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Draghi Voices "Unprecedented Doubt" Greek Solution Will Be Found: Complete Greek Overnight Summary
In an odd escalation over the Grexit fiasco, where Greece is now expected to provide yet another detailed reform proposal today by midnight at the very latest, it was the one man whose decision will make or break the Eurozone when (if) he decides to impose even more ELA collateral haircuts (or yank ELA entirely) forcing Greece to Grexit by imposing its own currency (since there is no legal mechanism to kick a nation out of the new Berlin Wall) that made some surprisingly candid comments on the fate of the Greek negotiations.
According to Reuters, ECB president Mario Draghi voiced "unprecedented doubts about the chances of rescuing Greece from bankruptcy as Greek Prime Minister Alexis Tsipras was due to put forward last-ditch reform proposals on Thursday."
Citing Italian daily Il Sole 24 Ore, Reuters reports that Draghi said "he was not sure a solution would be found for Greece and he did not believe Russia would come to Athens' rescue."
Asked if a deal to save Greece could be wrapped up, Draghi told the paper as he was boarding a plane in Brussels on Wednesday: "I don't know, this time it's really difficult."
Asked if he expected Russian President Vladimir Putin to help Greece, Draghi said: "I don't believe so, I don't see it as a real risk ... and then, they don't have money themselves."
What is surprising is that these quite conclusive statements come from a person who rarely speaks in definitive terms (unless it is July 2012). "The usually discreet central banker was speaking after an emergency euro zone summit on Tuesday gave Greece five days to come up with a credible plan to repair its public finances and reform its economy or face an economic meltdown and possible exit from Europe's common currency."
What is just as surprising, is that just like the Troika has now split, perhaps terminally, between the IMF as an international "public" creditor and Germany as the dominant power of Europe, so the ECB is now also caught in the crossfire with this time the Bundesbank accusing the ECB of keeping Greek banks on artificial life support and who said earlier today that "it was up to governments, not the central bank, to provide any aid to Athens."
"Central banks need to show where their limits lie," he told an audience in Frankfurt. "It needs to be crystal clear that responsibility for further developments in Greece ... lies with the Greek government and the countries providing assistance – not the ECB Governing Council."
So the axes are becoming even more clear: US/IMF/Italy/France and now the ECB against... Germany. Suddenly we are hit by a distinct wave of deja vu.
* * *
So with this latent conflict getting stronger, here are some other key Greece-related events that have taken place overnight as we await the Greek government's official proposal of this Sunday's "final, final, final" deadline.
While hardly notable, it is worth noting that the man who had already exiled Greece from the Eurozone in 2011 only to recant, just did it all over again, when overnight Citi's Willem "gold-expert" Buiter piggybacked on JPM's call and made Grexit his base case: "We are changing our view and now believe that Grexit – Greece’s exit from the Eurozone – is the most likely outcome, either via a short-term exit (next few months) or over the next 1-3 years. The proximate drivers of our change of view are the announcement of the referendum, the imposition of capital controls and the emphatic NO outcome in the referendum. Background factors are the weakness of the economy, and the seeming inability of Greece and the creditors to reach a deal that contains both the substantial structural reforms and debt relief that Greece needs to stay in the euro."
Precisely as laid out in this post yesterday.
Also we learned that as the government was negotiating, the Greek economy was, expectedly, collapsing: Greek consumer prices fell by 2.2 percent year-on-year in June, with the annual pace of deflation accelerating from the previous month, data from the country's statistics service showed on Thursday. Greece's EU-harmonised deflation rate slowed, showing prices fell by 1.1 percent in June from a 1.4 percent decline in May. Analysts polled by Reuters were projecting a decline of 1.6 percent.
There was an amusing diversion, however, when the Greek statistics agency ELSTAT said on Thursday that Greece's jobless rate fell to 25.6 percent in April from an upwardly revised 25.8 percent rate in the previous month. Perhaps they too figured out how the US Bureau of Labor Statistics "does it."
But as noted previously, it will be all about the Greek proposal which is due by midnight: good luck to Tsipras to come up with something that makes both the Troika and the Greek population, which voted 60% against the last, less harsh one, happy.
Just spoke to PM @tsipras_eu. Hope to receive concrete, realistic reform proposals today #Greece
— Donald Tusk (@eucopresident) July 9, 2015
And here is the rest of the key events that have taken place in the past few hours via Reuters:
- 1014 - European Commission President Jean-Claude Juncker will meet members of Greece's opposition parties on Thursday and Friday in Brussels as all sides seek a weekend deal to avert a Greek bankruptcy, a Commission spokesman says.
- 1009 - The head of the European Council, Donald Tusk, says the EU's national parliaments have to be persuaded to vote in favour of helping Greece if European leaders reach a good agreement on Sunday. Tusk says a deal on debt should be part of the agreement.
- 1005 - Bulgarian Economy Minister Bozhidar Lukarski is quoted as saying Greek-owned banks in the Balkan country are "under controls" to prevent funds being sent to Greece. More than a fifth of Bulgaria's banks are Greek-owned.
- 0944 - Irish Finance Minister Michael Noonan says he sees a better than 50 percent chance of Greece reaching a deal with its creditors by a weekend deadline following a "distinct change of mood" in recent days.
- 0852 - Eurogroup chief Jeroen Dijsselbloem has no plans to withdraw his re-election bid, his spokesman says. Dijsselbloem, who is also the Dutch finance minister, is seeking another 2.5 year term in a race against Spaniard Luis de Guindos. He represents European creditors in the negotiations with Greece.
- 0830 - The chief executive officer of Greece's natural gas company, DEPA, says the utility can guarantee the unobstructed supply of gas supplies in the country.
- 0745 - Greek Energy Minister Panagiotis Lafazanis, leader of the far-left flank of the ruling Syriza party, says he expects an aid deal with creditors "soon" but he opposes a third bailout with tough austerity measures that would stifle growth.
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No shit.
You go Mario! Lean in, get 'er done, make it happen, go for it, be the you you always wanted to be, lead from the front, keep fucking around while Rome burns, be nice and help the cripple across the street, treat others as you'd wish to be treated, tell the Greeks to have a nice day. You da man!
Arrarrarrrarragh
Mario is a tool
Hey! Where's my taste of royalties off your clothing line?
"We gotta talk" as was Joan "She who was murdered for saying Mooch was a tranny" Rivers' last thought
I can fell it. Today is going to be a great day. My own clothing line. BTW, make sure the seat is cut large in the front seam.
So the axes are becoming even more clear: US/IMF/Italy/France and now the ECB against... Germany. Suddenly we are hit by a distinct wave of deja vu.
It's clear that everyone is stretching its fingers into the German wallet.
If US wants Greece inside EZ, just wire a few hundred billions, and voila ...
NATO becomes the trump card for Greece - a non-monetary consideration is worth More than ......money
Russia's 9 times zones and $100 Trillion in undeveloped resources are the prize in the chess game - 300 Billion is a rounding error!
We need to make up our fucking minds: is it okay or not okay to live off of Other Peoples Money? Whether it be individuals or nations, through taxes or the same indirectly through banks? I say let the training begin.
What do you mean by money?
My understanding is that money is a vehicle of wealth transfer and one of slavery. It is not wealth itself and not slavery itself, just the tool to provide each.
I think the real question is whether there is a class of people who have an innate right to live parasitically off of the work of others.
That too.
If that's what Count Draghi says, then BTFD Now!
The only picture of Draghi that should be used on ZH is the one of him cringing like a little girl.
Draghi and the other central bank overlords cry for fiscal discipline as they fuck savers with zirp and print billions for the banksters.
Fuck him, fuck the fed, fuck them all.
https://goo.gl/AgTCFE - Bernie Sanders isn't going to save America, for that matter, neither is Rand, but I'd take Rand's medicine over Bernie's
Bernie/Pocahontas 2016 is the Dem ticket and will be a shoe in.
Can I get on the ticket? I would love to take Air Force One around the world on a golfing jaunt. I'll show Broke Back Barry how to waste taxpayer fiat
A gun advocate who lobbies on behalf of the weapons industry declares himself a "Socialist", and a privileged upper-middle class white woman presents herself as a credible representative of working class minority women.
America is a deeply confused society. That, or a deeply dishonest one.
Once Hillary is indicted or pleads the 5th before CON-gress, it will be Biden. Not Bernie
"Asked if he expected Russian President Vladimir Putin to help Greece, Draghi said: "I don't believe so, I don't see it as a real risk ... and then, they don't have money themselves."
I never realized that the Euro was money. Here I thought that in order for something to be money it couldn't be printed at will and had to have a store of value. I learn something new everyday.
ATM's still stuck at 60 euro.
No Athens Stock Exchange with that.
A "Bank of Greece" must be created in order to reopen that thing.
A trillion euro's give or take?
Otherwise "stock market closures" start spreading...
And then subconciously the Drag let the cat out of the bag............."I don't see it as a real risk' .
Someone helping them out of their bind. Once a squid, always a squid, no redeeming features, bloodsucking leeches who made all this possible in the first place and now flip the other side and drain out the last drops from Europe.
Why these people are allowed to land inside your countries airport without being seized at the gate as enemies of the state is beyond my comprehesive ability.
But then, pictures of an even more spineless invertebrates like Hollande flash up in my mind. Oh yea I keep forgetting.
Draghi isn't aware of Moscow's secret plan to borrow Kim Jung Eun's printing press...
Grexit means MOAR for rest of the PI(G)S?
The U.S and its promissory notes of today, are of ghostly contrast to their former utility, once a certificate, entitling the bearer to gold. Banking certainly revolutionized transactions, and promissory notes of the past did allow the bearers to make payment without transporting around their gold, but once America divorced the certificate from entitling the bearer to gold, these promissory notes were only worth the confidence that people had in them. Intrinsic value turned into paper, backed only by the misplaced faith of the people.
According to the textbooks and most professor’s, central banks inflate the monetary supply by the multiplier effect, although I believe ‘credit creation theory’ is more accurate (the public somewhat still believes in financial intermediation theory, although this is not a surprise as the education system leaves much to be desired in these matters). This chicanery has allowed a privileged few to benefit from the manipulation of gold, LIBOR, forex, securities, and given birth to the odious and colossal derivatives leviathan, that is quietly eating the global economy alive from the inside out. Perhaps this issue deserves some scrutiny? Why do I doubt Bernie Sanders will take on the money men? Perhaps Andrew Jackson could shed some light on this?
A class of privileged, rent-seeking parasites have disproportionate influence over legislation. Central banking and misguided Keynesian economic theories are greatly responsible for pushing America (and the world somewhat) into an abyss of wage stagnation, debt, misadventure, and lost productivity. So, where to now, in regard to the federal funds rate? Languishing at 0-0.25 upper bound, there is very little room for stimulus if another crisis hits. The FED is fast running out of tools. Perhaps its time to bail in the chosen banks with deposits?
The enormous imbalances created by loose monetary policy, the bail outs of the insolvent, hyper-speculative, fraudulent banking establishment, the over reliance on borrowing by issuance of debt securities and debt monetization, the Federal reserve balance sheet of 4.5 trillion dollars and further quantitative easing looking imminent, disingenuous unemployment and inflation statistics. How will Bernie Sanders fix this utter nightmare? Tax increases and the reinstatement of the Glass-Steagall Act? If you open your door, you may hear my laughter echoing from the other side of the planet?
The problem facing America is beyond the Democrat/Republican voting paradigm. The obsession with political correctness and partisanship, has restricted public discourse, and has left the intelligentsia divided and cowardly. An unknown portion of them, live in fear of character assassination, social ostracism, termination of employment, if they dare stray from the sanctioned and popular narrative propagated in the media, popular culture, universities, and government. The dumb majority are not capable of rational thought, and are defenseless against the fallacious rhetoric of their leaders. Is Bernie Sanders really seeking change, or merely rearranging the deck chairs on the titanic?
Your three branches of government are compromised. They are concerned solely with their career, and their contemporaries. Is it any wonder there are so many parasites sucking the life blood out of the USA? It is amazing it hasn’t collapsed. I put this down to having the global reserve currency privilege, an expanding central bank balance sheet, and a population of despondent, docile, apathetic, indifferent, corrupt, celebrity worshiping imbeciles, still unaware of the crisis they are in. If people are not interested in educating themselves, if they refrain from challenging their abilities to critically think and analyze the fallacious rhetoric of their democratically elected leaders, then parasitic rent-seeking elites will continue to wield disproportionate influence on legislation, and finance both sides. Imagine if Greece had the world reserve currency and their own central bank free to expand its balance sheet like the Federal Reserve does?
Where are these S&P500 companies borrowing the credit to buy back their stocks? Has it anything to do with the Federal Reserve and its interest rates? Like the PBOC in China, the central banks are fighting the market to keep the ponzi scheme afloat. The BOJ is the main purchaser of Japanese treasuries. These central banks create credit out of accounting entries, and then lend this credit. It may purchase debt securities, mortgage backed securities, it may participate in the naked shorting of the GLD. Is anyone still in denial that we have allowed the financial cartels to dominate and enact such ruinous policies. We are being extracted. Power and control isn’t Republican or Democrat, it is above politics.
Since the dumb majority are content to distract themselves with television, sport, alcohol, or whatever, and the intelligentsia have lost their balls in the guillotine of political correctness, is it wrong that I have decided to take pleasure from watching the show come crashing down, and the pursuant nightmare that will follow? Humans aren’t that great at identifying slow-moving disasters, it needs to be moving fast and direct, or no fuck shall be given. Go figure.
Thanks for your comments. +1
Greek debt of $65,000 per taxpayer can never be repaid. At least half must be written-off.
Russia cannot rescue Greece but China and Russia together can help rescue.
Greece is being made an example of for daring to ask for a debt haircut. Portugal, Spain, Ireland, Italy and France all have too much debt to be paid back. So this debt crisis is in its first innings.
If other exchanges start to close down (the NYSE did yesterday right!) the ALL debt is unsustainable save for US treasuries.
That's my view.
Please stop believing that ANY soveriegn debts will ever get repaid...
Draghi wants treasury yields to go UP UP UP! I wouldn't necessarily place him in either of the two warring groups within the Troika, he does what is best for him!
As I've said before...I'm a simple math guy. Greece needs about a billion Euro's a month of injection. That's their sale price. In 2008 if they would have understood that and just given Greece the injection with perhaps a 2% per/month decline, and stuck too it, it would have given Greece the time to adjust. So, if Russia/China want to play there's the price tag. May want to start with 800 million just to force some discipline out of the gate.
I shall presently issue a fiat prediction in lieu of a real one -- It will NOT be backed by my reputation in any sense. (Because my predictions have a 90% chance of being wrong.)
We are about to experience a disguised comedy, discernible only to the hip. The big Euro-deal vote has created an international political crisis. Now that the West has deliberately transformed the East into an adversary, we a back to where our imperial overlords must deal with an alternative open to those it oppresses. They woke up to a world in which the president of Greece might perhaps be making yet more journeys to Moscow. Tiny Greece is just an experiment prior to financial attacks on Italy, Spain, perhaps even France.
It failed disastrously. So now, since we can't have these nations leaving NATO, we will be treated to a disguised comedy, kabuki style fake show, with all the trimmings. They will mortgage the City of London to keep Greece in the fold.
We will see giant economic threats but no real change in Greece, in tandem with the sudden emergence of the most wonderful "deals" for fine cheap Greek vacations all over the West. Complete with a hooker circus that will put the Netherlands to shame.
In six months the Greek drama will be forgotten. Such is my fiat "prediction."
"In six months the Greek drama will be forgotten. Such is my fiat "prediction."
And then it will come back in six months time to keep us distracted and entertained again.
Lot's of sensationalism on here I mostly ignore. I dont know shit about Greece, but this somehow feels different. This has been simmering for a few years now. And were talking about a country that is half deadbeat commies with a right wing military. The EU has given them all the warnings in world, lol like HR building up the paperwork to fire someone... Who knows...
Looks like 5 more years of talking - as people and families are gradually ground down by the bankster grist mill.
I hope to hell not. The sooner the wheels fly off this thing, the better off we will be.
A country cannot " go bankrupt " in the sense that an individual or corporation does. It holds its sovereign assets and against
then issues a new or previous currency, hopefully through its OWN central bank. It makes loans backed by the sovereign assets. Greece should leave
the doomed EU. Germany should see this as the best solution for Germany also.
You overlook Greece's sovereign liabilities. No, i'm not referring to the public debt. Greece can repudiate that. The liabilities are the army of bureaucrats and pensioners who comprise a dominant coalition in Greek politics, who will ensure that every productive enterprise in Greece is taxed into extinction.
THis is the Detroit scenario, from which there is no escape. Greece's FSA will only cement their electoral dominance, as productive Greeks emigrate.
The dumb majority leaves politics to others. Wonders why they get fucked in ass. You will be thrown in the plastic crusher, after the intelligentsia have been processed.
The Euro bankster vultures can't let Greece leave. They want the debt slavery to increase.
Draghi is just jawboning to club the Greeks back into line.
.
.
"...responsibility for further developments in Greece ... lies with the Greek government..."
AIN'T HOLDIN' MY BREATH
https://www.youtube.com/watch?v=P84tN0z4jqM
Man, the world is fucked.
Compared to the bursting of the Chinese stock market bubble, the Greek crisis is paltry -
In less than a month, $3.5 trillion worth of shares traded in the Shanghai and Shenzhen exchanges have been wiped out.
A "Grexit" is not going to be a big international travesty as some in Europe and elsewhere would like you to believe.
This is mainly because Greece represents just 2 percent of the eurozone economy.
But also, bailouts and austerity in Greece over the past five years have not worked very well.
Ideally, it would have been better to allow Greece to default, be quarantined via a temporary exit from the euro,
allow a reintroduction of the former Greek currency, the drachma, and then return to the eurozone once its economy has stabilized.
With the drachma, the Greeks would have been able to devalue the currency to boost exports or print more money for liquidity which they simply cannot do with the euro.
The Chinese market crash is by far the most worrisome development at the moment and one that could have real significant repercussions for the global economy. Compared to the bursting of the Chinese stock market bubble, the Greek crisis is paltry. In less than a month, $3.5 trillion worth of shares traded in the Shanghai and Shenzhen exchanges have been wiped out.
Although the Chinese government is supporting state-owned companies in the markets, market value of other companies has drastically plummeted.
This crisis is being dubbed China's 1929 or the year of the Great Depression.
This is significant because for one, China is the world's second largest economy and two, because Asian economies are strongly intertwined with China's.
Any instability in China would immediately affect the Asia, which is currently the fastest growing region in the world. China is also one of the largest trading partners of both Europe and the US. Chinese households are a global powerhouse when it comes to spending and the crisis would have a major impact on global consumption.
Chinese tourists are the world's top spenders - spending $165 billion in 2014. They also consume 12 percent of the world's luxury goods. Both these examples impact Europe directly given the continent is one of the top destinations for Chinese tourists and that 40 percent of French luxury goods sales were bought by the Chinese.
Why Asia should not be alarmed by 'Grexit' scenariohttp://www.dw.com/en/why-asia-should-not-be-alarmed-by-grexit-scenario/a...
WR;)
Again: "Nations with industry, specifically with strong and diverse domestic potential productionality will win. Those with weak and fragmentary domestic potential productionality will lose."
Even if China suffers an actual depression, it still retains a strong diverse domestic productional system. If that system is being underutilized, it's presumably because their Western consumers are underemployed and therefor can no longer afford Chinese products. We have a tens of millions with no hope of jobs, and tens of millions more who are making minimum wage, or working part-time.
However, China still has a strong diverse domestic productional system, while the U.S. has a vast rust belt. So who is really better positioned?
Draghi is just saving his ass -- have we forgotten 2012
These goldman sucks banksters are experts at inserting themselves into the necessary political downstream mechanisms to hide their crimes.
"Draghi was a key executive at Goldman at precisely the time when none other than Goldman Sachs was hired to create and facilitate the active hiding of the true extent of the Greek debt problem."
http://www.zerohedge.com/news/just-what-mario-draghi-hiding-ecb-declines...
Good find.
"Asked if he expected Russian President Vladimir Putin to help Greece, Draghi said: "I don't believe so, I don't see it as a real risk"
This quote here is very telling -- why would it be a risk!? You would think they would welcome such an opportunity.
Fixed it.
A pity that isn't self-doubt, then the creep would surely top himself.
DRAGHI: "we will do whatever it takes to NOT get a greek deal done"
The EU representatives and their pseudo-requests, expressed through paradoxical messages, which are incongruous at all levels, and designed to tie the Greeks in a classic double bind.
i.e. This is the same Bulgaria that has been going all out to shaw-up its military defenses due to the incursion of Russian forces into crimea, and rebel support in eastern Ukraine proper (i.e. "there may be some Russian volunteer soldiers on holidays" blah blah). They are currently looking at a major upgrade to their air force so some Greek money may come in handy as payback for Tsipras encouraging/rewarding Putin.
Bulgaria to begin negotiations for 'new' fighter aircraft
Gareth Jennings, London - IHS Jane's Defence Weekly 01 July 2015
Don't piss off your Allies Athens.
Donald Tusk WANTS to receive concrete, realistic reform proposals today from Greece...Mr. Tusk, they cannot service their debt, FULL STOP - So simply admit you want to continue to play charades & call for additional "emergency" summits so you can have free meals & additional points on your airline & hotel loyalty cards...
I like to read the Pressitutes every now and again just to see how they are covering (or usual not covering) Greece.
Tsipras took Sunday's vote as the go ahead to cave anyway. There will be no default. Only more austerity. He keeps adding cuts instead of saying fuck you.
http://www.huffingtonpost.com/2015/07/09/greece-reform-proposal_n_776096...
After readying the reforms with advisers, Tsipras met his cabinet to win their backing for a plan likely to include much tougher measures than those included in a previous proposal from creditors that was rejected by Greeks in a referendum on Sunday.
But having won wide public support at the referendum and the subsequent backing of opposition parties, an emboldened Tsipras is expected to have an easier time facing down any resistance at home, allowing him to focus on appeasing creditors.