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Someone Told Merkel...
Earlier today, we reported that according to Frankfurter Allgemeine Sonntagszeitung, the German finance ministry had begun circulating a document which outlined two possible courses of action for dealing with the Greek 'problem.'
After reviewing the "new" proposal (and by "new" we actually mean the old proposal that 61% of Greeks voted against, plus a few cosmetic changes) submitted by Greek PM Alexis Tsipras on Thursday evening, the German finance ministry said the plan was “missing centrally important areas of reform to modernize the country and to advance on the long term economic growth and sustainable development.”
Yes, Tsipras’ offer is "missing" important reforms, but more importantly, it seemed also to be "missing" the small detail that in addition to the €53 billion the country needs for a third sovereign bailout, Greece will also need another €10-20 billion to recapitalize the banks, something we warned about (and outlined in quite a bit of detail) on Friday in "Don't Tell Merkel: Greek Banks Need An Additional €10-14 Billion Bailout." Here's what we said yesterday:
We’re sorry to break it to Mr. Michelbach, Frau Merkel, and the German taxpayer, but that €53 billion Greece is asking for will be just the start of things and we don’t mean in the sense that Athens will one day in the not-so-distant future be back in Brussels looking for a fourth bailout (which they probably will), we mean in the sense that Greece’s beleaguered banking sector is insolvent and will need to be recapitalized one way or another with some (or all) of the funds coming directly out of the pockets of the very same EU taxpayers that are now set to fund the third Greek sovereign bailout.
While an extra €10-14 billion would have been bad enough, it turns out that Greek banks will actually need more along the lines of €25 billion. Here’s Reuters:
Euro zone finance ministers were told on Saturday that some 25 billion euros (18 billion pounds) of any bailout loan to Greece would be needed to recapitalise banks that are on the verge of collapse, sources close to the discussions said.
That is more than double the amount that Athens forfeited in financial stability funds at the end of June when it walked away from talks on completing a previous bailout programme.
The extra capital is needed because of the damage wrought by massive deposit withdrawals before a two-week bank holiday that was ordered on June 29, when Greece imposed capital controls to stop savers and businesses emptying their accounts.
Prime Minister Alexis Tsipras applied this week for a three-year loan from the European Stability Mechanism of 53.5 billion euros. EU and IMF experts who analysed Greece's funding needs concluded it would need some 74 billion euros, the sources said.
Within that sum, sources said that about 25 billion would need to be used to bolster the balance sheets of banks ravaged by a renewed economic slump and fears that Greece would drop out of the euro single currency area.
And indeed, it appears as though someone did tell Merkel the bad news, because as WSJ reports, and as we predicted over 24 hours ago, the extra funds for the bank recap were simply too much for Germany to bear:
The document, which was first reported by German weekly Frankfurter Allgemeine Sonntagszeitung, became public after the three institutions that oversee eurozone bailouts estimated the country would need an extra €74 billion ($82.55 billion) in rescue loans over the coming three years. That high figure, which includes €25 billion to recapitalize Greek banks, drew consternation from many finance ministers during Saturday’s meeting, according to two European officials.
"The mood [is] bad," said one person describing the atmosphere in the room.
In the document, dated July 10, Germany takes a tough line on spending cuts and policy overhauls Greece submitted to its international creditors, the other eurozone countries and the International Monetary Fund late Thursday.
So it appears as though the German finance ministry had already prepared the document and upon hearing the €25 billion bank recap figure, seized upon the collective shock among EU finance ministers to distribute its ‘commentary’ on the Greek proposal. Here’s the text of the document:
Source:@ethevessen
The €50 billion asset transfer suggested in the document was viewed by some EU officials as proof of Yanis Varoufakis' contention that Germany is now simply trying its best to push Greece out of the euro. Once again, from WSJ:
The people familiar with the document questioned the likelihood of either of the two options working. There is no process for a temporary exit from the eurozone and it is unclear where the country would get €50 billion in assets to secure the loan.
"The 50 billion [euros] are so unrealistic that it is clear that they want the Greeks out," one of the people said.
As noted earlier, the Germans are not alone in their opposition to the Greek proposal and arguments discussions in Brussels have ended with no agreement. With the bailout figure now projected at €74 billion, and some rumors circulating that the final tally could be considerably higher, we'll leave you with the following table which should tell you something about how difficult it will be to secure across-the-board support for an ESM package of that size:
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It is time for Merkel to take a long holiday from government service. Say forever.
Today the Greeks should have show outrage in the streets about all of this-they are still slave to the banks
This is like a shit sandwich. The more bread you have, the less shit you have to eat.
Fuck em all... Debt loaned into existance with no reality is fraud. It is their right to make you pay, is it your right to see that they had it to lend? Onesided.
How about we all get to "vote" on that.
RIPS
And Now to the Video Tape
Mitch McConnell and Hairy Reed could be of Immense Value Added at this Juncture
This mess is coming everywhere in the debt-based fiat money world.
It started with Z - Zimbabwe and it will end with A - America.
Same bad money system, same problem.
This Kabuki dance has runs it's course and has now become a parody of itself... Pull the plug already because that's the only way to move forward, but of course no one wants a haircut for ficticious funds created out of thin air... Fucking bankers are destroying the world's economies due to greed... Hang them all, do it today!!!!
Sounds like Shakespeare left something out;
"The first thing we do, let's kill all the lawyers."
The whole continent is nothing more than a German slave. But that's the way they like it. So that's the way they get it. I don't like it anymore than you do.
and it's not like deutsche bank isn't guilty of the greatest control fraud uncovered and exquisitely documented to date (but wait, greater will be revealed) with the near certainty that no one of rank will be prosecuted:
http://neweconomicperspectives.org/2015/07/libor-historys-largest-financ...
Someone once told me....if you can't afford it....you don't need it.
Sage advice.
Pull the plug? You are so right. But remember: deflation can't occur until bad debts are recognized. This would be the first step. And wat central banker wants to start it? It would be the end of keynsian economics, which they all subscribe to. We will see. Sitting here watching and waiting. My bet is they will come up with something else. Cant even imagine how they are going to position it.
Debt loaned into existance with no reality is fraud.
Debt is "a promise to complete a trade". It allows simple barter to take place over time and space. Debt is created by traders getting their trading promises certified. Debt is extinguished by traders delivering as promised and returning the certificates.
Governments are irresponsible traders. They DEFAULT on all their trading promises (a rollover is a DEFAULT). This is no different than "open counterfeiting". Is that the "reality" you're referring to?
Debt is consumption brought forward in time. The only way it has any redeeming quality is if it is used for productive purposes.
Anything else is probably cheating. Line when government borrows to enrich insiders.
That is precisely what it is, yet try and explain that to anyone out there and they look at you like you're some kind of goof ball.
Apparenlty people don't really recognize that if you consume now (via borrowing) that later on you won't have a whole hell of a lot.
Apparenlty people don't really recognize that if you consume now (via borrowing) that later on you won't have a whole hell of a lot.
(A): Make a promise to trade 360 monthly payments for a house now and live in it for 30 years. At the end of 30 years the house is yours. You "have it".
(B): Contrast that with making a promise to make 12 or 24 monthly payments to live in an apartment or rent a house ... and then extend that promise repeatedly for subsequent periods. You never "have it".
(C): Save for 360 months (with a built in 4% leak in your savings due to INFLATION) and sleep on a park bench. Buy the house with cash after 30 years of saving (and trying to protect your loot from theft, loss, and inflation) and you "have it".
When you do option (A), you end up with a house ... free and clear.
When you do option (B), your landloard ends up with a house ... free and clear.
With both options you "consume" the house. But with option (A) you have your cake and eat it too. With option (B) you eat your cake, but your landlord has it in the end.
So, obviously, in both cases you're consuming now. In both cases you're obviously borrowing. But in option (B) your trading promise is much smaller and you end up with nothing. With option (A) your trading promise is significant, but you end up with a house.
And then there's the ridiculous and foolish option (C).
If you provide a one year loan to me and I pay you 5% interest would debt have a redeeming quality to you then?
Yeah but this shit show is about to end soon, and i'll thank the lord when it does.
Is it really her fault. The EU Parliament has kicked the can often and willingly.
LOL.
Uncle Sugar has this one. $70 billion is a rounding error to the U.S. budget.
The US Congress passed a budget? Do tell!
They must be serving ice water in hell today.
>>> They must be serving ice water in hell today.
They are not. Today they are serving hot coco.
Because on a cold day you need a hot beverage.
The Pentagon could pay $70 billion out of petty cash.
They can't even account for $2 trillion and no one lost their job.
Daughter of the son of Germany who knew no laws will never quit!
Until here sister has the white house at any rate Dub ;-)
Wondering if the Greeks included Obamacare like health care restructuring plans in their proposal. That should save billions.
Ah...... HAHAHHAHAHAHAHA!!!!!!
Brilliant - I have not laughed so hard in a long time.
Time for August holidays. Will it be the Baltic or the Aegean?
If you want to help let it be the Aegean...
Better food and clean sea. About the women I open for argument.
The Aegean is beautiful, but see it from the Turkish side
Like Lonmin
https://www.youtube.com/watch?v=Q5TFSQMtNs0&feature=youtu.be
"It is time for Merkel to take a long holiday from government service. Say forever."
While I share your sentiment entirely, this is not going to do the trick. Another Jack ass will just pop up from the box.
It is time that people wake up and throw the political establishment off their backs. I just fear too few have woken up. The longer it takes to wake the rest, the more violent this throw off will have to be.
It is way past voting at the moment, it can only get worse.!
Like Lonmin
https://www.youtube.com/watch?v=Q5TFSQMtNs0
Why recapitalize the banks with real money? QE is soooo easy.
The EU Central Bank is not the US Central Bank. Their uncle sugar status was never granted to Draghi, since there is no fiscal EU union.
Or maybe the Eurokrauts just aren't fucking stupid enough to believe that printing money to fix all ills is a remedy to the problem.
If Trichet was still there, and not the Goldman WOP, there would have been no QE at all. There would have been no rate cuts either. But the Seppo scum got their hands as far in as they can, just not far enough yet.
Define "real money"...
Real money has an atomic weight of 196.966 569(5).
Maybe the US can throw in a 100 billion Euros or so to sweeten the pot.
They are probably doing that right now...
Your crystal ball is in good working order! If we're not hearing about it, it's happening. An example of that great analytical maxim, "The truth is in what is being left out."
Didn't tons of TARP money fly across the seas to European bankers? All hush hush like.
You would have to give Rothschild and the IMF a little time to print up 100 billion euros.
We can print those too now?
When the futures markets are open we only get good news.
Listen, if you're Germany and you hear the IMF is ready to Spunk $17 billion more to Ukraine, alarm bells ought to be ringing, and are.
Vichy DC is aware of Germany's angst and hence the tapping of Merkel & German Companies.
One has to assume what Merkel says holds about as much relevance/water as Barry's trash talk.
So...I'm guessing that NO one had any fiduciary responsibility to see that Greece was doing things according to approved plans/loan agreements. ALL of this just "kind of happened" - "came out of nowwhere" - "beats the hell out of me how it happened". I guess like New York - they don't have any criminals in Europe either. Quaint.
Fiduciary duty? Of course. That was handled by Goldman Sachs.
Goldman carefully analyzed all the facts and found that everything the Greeks were told to say by Goldman was kosher. Unfortunately, after Goldman did an honest and credible job, the Greeks waited until Goldmen left town ... and then ... something changed and went horribly wrong ... without any knowledge or participation by those who do God's work.
Luckily, the leader of the Goldman team is still around to ream the Greeks for his sins.
Black... Fucking....Hole.....
and it's my taxmoney being squashed by celestial gravity.
In other words, it's a ransom
The IMF's goal is to foreclose greece and run its politics, and if they cant achieve that, they want Greece subjected to starvation and chaos as a lesson to others. The powers dont need war to conquer countries anymore, that is so 20th century. You make a country bow through monetary enslavement. All of europe is now subservient. Borders are blurred, and sovereignties virtually nonexistant. Notice that nationalism is dead? Why is that? Is it good or bad?
Nationalism is dead to the prime political forces and they are importing waves of non European trash to kill it completely.
For large portions of the native population it is not dead. Most don't really see enough of what is going on but many are waking up.
When majority wakes up it is going to be another bloodbath, Europeans can visually recognize when someone is not from their country.
How much difficulty do you think they will have finding non Europeans amongst them??
For all the culture and science the underlying tenancies for violence are still there... just like all humans.
This time they will not need to fight wars between each other - they can have retribution on their political class first. Once the internationalist politicians are hung or shot, a nationalist group will take over and then non native population will be expelled or killed. It is as predictable as the 4 seasons.
rob·ber·y - "The taking of money or goods in the possession of another, from his or her person or immediate presence, by force or intimidation."
None of that would have happened if the Germans had agreed to restructure the Greek debt from day one, as they were politely told.
All Merkel's fault. She may be a good accountant in prosperous times, but when the SHTF, she reveals herself for what she is, a clueless, crappy politician, a uber-fraud.
"restructure the Greek debt from day one"
And give the green light for the entire EU periphery to simply borrow to infinity, pay nothing, with no consequences? Why is greed only bad when you're good at it?
Krauts didn't have to buy that Greek debt just because it was denominated in Euros.
Aren't all banks insolvent? If the people who foolishly put money in them all wanted their money back at the same time the banksters wouldn't have enough to give them their money back
It is that simple.
If there was no purchasing power to confiscate via duplicating the saved medium, there would be no money printing either.
There is a reason money printing doesnt work as good in Jamaica. Nobody is saving in that currency. So printing just floods the transactional plane instantly and you get instant inflation.
Printing is a tax on all holders of that unit. It is a devaluation, a downgrade of the value of that unit holders time/life. Like sucking the blood out of them. Like vampires do, but thats just a fable.......
They have been invited in, theres a way to get rid of them. Easy way is to figure out a way not to use what they control. Then comes the gambit of questions of why you cant take care of yourself.
You all know the ending....right throught the heart and purified by fire.
RIPS
I'm a serial entrepreneur with wedge coming out my fanny ( that's ass if you're not American).
Please send $9.99 to learn my hook line and shaft 'em skills. NO REFUNDS.
PS No need to read the small print as i'm entitled to 50% Profit Gross Sales for the first 8 years should any of you planks benefit from my Sure Thing.
It's all funny money, created from the ether.
Remember that the FED was slathering Wall Street with $79 Billion PER MONTH for an entire year!
C'mon bankers, get out your magic wands for the pensioners instead of the bankers, or would that somewhow be "unethical" and "immoral" in Ponziworld?
Have they not heard that Biden said 'you have to spend money to save from going bankrupt'
Schnell wech, wech! The Reichstag on fire! I smell the suspicious odor of smoke and ash rising from the bowels of the would be Fourth Reich. The Americans (and its puppet IMF) are nervous. The Germans are getting a little uppity and could just tip the apple cart. They're not jumping any longer when Uncle Sam says, always quite politely, you must do this or that. Blick nach Osten (as well as south) und jetzt wieder Lebensraum. Secret meetings with Russland. Oh, the horror! Deutschland is on the move again. An American scorched earth over Ukraine, but that's not in the German gameplan, that's good farmland. And then Griechenland, the key to NATO and the entire Mediterranean. Are you Germans crazy, you want the Greeks to turn East? As in Eastern Orthodoxy, Novorussya, a reborn Byzantium.
Listen Frau Merkel, we've got enough on our hands with Syria and the Ukraine, and now Turkey and Saudi Arabia are acting up, and the South China Sea is a mess. Not to mention Azerbaijan and Iran, that's some heavy shit. And you want USa to clean up your mess with these Greek clowns and just send in Gladio. Or call on the Colonels again! You know the World is wising up. There's a limit to what we can manage. It's too, too much. Just fucking pay the Greeks off, dammit.
That IMF puppet cuts the checks for US alphbet agencies and SSA numbers are issued from London.
Mach schnell
YOUR POLITICAL SUICIDE HAS BEEN DEEMED INSUFFICIENT!
The verdict is
MURDER IN BROAD DAYLIGHT BY US!
AND YOURE GONNA LIKE IT TOO!
QUICK AND PAINLESS!
We would pay the Greeks off in just a second - if that would be all. A measly 90 billions or such - that's chump change. Thank god, there are no derivative-chains, amounting to several hundred trillions of dollars, that could be triggered by such an event - ha ha ha.
recapitalize greek banks, yeah, that's a priority. :roll:
Capitalize Goldman Ransack - that's all.
The previous Greek governments are responsible for the debt. The New Democracy Party under the leadership of Antonis Samaras should have to pay. They should also throw in Papademos and Papandreou as well.
Oh so they voted themselves into office? Chained up all the millions of furious rebelling Greeks desperate to default, exit the eurozone, and live debt-free within their modest means, then just voted themselves right into power?
In a republic the citizens elect representatives to govern them. In theory, the citizens elect representatives that fully inderstand the issues and will act on their behalf in their best interests. In practice, many times those representatives lie to get elected. Then they act in bad faith in ways that are not obvious to ordinary citizens but that enhance their prospects for re-election.
While we rotate around the health of the banks we will continue to miss the point.
It is afterall the health of each and every household that underwrites the health of the banks.
Haircut the savings of Greeks and bondholders by say 30% and give equal reduction to the mortgages of ordinary Greeks. The amounts haircutted should be quarantined and only clawed back in the event that the property sells for more than the outstanding mortgage.
This is not a socialist solution.
Imagine if A lends to B an amount of $80 to buy a $100 home. Property prices plummet to $50. A would be faced with a loss of $30 if he proceeded to liquidation, so why should the situation be any different because the bank is an intermediary?
You must live in California, do you? In my state and I think most others, A gets the house, sells it for $50 and then sues B for the other $30.
And in the meantime the IRS hits you with a $10,000 tax bill for the money you were loaned that you didn't pay back (NOTE: I think they have a moratorium on enforcing this particular law but it's still on the books. Watch for it to make a comeback soon)
As long as they can print, nothing will change.
Real figure is €106 bn.
and counting... for say a 12 month can kick.....
That doesnt count portugal spain and Italy.....
dupe.
This is a Merkel check to Barry via the IMF, and how bad does Barry want Nato intact....
Lets see if the US taxpayer will put up 50 B in loan guarantees
And out of the bull pen, its an orange ompah lumpah, no I think its Lagarde, with a big basket of Jewbucks.....
And out of the bull pen, its an orange ompah lumpah, no I think its Lagarde, with a big basket of Jewbucks.....
Outsmarted by Those People again? Hilarious.
Can you imagine the alkaseltzer consumption in Beijing tonight..........
Do the world a favor Merkel...........go self-combust.
When dollar reserve status goes away, can someone explain what the difference will be between the Greek subject and the US subject??
The local weather.
You got that right, imagine what the IMF thinks when they hear America needs an 18 trillion dollar bail out.
And that's just walking around money. What about all those uncovered liabilities?
There will be no bail-out ever.
There will be however, a bail-in. It is written.
As we have known for quite a time, now:
http://www.zerohedge.com/news/2013-03-29/guest-post-why-mr-dijsselbloem-...
There it is written: Bail-in
Language and more importantly......guns.
They are playing semantics to get around a declaration of default.
Are they that deep into CDS's that they need to do this shit?
Actually, I believe they are.
Actually, I am absolutely sure they are.
Merkel walks into a bar...
When one truly understand where the banksters, and their violence-puppets, government, get their loot, it become preposterous all of of this legal wrangling and horse trading. That is because the pols, crats, and banksters doing all of the dealings don't own the property they are squabbling over--the depositors and people do.
Liberty is a demand. Tyranny is submission..
Stick 20 banksters, pols, and crats in a room to discuss who must first go to the guillotine, and after a day, you will only have one for the guillotine.
Merkel will need to double down on a new €75M. She will need to milk one tit or another.
Every man woman and child should receive 8000euros and let them capitalize the banks of their choice. Of course the gov could get tax on the windfall and the country would be on its feet in a day or 2. Why should average joe Greek not get the money if they are responsible to make interest payment. Its freely printed money anyways.
Who's bailing out the CDS and derivatives tied to Greek debt, Frau Merkel?
Now THERE is the big question that nobody wants to talk about.....
Yep. It's sad.
My little sister brought home a stray dog that insisted on shitting on the antique Royal Heriz carpet.
Since it was winter and below freezing in the back door hall, the dog had to go. Pops stepping on a little dog bomb in his socks sealed the deal.
Sad, but necessary. Off to the pound. Good luck to ya.
I've dated several chicks who become hard core pathological over animals in a zoo, even animals as pets (these chicks are fun though)...
The same f'ing bitchez insist that HUMAN animals ought to be caged..
AKA 'governed'.
SPLATT>>>
At least yours had a reason....
This is one stinking bad divorce.
Gloria Allred shows up and it's nuclear war.
They're printing a trillion in the Eurozone.What's a hundred million and change amongst friends?Ben,can they borrow your heicopter buddy?Oh,and don't worry because the Europeans can drag the States down too.That little thing called "Swap lines with the Fed."Nothing like getting stuck with a garbage currency for a loss.
"While an extra €10-14 billion would have been bad enough, it turns out that Greek banks will actually need more along the lines of €25 billion."
Doesn"t the USA blow through that piddly shit in a day?
No shit!! Divert Pakistan , Afghanistan and what-everstan's money and send it to the Greeks ... With the stipulation that we can build airstrips and bases on their outer isles.... China style
With budgets in the trillions, how can these peanuts be of any real concern? Why is the European "leadership" so butthurt over such a paltry sum?
Iceland!
It's called the miracle of compounding -- every bailout has to keep getting bigger and bigger!
Loaning to Greece is like loaning money to Detroit, Chicago and so many other unsuatainable situations where its better to crash now than pull everyone down in a larger crash later.
Who cares what the totals needed are claimed to be at this time? Its a socialist welfare state. They'll always need more!
Don't disagree TBV but every day the fed (read: US taxpayer) loans an unknown $B at 0% interest to the big US banks which is then loaned back to the Fed at ~4%. That is a far worse example of corporate socialism than what is going on in Greece.
The US Government borrows half of the $5 trillion it spends every year. Why doesn't it just borrow it all?
But, but, we need to save tha chilrens and the old people from being pushed off a cliff into the Greek sea...
Good on the True Finns for making it known that they'll bring down the Finnish government before giving Athens another cent.
The French, meanwhile, did Greece's homework for them (poorly) because they're afraid of Le Pen.
Euroskeptic parties across Europe aren't yet strong enough to insist that the sovereign right to issue money and regulate its value in their nations be returned to their peoples. They have become strong enough to insist that governments at least take the side of their own peoples in disputes. No European government that was the least bit accountable to its people would ever have lent Greek kleptocrats a cent, least of all to bail out banksters by stealth. Now the Euroskeptics are a real threat to them, governments are finally doing the right thing.
Who knows? Maybe they'll get serious about sorting out their Muslims next.
Are you really this dense, or are you paid 1 cent (US) per post like most of the Statist douchebags who try to haunt this site?
The ones that should be kicked out of the Euro are the Germans. That would make the price of their products rise to it true value so the rest of Europe can become competitive again. Germany profited most from the Euro and flooded Europe with their cheap Euro to whomever wanted to borrow. With a Gerxit you would see a run on the D-Mark then.
Another 74 Billion Euros!!
Think about what you are saying here, for God's sake!
That is giving these lazy, good for nothing Greeks ANOTHER 7,000 EUROS PER MAN, WOMAN AND CHILD!
Does this make any bit of sense. How much money do this Greeks need to be given! They have already been given 50,000 Euros per man, woman and child by the Europeans, and a further 15,000 Euros per man, woman and child, by the rest of the world. They have been given, 65,000 Euros to each man, woman and child, and you want to give them another 7,000 each! WTF!
QUESTION TO ALL YOU IMBECILES WHO WANT TO GIVE GREECE MORE MONEY: WHEN DOES IT END? WHAT IS THE LIMIT, 100,000 PER CAPITA, 1 MILLION PER CAPITA? WHEN DOES IT END? YOU WANT TO GIVE MORE AND MORE AND MORE, BUT NEVER DO YOU SAY WHAT IS THE LIMIT? SO I AM ASKING FOR THE VERY FIRST TIME BY ANYBODY, WHAT IS THE LIMIT?
WHAT IS THE LIMIT? ANSWER THE QUESTION YOU SOCIALISTS!
And what is that "money" created from?
Thin air.
Let them default.
Let them all default.
Bring the global financial system down.
It will happen soon, like it, or not.
"Let them default.
Let them all default."
"Let them eat default."
Indeed.
I look forward to it:
https://www.youtube.com/watch?v=mdT163r3dUQ
No no, the German, French and other countries' banks were giving that money. Of the 240 billion bailout only 10% reached Greek society. they need to pay back that bailout with interest. But it were the EU taxpayers that bailed out banks that made bad investments in Greece (while everybody knew what went one there). SO LOSSES OF BAD INVESTMENTS WERE SOCIALIZED. Does not sound like proper capitalism to me now, does it?
Greece is like a rolling stone...hard to stop...but they know..
"You can't always get what you want...
But if you try sometimes..well you might find
You get what you need."
The European stealth version of TARP is the gift that keeps on giving.
Propping up a dead system is a game of whack-a-mole.
Fiat money, the sure fundament for swampy horror times.
Why can't the US just print what's needed then use a currency swap to change it to euros, Goldman Sachs can hide the transaction until a convenient time. Nobody will know and interest can be added to the loan at maturity. It will keep the ponzi going and bankers can make huge commissions. What's not to like? Oh hang on, isn't that what we did in 2008!? Better double down then, extend the swap dates and hope the pesky investors who bought the highly toxic opaque investments (that bankers have made a fortune selling CDS's on) don't want their money back. Then we're all in trouble - but then again, it could be a great shorting opportunity? What's not to like?
Yesterday estimates for total additional capital needs were 70 - 100 billion EURO. However I have not yet seen any explanation as regards the future and fate of the 100 billion ECB ELA facility. It seems to me that this amount is disregarded to be at risk because of the assumption that once a deal has been done the population brings the 100 billion back into the country and the ELA facilities can be repaid. After at least two weeks of bank closures I think that assumption is wrong and the money will not flow back in which case the total funding requirements are 170 - 200 billion. Right?
Germany is working the last 15-20 years a new big plan to occupy Europe once again.
Working close with it's WW2 allies like Finland, Latvia, Slovakia, plus neutral / weak countries back then like Albania, Slovenia, Bosnia (this a new Axis the modern Germans work in the Balkans).
No weapons this time but debt slavery
Germany is working the last 15-20 years a new big plan to occupy Europe once again.
Working close with it's WW2 allies like Finland, Latvia, Slovakia, plus neutral countries back then like Albania, Slovenia, Bosnia (a new Axis the modern Germans work in the Balkans with the help of Jihadists).
No weapons this time but debt slavery
Debt slavery and usury are the traits of the jew - NOT germans. With that in mind, I will gladly side with germany rather than US, Greece or whoever may be on the other side thank you.
Looks like bitcoin is well on its way to its fair value at $750,000 per bitcoin. Last Price $302.
That's FUNNY!
ONE worthless fiat currency being compared to an 'ELECTRONIC' worthless fiat currency!
How much is 'Bitcoin' valued at, in, say, 1923 Deutchmarks? Half a wheelbarrow?
Down in mommy's basement, the Bitcoin miner doesn't know what to do, as the power fails. Rushing to come up to the surface, he stubs his toe on the stairs (because there's no electricity to power the flourecents), spilling Doritos crumbs off of his naked, distended belly. With total concentration on his life's purpose, he rushes out to the driveway, and attempts to start mommy's Prius. Realizing that it is dead (due to the Carrington Event's effects, or perhaps the EMP weapon), he sits in the car, naked except for his soiled boxer shorts; and cries for the loss of his 'electronic wallet'. His mother, being merciful to her son, comes out with a bathrobe and a pistol, and gives him the choice of either one. He grabs BOTH, covering his head with one, and putting the other up to his temple.
How to ruin in a struggling nation in five steps:
1.) Antagonize the domestic market by decreasing wages, pensions, social benefits and national investments forcibly. Justify all your actions with the fairy-tale that a national economy could "save" itself to healthiness if each and every actor disclaims.
2.) Frighten all potential investors, by telling time and time again, that this nation faces it's "last chance", meaning it faces immediate collapse.
3.) Treat that nation publicly like an unteachable brat, but avoid massive pressure as well as massive help as soon as the real issues are put on the table: Tax revenues, public authorities, general corruption and cronyism.
4.) Insist on punctual settlement of all interest payments as the states first and most important task. Expenses for fighting poverty, public healthcare and refugee relief have absolutely to be subordinated. Delay any measurements to decrease interest burden as long as possible.
5.) Drop the nation like a piece of hot coal as soon as the government composes of a party you don't like. Take care that said party is publicly blamed for the breakdown you yourself assured.
Playing the Greek nation victim card ?
I thought I would not be taken that seriously, because it's weekend.... ;)
Imagine the congressional black caucus (the Greeks) .... in charge of trimming welfare costs .... and they are bargaining with Obama (EU) ? LOL
Nothing the community organizer can't fix with a little organizing
They print and give away twice that much to the bankers in Europe every month via QE.
I am surprised that Krugman hasn't suggested building autobahns from every European country all the way to Athens built by Greeks of course fro Grentry and Grexit, or perhaps giving every Greek citizen a drone.
Why not site solar power stations to supply Europe/Asia/Africa?
Why not have Greece copy Ireland and provide (almost) tax free transfer pricing for all Europe's financial companies?
or get Daimler/Peugot/Fiat to build a few dozen electric car plants?
The idea of allowing Greece to extend and pretend either in the Euro or outside it is a non-starter. Negotiating debt relief so that Greece owes zero coupon perpetual bonds (like the war loans the UK finally paid off a few years ago with 2.5% and 3.5% coupons and no maturity dates) might provide some workable relief, but taking away productive assets from someone in debt is not the solution, nor is thinking about a solutio in financial terms.
Must be good for bitcoin +16.58 in the last 24 hours.
?
With the Greek vote, I believe that some of the bankers are acknowladging that any bailout is just throwing good money after bad and to walk away may make the most sense..
The bankers can't win.. any court of law with a non-bias jury would throw-out the creditors for perpetuation what they should have know was a failure, thus the loans are being done in fraud.
Greece woudl need over 70 billion Euro .......peanuts compared to the hundred of billions given at 1% interest to the zombie banks of Europe . The BCE that has spent possibly a trillion to save zombie banks in the EU cannot wipe out the Greek debt !
Absolute BLS .
The Euro is going to soar while the dollar tanks, and Yellen is going to have to decide whether to defend the currency and crash the economy, or hyperinflate and end up swinging by her neck from a lamppost when it crashes anyway. That's what's in the bag Bernanke handed her, laughing his ass off I'm sure.
Oh, Angela.
OH, ANGIE!
The Rolling Stones:
https://www.youtube.com/watch?v=rXRExocnpUw