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Finally The Truth: "The Greek Debt Is So Big Everyone Understands It Won’t Be Repaid"
On Monday morning, before the latest series of optimistic rumors and realistic denials was unleashed, Latvia's outgoing President Andris Berzins had a surprisingly accurate observation in an interview with Latvian Independent TV when he said that "this [Greek] debt is so big that everyone understands that it won’t be repaid."
We find this statement to be amazing because this may be the very first time an official has actually told the truth about not only Europe's but the global debt crisis, in recent history. Granted, it does miss one key distinction, namely that all the risk exposure to Greece has been shifted from European private banks to the all too public European taxpayer, but that's a story for another day.
Berzins had some further observations that were likewise amazing, adding that "loans to Greece have just bought time so that those in power don’t have to take decisions. This is like a game: who can hold out longer by not showing that this money has been lost? This burden has become bigger and there obviously is no possibility to repay."
He concluded that the "debt writedown of Greek debt will come after bankruptcy of state."
Well that, or hyperinflation. But that can only occur in local currency, i.e., New Drachma, terms.
So if a "No" vote wins on Sunday, Greece will basically end up with precisely the outcome that everyone has been terrified to mention: a clean balance sheet and the hope of an actual recovery, granted with much interim pain. Incidentally a debt restructuring, one way or another, is precisely what Syriza's goal has been from the very beginning.
And yet, there was one problem with this statement. As we noted on Twitter:
“The Greek debt is so big that everyone understands that it won’t be repaid,” Latvia president. Has he seen US debt?
— zerohedge (@zerohedge) June 30, 2015
Since our questions was rhetorical, and since there is no way of knowing if Mr. Berzins has looked at the US debt, we decided to make it easy not just for him, but for everyone else, and show where the real debt that will never be repaid is held.
Luckily, the USD which is the world's reserve currency, and which is the only reason the chart above is possible, will remain so in perpetuity, because this time it will be different.
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The same can be said about America's debt and unfunded liabilities of over $1,400,000 per taxpayer. Greek debt is $65,000 per taxpayer.
Renowned economist Laurence Kotlikoff recently testified at the U.S. Senate about the runaway U.S. budget. How bad is it? Kotlikoff says, “I told them the real (2014) deficit was $5 trillion, not the $500 billion or $300 billion or whatever it was announced to be this year. Almost all the liabilities of the government are being kept off the books by bogus accounting. . . . The government is 58% underfinanced . . . . Social Security is 33% underfinanced . . . . So, the entire government enterprise is in worse fiscal shape than Social Security is, but they are both in terrible shape.” So, how much is America on the hook for in the future? Kotlikoff contends, “If you take all the expenditures that the government is expected to make, as projected by the Congressional Budget Office (CBO), all the spending on defense, repairing the roads, paying for the Supreme Court Justices’ salaries, Social Security, Medicare, Medicaid, welfare, everything and take all those expenditures into the future . . . and compare that to all the taxes that are projected to come in, and the difference is $210 trillion. That’s the fiscal gap. That’s our true debt.”
http://usawatchdog.com/financial-system-will-collapse-just-a-matter-of-w...
The truth is unacceptable… you’ll have to give us something better.
The Great Reset draws near...
Maybe I should go buy a nice new truck before the banks vanish.
The crux of the problem is a debt based monetary system will always create an unpayable debt. It is a monetary system always doomed to failure. The trick is how to get back to sound money with as little chaos as possible. Here is a plan to take a first step in the right direction.
Well actually the first authority to declare that state debt can't be repaid was Puerto Rico's gov. Padilla, just last week, explaining that P.R.'s $73 BIL debt will have to be 're-negotiated', and state agency bankruptcy law must be changed.
The debt truth is starting to leak out worldwide...
False flag in 3... 2... 1...
how much in bonuses was paid out lending this debt trap to greece?
Finally the truth: The World Debt is so large that it can never be repaid.
It keeps rolling over until it doesn't.
Too big to be repaid,
as are all the other debts.
USA...fucking exceptional!
. NOTHING will change until the Masses/Sheeple understand the Basics1 and Act2 on them with Terminal Consequence3.
[1] Basics = BBM (Babylonian Money Magik) is an Ancient and secret process, whereby 'Money' is magically created and used to transfer personal and national wealth and assets from the Many to the Self-Chosen Few. Fiat Currency, FRB and Derivatives are the dizzying mechanisms of Deceit and Theft that are being used within the 'Magik'. The Politicians, Judges, Media and the Military/Surveillance complex are just the Enablers and Enforcers.
[2] Act! As in... 1. Organize. Have a common-core of Vision, Values and Goals. 2. Apply organizational and project management skills, not Amateur-hour anarchy. ID and select the most Loyal and Competent Leaders, from various backgrounds that complement each other into a holistic body. Hint: you will not need or want an army of lawyers or professional politicians. In fact, I'd bar most of them from even joining or holding any significant positions.
[3] Terminal Consequences means you Save the Country, NOT the Banksters and corrupt Oligarchs. Whether you provide them swift Due Process via (a) Confiscation of Assets (like in a drug bust) and their subsequent Public Auction, (b) Jail terms in common-man jails, or (c) go as far as sentencing them to Capital Punishment (firing squad, hanging by neck or feet...) is up to you and your regional preferences.
Save the country?!?!?!?
LOL, Riiiiiiiight.
Any one of us here will be extremely lucky if we manage to save ourselves, and our families. There is no saving the very abstraction that got us into this mess.
Your collectivist ideologies will be the death of us all.
For inspiration on direction read Snow Crash. "Collectivism" and such no longer has relevance. If colletivism works, fine - if Feudalism works also fine. You have to understand that political reality abhors a vacuum, and always there will be gathering of elements of force. So you might be arguing anti-collectivism, but behind your back career mobsters will divvying up the spoils, organizing and germinate the start of a new global empire. You might not like collectivism, but it is pretty much inescapable.
Uhm yes.
Time for a sing-along.... https://www.youtube.com/watch?feature=player_detailpage&v=2-BtquTKw78
Greece is finished, the myth of fiat currencies will soon be exposed as a complex fraud.
Apparently many shopkeepers in Greece now ONLY accepting cash as of course all electronic transfers vanis into digital void to be squestered by the IMF/EU/ECB/Whoever.
Currency in Athens will soon be pots and pans and food... see 'weimar'.
Byeee
Yea, I'm sure it will be the topic du jour while the average European and american are dodging bullets and mortars.
So, frenchy, you gonna eat that pigs ass
CNBC had a women selling imported Italian coffee...she sold to 25 customers every day....she said she only accepts cash now....but I am sure she goes home and fills out her sales tax reports every night...lol...NOT...that is the Greek economy....
" So where did all that loan money go? "
Hint: Swiss bank accounts.
They can and probably will use a basket* of currencies as Cash, as has happened in other countries in a similar situation.
The Greek Government could (if Varoufaiks has the imagination and courage) repeat the move of Germany's Hjalmar Schlacht of the 1930s, when they issued Government Notes for business and industry. Just issue Greek Meffo bills. Call them Fetta1 bills, if you like. Hopefully the irony of its use will not be lost on the Greeks or Germans.
* EUR, USD, RUB, TRY, CNY,GBP. (see http://www.xe.com/iso4217.php for country codes of currencies)
[1] FETTA: Free Enterprise Temporary Tokens of Assets
Apparently Tyler is misinformed. America will only go on the up and up and everything will be rosy... You got that?!??!?
http://fivethirtyeight.com/datalab/june-jobs-report-2015/
(Sarc. of course...)
Any debt created to be paid in 10+ years WILL NOT be paid.
"This [Greek] debt is so big that everyone understands that it won’t be repaid."
This reminds me of the famous Schopenhauer quote
"All truth passes through three stages. First, it is ridiculed, second, it is violently opposed, and third, it is accepted as being self-evident."
Fortunately, we're approaching the third stage.
Isn't it four stages: First truth is ignored, then ridiculed, then violently opposed and finally accepted…?
the debt itself was fraudulently created and lent.
There is a great moral case that not paying it back is the most ethical thing of all to do.
If someone is dumb enough to lend money, there's always a reasonable expectation it's never going to be paid back. Expecting anything else is naive delusional nonsense.
of course it won't be paid. None of these countries' debts will. They aren't designed to be paid. There was nothing given for the "loan' to begin with. It is just about fiat currency, paying the interest, and debt slavery. We got our version via a court packing scheme right after the civil war. Enjoy the freedom on this 4th of july weekend. http://www.thetruthaboutthelaw.com/they-make-you-use-money-that-is-backe...
You got that right Mr. Smarty-Pants Lawyer ! Enjoy yur Freedum!!!
They Hate Us For Our Freedum! That's why THEY don't git to celebrate 4th of July like we do because we has got ourselves some freedums that they ain't got!
I gonna go exercise my Freedum to go to Walmart in my Pajamas. That's what 4th of July is all about! F-R-E-E-D-U-M !
I gonna go exercise my Freedum and go eat a Double Donut Hamburger! That's what 4th of July is all about! F-R-E-E-D-U-M !
I gonna go exercise my Freedum to go to Walmart in my Pajamas and eat my Double Donut Hamburger while I ride around Walmart in my scooter! Yee-Haw!! That's what 4th of July is all about! F-R-E-E-D-U-M !
Praise Be!
America! Jesus' Favorite Country! ©
Freedom costs a buck o five
How many young Greeks will have to surrender their aspirations, how many pensioners will have to commit suicide and how many Greek mothers will have to sell themselves to feed their kids before the scumbags behind this sickening farce (which by no means is limited to Greece) finally get what's coming.
Without a true structural reform of taxation and collection and a prosecution of corruption, Greece will be back with hat in hand.
Greece will never be fixed by a Greek.
The Greek Debt Is So Big Everyone Understands It Won’t Be Repaid
and thus everyone knows the solution is moar debt.
you can't have debt slaves without unrepayable debt.
China and SA can pay it off with US Treasuries.
And the band plays on.
https://youtu.be/-qRDg9WS7fk
So TPTB will simply Re-Hypothecate or Restructure said Debts.
ANYTHING, to avoid genuine Default or -- worse still -- Odious Debt Repudiation. The goal is to preserve the System*, not the countries.
* Babylonian Money Magik (Money with magical properties of transferring wealth from the Many to the self-chosen Few).
ODIOUS DEBT in Greece = ODIOUS DEBT in USA
So what, who cares.. entire global financial sytem is a rigged train wreck... thank you Ben, Granny Y, thank you Goldman, thank you TBTF banks, thanks CB/Europe, thank you IMF. what a joke.
Greece should turn on the printers. Create billions of paper EUROs and deposit to national Greek hedge fund and short Greece and the EURO.
Imagine if all the foreign aid that we give Israel were loans, not gifts. We basically give them a bailout, year after year.
Yes, you have a valid point in that letting Hamas and Yesser Arafat take over years ago would have been so much better for world peace...
This is definitively not first time an official has actually told the truth about Greeks debt crisis in recent history. Enter Yanis Varoufakis. His mantra has been that the Greek debt can never and under no conceivable cirumstances ever be repaid. The mass media however strongly refused to spread his wisdom and rather preferred to be the mouthpiece of the German federal press agency in hammering into people's minds that if properly managed Greece can very well repay the half trillion obligations accumulated so far. This is however mathematically impossible.
I just put a call into Andris Berzins but sadly he has gone home for the evening. I will try him again in the morning.
Estonia's finance minister said the same a couple days ago. And argued for no more bailouts for Greece. Estonia accept rule by the IMF, it resulted in a housing bubble that burst. Factory closures and mass unemployment. Estonia still has net migration. More leave than arrive. The youth and tradesmen have fled to Germany and the UK. The girls has spread out across Europe from Turkey to Sweden working the streets as whores. Meanwhile, wages fell, public dent rose and growth is mostly fake. Imports from the EU have forced local shops to close and sanctions against Russia, ordered by Washington, has hurt the only real market Estonian farmers and fishers had.
WHile Estonia is held up as a perfect example of EU progress and IMF direction of the economy, these are mostly lies, under the media propaganda Estonia is struggeling. Growth is nowhere to be found, Germany imports will kill any attempt at manufacturing. The great lie of the western media is that the Baltics are models of prosperity and progress, that is always said by those who got out, not those stuck there.
On Twitter, those who praise Estonia the highest, if you look deep, you will see they are in Germany or Britain. NOT at home.
Nobody is going to pay the debt back. I'm not going to pay mine are you going to pay yours? Only lames pay debt. They are printing that stuff up and handing it out to everyone. It ain't being made to be paid back. They are printing as a means to take over the world but they don't really know what the hell they are doing. Get a bundle and go out hiking, fishing and camping for a while that's what I say. Go visit the relatives or check out the museums in Europe. I might go up to Boston to see Emerson's house at Concord later this summer.
Perhaps the best possible plan is to borrow heavily, use that money to buy many gold coins for close friends, then go BK.
Also, as everyone on this site has long since known, it has long been obvious that Greece will never be able to pay its debt. This is why the market moves on each rumor are so silly. Proof positive that efficient market theory has no relevance to the real world.
Yes, reserve currency status is not forever, but the changes can take a long time. By roughly 1870, USA was a larger economy that the UK. By 1900, even Germany was larger than the UK. However, it was not until economic carnage of WW1 that UK lost the reserve currency status to the USA. China needs to be much more than the largest economy to ever take over as the basis for a reserve currency. Furthermore, it is not at all clear that they are able or willing to do what is needed to become the world's reserve currency. Chinese management of their building and stock market bubbles show a shocking lack of insight.
When the market moves on each rumor, the money is taken out of the left pocket of the TBTF group, and inserted into the right pocket of the TBTF group. And actually, that's pretty efficient in a twisted pocket pool kind of way.
The US debt and unfunded liabilities ~1.5mm per citizen.
Somehow this is expected to be repaid.
Because the US citizens are exceptional.
Debt slaves.
"Debt Slaves". That's the JEDI MIND TRICK (the Kabalists' Power of Suggestion) that's being perpetuated by these Sith Lords.
Since it's all Fiat_Out_Of-Thin_Air (via the Babylonian Money Magik), all people have to do is to snap out of the mental trance, and REPUDIATE said ODIOUS DEBT.
It starts with individuals Waking Up Oneself, and Waking Up Others until the whole Nation demands* fundamental change from its so-called 'Representatives'. Failure to comply with the Will Of The People and the Constitution constitutes a De Facto Act Of Treason, and shall be prosecuted accordingly -- even via Civil Arrests, if need be (because the so-called Law Enforcement Agencies are not doing the jobs they swore they would do, because they have been corrupted or compromised).
* Be it via written or emailed protests, via public protests & marches, or via civil disobedience. Come what may, one way or another... the Will Of The People shall be heard and upheld.
Japan, Italy, Spain, France, UK. Et cetera..
I can see the Italians taking the Greek door of the EU as well. (pun intended).
People there are suffering almost as much as in Greece with 41.5% youth unemployment.
http://www.zerohedge.com/news/2015-02-23/biggest-problem-facing-world-today-9-countries-have-debt-gdp-over-300
Sure sure, blah, blah, blah... wake me when this daisy chain of principle write-downs actually kicks off for real.
Where is the Greek GDP Chart, Asshole.
Why isn't the US 2008 Financial Crisis, US 2010 Recession, and EU Financial Crisis overlaid over the Greek GDP Chart.
https://research.stlouisfed.org/fred2/series/MKTGDPGRA646NWDB (Greek GDP $342 Billion in 2008, hm... maybe Banking Shenanigans? 2011 Greeks still had $290 Billion in GDP, data not propagated further, but Greece lost like 25% or more of GDP by this point, hence Debt to GDP looks worse and worse each quarter)
Hm... limited narrative here?
Why don't we look at Collapses and closings of small, medium, large, and biggest Companies in Greece on one chart... are small businesses closing? Are corporations closing? What does the Business Dynamism look like?
What Author failed to do some basic Research, and now I have to do it myself.
Talk about Bias!!
Could this Greek GDP Collapse and loss in Purchase Power, be the Result of US Sub-prime market & Derivatives Collapse?
Could this be the Fault of the EU & US Bankers?
http://www.zerohedge.com/news/2014-05-06/death-cross-american-business (Hathaway and Litan)
http://www.zerohedge.com/news/2015-06-03/americas-discouraged-underpaid-...
http://www.zerohedge.com/news/2015-06-21/uk-government-study-finds-if-no...
http://www.zerohedge.com/news/2013-10-05/david-stockman-explains-keynesi...
http://www.zerohedge.com/article/must-read-michael-lewis-latest-memo-llo...
http://www.zerohedge.com/news/2014-08-05/4-million-fewer-jobs-how-bls-ma...
http://www.zerohedge.com/news/2014-09-10/alan-greenspans-nine-reasons-wh...
http://www.zerohedge.com/news/2015-06-08/white-house-admits-economies-eu...
http://www.zerohedge.com/news/2012-10-01/lest-we-forget
http://www.zerohedge.com/news/2014-03-12/david-stockman-yellenomics-and-...
http://www.zerohedge.com/news/2013-03-08/fitchslapped-italy-downgraded-bbb
http://www.zerohedge.com/news/issue-moments (Banks in Europe)
- So Transnational Corporations, Large Corporations are winning in Greek Tragedy while Business Dynamism declines as we would expect in recession, collapse, banking collapse.
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http://www.theguardian.com/world/2015/jul/01/greece-bank-closures-busine...
“Consumption has dropped by 70%,” said Vassilis Korkidis, who heads the National Confederation of Hellenic commerce. “No one trusts anyone anymore, so no transactions are taking place between wholesale and retail,” he said.
The confederation, which represents some 280,000 small and medium-sized businesses, has been badly hit by capital controls. More than half of Greece’s food and raw materials are imported, but without a functioning banking system there was no way to wire money abroad and pay for supplies, said Korkidis.
“Multinationals can, but local companies can’t,” he sighed. “Shortages are manageable this week because traders have stock, but next week that won’t be the case. We are experiencing things we never thought we’d see.”
- Bank closures taking their toll on businesses across Greece
- Consumption apparently down 70%, tourism drying up and companies face struggle to pay for wholesale food ahead of 5 July referendum
- Bigger Narrative Appears to explain why "Bigger is NOT Better", why Linkages should be reduced, why Conflict of Interest is bad, why Money in Politics is Destructive, Why the power of Large Entities to Rule over others especially the small people, the fixed income, and small business... is just like the loss of Free Press/MSM & Anti_trust going on all over the West... and probably the Hacienda Economies of Latin America
The South was right!
- One Third of business in Central Athens Closed, Small and Medium no Doubt, almost like a Banking Coup, or a Transnational Corporation Coup
- Is Greece Debt Crisis orchestrated since the Communist Party won power in the last Election?
- Has Greece be the Target of the worst in Class PIIGS or are Conglomerates always looking for Targets for their Aggression, and their Lust & Greed?
- Perhaps Ireland & Italy some how are playing the game of letting Technocrats Rule over them, "Hey, We all Work For Someone", Spain's Debt is also mostly Government Debt and they have never had a robust GDP to speak of, France is in a Shambles but someone gets overlooked, Germany has short work week & long Vacations...
- Why does St. Louis FED now hide GDP & Debt figures from readers?
http://www.ekathimerini.com/144873/article/ekathimerini/business/nearly-...
"Tens of thousands of small businesses, which make up a big chunk of the struggling economy, have shut since Greece secured a 110-billion-euro bailout package in 2010 in exchange for promises of painful austerity measures."
"There are no signs that this percentage will fall and this is very worrying,» said ESEE head Vassilis Korkidis, estimating that about 63,000 Greek businesses were at risk of closing down within the next year.
He said 68,000 businesses in Greece had pulled down their shutters since the beginning of 2011, with most closures driven by high rents and a fall in the purchasing power of consumers due to wage and pension cuts."
"While business has slowed across the city, it is less evident in the wealthier suburbs where two of the capital's biggest malls, home to many foreign designer brands, still attract shoppers.
The study by ESEE also cited a difficulty getting funding from banks as one of the main reasons behind the closures."
and Russian Sanctions cause Recession in EU, but no one is poking the Bully since he is a Superpower... just pick on one of the PIIGS.
- Transnationals are Wealthy by definition it seems, so the Wealthy control Politicians, Banks, Washington DC, Brussels, New York City, London, Frankfurt, Switzerland, Luxemburg, Elections, Political Thought, Work Week, Full Time Hours, Taxes for workers, Taxes for Investors, Hedge Funds, Private Equity Firms, Capital Gains, Retained Interest, VAT Taxes, Money in Politics to create Legislation, Govt Awards of Utility & Commons Contracts, Military Contracts, use of Mercenaries in wars and undeclared wars... even get to fund proxies, shell companies, front companies, move tax jurisdiction off shore, and get Transnationals MIC Contracts to Partner/Public Private Partnerships... as well as Close down the Post Office in order to secure all Mail Contracts and gain Monopoly.
greece in usa?
The moral question at the heart of all this debt mess globally is:
Who's more at fault, the person that borrows money (knowing they can't or won't repay), or the person that lends it (knowing the same thing)?
And if it's the person that borrows it, is it moral that stupidity or ignorance can absolve them from the consequences of their actions?
You have not added the ELA of 86bln EURO to the first graph. That would put debt/GDP to over 200%.
And I know its not gov debt but german taxpayers will have to pay that as well in the end so you might as well just add it...