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IMF Rips Pandora's Box To Shreds, Demands Greek Debt Relief "Far Beyond What Europe Has Been Willing To Consider"
Earlier today, Reuters first leaked that just two weeks after the IMF released its first revised Greek debt sustainability report, one which the Eurogroup desperately tried to squash as it urged for a 30% debt haircut and came hours before the Greek referendum vote giving the Oxi camp hope and crushing Tsipras' carefully laid plan to lose the vote and capitulate with integrity instead of having to capitulate a week later after 17 hours of "mental waterboarding" and have his reputation torn to shreds, the IMF would release a follow up report updating its view on the Greek economy which in just two short weeks of capital controls has utterly imploded.
Just like the first IMF report, which we correctly compared to the opening of a Pandora's box, and with which the IMF also obliterated the careful plans of the Troika, so with this follow up the IMF effectively crushes the glideslope of the latest Greek bailout process barely scraped together on Monday morning and has torn Pandora's box to shreds with the following summary assessment: "Greece’s debt can now only be made sustainable through debt relief measures that go far beyond what Europe has been willing to consider so far."
Yes, debt relief... just the others' debt: not the IMF's, please.
So what just happened?
As of this moment the IMF is telling Greece that if nothing changes, it will die of cancer with 100% certainty; on the other hand the Eurogroup is telling Greece it will die of a heart attack also wih 100% certainty if anything changes.
Good luck with the choice.
Here are the report punchlines:
- Greece’s public debt has become highly unsustainable. This is due to the easing of policies during the last year, with the recent deterioration in the domestic macroeconomic and financial environment because of the closure of the banking system adding significantly to the adverse dynamics. The financing need through end-2018 is now estimated at Euro 85 billion and debt is expected to peak at close to 200 percent of GDP in the next two years, provided that there is an early agreement on a program. Greece’s debt can now only be made sustainable through debt relief measures that go far beyond what Europe has been willing to consider so far.
- ... significant shortfalls in program implementation during the last year led to a significant increase in the financing need—by more than Euro 60 billion—estimated only a few weeks ago. As a result, debt-to-GDP by 2022 was projected to increase from an estimate less than a year ago of about 105 percent to a revised estimate of 142 percent, significantly above the target of 110 percent of GDP. This would under the November 2012 agreement have implied significant additional measures to reduce the face-value of debt.
- Greece cannot return to markets anytime soon at interest rates that it can afford from a medium-term perspective.
- The events of the past two weeks—the closure of banks and imposition of capital controls—are extracting a heavy toll on the banking system and the economy, leading to a further significant deterioration in debt sustainability relative to what was projected in our recently published DSA. A full and comprehensive revision of this debt sustainability analysis can only be done at a later stage, taking into account the deterioration in the economic situation as a result of the closing of the banking system and the details of policies yet to be agreed. However, it is already clear at this stage that there will be a significant increase in the financing need. The preliminary (mutually agreed) assessment of the three institutions is that total financing need through end-2018 will increase to Euro 85 billion, or some Euro 25 billion above what was projected in the IMF’s published DSA only two weeks ago, largely on account of the estimated need for a larger banking sector backstop for Euro 25 billion. Adjusting our recent DSA mechanically for these changes, and taking into account the agreed weaker growth path for the next two years, gives rise to the following main revisions:
- Debt would peak at close to 200 percent of GDP in the next two years. This contrasts with earlier projections that the peak in debt—at 177 percent of GDP in 2014—is already behind us.
- By 2022, debt is now projected to be at 170 percent of GDP, compared to an estimate of 142 percent of GDP projected in our published DSA.
- Gross financing needs would rise to levels well above what they were at the last review (and above the 15 percent of GDP threshold deemed safe) and continue rising in the long term.
In other words, for every week that the Greek capital controls remain , the total cost of the Greek bailout (the funding needs) increases by €10 billion.
Another way of putting it: with every passing day, another 1% of Greece's €210 billion in bank loans becomes "non-performing."
It gets worse: "these projections remain subject to considerable downside risk, suggesting that there could be a need for additional further exceptional financing from Member States with an attendant deterioration in the debt dynamics."
- Medium-term primary surplus target: Greece is expected to maintain primary surpluses for the next several decades of 3.5 percent of GDP. Few countries have managed to do so. The reversal of key public sector reforms already in place— notably pension and civil service reforms—without yet any specification of alternative reforms raises concerns about Greece’s ability to reach this target. Moreover, the failure to resist political pressures to ease the target that became evident as soon as the primary balance swung into surplus also raise doubts about the assumption that such targets can be sustained for prolonged periods. The Government and its European partners need to address these concerns in the coming months.
- Growth: Greece is still assumed to go from the lowest to among the highest productivity growth and labor force participation rates in the euro area, which will require very ambitious and steadfast reforms. For this to happen, the Government— which has put on hold key structural reforms—would need to specify strong and credible alternatives in the context of the forthcoming program discussions.
- Bank support: the proposed additional injection of large-scale support for the banking system would be the third such publicly funded rescue in the last 5 years. Further capital injections could be needed in the future, absent a radical solution to the governance issues that are at the root of the problems of the Greek banking system. There are at this stage no concrete plans in this regard.
The conclusion:
The dramatic deterioration in debt sustainability points to the need for debt relief on a scale that would need to go well beyond what has been under consideration to date—and what has been proposed by the ESM. There are several options. If Europe prefers to again provide debt relief through maturity extension, there would have to be a very dramatic extension with grace periods of, say, 30 years on the entire stock of European debt, including new assistance. This reflects the basic premise that debt cannot be assumed to migrate back onto the balance sheet of the private sector at interest rates close to the current AAA rates before debt levels have been brought to much lower levels; borrowing at anything but AAA rates in the near term will bring about an unsustainable debt dynamic for the next several decades. Other options include explicit annual transfers to the Greek budget or deep upfront haircuts. The choice between the various options is for Greece and its European partners to decide.
Actually, it is no longer Greece's: Greece is about to hand over its sovereignty to Brussels on a silver platter. The choice is now all up to the European "partners" to decide.
Full report (pdf)
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Pay them with lead at 2,500 feet per second.
At this point in the ball game I don't think anyone has a clue what is going on and which way it is going to turn.
Funny, we are hearing from all the players but not much from the Greek people.
In the end it is not our business, if the Greeks want to capitulate that is their business. If not and they are being forced into this by their politicians then we will know shortly enough.
it's clear: the IMF is saying that the euro-peons have to forget about their monies into ESF etc., and throw tons moar into the Greek financial black hole. The IMF is playing the script of inducing maximum chaos and destruction written by uncle Sam.
Anyone with an ounce of sense would have already pulled the plug on this insanity many years ago.
Planet 7x the Lizards have the big game to play over the next 6 month, there going to bring the whole fuckin thing down as a diversion before this comet planet comes buy. Prepare to live or die.
8 up votes on the Planet Comet Hirobulus? It would be good news to hear The Banksters are sparing us of realizing a planet is heading toward us, traveling faster than the speed of light. We can only hope.
Well there planning for something. Should be naked eye visible Nov Dec they need to lock you down in everyway possible. The earth changes are real. People need to realise that this may be the biggest secret and the cover is a multiphasic full spectrum of diversion tactics for at least 30years. Gill Broussard Planet 7x. Watch for yourself there a good interview on caravan to midnight.
The IMF report should help the vote in the Greek parliament tomorrow go down.
Back to the German thumb screws for Tsipras.
There is going to be nothing left of Greece to salvage and we can look forward to much more radical political parties in the near future who will rip up any current agreement and take back their banks. Imperial Mother Fuckers could have spoken before these events and are now just trying to distance themselves from the cruel Germany,knowing full well they are too late to salvage their own image and Greece.
https://www.youtube.com/watch?v=k-3Ik9elegA
bail in, how much per head?
Every Greek pension now comes with a personalized dog collar compliments of Adolf Schauble and Eva Merkel!
IMF wants to weaken Germany.
the imf doesn't want to piss their/our money away
the greeks can't and won't pay back that huge public debt.
Is there any chance this kills Schauble? Then I'm okay with it
When does Lagarde slash the tyres of the wheelchaired one?
That scene was cut from 'Dr Strangelove' some time ago.
Anyone who believes this is controlled demolition, forget that. They've lost the plot and getting more desperate every day, week, month. What happens next is the Catalans vote to leave Spain, civil unrest ensues and city by city follow suit across Europe. Interesting times! How dare you Amurikans call us Europeans stupid. No fucking No we're lily livered Trainee shirt-Lifters, than you very much.
It is ALL Goldman - doing God's Work. When will they get Prep-H'ed?
Fucking IMF is in it for the IMF
Fucking World Bank is in it for the World Bank.
Fucking FED is in it for the FED.
Who the fuck represents the debt slaves?
The debt slaves
The EU is well and truly fuckt. Their golden goose is done more than well.
They fuckt with NATO. The ultimate capo. You don't do that. It's against the rules.
So therefor, the EU will suffer. Not Greece. They have more NATO bases than anyone else. Plus a super-powerful military.
The EU thinks it is Rome. No, it is not.
The European Commission is forecasting growth in 2015 of 1.5%, which would be the euro area's best outcome since 2011 when it grew by 1.6%.
VS
In June, [Russian Federation] the Central Bank stated that it expects the economy to contract 3.2% this year.putin regime trolls and their brainwashed idiots can scream as much as they like - number and reality doesn't change from that.
I just heard through the grapevine that Victoria Newland has just finished baking a fresh batch of cookies for the Golden Dawn supporters! Is wedensday riot day in Greece?
That would be baclava. She's baking up some kool-aide infused baclava.
Ok, someone help me with this. Cause I don't get it.
At this point, Greece, what the hell are you doing?
Really , I don't get it.
All you have to do is stop acting like a fucking homeless man, and stand the hell up for yourself.
Pretend there is no one to help you but yourself.
Work with Russia and get your gas deal.
Then tell your creditors to F off and talk to whatever banks told them it was safe to lend you money.
Then, stand on your own to feet and work.
Issue a currency that your countrymen will accept.
You won't even notice what it worthless if you stay home, and don't travel abroad. Think of your exports if dollar is weak. Seriously.
Anyone..,why would Tsipras, keep bagging for money, Russia and China are willing to work with them. I don't get it.
All well and good, but the EU leaches, Deutche Bank, EU, IMF, Goldman, etc, - would track you down looking for "their" money. Then what will you do?
Laugh in their face.
Watched some show about Greece ---they interviewed lots of Greeks Got the feeling the Greeks want their cake and it it too. They do not want to give up EU markets at least the fishermen do not. It is like they are the old gentry who live beyond their means thinking somehow magic will allow them to remain in the country club and no one will notice they can not pay the dues. I think a false pride has lots to do with the pickle they find themselves in. Sooner or later someone is going to have to take away their pass and keys and tell them '
---the party is over.
Sounds just like Americans.
I think this example draws a very close parallel.
Sam Kinison: "Do you have the courage to tell her, "You know? I am fucking tired of sharing anything with you. A life, a meal, a car ride, your voice drives me up the fucking wall. I come in at night, and I have to drink a six-pack of Smirnoff to keep from cutting your fucking head off and putting it in a camera bag." to her face?
If your answer was, "no," here's what you do. Snort lots of cocaine. Get into drugs, just coke out, 2 or 3 weeks straight, just fucking don't shave. Sell the TV, be a fucking asshole. She'll come up to you, 2 or 3 weeks later, crying, "I have to leave you. You're not the man I fell in love with. All you want to do is do drugs and get high," and she goes away. She leaves! It works!
It's beautiful, because she feels like shit because she left you when you needed her, most!"
-----
So, you see, DTB it would make little sense for a fellow to offer his apartment key/code to a new girlfriend until such time that he's extricated himself from his current ill-conceived entanglement.
But, give it time. Tsipras was so ineffective and weak in the recent negotiations that it almost seemed a bit suspicious that he might have baited the negotiations, vying for the worst possible and most vindictive deal that Germany could impose.
I could be totally wrong, of course. Tsipras might be merely have been the winner of the multiregional village idiot competition. On the other hand, I'm also assuming that China's interests were also represented at Tsipras' meeting with Putin in Russia. Neither Russia nor China invest much time dealing with foreign idiots except when required by international protocol. There was really no reason that Putin needed to meet with Tsipras. Russia needs only to wait until the implosion and then line up its humaitarian aid convoys headed to Athens. So, obviously there was some other reason that compelled the meeting.
It just seems to me that all of Greece's actions in the past several months which may have appeared innocuous and unintended when considered individually were amazingly successful at kicking the soft underbelly of the EU at each twist and turn.
For example, Greece's election to make it's last 4 debt payments as a lump sum seems obviously planned. This inflicted a much larger blow to the ECB than Greece missing a single payment. The strategic pauses caused by Greece's seemingly clownish counter-proposals increased by 2-3 times the financial stresses on its banks which in turn greatly added to the costs for the ECB to pay now if it wants to recapitalize these banks.
The game is afoot. The moment that Greece is technically cut off, look for all the different flavors of carpetbaggers offering their own versions of "humanitarian aid" to roll into Greece.
In the words of the great comedian-philosopher Bernake, "It will be disorderly".
when you ask someone to self cut a both hands or both legs, usually he tries to negociate maximum possible before the cut happen, just because without legs you cant move freely and without hand you cant work properly.
So what if the German Aristocracy marry the English Aristocracy creating a new super breed of Landowner?
What's shocking is that Tsipras is not ashamed to show his face in Greece. I suppose he's not in Obama's League as a MFing sell-out filthy rat, as Bastards Go, but when you've come to Power on a Mandate of Fuck Austerity and get your ass-kicked you RESIGN , departing with a modicum of Dignity.
"What's shocking is that Tsipras is not ashamed to show his face in Greece."
Hello! Motherfucker is a professional politician. There's no sense of decency w/ them.
Trying to stay alive, literally, since he is dealing with "Murder Inc.". He needs to call Putin and sell out to him and force the "Banking Cabal" to prove they have one "ball".
disagree
Tsipras has a perfectly acceptable mixed message going for himself.
That happened long ago as mafia boss Elizabeth Battenburg's family left Germany and married into the English money familes.They then became the windsors.
Disraeli the first jewish prime minister of England laid out his plan of marriange between the elite Jews and English aristocracy to form a "super race" to rule the world.
google vril, the power of the coming race.
As Victoria Nuland said " Fuck the EU"
Exactly! [/Pyatt]
A MATH QUESTION with the total over 200 Trillion in all debt and Liabilities that have to be paid by the government and which comes to around just under 2 million dollars for every man woman and child in america . this debt is mathematically impossible to pay . Explain why any one with any common sense would be willing or foolish enough to loan the government anymore money knowing full well they will never be repaid. because it is mathematically impossible to paid them back A MATH QUESTION with the total over 200 Trillion in all debt and Liabilities that have to be paid by the government and which comes to around just under 2 million dollars for each and every man woman and child in america . this debt is mathematically impossible to pay . Explain why any one with any common sense would be willing or foolish enough to loan the government anymore money knowing full well they will never be repaid. because it is mathematically impossible to paid them back
The monetary value of the debt can be reduced by subtracting sovereignty. Minor adjustments can then be made at any time as the debt will have infinite maturity.
btw not my red
You deflate the debt by inflation and you set up an illegal organization to create debt for bribery & corruption and make it go as long as you can.
This shit gives me a head ache already.
IF Greece was serious about getting their shit together they would default and just carry on INSIDE the EU.
Definition of getting shit together:
Spend only what is collected in taxes.
If that means reducing pensions and firing civil servants, so be it.
Why the fuck is that concept so difficult? If you spend only what you have, being locked out of capital markets is a non-issue, YOU DON'T NEED THE CAPITAL MARKETS!!!!
Since the "drama" just continues I have no other conclusion than this, 'The Greeks have no intention of living within their means, this is all a shakedown operation to bilk Europe".
I'm from Canada, I've seen this shit before. Quebec were, and still are, experts at it.
1. Claim a faux separatist movement,
2. Rile up some nut cases with bombs (the nut cases were criminals anyway, just put them to good use),
3. Get some good press(blow up a few mail boxes, bunch of messy strikes, etc),
4. Rope in some mainline politicians into the fold after the nut cases are locked up,
5. Create your platform,
6. Put up the pretence of actually meaning what you say,
7. Hold a referendum for indenpendance and convieniently lose,
8. Shake down the feds (The Rest of Canada) for cash.....
9. Go back to step 5, rinse and repeat.
This has been going on in Canada for 50 years....AND ITS WORKED!!! Quebec is the WORST place in Canada to try and run a business, they have more civic servants than California....all paid for by tax payers in the rest of the country. Its a shakedown operation. The entire Soviet Union and the Warsaw Pac have dissolved into 30-40 independant countries since 1992 and Quebec couldn't go it alone?.....since 1965? IF THEY REALLY WANTED TO?
Did they really want to?
You bet they didn't. Going it alone requires work and determination and failure HURTS because failure means starvation. Quebec was, and is, a shakedown operation.
AND SO IS GREECE.
The German Finance minister is a prick, but he's obviously come to the same conclusion as I have. Kick the fuckers out, enough already.
Its mean, its nasty.....but enough already. Pull your own weight.
You want to default, THEN FUCKING DEFAULT!!! But then you have to live within your means.....and its Greece that doesn't want that and THAT is why this continues.
I'm with Germany, KICK THEM OUT! It will be good for the EU (since it will destroy itself there after) and it will be good for Greece. Its time to grow up.
Squid
That is called "Problem, Reaction, & Solution". The people giving their solution created the problem and use propaganda to get the citizens (sheep) to "react according to plan" and people with the solution laugh all the way to the bank & other dark places. The perfect example is the 2000 "hanging chad" election; nothing different from other elections, but they (the masters) wanted more control of the voting via electronic machines; so "problem propagandized, people react accordingly, and they provide the solution and now the rigging is much easier.
https://www.youtube.com/watch?v=JEzY2tnwExs
IMF wants more Kool-Aid. IMF needs more Kool-Aid. IMF thirsty.
seems to me the IMF is more like a heroin dealer than an institution trying to help countries 'develop'
Now this is the ZH I remember!!
Good article Tyler! Thanks
this should please a few here at ZH
https://www.youtube.com/watch?v=nnyHtPxBZn0
Regardless of what the players are saying, Zion must take possession of their recalcitrant fiefdom, Greece, to prevent its loss to the east. Or at least the loss of the pipeline route from Israel to Europe, and the loss of access to Greece's farm products.
What color will this "revolution" be?
Liberty is a demand. Tyranny is submission..
HehHeh, I'd like to see the debt migrate back onto the balance sheet of the private sector
Greeks need to do massive civil disobedience first before they start disappearing the bankers.
And that has worked where exactly?
Iceland. Remember when the protestors delivered to their president's home their petition against the bank bailouts?
http://images.angelpub.com/2010/01/3648/iceland-torches.png
https://www.wealthdaily.com/articles/iceland-england-bailout-protests/2252
How to organize without being arrested trying to fight the entity overthrowing your own government. Stalk the stalkers. Spy on the spys. Kill the snipers. Cut off supply routes. Organize in undercover AA meetings. Destitute people have no voice, no power. The politicians go to the country clubs in all of our towns when they come home. Open up a FUND ME to cover expenses. It is better than doing nothing which is unbelievably frustrating.
If I were Tsipras, I would make a deal with Russia & get Putin to invloved with troops to protect them from the IMF & EU and send a message to Obama's handlers. Tsipras may actually be able to save his neck or start a nuclear war...at least this way everyone gets to join in the fun misery.
So which countries in the world actually have real earned monies / assets to bail out Greece? Y'all talk about the U.S., we are clearly in a deficit mode so we help bail with debt for what everyone knows is a total loser, damn we are a helluva collection of dumbfucks....
Jim Rickards said Greece was "Hotel California" and he is right for once or maybe twice.
This is sort of like my local government. The city is crying, because the county has millions in non-taxable property in the city (courthouse, etc) and the city wants the county to give them money. The point is, once they realize that the people have run out of money to steal, they will turn on each other.
With friends like the IMF, Greece needs no enemies.
And it has no shortage of enemies in the EuroGroup who have been progressively flaying Greece for their own benefit.
In other words, London and New York are pissed off because this time Europe didn't back down, but they don't have the neck to complain publicly because Europeans would rightly ask "WTF does this have to do with you?" so they get their mouthpiece the IMF to do their talking.
Here's the way I see it: most people here at ZH have settled on the simplistic narrative of good Greeks and bad EU/ECB/bankers. (A few years ago there was a bit more savvy about ZH members but that's an argument for another day.) I don't accept this simplistic and childish narrative. Given how much anti-European propaganda there is, from London especially, I suspect London and New York have vested interests in Greece which we are not privy to, interests probably in the form of billions or trillions in derivatives and what-not. It's their way of keeping strategically-located NATO-member Greece under their thumb and it also acts as a timebomb they can use to keep Greece and Europe weak. The last thing Anglo-America wants is a strong Europe. I have a feeling London and New York stand to lose all the bets they placed on Greece, and that's why they're wheeling out the wizened old witch Lagarde to do their talking.
In short, this is not about Greece on one side and the banks on the other. This is about Greece caught in the middle between London and New York on the one side and Europe on the other, with banking interests in both camps, banking interests locked in a fight with each other that will go a long way towards determining how weak or strong Anglo-America will be in the 21st century and how much more bullying they can get away with.
Do I hear a death rattle? My hunch is Anglo-America is losing control, and Germany has found a pair of balls, thanks in large part to the excellent Herr Schauble.
Actually if has a lot to do with the US and UK and all the other non-European members of the IMF, whose money has been used to prop up the euro through IMF loans to Greece.
The powers within the EZ and EU begged the IMF to be involved in the "bailouts" because otherwise they couldn't sell it to their voters. But they prevailed on the IMF to do it the EZ's way rather than the normal IMF way.
The IMF normally requires countries it supports to default on existing loans, to devalue their currency, and to undertake economic reforms including selling valuable government assets.
In the case of Greece, the EuroGroup got the IMF to not do the first two. There was no devaluation because they kept Greece in the euro (couldn't afford to create the precedent of any country getting out). There was little default but instead Greece borrowed money from the EuroGroup and IMF to payoff German and French back which were the most heavily exposed to Greece. So private sector debt was transferred to Greek taxpayers to protect Germany and France (the same thing happened in Ireland).
That thrust all the remedy onto economic reforms in Greece which is impractical (which is the reason the IMF does not normally do it), creating an ever worsening depression in Greece and a debt which is getting ever bigger relative to GDP, partly because the debt is growing and partly because Greek GDP is now continually shrinking.
And since Germany and France never admitted to their voters that the original bailout process was to protect their own banks, they portrayed it as "helping" the Greeks whom they were drowning in the process. So now, of course, their voters are fed up with all the money they think has been going to the Greeks (when it actually went to their own banks) and they want it stopped.
The other countries of the world who are part of the IMF, which loaned their money to help out German and France, pretending it was to help Greece, would like to get their money back but the only way that is possible is if Greece defaults on loans it now has from EuroGroup countries (no longer from their banks) and the dishonest sods in Berlin and Paris are saying "No way. We're keeping everyone else's money."
We are The Borg
http://www.youtube.com/watch?v=WZEJ4OJTgg8 (0:52)
The retired Greek generals, very familiar to Greeks have already come out with the mantra, we must stay in the EU to protect the "fatherland."
That means don't mess with my EU retirement pension or things will happen.
Well, musta been a whole lotta stuff that flew from that there panda box. Look here at what the whole world knows is true and what really irritates those who perpetuate evil when the light shines upon it.
https://www.youtube.com/watch?v=6mdABj5y-wQ
Yes of course, it is the truth that slaps the aware and conscious up side the head with a dead fish and yet still, nothing is done to stop the most evil horrible and wicked country the rotenschilds ever created to be the trigger idiots for the final solution of total population elimination.
Darn, hate it when that happens.
Don't slap me with no dead fish, bro. That sounds inhuman painful.
Dead fish is cold and scaly.
https://www.youtube.com/watch?feature=player_detailpage&v=lefP0_ZM-Lw
I posted this elsewhere...
Here is what no one is saying. The system is thowing Greece to the wolves so that the banking world will not collapse on this crew's watch.
Greece is a sacrifice they are willing to make.
Effectively Greece has walked , rabbit in the headlights, into the lions den because it hasn't got the national will or leadership or the structures to break out by itself and do whats necessary, thanks to years of croneyism and corruption. Still I though Schauble gave an option for temporary grexit , help with set up, Paris club support etc, I'm not clear what happened to that option, did Tsipiras reject it ??
Good description and yes Tsipras rejected it because he claimed he didn't have a mandate to take Greece out of the euro. Of course he didn't have a mandate to increase the asset stripping of Greece and plunge it into decades of depression but he chose to do that anyway.
Mission accomplished!
Europe in Chaos and power is back to US. It's history repeating. Next is China
Can't believe that we are governed by such stupid politicians that they don't see this.
But this time it won't work as the world is too fragile. So you wankers in Washington you will feel it very soon.
Simple. IMF (the PR agent for the US fiat dollar) doesn't want Greece to become Russia buddy but don't want to foot the bill.
Simple. IMF (the PR agent for the US fiat dollar) doesn't want Greece to become Russia buddy but don't want to foot the bill.
http://www.bbc.com/news/world-europe-11442892
How come Germany got almost 90 years time to pay off its WW1 debt and they won't allow Greece to spread its impossibly heavy debt out to at least that amount of time? Why the double standards? Last time I checked, Greece did not trigger 2 world wars in the 20'th century and Germany did. So?
Ah yes the nasty Germans started two world wars canard.....
However, the big picture is not that simple and it isn't "the Germans" that are bleeding the Greeks, it is the Anglozionazi German Banksters and their international gang of bankster thugs buddies.
https://www.youtube.com/watch?v=rQH-ING_yds
And you don't think Greek luxury car & real estate owners, islands occupied by blinds, 130 year old luxury pensioneers etc... have contributed to the Greek situation ?
The Greeks might be happy that on the other end of the table are negotiating the Germans - and not the British. This could have ended in Drachma 5 years ago...
The Greeks are complaining themselve - but if 80 percent are avoiding taxes and people love their cleptorcrates in parliaments to much, they are somehow responsible for themselve - isn't it?
So long the goose is laying eggs they know where to check the box.
So the Germans are going to be able to vote for the deal, even though IMF participation is in doubt, and the Greeks are going to be able to vote for the deal even though the IMF have clearly made the case that it is a sham. Classic.
The classic Sophi's Choice. Like McCain v Obama.
The IMF has been looting countries for decades. Now they put on an honest face? It's a scam I tells ya. They are setting themselves up to be the one global bank with their SDR. Like, one bank to rule them (us) all and in the darkness bind them (us).
The IMF is always concerned to get its money back.
They normally require default on existing loans and currency devaluation to ensure the borrower (from the IMF) can recover and pay them and does not have to first repay other loans.
In the Greek case devaluation was prevented because Greece stayed in the euro and Greece was not allowed to default on all the loans it should have (because that would have sent German and French banks broke).
The IMF has not become pure of heart, nor is it pretending to be. It is saying that it can only get its money back if Greece is allowed to grow again and that requires writing off loans by the EuroGroup governments, who are of course saying Nein.
"IMF stuns Europe with call for massive Greek debt relief"
"There would have to be a very dramatic extension with grace periods of 30 years on the entire stock of European debt..."Ambrose Evans-Pritchard-Daily Telegraph
Oh Dear!
So the IMF is raining on Merkel's parade.
The first forced labour camp of the Fourth Reich.
A whole country of neo serfs - stripped of all their national assets, gold and probably their savings.
Stripped of their democratic rights.
Imprisoned in a gulag with no exit - ever.
The new instrument of Germany's domination of Europe.
Thank God someone is standing in their way - my country certainly ain't.
You have it completely wrong, probably because you're a victim of the daily flood of Anglo-American propaganda.
What Germany is doing, with ample support from other members of the EU, is slowly prising Europe from the tightened fist of Anglo-America. Germany stands for the people of Europe, including the Greek people. Don't laugh; many of us in certain countries in Europe know all too well what it was and still is like to have our countries economically, culturally, socially and politically wrecked by the British. If Germany doesn't wrest control of the Greek situation from the secret wreckers doing London and New York's bidding then the Greek nightmare will continue. As long as Anglo-America is allowed to carry on attacking the soft underbelly of Europe through Greece Europe will get nowhere. Greece and the other weaker members of Europe stand a good chance of prosperity and peace while Germany acts in their interest; if Germany loses this particular battle Europe will be thrown to the wolves yet again, and we all know by whom.
You DO HAVE a point there but the evidence shows otherwise.
The Siemens Bribery and all the other scams perpetrated in Greece does NOT give any sign of GOOD INTENTIONS.
The REAL and present IMPOVERISHMENT of the Greeks is not the way to go about it.
CORRUPTION has been all too real BY THE GERMANS.
The Greek Politicians, we know, are TOTAL FILTH but the Greeks should be helped to HANG THE BASTARDS.
If that were TRUE Mutti would have gone the Eurobond route from DAY 1 in 2009, when Sarko proposed it and got shot down.
That would have obliged Europe to bring down the Bankster casino PRONTO inhouse and avoid the financial run on PIG sovereigns, by divorcing Euro finance from the City and Fed. But that is a pipe dream. As the FED controls the POMO swap line to USD reserve that Europe's TBTF banks need to do their commodity scam trades.
In 2009 the Euro banks told Mutti that if you quasi nationalise us by severing us from City and FED we explode and you with us! What Dimon and Geithner told GWB/Paulson in december 2008 remained true in EU !
Mutti was not ready then to take on the US (I don't think she is ready today as she has no nuclear protection outside Nato, aka USA ; neither France nor UK are willing to share their nuclear capability truly with European partners on a joint and several basis; the CED initiative died in 1955 and was never truly resuscitated.)
So Mutti sticks to "subsidiarity" as per the Lisbon treaty and Euro Federalism proposed by Delors never became reality. Tuff shit.
What was easier then financially is now both more difficult financially and politically as Germany is finger pointed at. TRUST in southern Europe has died in German solidarity. Something Hollande like Sarko before him never managed to convince Mutti on.
But that is in the DNA of the Euro construct; blemished by the 2005 referendum whose failure refused the federalist option as proposed then; even the French. That was in part the fault of the US and Barroso their man in the EU who opened the EU to East Europe massively; making federalism at 9 then 12 then 18 impossible to impose.
The US in the aftermath of Sarajevo and Serbian fascism had obliged EU to go "open door" to east Europe. And that killed the ability to pilot a federal route; something that was possible with the original 6 not so with the expanded family mandate.
We live and learn the hard way.
The IMF is the USA so its nothing more than ''good cop, bad cop'' routine.
The IMF's admission that the Eurozone's bailout plan won't work is damning. Eurozone credibility goes down another notch.
The real question is why is the IMF playing this card and why play it now?
I'd like to think that the IMF has the best of intentions for Greece when it made it's admission. The cynic might suggest that the IMF's admission is a political powerplay.
EBT cards for Greece!
I don't for an instance doubt the REAL motivations of Lady Lagarde : Put the fox in the henhouse of Mutti.
But having said that, and knowing that this Oligarchy mouthpiece is telling the truth about the accumulated debt shit in the Euro compartments of the financial Titanic, it is IRONIC to hear the truth from her mouth 'cos it VINDICATES what her Nemesis, YANIS VAROUFAKIS, has always been saying : This shit will bring the Euro house of cards down; whatever happens to Greece!
He paid for it and now the cat is out of the bag and its fall-out is something that goes beyond the "we have it all under control" type smoke and mirrors.
So Kudos to you Yanis for having sacrificed yourself in the name of general good and financial truth that will mark the future of a whole Eurogeneration.
Coming back to Lady Lagarde, whose IMF has been responsible for validating under her and DSK's aegis, all the false projections of the "fix it" solutions the Troika has manipulated since 2009 and crisis's beginning, there should be some heads that roll on the IMF and EU front as well.
You may have noticed their head shaman, another French witch doctor from MIT, Olivier Blanchard, who has been concocting this witches's brew like a good little Mr fix-it is sneaking off to a think tank of Oligarchy fame.
"Well done Blanchard you really have piled on the shit and for that you do deserve the kudos of your paymasters of Pax Americana, even though you will never be awarded a Nobel---but we never know those Scandanavians have shown they are capable of worse--so there is always hope even if there is no faith amongst the people you have abandoned to destitution.
As for charity its an Oligarchy scam. Just go ask Bill Gates and Soros.
IMF trying to was their hands of their hands of the "cancer" they created. Sad.
Classic Good cop - Bad cop tactics. The parasites at the IMF are merely playing a public relations game. Greece is officially a vassel state, and the world saw it evolve in front of their own eyes. Granted, analysts at the IMF, may well believe what they have written and debt relief has not gone far enough which everybody knows, but the movers and shakers, those with skin in the game, have no sentiment or feelings for anybody except Jews, or nation except Israel and want to be paid out in full on maturing bonds.
Repeat post.
The timing of the IMF report releases really does sugest they are giving the the EU the one finger salute blessing.
Meanwhile this seems to be off the radar.
http://www.dailymotion.com/video/x2y2a9d_rt-crosstalk-15-july-ukraine_tv
There's a schism in Europe and TPTB right now, because the Krauts haf zere plan from vich there can be no deviation, but the French are skint beyond words and need the US (whom they have historically despised) to save their hides through their vehicle the IMF (prop Mme. C Lagarde, by no accident). The Krauts though, know that they too are toast unless they stick to ze plan, so it's hard fromage France. In reality, they're all down rthe spout becuase whichever domino falls the rest get knocked over.
Much unrest to follow, and I say again least bad loser is the winner.
SO, if I understand this correctly, Greece has to outperform on all economic metrics for the next couple of decades just to bring their debt to GDP ratio down to 170%?
Oh, the Humanity!
Greece is a hydrogen filled, flammable debt ballon in the face of an approaching thunderstorm, it doesn't stand a chance with these odds.
Humans are not machines. They don't respond well to programming. They have a tendency to break things.