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Greek "Hell" Remains After Athens Uses Creditor Money To Repay Creditors
Earlier today, Greece used up virtually its entire €7.1 billion bridge loan from the EU to repay its creditors: between the money due to the ECB, the arrears to the IMF and the cash borrowed from the Greek central bank, Athens had about €300 million left over from the entire inbound wire to use as it sees fit just hours after the money was received, and then promptly sent right back.
Or, as some put it, Greece collected a 4% transaction fee for facilitating a €6.8 billion payment from its creditors to its creditors.
So does this mean things are "fixed" in Greece, if only temporarily? Not exactly, as the following table shows, there is exactly one month until the next €3.2 billion payment is due to the ECB. So unless Europe finalizes the terms of the third €86 billion EFSF bailout in the next 4 weeks, Greece will need another bridge loan just to repay the ECB.
Ok, but if Greece somehow survives until the end of 2015 despite a new government and with blistering VAT hikes, even as bank lines to withdraw money refuse to go away, then will it finally be ok?
Well, no.
As we showed before when we showed the various Greek circle of debt hell, unless Greece finds a way to access the market once again following its "triumphal return" in mid-2014 when it issued bonds that cost investors (with other people's money) their 2015 bonus, it is only then that the Greek debt repayment hell begins.
Oh, and the table above excludes the €86 billion in new debt that will be incurred as part of Bailout #3 and which too, will have to be "repaid" at some point, if only in theory.
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I'm a little short this week to take care of my tab, can we put the payment on my tab?
pods
Greece should just start printing Euros. We let the central bankers have all the fun?
It's my educated guess and observation that these deals, even though unwanted and onerous may be the only thing keeping the lights on, and the water running, and the sewage processing.
Can't fault them for going along if that is the case. The alternative would be many steps backwards.
In theory, Russia or China could step in with fiat at anytime, but getting the real coal and real oil and real electricity to keep basic necessities up and running might be the crux of their matter.
Having a pipeline in your country helps, because once it's there, it can be held hostage in ways so to say.
I think that the trend is that many countries may be resorting to using the in place pipeline infrastructure as part of their bargaining chips.
Talk about cash-flow...
The US is also in a hell of its own with 50% of its people unable to raise $400 in an emergency. But don't tell anyone since it would destroy the recovery meme in the greatest nation in the history of this world:
Nearly HALF of American households would not be able to afford a $400 emergency without borrowing moneyhttp://www.dailymail.co.uk/news/article-3106529/Nearly-HALF-American-hou...
ive always claimed im a simple man, not a smart man. i have no fucking idea how this "deal" is turning into the new form of wealth redistribution. issue bonds with no intention of ever paying them back. how & when this doesn't trigger a massive shock-wave in the debt markets is beyond me. ie. i would NEVER own soveriegn bonds in a country that is belly-up financially. now i get when you have a central bank purchasing that debt, theoretically, the debt can never go bust (since they are creating the $$$ out of thin-air anyway). it simply makes no sense to me how this is non-inflationary since they are simply dumping fresh $$$ into the system that did not exist before. but i guess we should just trust the fed at their word as they monitor CPI while things like high-end real estate, art, food, healthcare, taxes, etc. continue to soar to new all-time highs. "no inflation anywhere". lol. more like "inflation everywhere they don't want it and nowhere they do."
Time to spin up the helicopters.
You jest, but its coming. Even the craziest tools will be used before they admit the game is up.
Greece has shown you how it is non-inflationary.......you simply trade in the bankster-created inflation for the bankster-transferred ownership of former Greek Taxpayer assets. Your country is no longer your own......it is now a debt plantation. Real Assets stolen with printed fiat and fiat credits from thin air.
Iceland is the only way out for any of us. Try the Banksters on the public steps of DC.....along with every Pol who voted for the Bailouts and has servied and voted against Glass-Stegall, ie, supprted Gramm-Leach-Blyly.....confiscate Banksters' stolen assets and hang them on the square if convicted.
I'll gladly pay you in 2057 for a hamburger today....
#wimpy
That table needs to be stretched out to 2100 at the very least.
So nothings changed ....
Well...this is what it looks likes when banks reopen.
If they have valuables in the Bank they should at least be able to withdraw that.
The money?
60 euro.
Time value at 0% means you can stretch that put in any manner you want. For example, cut the debt in half today and turn that cut-off piece into a balloon payment in 50 years at 0%... That is what 0% means, there is no consequences to indebtedness!
Since Euro emergency fund previously funded is now out of cash, the next round of payments will truly have to be disbursed from the pockets of the Euro group after legal and democratic approvals. Watch for more fireworks for the next round of payments from Aug 7-20. In the mean time the Eurocrats will have a nice holiday!
Depending on the terms, this could be a partial "restructuring" (or simply a rescuing of the banks). In other words, replacing shorter term expensive debt with longer term cheaper debt is effectively a "restructuring."
I don't know if that's what's happening or not, but if it is, it's better than doing nothing.
Of course, the opposite could be what's happening also.
Don't Americans do this by opening new credit cards, and taking cash advances to pay off their existing credit card debt?
Treaty of Versailles anyone
Can I borrow $20 so I can repay you the $10 I borrowed from you the other week?
Why isn't Goldman and Llodd Blankfein fined $10B and closed down? Lloyd Blamkfein should be in jail.
What was the details in Goldsmans fraudlulent FX swap with Greece? Surey the INF can produce those facts ?
Tyler....get on it! You ain't doing much there days anyways....ahem.
Sounds like Capital One, issuing additional credit cards to those that can least afford them.