This page has been archived and commenting is disabled.
ECB Joins IMF In Call For Greek Debt Cut, Schaeuble Shoots It Down (Again)
Despite earlier commenting that Greek debt sustainability is hard without a write off, German FinMin Schaeuble just told German lawmakers bluntly that there will be no Greek debt cut. What is problematic for Merkel and her minions is that Mario Draghi just confirmed what The IMF has been 'secretly' leaking - that it is "uncontroversial that Greek debt relief is necessary." As this confusion reigns, The Eurogroup has issued a statement "welcoming the adoption by the Greek parliament" of the measures imposed upon the Greek people to drive them further into depression.
The Eurogroup issues a statement - pleased that The Greeks will suffer some more for the cash they get...
The Eurogroup welcomes the adoption by the Greek Parliament of all the commitments specified in the Euro Summit statement of 12 July. On the basis of a positive assessment by the institutions, which concluded that the authorities have implemented the first set of four measures in a timely and overall satisfactory manner and which confirmed that the Euro Summit statement has been included in the preamble to the implementing law adopted by the Greek parliament, we reached today a decision to grant in principle a 3-year ESM stability support to Greece, subject to the completion of relevant national procedures.
Upon the completion of the relevant national procedures and the formal decision by the ESM Board of Governors expected by the end of this week, the institutions would be entrusted with the task of swiftly negotiating a Memorandum of Understanding (MoU) detailing the policy conditionality attached to the financial assistance facility.
The Eurogroup calls on the Greek authorities to swiftly adopt the second set of measures by 22 July as foreseen in the Euro Summit statement, and update the legislation related to the first set of measures consistent with the recommendations made by the institutions in their compliance report.
So further austerity drives Greece deeper into depression and so ECB President Draghi says...
- *DRAGHI SAYS GREEK DEBT RELIEF IS NECESSARY
- *DRAGHI: UNCONTROVERSIAL THAT GREEK DEBT RELIEF IS NECESSARY
Pretty clearlt agreeing with The IMF's recommendations.
But Schaeuble says "Nein"
German Finance Minister Wolfgang Schaeuble told a closed-door meeting of parliament’s Budget Committee in Berlin that European rules don’t allow a cut in the face value of Greek sovereign debt, according to Eckhardt Rehberg, a lawmaker on the committee from Chancellor Angela Merkel’s Christian Democratic Union.
* * *
But apart from that - thanks to a €900 million ELA extension - everything is awesome in Greece (and therefore Europe).
»
- 13343 reads
- Printer-friendly version
- Send to friend
- advertisements -
He can be as tough as he like but eventually someone else will decide to cut him loose.
This hasn't popped up in a while;
https://www.youtube.com/watch?v=StTqXEQ2l-Y
~"ECB Joins IMF In Call For Greek Debt Cut, Schaeuble Shoots It Down"~
Because debt cuts are really, really great until it's a debt owed to you that's getting cut!
Can the ECB even handle a haircut? Denninger says they are levered 10:1.
I bet you their tangible assets are two Krugs and a Spiderman towel.
Greeks hold the cards here. They can blow up the ECB. No wonder the Germans have sand in their vaginas.
pods
You make Big Profits and Uber returns on high risk stuff...there's a reason why you get a fat yield on risky stuff. if it doesn't work out, you take a loss...unless you're banker.
It's official folks! Goldmand is short Greek debt and Deutsche Bank is long Greek debt. This is going to be great. I need moar popcorn.
And USA no doubt wants to weaken Germany by stripping it of whatever the amount Greece owns it.
Tentacle strategy - make big bets with both tentacles, the one that wins takes the profit, the one that loses offloads the loss onto the public.
He is doing Doucheabanks bidding. Debt write downs means DB is in trouble
I guess Mr Happy Pants fogets that Germany had vast sums of debt forgiven in WWI and WWII.
Nein, nein, nein is all the FM can say.
Fuck him with a bratwurst.
If the EUR didn't exist -- Greece would have already had vast sums of debt forgiven.
The problem is the EUR. The problem will remain the EUR until the thing eventually explodes.
and the EUR will remain as long as King Dollar, the Monetary Hegemon, fiat since 1971, will persist in it's role
or is someone planning to do a reverse Nixon Shock of 1971? or accepting China's demand for more SDRs?
So when the USD falls on its own sword, you'll be calling for the Eur to get taken apart?
depending from the options, possibly, yes. are you proposing... gold?
Schauble cannot offer debt forgiveness to Greece, and I suspect it has little to do with EU rules... but the fact that if that dam is broken, Spain, Italy, Portugal, and France will be following in short order. Germany is stuck between a rock and a hard place.
Everyone is stuck between a rock and a hard place.
A lot of ppl would go broke in Europe but that is a good thing. Purge the debt
No, the whole thing has been all about the Vig. Greece borrowed and then borrowed to make interest payments. Then borrowed more to make even more interest payments. Now the loan sharks are circling for an interest in the enterprise as partial payment for the accrued vig. In retrospect, the whole affair has been a scam to take over Greece and make it look legal. It's just been on a larger scale than taking over the corner business.
expected reaction from the German BANKS
So the real question is where is this going ? who is more powerful IMF or GERMAN Banks (EU)? WE KNOW BOTH take orders FROM THE SAME BOSSES (the elites)? ONCE AGAIN WHERE IS THIS LEADING TO ? OR is this JUST A DISTRACTION? please let me know what you think
thank you
it's a big club and you aint in it BITCHEZ
China is a much bigger deal short term IMO.
None of my super rich clients are in town to get a feel of the situation, but they are
mere billionaires,this is a trillionaires game right now.
+1
I think China is a big deal short and long term
As for the wealthy clients:
More and More big chunk of cash IS SPENT ON--------> high end art, very expensive Jewelry, purchasing not financing houses, HORSES .........etc
IMHO "somebody" is trying break up the EU and make the Germans responsible for that.
Who? I think they are the US "elites". They figured out one thing control though the Brussel puppets is weakening, so they changing it into the control trough NATO (US) occupation and client governments.
How it will play out?
The EU will crumble and in same time the US will crumble to, though different for reasons.
You think ?
Ukraine and goading Russia didn't give you a hint.
Thers always US nukes if this plan C doesn't work.
Well according the Anglo-Saxon particularly the US elites war in Europe is always a good thing. Because it allows them play the judge/peacemaker and get the benefits. And my claim is valid, look at the last 2 world wars.
But these halfvits didn't realized one thing, there is no way they wont participate from the beginning in this war between Europe and Russia. If the war breaks out of course.
It's the same playbook, just a different region. They've been doing it in the ME for decades now... more clearly articulated in the Wolfowitz doctrine. There cannot be a challenge to US dominance. A strong, united ________ (Middle East, Europe, Russia, China... take your pick) will not be tolerated.
Keep the discourd in perpetuity among your rivals.
Who runs barter town, otherwise known as the EU? Apparently, Germany.
Hitler would be proud
He's timeless.
Ghordius- Clean up in aisle 6, please. Clean-up in aisle 6. Somebody just knocked over a whole pallet of hot, sticky currency union all over the floor.
LOL, +1. was it that EuroGirl again? those damn confetti still pop out everywhere, in the Tower of Sauron
Schaeuble is the latest addition to the list of people i would love to knock the fuck out, and do some time for it (it would be worth it)
...can I hold your jacket?
If a news is being 'secretly' leaked out, such news can't possibly be authentic news.
More like false news in which the official news may very likely be just the opposite.
Oh boyz,.....they're setting up to cut Greece loose regardless of their capitulation.
They never expected them to agree to the outrageous terms.
Bluff,counter bluff, and doublecross.
This is loltastic. The Greeks are victims of this by choice. You choose to pay them back. Just stop paying them. Don't even try to negotiate a "reduction" of debt. Don't pay a single cent of it.
EU rules don't allow a Grexit either but he put it in as part of his blackmail
germany pays zirp while greece pays through the nose. yeah, that's fair.
Somebody take a hammer to this bauble please?
German ruling elite's plans are now ever more in the open.
Ze Zhousand year Reich! Ach!
Ich bin aus Indene ;-)
Hey Schaeuble, I got news buddie - there will be a Greek debt cut, either willingly because you finally agreed, or unwillingly, because they cant ever pay it back. Hahahahahahahaaha!!! You lose fucker !
There will be NO GREXIT ever.
And fuck you if you don't like it.
" We will not monetize the debt".... Quince Edwards ( the First ) said it first, all the Kings Money Men now play follow the lier.
Tsipras never expected to win the referendum, Schauble never expected Greeks would agree to the terms of the bailout.
What else some politician did not expect?
What else...., Barry Cash returns to Folsom Prison, for a live show, nobody saw that coming.
Ima go ahead and say - bullish.
If someone owed me a thousand dollars/rmb/pound and said, "Hey, I can't afford to pay it back, how about I just give you 500 notes and we're square yeh?" I'd tell them to go fuck themselves and give me ALL the money I lent them back...I don't care how they get it. I worked hard for that money and want it ALL back.
I guess I'm not as generous as other posters on ZH (Especially when it's other people's money)
But what if he took the $1,000 dollars and paid it to you for construction services by your firm. You used the money to pay your employees, purchase goods from vendors, pay taxes, and booked a profit. Yes he should pay back the money, but it is not quite so clear cut when he is in real trouble.
I agree 100% it isn't so clear cut, I'm just amused at all the posters on here that scream "Don't pay, Don't pay" and then said people will be down the bank in the morning paying their mortgages, car loans etc..
Where I come from we have a word for these people...
That's because most people DO feel responsibility to repay what they've borrowed. We aren't talking about that though...this is about not being ABLE to service that debt. It isn't a question of will, it's a question of MATH. It is NOT hypocrisy to suggest that someone walk away from their debt while continuing to pay your own...everyone's situation is different, and what works for me may not be possible for someone else. It's like suggesting someone leave a bad marriage...it doesn't mean YOU should leave YOUR marriage, just to avoid being called a hypocrite. There may not be anything wrong with YOUR marriage, it's the other guy who is having the trouble.
I also suggest walking away from unserviceable debt. That doesn't mean I want people to walk away from ALL debt, or to write-off my own, which I took on willingly. But when it is no longer sensible, when it is just causing harm, it's time to write it off or restructure it so it IS sensible.
No purpose is served in bleeding someone dry with no end in sight. It serves neither the creditor, the debtor, or the greater society they both live in to do this.
I have an English friend didn't pay the rental on his new flatscreen T.V. This was from a reputable company in England. Three months later three big, burly scousers were knocking on his door threatening to take away ALL his belongings or break his legs. In that situation I'd love to see you open the door and start drivelling about 'doing the math'...good luck with that!
But, hey...that's in the REAL world, where not paying debts have consequences.
If debt haircuts for Greece then debt haircuts for EVERYONE...Me, You, Ireland, U.S.A Peurto Rico, Detroit, little Mr.s Bramble at the end of my street...EVERYONE.
I have an English friend didn't pay the rental on his new flatscreen T.V. This was from a reputable company in England. Three months later three big, burly scousers were knocking on his door threatening to take away ALL his belongings or break his legs. In that situation I'd love to see you open the door and start drivelling about 'doing the math'...good luck with that!
----------------------------
In that situation, is where you open the door with a shotgun in your hand.
But of course that's why the people are to be disarmed
That's because most people DO feel responsibility to repay what they've borrowed.
---------------
But it becomes another thing, when it is known that the loan was a pure fabrication on a ledger. If a bank creates the entire loan as "money" then there is no actual productive labor that went into the creation of the loan. That is pure usury - it would be different if real assets and collateral backed up those loans, but when the loans themselves are fiction and the only real part is the "paying back" of that loan - someone is getting a whole lot for next to nothing. Multiply times trillions.
The entire centralized system of money creation is completely fraudulent. By even so much as taking out a loan, you are participating in accounting fraud.
Oh really? It's just that easy, huh?
It's not about being generous, it's about facing reality. What isn't there, isn't there, no matter how hard-ass you try to get about it. Saying "I don't care how you get it." really doesn't accomplish much now, does it? Your words, smack up against the cold, hard wall of reality...what do you think will give first?
I'd suggest that if you are so concerned about your money, don't lend it to people without the means to repay.
THAT is a sure-fire way to avoid being ripped-off by deadbeats. Unlike your way, which is just a lot of bitching AFTER the fact. If a lender is so blinded by the prospect of being repaid with interest that they fail to do due diligence, they have no cause for complaint when things go wrong. Put on your big-boy investor pants and suck it up.
... Schaeuble's expression of "nein" to the bailout controversy and an imminent Grexit ... explained simply ...
... Wolfgang rushes into his house and yells to his Greek wife, "Alexia, I've just won the lottery! Pack up your things!"
... "Fantastic," replies Alexia. "Shall I pack for warm weather or cold weather?"
... "I don't care," says Wolfgang. "Just as long as you're out of the house by noon."
Is there no one with a set of balls here? Why not just tell the idiot that you don't NEED his permission to get debt relief? Then tell him as far as you're concerned, the debt is over, gone, and they've seen their last nickel of repayment.
Then ask him, "How's THAT for debt relief? And you said it couldn't be done...Ha! THAT was easy!"
Then walk away, muttering, "Asshole..." under your breath.
It's not like the Germans got the Marshall Plan after WW II or anything.
Should have salted every square inch of their country and moved the people to israel.
I thought that was EXACTLY what they did do...?!?
Schauble: "Get Tsipras that greasy wop, shistos, pesevengi, gamouri Greek bastard, here now, if he's stupid enough to still be on this planet."
"Cut our debt, btw... Can we borrow 80 billion more?".
Just goes to prove that a vote does not mean shit. Just like here inthe USA now. I loathe the IMF but for once they are correct Greece needs debt write off. Many of you may remember on that dark night when the ECB subordinated all debt and like today the ECB will not take a write off.
As the US presidential race heats up more and more pundits from both sides of the fence will show up here at ZH spouting how fucked up we are. Their problem is they do not want people to think. I look at these numbers and they are nothing to be honest but numbers. Amazing how numbers in a computer now mean more then people.
My advice to all of my fellow ZHers get out of debt and cut up all those credit cards with the exception of one for emergencies or traveling only. Being debt free pisses TPTB off as they want you buried in debt. Automation is moving at break neck speed to replace all of the manufacturing workers and even some professional jobs.
I find it so hard to believe that people are just this stupid.
All this bad news is great for stocks...Bitchez
It's obvious now that Greece is just a pawn in a larger battle involving the EU, ECB, IMF. Curious the Fed has been so quiet through all this, but, that depends on who the IMF is really speaking for too.
hopefully they all release the child porn pics of each other all at once and totally distroy all their corrupt psyco asses
Problem is, EU has no rules for how to leave the union, nor are there any rules allowing a haircut. And Greece will again default on the latest bailout as soon as the first payment is due. I agree with Schaeuble this time - Greece has to go (and better for Greece if she did). But the EU must amend the main agreement to allow countries to leave. THAT is not going to be easy.
Why is Schaublebermanstein being so inflexible?
Does he really expect to get every Shekel back?
Indeed. The more Germany gives, the more is going to lose on the day of reckoning.
And the best thing for Germany is to leave Anglozionist swamp called EU right away. Why should industrious, creative, hard working Germans be paying for the others in the swamp? Join Russia and China instead into building a fair and better, banskter fiat toilet paper corruption free world!
Just reorganize some existing Greek bonds into perpetual bonds or very long maturity bonds with negligible interest rate like .25% p.a. and there's your haircut without writing down 'face value'...100 Year greek bonds at .25% anyone?
A Grexit is not a blackmail seriously... its a solution for Germany in a silver platern!
I say totally anarchy with a default! then let germany pick the pieces... or as varoufucker said... give them the finger!
I believe this is how it will turn out in the end because they're too damn politicians! (Yes i use the term politician as an insult!)