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Schaeuble's Modest Proposal For Greek Bridge Loan: Pay Salaries In IOUs
While Greek PM Alexis Tsipras is busy figuring out how best to go about pushing the "deal" he reached on Monday morning in Brussels through parliament, EU finance ministers are scrambling to put together billions in bridge financing that will hold Athens over until the activation of the ESM program which is likely at least four months away. Greece needs between €7 and €12 billion in the interim according to most estimates, and faces a critical payment to the ECB on July 20 - with Greek banks dependent solely on ECB liquidity, missing this payment isn’t an option.
Of course any "payments" made by Greece to external creditors (i.e. to anyone other than former or current Greek public sector employees) will only be possible by way of circular funding schemes much like the SDR reserve raid that allowed Greece to pay the IMF with its own money in May. Here’s Open Europe with a rundown of the options under consideration for the bridge loan:
- European Financial Stabilisation Mechanism: Using the EFSM (an EU wide bailout fund) has been suggested since it can be activated by Qualified Majority Voting.
- Profits from Eurosystem held bonds: An option for financing which was included in the last bailout was the transferral to Greece of profits from Greek bonds bought under the Securities Markets Programme (SMP) by the ECB and National Central Banks. This can be done fairly simply via a decision of member states and the central banks. However, they have previously wanted conditionality hence why it was tied into the bailout. Furthermore, this is only expected to yield around €3.5bn so falls well short of what is needed for the bridge.
- Bilateral loans: Some Eurozone member states could give Greece short term bilateral loans to tide it over. So far though France is the only country that seems serious about this. Given the size of the loans and the fact they would need to be provided immediately in cash it seems likely only the largest states would be able to provide them. Furthermore, such loans would need parliamentary approval in any state that provided them (tough in Germany, Netherlands, Finland and the Baltics), while they would also show up in debt levels for these countries.
- Short term debt: Another alternative would be to allow Greece to issue more short term debt combined with ECB liquidity which would allow Greek banks to take more of it on. However, this would run counter to the views of the ECB supervisory arm.
- IMF and ECB delay repayment: Over the weekend there were rumours of the ECB agreeing to delay the repayment of bonds it holds due over the summer. However, this would mark a significant change of stance for the ECB and foment German concerns over monetary financing. Since Greece is already in arrears to the IMF it could simply delay this further, though this would not be seen as acting in good faith.
As you can see, all of these options involve creditors effectively paying themselves either literally or in spirit or otherwise entail the perpetuation of some manner of ponzi scheme (i.e. allowing Greece to sell T-bills to Greek banks). And while that’s unavoidable in terms of Greece’s near-term external debts, German FinMin, and architect of the great Greek humiliation Wolfgang Schaeuble has other ideas in mind for how Greece might go about paying pensioners and government employees. Handelsblatt (Google translated) has more:
In discussing the euro zone finance ministers on a possible bridge financing Schäuble have suggested that the Athens government could spend IOUs to serve part of their domestic payment obligations, told the Handelsblatt (Tuesday edition) from participating districts.
In the euro group on Monday this so-called "IOU" papers were re-issue.
Finance ministers consider a range of options for a bridge loan. Because to Greece money from a possible ESM bailout program will receive, it could take up to four weeks. The use of IOUs is controversial. Some experts warn that it could be a first step to a parallel currency.
The promissory notes were also located only internal payment obligations, such as bills or salaries, operate. For the external debt they are not fit. But already on July 20, has to operate, which are held by the European Central Bank (ECB) Athens expiring bonds of 3.5 billion euros.
And here’s Open Europe on the IOU option:
IOUs: An idea reported by Handelsblatt overnight and said to be proposed by German Finance Minister Wolfgang Schäuble is that Greece issue IOUs to meet some of its payments. This is a bit of a non-issue though as such an approach could only be used to meet internal payments, while most of the bridge financing is needed to meet external debts to the ECB and IMF.
So it appears as though Schaeuble and Yanis Varoufakis do agree on at least one thing: that Greece may be forced to resort to the "California" IOU option to meet its domestic obligations.
Of course Greek public sector employees have already suffered untold humiliation over the course of their government’s negotiations with creditors.
Most recently, pensioners were forced to line up at banks - which reopened briefly earlier this month to disburse pension payments - only to receive a third (around €120) of their promised payouts. The following rather haunting image is indicative of the scene the played out at banks across the country when pensioners besieged bank officials in a desperate attempt to get what little of their money was available.
* * *
Now, it appears Schaeuble is angling to complete the Greek pensioner degradation by ensuring that this month, retirees will receive nothing but an IOU signed by Syriza, a not-so-subtle reminder to Greek public sector workers that when you elect a belligerent government unwilling to cede to the demands of the EU paymaster, you do so at your own economic peril.
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Greek debt to GDP was at 100% by 94/95. But oh yeh, blame Germany. Greece shouldn´t have been allowed into the EMU. Blame Goldman Sachs. Greece can´t service its debts. Of course it isn´t Greece´s fault. It is never Greece´s fault. Is Greece capable of taking responsiblity for its role in this debacle? It isn´t just the fault of a faceless supranational bureaucracy, or the investment banks like Goldman Sachs, or other institutions like IMF, it is also the fault of the elected leaders that the Greeks put into power. The benefits have already been had by the old, now its time for the costs, which will be had by the youth. Well done! Round of applause.... It was all theater. This Syriza for the people joke. There was no leadership, just management. Mangagement of the dopey fucks that put you in power.
It seems as though people have taken sides. Bankers vs the people. And if im not pro Greece I must be pro bankers, right? The old false dichotomy fallacy.
If Greece had a backbone they would leave the EMU, start again with a fair tax system, and give their youth a chance. But no. Democracy fails again. Ironic.
Euro information
Status: Euro-area member since 1 January 2001
Fixed conversion rate: €1 = 340.750 GRD
This is hilarious.
I guess Brussels wants Greece gone, and they are going to keep turning the screws to Greece until they get what they want.
Pay salaries in IOUs (e.g., more debt for Greece and workers get uncollateralised loans)
No sympathy what so ever. EURO is still popular in Greece.
EURO is still popular in Greece. That, and Y-anus is still popular here at ZH. Any Greeks living in Greece have an opinion they would like to share? No sarc.
Failed Socialist state begging for help from a failing Socialist state. What is anyone to do?
Its now quite apparent that Scheuble is a bit of a cock.
Who wins the fight? The cock or the Y-Anus?
Again, I stand by my earlier belief that Greece is just the warm up act for ripping France a new one.
game of thrones, ha, rinse repeat. monopoly, via fiat with real consequences, POVERTY, strife and surrender of dignity and liberty...
socializm, democracy works out swell, just for the wrong peoples...
i expect nothing good from a country with no cadastre.
Not just Schäuble, but also his Anglo-Saxon masters, whom not just want break up the EU but also want weaken their member countries (their national elites can still resist at some degree). Divide and Rule at it finest.
Maybe "Game Theory" was not a good strategy to base a national issue on?
Greece is dependent on hand-outs. They don´t wish to wake from the free lunch dream. They are in serious need of strong and wise leadership. The idiot voters elected Syriza, which never had a mandate to do fuck all, except ´stick it to the bankers´. The referendum was theater. Most of what we see on television is theater.
“A society grows great when old men plant trees whose shade they know they shall never sit in.”Apparently this is a Greek proverb.
the referendum was theater? They said they did not want the austerity that came with the bailout, what theater? Go back to Goldman Sacks
Addressing his jubilant supporters in front of Athens' university, Mr Tsipras said Greek voters gave Syriza "a clear, powerful mandate". "You are an example of history which is changing... Your mandate is undoubtedly cancelling the bailouts of austerity and destruction. "The troika for Greece is the thing of the past," he added, referring to the country's biggest international lenders - the European Union, International Monetary Fund (IMF) and European Central Bank (ECB).
You are correct. They voted to repudiate the debts. Have you seen any repudiation of debts? No. It is all posturing and public relations. It is happening on both sides.
Greece: Pay everything in IOU's and flush the Brussel deal down the toilet.
The EURO is still popular because a large segment of greece voters remember how badly the Dracama was managed.
Lets play a game.
When was Greece's unemployment higher? 2015 or 1997?
And when was the USA unemployment higest gold standard or not.
Unemployment runs in cycles citizens can deal with that, that can't deal with the dollar/euro/drachma they just spent an hout to earn to now be worth 30 minutes of work and then 15 minutes the next day.
Hyperinflation by its mere definition cannot exist in perpetuity. Your analogy is off.
http://www.tradingeconomics.com/greece/youth-unemployment-rate Youth Unemployment Rate in Greece decreased to 49.70 percent in March of 2015 from 49.90 percent in February of 2015. Youth Unemployment Rate in Greece averaged 33.46 percent from 1998 until 2015, reaching an all time high of 60.50 percent in February of 2013 and a record low of 20.10 percent in May of 2008.
Eating their young like the US.
"When was Greece's unemployment higher? 2015 or 1997? "
The bureaucrats and 'retirees' don't give a shit about the youth.
THAT is why these rube-grandma political systems are fucked from Greece to the USA.
50% youth unemployment shows that the management of the country has failed as those young energetic people are the engine of productivity, small business formation, housing formation, long term investment, consumption, -and thus bill paying.
What do you expect when You shut down half your engines and abuse the other half?
Grandma's pension is only payable if grandsons are working good jobs and paying the bills.
If you fuck over your young people your old people are eventually going to starve in the god damned streets.
"Democracy fails again" - not really, socialism/communism fails again.
Addressing his jubilant supporters in front of Athens' university, Mr Tsipras said Greek voters gave Syriza "a clear, powerful mandate"."You are an example of history which is changing... Your mandate is undoubtedly cancelling the bailouts of austerity and destruction."The troika for Greece is the thing of the past," he added, referring to the country's biggest international lenders - the European Union, International Monetary Fund (IMF) and European Central Bank (ECB).
And then he promptly ignored the will of the people, and did what he thought was in their "best interests" because he's smarter than all of them and that's why he's in charge.
And because he was elected by a dumb majority of irrational voters, they got their wishes, and were manipulated and deceived as is natural for a polictican.
There's scheming on both sides even as tv drama continues. I'll be interesting to see what eventually happens (over time not months or years).
Demockracy devolves into Socialism. Voting requires wealth redistribution. Who would vote for anybody not promising something?
Istead of hiding the true nature of Greece's debt, the debt should have been written off while it was a lot smaller. But when there's blood in the water it's almost impossible to keep a hungry shark away. The weak and heavily indebted are just too easy to manipulate and the financial powers that be are just too greedy. The Greek people themselves did get a few benefits from all of borrowed money, but not to the tune of the local oligarchs, political lackeys, and foreign creditors. We may think we have it better here in the US because we can print our own money. But we tend to forget we lost the right to do that 100 years ago to a private bank.
We lost that privilege when confederation was replaced by constitution on behalf of bankers to get their money for funding revolution... all set up by our hero founding-father pols in advance. http://ocw.usu.edu/university-studies/u-s-institutions/comparison-of-constitution-and-articles-of-confederation.html
Description could fit USA. Can US change? http://www.telegraph.co.uk/finance/economics/11507810/Iceland-looks-at-ending-boom-and-bust-with-radical-money-plan.html
The implementation of a fairer tax system could be done within EMU without problems (if anyone had the cojones). Apart from the fact that the bailout terms so far only bleed Greece of all income to no avail,but to pay interests..
A pensions restructuring (whilst necessary for us youth to maintain the freakin system) would find no allies in Greeece.With almost 2 million on or near pension , even uttering the word will guarantee a political death. And so far every one around here cares about his own future. not the country's future. Both can be done within EMU amidst problems of course, but at the moment there seems to be no plan at hand for any action outside EMU.
Tsipras turn coat-ing guaranteed his political death.With no such stakes on the table anymore he might as well go all the way and get sh*t done in a fairer way than his predecessors,it is the only way to keep his party alive.
The implementation of a fairer tax system could be done within EMU without problems (if anyone had the cojones). Apart from the fact that the bailout terms so far only bleed Greece of all income to no avail,but to pay interests..
A pensions restructuring (whilst necessary for us youth to maintain the freakin system) would find no allies in Greeece.With almost 2 million on or near pension , even uttering the word will guarantee a political death. And so far every one around here cares about his own future. not the country's future. Both can be done within EMU amidst problems of course, but at the moment there seems to be no plan at hand for any action outside EMU.
Tsipras turn coat-ing guaranteed his political death.With no such stakes on the table anymore he might as well go all the way and get sh*t done in a fairer way than his predecessors,it is the only way to keep his party alive.
Everyone in the Eurogroup knew of "Greek statistics" instead they chose to keep the problem hidden from the peoples. They are as guilty for not keeping to the "treaties" as the Greek side. It takes two to tango. The same people that chose to accept Greece with false numbers, stuff it with cheap loans out of one pocket and re-pocket the money for selling goods in the other pocket, then chose to do NOTHING until it was too late (only sent a commissioner and put Greek government on "probation" from afar - HAHA), now are trying to find a solution (say for example Juncker who cajoled the catastrophic Karamanlis 2004-2009 government). In their meantime they have turned their states into tax havens, just because. The Greek people can only be blamed for being complete idiots who "saw no evil, heard no evil", they took a few scraps of the cake and shut up for too long. Blame has to be put on everybody for this failure. It's like saying that Indians were in a shithole before the Englishmen arrived anyway, so what right do they have to blame the English for mistreating them. This has been a fraud from day one.
++dp++
The United States and Greece share many commonalities. In this instance, a highly contagious disease, commonly contracted through unprotected mental intercourse with ideologues such as Krugman. This particular disease is known as Keynesianism. The disease debilitates the host by corrupting its cerebral cortex and establishing a degenerative addiction. This affliction forces the host to in-debt itself through debt monetization and debt instrumentation. As the disease worsens, a borrowing and spending frenzy occurs in a futile effort which exacerbates the condition. In the terminal phase of the disease, the host attempts to achieve escape velocity by borrowing itself out of debt.
Nice one Shoeble. You're first.
And those pesky bonds sold to Japan in 1995? What is the update?
http://www.cnbc.com/2015/07/14/greece-makes-repayment-on-20-year-samurai-bonds-after-debt-deal.html
This kind of humiliation, is this what that "European solidarity" bullshit was all about?
When will Greeks find their inner Spartan spirit and throw away the shackles?
"Only when you have lost everything, are you free to do anything" - Fight CLub
What fucking ASSHOLE.
The rest of Europe is no better I might add. Great Beitian as chimed in to offer their "non support for the Greeks" as well.
FUCK YOU EUROPE.
The Eurocrats have either grossly miscalculated, or this was their plan all along to push Greece out.
In any case, their credibility has taken a huge plunge and the whole world has seen the fucking sham it really is.
The UK is just hardening its stance against the EU. People are seeing fascism written all over this piece of trash that is the Euro. Not that the UK and US are any better. But to see the EU treat one of its own as a whipping boy to keep the rest in line, is rather shameful.
Greece is a failed (as usual) unionized socio/communist state pretending to be free.
Errr, you do realize that the commies LOST the Civil War in Greece and the country became a right-wing shithole for years right?
Funny thing about right-wing military juntas, the rich guys just love them but it turns out they actually suck. Antonescu, Pinochet, Franco, Salazar, Metaxas, Papadopoulos, Zog...
Left vs right is simplistic bullshit. Authoritarianism can happen anywhere on the spectrum.
"Errr, you do realize that the commies LOST the Civil War in Greece and the country became a right-wing shithole for years right? "
'Americans' generally know little about the 'American' Civil War ( It was all about freeing the slaves in the wretched racist southern backwaters! ) let alone anything about the Greek, or French, or Russian upheavals.
Go ahead and ask a random person what Tito ( no, not MJackson's brother ) had to do with Greece, or when 'cradle of democracy' Greece last had a monarchy, or who was the first aggressor to ever drop bombs on Athens and why...
Now with enough cover in MSM regarding Greece& Iran - Time to pass a Ukraine law in preparation for the windfall
http://rt.com/business/273454-ukraine-royalty-tax-lowered/
Ukraine is lowering its energy royalty tax from 55% to 25% as of 1 October 2015 – Tell me that this is not investor led - this was announced by Natalie Jaresko Ukraine FinMin
Natalie Jaresko
https://en.wikipedia.org/wiki/Natalie_Jaresko
Citizenship - Natalie Jaresko
Jaresko lived in Ukraine from 1992 to 2000, and returned in 2004.[8][9] She received Ukrainian citizenship on 2 December 2014, the day of her appointment as Minister of Finance of Ukraine.[10][11] She remains a U.S. citizen. Although the U.S. does not prohibit dual citizenship, Ukrainian law states that she must renounce her non-Ukrainian citizenship(s) within two years.
HUNTER BIDEN
https://en.wikipedia.org/wiki/Hunter_Biden
Elected chairman of World Food Program USA in 2012,[7] by that time Biden was already traveling on behalf of the organization[8] and advocating their programs in the media.[9] In 2013 he joined the U.S. Navy Reserve,[10] as a limited-duty service ensign; he served for several months and was discharged after testing positive for cocaine.[11] Biden currently sits on the Chairman's Advisory Board for the National Democratic Institute, and he holds directorships on the boards of the U.S. Global Leadership Coalition, the Truman National Security Project, the Center for National Policy,[4] and the Ukrainian energy company Burisma Holdings, an appointment which met with some controversy in the press.[12][13][14] Among other roles, Biden is also a partner at Rosemont Seneca Partners, LLC and is counsel to Boies, Schiller, Flexner, LLP.[15]
Burisma Holdings
On April 18, 2014, it was announced that Biden would be joining the board of directors of Burisma Holdings,[45] a firm which owns several Ukrainian oil and gas companies[24] and is the country's largest non-governmental natural gas producer.[46] Biden became an acting director on May 12, 2014.[4] On Burisma's website, he wrote that he believed Burisma was important to the economy of Ukraine, and that he would be consulting "on matters of transparency, corporate governance and responsibility, international expansion and other priorities.”[45] Burisma appointed several other directors at that time, including Aleksander Kwa?niewski,[47] Vadym Pozharskyi, and financial manager Devon Archer,[48] who is a partner at Rosemont Seneca Partners along with Biden.[24]
The appointments met with significant press coverage,[49][50][51][52] and critics argued that Biden's work for a country promoting Ukrainian energy independence was a blatant conflict of interest."[3] The White House dismissed nepotism charges,[49][50][53] but Melanie Sloan, the director of the non-profit organization Citizens for Responsibility and Ethics in Washington, stated that without "solid evidence that Hunter Biden got his job to influence American foreign policy, there’s no clear line that has been crossed.”[54] Morgan Williams, director of the US-Ukraine Business Council, argued that while there was no evidence of a conflict, the appointment violated an "unspoken" American tradition which frowns on businesses "with links to active politics" associating with the family members of politicians.[53]
George Soros
http://www.infowars.com/soros-admits-responsibility-for-coup-and-mass-murder-in-ukraine/ - Admits to CNN’s Fareed Zakaria on 27 May 2014 - he is responsible for establishing a foundation in Ukraine that ultimately contributed to the overthrow of the country’s elected leader & the installation of a junta handpicked by the US State Department
and now some MSM evolutionary sugar coating
George Soros' Plan to Rescue Ukraine Isn't Going To Work
http://www.forbes.com/sites/markadomanis/2015/01/12/george-soros-plan-to-rescue-ukraine-isnt-going-to-work/ - 1 Dec 2015
Soros says ready to invest $1 billion in Ukraine if West helps
http://www.reuters.com/article/2015/03/30/us-ukraine-crisis-soros-idUSKBN0MQ0FP20150330 - 30 March 2015
Soros's Terrible Plan to Throw Money at Ukraine
http://www.bloombergview.com/articles/2015-01-08/soross-terrible-plan-to-throw-money-at-ukraine - 8 January 2015
Greeks Can’t Tap Cash, Gold, Silver In Bank Safety Deposit Boxes
http://www.goldcore.com/us/gold-blog/greeks-cant-tap-cash-gold-silver-in...
Greece goes on strike: Civil service workers announce 24-hour walkout after government gives in to creditors... as summit insider reveals leaders' furious rows in tense talks
http://www.dailymail.co.uk/news/article-3159710/Greek-civil-service-work...
News flash all Greeks move to Tunisia
What's so bad about the Drachma again?
Default on all Troika debt and go to Drachma.
What's the fucking problem? I don't get it. Is it that bad having control over your finances?
Ah... economics.
If no one wants your fiat coin you are an isolated bankrupt country.
Yet if everyone wants it, and it is unsustainable, you too are an isolated bankrupt country and in denial, 18 trills public debt, 55 trills private debt and a whopping 130 trills of unfunded liabilities, you make the call but there is no door #4.
Yes - all generated by leftist/communists and put on racist steroids over the last six years.
Communists is as communist does.
Is not that hard. Nationalize the printing press, create a Greek central bank (Sovereign Bank not a Goldman Bank) announce repudiation of the debt (sovereign default) and reintroduce the drachma while keeping the euro as an alternate currency for imports. Enter into an agreement with the BRICS bank to borrow US bonds (currently held by China) as currency reserve in exchange for unlimited use of Greek ports and the gas pipeline from Russia. Enter into a currency swap agreement with Russia and China that would allow them to buy energy from Russia and manufactured products from China with Drachma.
They would suffer for a year or two, but they would finally have a future.
Is not that hard. Nationalize the printing press, create a Greek central bank (Sovereign Bank not a Goldman Bank) announce repudiation of the debt (sovereign default) and reintroduce the drachma while keeping the euro as an alternate currency for imports. Enter into an agreement with the BRICS bank to borrow US bonds (currently held by China) as currency reserve in exchange for unlimited use of Greek ports and the gas pipeline from Russia. Enter into a currency swap agreement with Russia and China that would allow them to buy energy from Russia and manufactured products from China with Drachma.
They would suffer for a year or two, but they would finally have a future.
The citizens remembered how bad the Drachma was managed before. They (the citizens) finally have a currency that isn't spiriling into hyper inflation and is accepted by othe countries.
Do they need to go bankrupt - yes
But they need to keep the Euro so it will finally force the Greek governmnet to pass a budget that doesn't look like a fantasy trip on borrowed money.
Like so many of the other European governments? <LOL>
They're an import based economy. Defaulting on debt (no access to capital markets) and floating a worthless currency is financial suicide.
"Overspending and overborrowing precipitated a national bankruptcy in 1893. An English financial specialist, Edward Law, helped to save the drachma from huge depreciation and his labours kept the currency intact for 50 years. In 1894, cupro-nickel 5, 10 and 20 lepta coins were introduced, the 1 and 2 lepta having not been issued since the late 1870s. Silver coins were last issued in 1911 and no coins were issued between 1912 and 1922, during which time the Latin Monetary Union collapsed due to the First World War. By the time the republic was declared in 1924, the number of coins in circulation had dwindled and there was a serious shortage of cash."
"It was not until the late 1940s, after almost a decade of war and civil war, that the drachma again inflated with a vengeance. Inflation during World War II was dramatic in the extreme. In January 1941, 1 british pound was worth 1,200 drachma. By October 1944 that had spiralled to 1,219 billion drachmas. As in other countries, it required basketfuls of flimsy notes with a lot of zeros on them to buy basic provisions. A currency reform introduced a new drachma which was worth 50 billion of the old variety but nevertheless inflation continued. In an effort to halt the inflation, Greece joined the Bretton Woods system in 1953. In 1954 the drachma was revalued for a second time at a rate of 1000 to 1 and the Finance Minister, Spyros Markezinis, dealt with the problem Alexander-fashion by chopping off three zeros. The new currency was pegged at 30 drachmae = 1 US dollar. Artists and writers who settled on the Greek islands in the inflation-free 1960s and early 1970s marvelled at how far the humble drachma - like the olive a symbol of national frugality - could stretch. In 1973, the Bretton Woods System was abolished and over the next 25 years the official exchange rate gradually declined due to growing urbanisation and EU-fuelled prosperity. Renewed inflation resulted in the exchange rate reaching 400 GRD = 1 USD and the situation was brought under control only in 1997, thanks to determined supply-side policies by the Government."
I had to accept your IOU for my pay but I had a problem. I called the tax office and they told me flat out they would not accept an IOU for the taxes I owed - they want CASH.
The above comment shows why the Drachma is the better solution compared to IOU notes denominated in Euros.
The Greek government could announce:
- No outgoing government payments in Euros, internal or external (because they don't have any more)
- All outgoing government payments (salaries, pensions, routine payments) in Drachma
- Government payments of Euro debt suspended for some period of time, for example, 6 months
- All payments to the government (taxes, fees, routine payments) may be in Drachma or Euros (payer's choice)
- No forced conversions of Euros to Drachma in bank accounts or cash holdings
- Businesses may operate in Drachma or Euros
Perfect solution. Will be avoided of course.
lol...pay "domestic labor" with IOU's, the IOU itself to be redeemed in what, exactly...and when? Now, if the IOU is to "paid"to government employee's and it's pensioners well, thats another thing entirely IMHO ;-)
Second derivative of real money.
Anyone watching what the other PIIGS are doing ?
I'd be planning a concerted mass exit if I were them.
https://www.youtube.com/watch?v=so8NQficzZg
This is basically like the girl you break up with, refusing to believe you don't want to be with her and continues the relationship.
Continues until the dance ends or you pass out, which ever comes first.
The first step is to freeze Greek debt repayments and interest payments.
The second step is to stop giving money to Greece.
The time has come where she must be left to her own devices to meet the challenges going forward without undue influence, pressure or blackmail from the outside.
The next step is an unavoidable return to the drachma givent that the Euro is a suit that feels more like a straight jacket for Greece.
When left alone the citizens can then figure out as to who has first priority.....the pensioners, the public servants or the ordinary bloke on the street.
They can also decide who needs to be hung from the lamp posts outside parliament.
The "lamp posts outside parliament" are being seized as part of the $50 billion of state assets that are being sold off.
The Greeks are going to have to build their own structures for the hanging tasks.
Greece has passed a critical test for global investors by repaying a 20-year samurai bond that had loomed as its first potential default on commercial debt.
Mizuho Bank, acting as the agent for the yen-denominated note, confirmed that the outstanding Y11.7bn ($94.5m) payment was made on Tuesday morning in Tokyo.
Go and default already, this is just a waste of resources.
Thanks for the update... ZH apparently forgot to get around to stating that after all the hype they put into it yesterday and the day before.
Strategic reason is that those bonds were owned by individuals, which would have been a default, whereas defaulting EU and IMF isn't considered default... don't ask me why, I read it just this morning.
LMFAO!!! How will this paper promise be any different from the other paper/digital promises?!?!
Fuck it, start taking heads!!!
IOU's for everyone! That's the ticket. Give the government employees an IOU for a weeks pay and in return they will issue an IOU to the government for a weeks work. Everyone is making mIOUney. That's a stretch better than the old fashioned fIOUat system. Easy as writing a chIOUck. Hey, how about putting cardboard cIOUns into circulation. Damn, such a good idea. Why hasn't anyone thought of this before?
Right now I'm packing my bags for Greece. I'm gonna be rIOUch!!! mIOUney from Heaven!
Because it's unsustainable, that's why.
Because you can pay taxes with them, my friend.
Greece needs to start developing nuclear weapons so they can be given billions in 'sanctions relief' like Iran will now receive.
The 0bama administration is the biggest gathering of racist, communist morons since Stalin or Mao.
Building nukes requires hard work.
Ok
A couple of points here:
- Greeks said OXI
- Now the accepted deal is far worse then the one rejected
- This new deal also makes greek behave as if it has a parallel currency system and capital controls are in place
- Also now they are further into debt, making the unpayable interest payments even more unpayable
So my questions are:
- This is what they tried to prevent by not leaving the EURO so they have both the EURO and this?
- So why not deny the odious debt, and leave the EURO altogether?
sure, 2-3 years pain but a possible recovery ahead as long as the reforms are put in place, bankers are hanged, and start policing the polititians and start collecting tax revenues.
Those Syriza clowns made no preparations to leave the Euro. They had 6 months and did nothing. So Z Germans had the upper hand. If that idiot Tsipras had half a brain, he would have had Drachma and IOU's printed, troops readied to seize the Bank of Greece, and had everything ready to go. Instead he bluffed, and Z Germans called his bluff.
Seriously, I think they're all clowns playing their assigned parts in tv drama for the masses. The "solution" is all planned and only the next victims of global banks do not know.
Where in the hell do you guys dream this stuff up? And do you really believe your own disinformation?? Wake the fuck up, are you trying to be an idiot, you moron???
http://uk.reuters.com/article/2012/05/18/uk-delarue-greece-idUKBRE84H0DH...
Chill, you have been drinking too much cool aid
Are there any drachmas out there? some one approached someone on the possibility of the eventuality of a probable outcome, so blablabla. That little link you posted means nothing, it is like a politicians promise, grandiose and vague.
"An unknown source approched the uk printers in case of grexit", for all you know it could have been me
Actually Varoufakis was already working on that but after the No vote Tsipras held a secret meeting with his inner cabinet (of which Varoufakis was obviously not part of) and by a 4 to 2 voted Varoufakis out of the government.
You answe your own question. "...as long as the reforms are put in place, bankers are hanged, and start policing the polititians and start collecting tax revenues." No chance of that.
He stole this routine from CA.
So Syriza membership are to underwrite debt themselves?
oh er....
Here you go folks. For all your needs: medicine, food, etc.. Take this DIFFERENT paper. New paper, same as the old paper. Hmm... "Just give me some silver, thanks."
Those smiling pics of Schaeuble and Draghi after the greeks have been ass reamed over and over again is just cold man, real cold. lol
Scrambling to find bridge financing? Isnt that shit just created with a push of a button? And havent public service mopes always been paid in ious. ..ie fiat?
I guess verbal bullshit is used to support paper bullshit
Pay the Greek employees in IOU's...forget the IOU's..why not print some Greek Drachma and pay salaries or pensions... one could have the pride and comfort of knowing you are not dependent on some Eurozone finance minister or politician...when the eurozone euros show up...start paying in that currency..the Greek Drachma would only be a temporary gap funding solution...next problem please..
I bet he lays awake at night regretting he was born 70 years too late to be a death camp administrator.
When questioned over the 64 billion euro debt imposed on Ireland, most of which went to bailing out German, French and British banks, Schaeuble blamed the Irish for their behaviour rather than the reckless lending of the banks. He is doing the same thing with Greece. This oily merchant of doom does not understand empathy. I can see him in his office at night counting his investment successes. The EU is comprised of userers. You know what happened to them in the Bible!!
Good idea Schauble! With just one little change...the IOU's should be used to pay the bank loans, not the government workers.
How do you want yours, Herr Schauble? Printed in Times New Roman, or handwritten with a flourish and a smiley-face?
So people canpay for the bread with just hot air ! Brilliant idea Schauble !
before the end of this year red cross will establish units in Greece to provide food and medical assistance for the somali greeks
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