKE FORTUNE"
LeGarde is paid 1 million year, plus complete staff, all expenses..room and board,servants... top livestyle...all freepay
others 500k and up, same benefits....so main is extend own employment while assist looting for percentage
IMF = Immence Monetary Fraud
Correct.
He's not worried about it cause he ain't gonna pay it.
I sure would like to know what the additional costs are in penalties and interest.
Who cares?
Ain't gonna pay it.
Unless they can sucker them out of more cash.
Then they can not pay them later.
Not so fast, I am running out of popcorn here.
LOlz
then need buy in bulk...faster!
http://www.ebay.com/itm/Great-Northern-Popcorn-5-LB-GNP-Organic-Yellow-Gourmet-Popcorn-Case-of-6-/370697269853?pt=LH_DefaultDomain_0&hash=item564f47725d
The IMF is the wrecker of nations, or is that Goldman's title to bear?
The best thing that could ever happen to Greece is to leave the EU and tell the EU globalist to go fuck themselves. But that might open Greece up to being over ran by Russia, or the corrupt politicians in Greece will sell out to China.
A weak currency is not a "motor of growth" - it simply impoverishes everybody except the few percent of the economy that represent the export sector - and even its gains are fleeting, they only persist until domestic prices have adjusted to the devaluation.
Argentina is just fine. The bitch gave them the finger and told the bankers, "kiss my ass." Greece, Italy, Portugal. and Spain should do the same. Central bankers are setting up for a world war. Wait until China figures out we have ripped them off on a epic scale. The world's population needs to stop being afraid of financial criminals.
A reflection of the state of the EU/euro club today!
What many of you do not understand is that Greece has been impoverished by the Euro, it is NOT an advanced country anymore.
That is why all this is happening, the Euro has smashed the countrys economy to smitherins.
The Euro is finished, thick skull Germans have grown too arrogant and too influential to be restrained and helped from themselves, USA under Obama is disrespected globally by all, more so by old U.S.A. friends like Israel, saudi Arabia, Turkey or even Germany, therefore US intervention is promptly ignored.
Lets face it a position against the Euro is solid come what may, the fracture is there and the dominos are surely falling.
THANK YOU GREECE! Now that wasn't so hard was it? Fuck the IMF.
Who's next?
Lotsoffun swore off comments, but the fun has started.
for you morons out there (hope I hurt you pretty little rainbow feelings, whine a bit and it will be better)
moron number 1 - greek is a developed country? First to default? Guess we need to redefine deeloped? For example; government smart enough to not agree to let goldman rape you?
moron nnumber2 - about gold. And paper and digital zeros.
you are right: gold ain't woth shit. I am going to toss my entire gold collection in your compost heap and you cash in your 401k into dollars, and not wait a few years, and I will keep the gold, ok?
moron. Moron with my peanuts are woth 1000 a pound.
sure they are, if they can be used for the same purpose in, 1 10 100, 100 years from now.
morons. They smash the prices, so you wont buy and they can buy cheap
You should swear off commenting again.
HOLY FUCK GUYS, BREAKING NEWS!!!!!!!!!! WHY THE FUCK ISN'T THIS ON THE HEADLINES RIGHT NOW????????? THIS IS A ZILLION TIMES BIGGER AND MORE IMPORTANT THAN GREECE!!!!! WOW!!! JUST WOW!!!!
http://perezhilton.com/2015-06-30-michael-sam-fiance-vito-cammisano-call...
off topic
IMF is going to garnish Greek wages.
/lOL
Who's next anyone taking bets?
Everyone.
We's all broke dick dawgs.
http://www.shutterstock.com/video/clip-3607934-stock-footage-falling-dom...
"protracted arrears." what a phrase,
powerful, pregnant even? yet, combining
any form of pregnancy and arrears (just
sounds funny), eternal and "sustainable" debt
extending into eternity> wonderful and
delusional from the start and by design.
glorious. etc... right?
i mean, it supports a mindset and paradigm
and only a mad man would question any such
"established" ways and means my friends.
This is not a technical default that can be swept under a rug. This is a real default on payments due. Now we wait for the next payment deadline, which will be defauted as well. Bankers and Hedge Funders who bet big on Greece are gonna be royally fucked. The Hedge Fund boys thought their Troika pals could come through with the goods for them now they failed, a lot of investors are in the shit tonight.
I hope the shit storm isn't on us when those hedgies start dumping again a la 2008...
the can will be kicked to dump the problem
onto a "government" balance sheet, a central
bank balance sheet or a retirement fund/program
balance sheet. then it will be recognized as
the worthless fraud that it is. god , i hate
this shit.
So is this going to be a "fukushima" financial event or just another dead beat country higher up in the food chain....we live in interesting times...some even say the "twilight zone"
Silly me,I thought the Common Currency idea was to prevent war....
It is a brave new world. Don't blink.
I Blinked Once - Steve Forbert
https://www.youtube.com/watch?v=ok8TjUU1ml8
One other thing,the USA will forgive IMF debts if a country votes the "correct" way on UN assembly resolutions.
The USA will do substantial armtwisting if a country does not vote the "correct" way on UN assembly resolutions.
The only way to break the debt bondage and regain sovereignty is for all the local Finance ministers to
meet behind closed doors and the US is NOT invited.This happened in Latin America a few years back....
this is what will happen:
on Sunday Greek people having had a late wake-up-call will vote a resounding YES to stay in the EUROZONE.
Shortly thereafter, (if not before) Tspiras and Varoufakis ,the two Poker-player LOOSERS will resign or be kicked out of Government in shame -
and will even have go to face charges for financial vandalism, gross negligence and crimes of corruption committed against the Greek People.
After the YES Referendum, Greece will have to accept all Austerity measures listed in the last deal offered by the EU and IMF.
Only after that Greece can be saved from the abyss it has been led to by a corrupt criminal Government.
A NO in the Referendum would mean automatic default within a couple of weeks, by which time Greece would be absolutely bankrupt and a failed state.
(and all the misery that goes with facing a Greek depression without help) It's up to the Greek People, and since they are smart, I think they will vote YES.
As a German I really could not give a fuck which way Greece goes, because like many other Germans, I had more than enough of abuse and shit dished out
by the fucking ignorant hubristic idiotic morons that call themselves the present "Greek Government"
with Poker- Game-Theory-Fools Varoufakis and Tsipras.
These two arseholes should go to jail for economic stupidity and financial vandalism.
that's all I got to say!
WR;)
No, just borrow from BRICS bank.
Fuck IMF loans.
As a german, you are being fucked by Merkel transfering the private debt of Deutsche Bank, to you, the greeks, and all other european taxpayers.
Exactly! Know your true enemy! He hides himself well.
By the tone of your words I would say you DO give a fuck....you sound like a teenager who has just been sent to his room.
Rumor on the street has it that LaGuarde wants to fuck Tspirias up.
Michael Pento: Most Dangerous Time-Since the History of Economics, Gold and Silver Update and More!
http://www.youtube.com/watch?v=3ihC71fqPUc (18:29)
Published on Jun 28, 2015
Financial expert Michael Pento on gold and silver update, Greek debt crisis and also thinks the biggest danger in the world is overconfidence in central banks. Pento explains, “The biggest bubble out there is an increase in faith that central bankers can save the world. This is why Chinese shares can drop 7 ½% overnight and the Dow can be up 90 points. What do I hear on radio and TV is who cares if Greece leaves the Eurozone because didn’t Mario Draghi say he would do ‘whatever it takes’? Who cares it Chinese shares collapse, because the Peoples Bank of China will just print money. Who cares if inflation in the United States becomes intractable? Didn’t they say Fed Head Janet Yellen and company would just buy all the sovereign debt there is to keep interest rates low? Who cares? The free market always wins, and it will always trump government. That’s why I am so petrified about investing right now. I think we are in the most dangerous time frame we have ever been since the history of economics. I think what is going to replace this misguided spurious faith in central bankers is going to be a renewed interest in hard money-precious metals. We are going to throw out the central bankers, and we are going to universally think it is absolute madness to think we can put our faith in a small unelected, unaccountable group of people. We are going to put our faith back into gold and silver as money. That’s what I am looking forward to. It will be great news to Americ and the economy in the long run.”
Join Greg Hunter as he goes One-on-One with money manager Michael Pento of Pento Portfolio Strategies: http://usawatchdog.com/every-asset-in-a-bubble-except-gold-and-silver-mi...
Increase tarrifs on imports.
That's a well known tactic and is used in Brazil big time to support employment and where import taxes are so high and horrendously complicated to work out that many foreign companies simply don't bother to export stuff there. So the choice is from a range of domestic goods.
The big downside is that it discourages domestic R&D so Brazil-made goods are often out of date, don't use current technology and poorly manufactured, and it makes for higher prices for them.
Not a good long term economic policy IMO.
The fate of Greece is the fate of the USA and all other nations under the octopus of bankster criminal debt, fraud and chaos.
Criminal activity must be framed as criminal activity and therefore the solution has to be framed in how do we break the criminal stronghold and bring the criminals to Justice for their conspirator criminal activity and repudiating the criminal debt.
We should be examining how to prosecution the bankster fascist (merger of multinational corporate monopoly with government) criminal cabal and review professors Black, Chossudovsky, Hudson and Gavin Marshall research into the criminal cabal activities.
I am a 71 year old student that has been following the maneuvers of the American bankster fascist most of my life. The EU was designed, financed and implemented by the criminal banksters and their shadow government of the Council on Foreign Relations. The banksters CFR activities are well documented over the last 60 odd years in plotting Treason against the USA and implementing the fascist New World Order. Selling debt as wealth is their weapon.
Do gold bugs really believe that the criminal banksters are going to lose control of the gold market in the USA? Today, the currency is fiat but the BRICS gold backed currency of tomorrow will set a new gold standard. The bankster criminals stole all the USA gold when we went off the Gold Standard. The criminals loot, pillage, burn bridges and destroy as they move forward so that there is no way back. When the bankster criminals need gold, Emperor Obama via decree, will confiscate the gold in your teeth.
In my opinion, it will take a violent revolution to bring the fascist bankster criminals to Justice, until then, we are all victims.
The birds on the second image are vultures such as Goldman Sachs.
You're drunk Greece. Go home.
Dont they own a printing Press? Can't they just print the equlivqnt of a 1Trillion bill, hand it to the IMF and get change back?
The best course of action is to take huge monies from IMF,World Bank etc and refuse to pay it back.
Soon all western economies will fail & fall
Western economy is based on piracy & loot
Let them show their true colors now
Get ready with your cutlasses
https://www.youtube.com/watch?v=Ymi9nqbXX2s
Wait for Obama TPP negroism to save day. We have a new Slavemaster in the White House.
/sarc
There is not way around budget cuts. And to place a knive beside is is quite stupid. There is not way ever that credit expansion can go on forever, so much is for sure. And one should never forget that.
Totally unrelated, I'd like a ZH shirt or hat. Here's an idea, let me know if you're getting more, and take payments in silver. I'll trade you an oz, or an oz and a half. Let me know where to send it to.
Seems easy enough, take the knife and cut a bankers throat, and then shoot anybody coming to their rescue
http://i.imgur.com/vqyr1y0.jpg
Well, for all the talk in this article title and throughout about Greece now being in "default", it appears that the IMF Exec Board have been told by Lagarde that it is only in arrears and might consider Greece playing catch-up sometime later.
Methinks that arrears is not the same as default from a credit event aspect.