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Athens Municipality Runs Out Of Cash; Suspends All Operations

Tyler Durden's picture


Remember when we said cash flow is always more important than diluting the M2 (the Fed is great at the latter, powerless at the former)? Here's why: The municipality of Acharnes in northern Athens has decided to suspend all of its operations after running out of money. The municipal council met on Thursday night and voted to stop providing anything other than basic services because of its inability to pay employees’ wages and regular expenses. In Nintendo Donkey Kong Game and Watch parlance: Game over.

“Acharnes Municipality will remain closed indefinitely, until the financial problem can be resolved,” the local authority said in a statement.


The municipality will operate with just skeleton staff, which trash will only be collected from outside schools.


Mayor Sotiris Douros is due to meet Interior Ministry officials on Friday to discuss the municipality's problems.


He wants the government to reduce from 11.5 percent to 5.5 percent the interest rate on a loan to the municipality. Douros argues that the monthly loan repayments of 500,000 euro is to high.

Coming to an insolvent, cash free, Keynesian experimental abortion near you.   


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Fri, 09/21/2012 - 09:31 | 2817466 GetZeeGold
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Wow....can they do that?


Fri, 09/21/2012 - 09:34 | 2817475 ar01
ar01's picture

If you can forgive the odd phrasing, I think the most accurate statement is that they can't not do that. 

Fri, 09/21/2012 - 09:38 | 2817491 Careless Whisper
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The Careless Whisper Morning News Update & Threadjacking


NY City Cops In Lines Outside Apple Stores To "Help You" Register Your iPhone5 - With Them

Woz Waits In Line To Buy iPhone5 In Australia,0,3985092.story

QUOTE OF THE DAY: "She checked the box that said she's a person of color. Look at her." Senator Scott Brown In Response To The First Question In A Debate With Harvard Professor Elizabeth Warren (VIDEO)

Full Debate; Scott Brown - Elizabeth Warren (VIDEO)

Quién Es Responsable De La Operación Rápido Y Furioso? (VIDEO)





Fri, 09/21/2012 - 09:43 | 2817515 Short Memories
Short Memories's picture


Fri, 09/21/2012 - 09:49 | 2817544 BaBaBouy
BaBaBouy's picture

Careless... Great stuff, keep up the updates...

Fri, 09/21/2012 - 09:54 | 2817564 hedgeless_horseman
hedgeless_horseman's picture



Know gyros, know Greece.
No Euros, no Greece.

Fri, 09/21/2012 - 11:28 | 2818048 Precious
Precious's picture

Can anyone say "Volunteer Fire Department" in America?

Do they not exist anymore, maybe because of fucking LAWYERS and UNIONS ?



Fri, 09/21/2012 - 11:47 | 2818114 Ljoot
Ljoot's picture

Unions. I was a volunteer EMT and FF in a county that had professional FFs. I could supplement their crew but not replace one of the paid guys due to Union rules.



Fri, 09/21/2012 - 12:16 | 2818268 fourchan
fourchan's picture

ooh paah!!

Fri, 09/21/2012 - 09:46 | 2817526 Cognitive Dissonance
Cognitive Dissonance's picture

Re: NYC police and iPhones

"Operation ID is provided to the public at no cost. Officers register the serial number of valuable portable electronics along with the owner’s name and contact information. Items can also be engraved with a uniquely identifiable serial number prefaced with the letters “N.Y.C.” "

I prefer a numbered tattoo on my forearm. But that's just me.

<It makes it a whole lot easier when Mrs. Cog loses me in the toy aisle.>

Fri, 09/21/2012 - 09:49 | 2817543 Vincent Vega
Vincent Vega's picture

Word is they will also be doing this with guns and drink cups that hold more than 16 ounces.

Fri, 09/21/2012 - 10:27 | 2817758 tip e. canoe
tip e. canoe's picture

with a cigarette dangling from their lips

Fri, 09/21/2012 - 11:59 | 2818185 XitSam
XitSam's picture

There are no guns allowed in NYC.

Fri, 09/21/2012 - 13:02 | 2818454 Precious
Precious's picture

Places like NY, DC and Chicago, where politics is corrupt, tend not to like the citizendum to have guns.

Fri, 09/21/2012 - 10:12 | 2817679 Nobody
Nobody's picture

My wife and I are sending out our XMAS cards in November to miss, as we will state "the December 21st Mayan rush".
Our picture on it will have the two of us on the couch with our tin foil hats on, ala "Signs".
If life serves you lemons, make lemonade.

Sat, 09/22/2012 - 00:14 | 2819843 Colonel Klink
Colonel Klink's picture

Hey CD, I'm assuming that's the ADULT TOY Aisle?

Fri, 09/21/2012 - 09:34 | 2817476 Vincent Vega
Vincent Vega's picture

Of course they can do that...says so right there in the article. Skeleton crews, bithcez!

Fri, 09/21/2012 - 20:43 | 2819675 Theosebes Goodfellow
Theosebes Goodfellow's picture

Bith said no such thing.

Fri, 09/21/2012 - 09:43 | 2817514 midtowng
midtowng's picture

Greece and Spain WILL default and leave the Euro. The only questions are: 1) what will this do to the Euro, and 2) how badly will society in Greece and Spain be broken before this happens?

Fri, 09/21/2012 - 10:24 | 2817728 Element
Element's picture

A quote from his new book; Perfect Theories Can Not be Falsified

 "... They should not have waited this long to break all the windows! ..." - Krug

Fri, 09/21/2012 - 09:56 | 2817577 Son of Loki
Son of Loki's picture

No Tickee, no Shirtee.

Fri, 09/21/2012 - 09:56 | 2817579 disabledvet
disabledvet's picture

No they cannot! But as economists are fond of saying "on the other hand...

Fri, 09/21/2012 - 09:32 | 2817470 LongSoupLine
LongSoupLine's picture

...voted to stop providing anything other than basic services...


Subject to change...(for the worse)

Fri, 09/21/2012 - 09:51 | 2817553 kridkrid
kridkrid's picture

Best if everyone recognizes that this will be happening everywhere soon enough.  Gov't revenues are plummeting and the cost to maintain ever increasing debt is, well, increasing.  Do the math friends.  So... taxes and fees will increase while services decrease... this will continue as long as people are willing to continue to pay increasing taxes for decreasing services.  At some point they either won't be willing to, or won't be able to.

The wildcard in all of this... before this reality hits everywhere, we will have WWIII... in part as a choreographed distraction and in part as a race to see who gets to decide what comes next.  Tick tock, tick tock.

Fri, 09/21/2012 - 09:56 | 2817581 Seasmoke
Seasmoke's picture

dont forget the winner in WW3, gets to write history !

Fri, 09/21/2012 - 10:03 | 2817624 kridkrid
kridkrid's picture

For sure.  Just as the narratives of WWI/WWII have very little to do with reality, what is left of humanity after WWIII will come to believe that it was some great global struggle of good vs. evil and good won.  Same as it ever was.

Fri, 09/21/2012 - 20:48 | 2819682 Theosebes Goodfellow
Theosebes Goodfellow's picture

I find it humorous that people fret about the government taking control when the dollar fails. How long do you think cops will show up, (anywhere), when they figure out they aren't getting paid or that their employers are paying them with worthless scrip?

Fri, 09/21/2012 - 10:02 | 2817615 Son of Loki
Son of Loki's picture

Cut services to bare minimum --  catching rats, picking up the dead, etc ---- stuff like that. And as for those $600,000 mayor salaries and school administrators with $15,000,000 pensions....don't get me started.

Fri, 09/21/2012 - 09:33 | 2817471 tocointhephrase
tocointhephrase's picture

And the music stops ooooooooooooooppa

Fri, 09/21/2012 - 10:11 | 2817674 Sudden Debt
Sudden Debt's picture

The trash will pile up AND THE RATS WILL MOVE IN!!!


Fri, 09/21/2012 - 09:34 | 2817477 dark pools of soros
dark pools of soros's picture

Japan gave us Nintendo..  what has Israel provided?

Fri, 09/21/2012 - 09:39 | 2817499 Cognitive Dissonance
Cognitive Dissonance's picture

A royal pain in our ass?

<What did I win dark pool?>

Fri, 09/21/2012 - 17:44 | 2819379 dark pools of soros
dark pools of soros's picture

You shall be knighted by Princess Zelda and henceforth be known as Sir Cog'D in all the realm



Fri, 09/21/2012 - 09:41 | 2817510 tocointhephrase
tocointhephrase's picture

smoked salmon bagel with cream cheese? 

Fri, 09/21/2012 - 09:49 | 2817527 Dr. No
Dr. No's picture

I beleive the Desert Eagle was orignially designed in Isreal.


EDIT: Nope.  Sorry.

Fri, 09/21/2012 - 09:56 | 2817575 Darth Sidious
Darth Sidious's picture

the bible

Fri, 09/21/2012 - 11:15 | 2818001 tocointhephrase
tocointhephrase's picture

Ding ding ding WE HAVE A WINNER!

Fri, 09/21/2012 - 11:31 | 2818062 Precious
Precious's picture

Israel gave us the bible?  LOL.  Sorry.  I'm pretty sure that was St. Jerome.

Fri, 09/21/2012 - 10:12 | 2817677 tmosley
tmosley's picture

A model for sensible and non-intrusive airport security.

Oh wait, we don't use that.

Fri, 09/21/2012 - 10:15 | 2817701 Scalaris
Scalaris's picture

90% of the world's financiers?

Sat, 09/22/2012 - 00:16 | 2819845 Colonel Klink
Colonel Klink's picture

Captive control of Wall street, the MIC, entertainment, government, and media???

Did I get that right?  Where do I collect my prize?

Did you say at camp....wha...FEMA camp?

Fri, 09/21/2012 - 09:35 | 2817479 Ben Burnyankme
Ben Burnyankme's picture

Pay them with the trash that they will still collect at the schools.  No difference then the Euros they are using.

Fri, 09/21/2012 - 09:41 | 2817511 Cast Iron Skillet
Cast Iron Skillet's picture

i dunno ... Euros can, for the present at least, still be converted to gold & silver. Trash, not so much ...

Fri, 09/21/2012 - 09:36 | 2817480 Its the Vatican...
Its the Vatican Stupid's picture

On a more positive note, free parking!

Fri, 09/21/2012 - 09:42 | 2817512 Vincent Vega
Vincent Vega's picture

And you don't have to ask a supervisor if you can have the day off. Lots of positives here.

Fri, 09/21/2012 - 09:36 | 2817484 Jlmadyson
Jlmadyson's picture

This is what we call depression economics folks.

And no there will be no managing this type of thing when it spreads.

Fri, 09/21/2012 - 09:44 | 2817518 AUD
AUD's picture

I think this also happened in the 1930's.

Fri, 09/21/2012 - 09:50 | 2817546 otto skorzeny
otto skorzeny's picture

i think it was a different era-more "civilized" and polite, there are a lot more "people of color" around now-with the "you owe me" attitude

Fri, 09/21/2012 - 10:06 | 2817600 kridkrid
kridkrid's picture

No need to make it race based... everyone has a "you owe me" mentality.  Other differences: Just in time delivery and mass transportation of goods and services make us remarkably dependent on shit shipped to us from all corners of the earth.  A relative lack of local self sufficiency makes a relative level of chaos a certainty if the wheels of globalization grind to a halt.  The great depression had something like 2 billion mouths to feed, we currently have about 8 billion.  And before someone says, "Yes, but we have become so very good at producing food"... you must recognize the role that cheap energy has played in our ability to drive down the cost of food production.  People during the great depression were about one generation removed from a primarily agrarian society.  Even so, people were limited in their ability to be at all self sufficient.  Fast forward to today, that ability is basically gone.

Fri, 09/21/2012 - 10:31 | 2817772 samsara
samsara's picture

A relative lack of local self sufficiency makes a relative level of chaos a certainty if the wheels of globalization grind to a halt.

And before someone says, "Yes, but we have become so very good at producing food"... you must recognize the role that cheap energy has played in our ability to drive down the cost of food production

Yes, but we have technology!!!    That's what I was told yesterday(along with a dozen dings)  on ZH when I made the energy observation....




Fri, 09/21/2012 - 09:47 | 2817534 MachoMan
MachoMan's picture

You mean printing money is ultimately limited by available resources/diminishing returns and faith?  Say it ain't so!

Fri, 09/21/2012 - 09:37 | 2817488 Debtonation
Debtonation's picture

Why don't they just declare bankruptcy?

Fri, 09/21/2012 - 09:47 | 2817531 Vincent Vega
Vincent Vega's picture

That would be a win for the 99% and a loss for the 1%. Can't have shit like that to keep them game going no matter how bad it fucks the unwashed masses.

Fri, 09/21/2012 - 09:38 | 2817492 LawsofPhysics
LawsofPhysics's picture

Now the trash and shit will really start piling up. Here mr. banker, come get you assets!

Fri, 09/21/2012 - 09:41 | 2817506 yogibear
yogibear's picture

Where's suguar dady Draghi?


Fri, 09/21/2012 - 10:27 | 2817760 Element
Element's picture

ah ... that's only for banks ... sorries.

Fri, 09/21/2012 - 09:43 | 2817516 Global Hunter
Global Hunter's picture

"He wants the government to reduce from 11.5 percent to 5.5 percent the interest rate on a loan to the municipality"

The government of Greece is really just a bank, this explains a lot.

Fri, 09/21/2012 - 09:45 | 2817523 larz
larz's picture


Fri, 09/21/2012 - 09:45 | 2817524 zorba THE GREEK
zorba THE GREEK's picture

And when they lay off the police force, it will be ransack time.

Fri, 09/21/2012 - 10:16 | 2817707 tmosley
tmosley's picture

The police and other government officials already ransacked what was left by the bankers.

Fri, 09/21/2012 - 09:47 | 2817532 Fix It Again Timmy
Fix It Again Timmy's picture

Never on a Sunday, Monday, Tuesday, Wednesday, Thursday, Friday andddddd Saturday....  When running out of money, your options are severely limited....

Fri, 09/21/2012 - 09:47 | 2817533 otto skorzeny
otto skorzeny's picture

will anybody notice the difference? I know if the slug employees in my town didn't come in to work no one would notice.

Fri, 09/21/2012 - 10:18 | 2817719 tmosley
tmosley's picture

Only when their illegitimate monopoly services stop working.

If they enforce one thing, it will probably be to shut down any entrepreneur trying to "horn in" on their "turf", even though they have abandoned it.

Fri, 09/21/2012 - 09:47 | 2817536 apberusdisvet
apberusdisvet's picture

The bankster dicks are getting hard; BEND OVER WORLD.

Fri, 09/21/2012 - 09:52 | 2817561 icanhasbailout
icanhasbailout's picture

Game Over - Insert Coin

Fri, 09/21/2012 - 09:53 | 2817565 Seasmoke
Seasmoke's picture

trash will only be collected from outside schools.

Why do they always worry about the kids !!!!!!

Fri, 09/21/2012 - 12:03 | 2818213 rustymason
rustymason's picture

It's all for the children!

Fri, 09/21/2012 - 09:54 | 2817571 Osmium
Osmium's picture


Fri, 09/21/2012 - 09:58 | 2817582 Seasmoke
Seasmoke's picture

can you smell the Desperation, the Fear............or just the Shit piling up

Fri, 09/21/2012 - 09:58 | 2817584 Careless Whisper
Careless Whisper's picture

Note to Greece: ICELAND

Fri, 09/21/2012 - 09:58 | 2817587 disabledvet
disabledvet's picture

SHOCKING. I mean TRULY shocking. If I'm Spain I'm looking at this and thinking...well..."bad thoughts."

Fri, 09/21/2012 - 10:01 | 2817603 forwardho
forwardho's picture

Hey, where did my chair go?  Why am I the only one left standing up? Who turned off the the pretty music?

Fri, 09/21/2012 - 10:01 | 2817604 SIOP
SIOP's picture

I can remember this very same thing happening in East St Louis, I think in the late 70's sometime, the city ran out of money and shut down everything, police, trash pick up, everything. I remember the national guard coming in to act as a police dept.  I looked it up, HERE it is.

Fri, 09/21/2012 - 12:03 | 2818207 XitSam
XitSam's picture

Is this city saying that people should take their trash and dump it outside of schools? Sounds sanitary. And who exactly is "skeleton staff"? Administrators that "manage" the shutdown?

Sat, 09/22/2012 - 00:26 | 2819851 Colonel Klink
Colonel Klink's picture

Skeleton staff are those people too poor to eat and they're willing to work for peanuts.  Coming to a town near you.

Fri, 09/21/2012 - 10:06 | 2817626 larz
larz's picture

THIS is where we are all headed in case anyone was wondering just keep your head down and for GOD's sake SSHHHHHH

Fri, 09/21/2012 - 10:33 | 2817790 Hobbleknee
Hobbleknee's picture

Hopefully they'll be out of operation long enough for people to realize they're not needed.

Fri, 09/21/2012 - 10:35 | 2817799 FiatFapper
FiatFapper's picture

" repayments of 500,000 euro is to high."

*too ffs

Fri, 09/21/2012 - 10:41 | 2817826 GRsilverking
GRsilverking's picture

Let's get real here... Acharne is a small suburb with lots of poor & foreign people. In fact lots of gypsy folks live there. Population of 10-20K at max. Most munis are straggling but they are okay -for now. Acharnes is weak & prime for a fall but let's NOT feed from this and spread it to the entire Athens region.

Fri, 09/21/2012 - 10:44 | 2817837 FiatFapper
FiatFapper's picture

You mean there are echelons of plebs?

Fri, 09/21/2012 - 10:46 | 2817846 Nussi34
Nussi34's picture

Finally. Was about time!

Fri, 09/21/2012 - 10:56 | 2817891 Snakeeyes
Snakeeyes's picture

Despite Greek yields falling below 20%, they will not be able to sustain any law and order.

Fri, 09/21/2012 - 11:08 | 2817966 spanish inquisition
spanish inquisition's picture

The government is going to have to do something fast. If they go on long enough, they will realize they never needed a big government.

Fri, 09/21/2012 - 11:36 | 2818079 NoTTD
NoTTD's picture

I'm sure we can countont he Greeks to act with rational restraint.  Like Pakistanis.

Fri, 09/21/2012 - 11:47 | 2818120 web bot
web bot's picture

Putting all of the jokes aside... this is going to desend into something very, very ugly. It is a human tragedy due to the failure of liberalism and the politicians who bought their way for the last 60 years. Cheque is due.

Fri, 09/21/2012 - 12:00 | 2818171 dadichris
dadichris's picture

the whole town took a double dose of Fukitol

good for them

default is actually an option

and its better to pull the plug proactively than to let it happen to you when you're not prepared for it


Fri, 09/21/2012 - 12:01 | 2818199 rustymason
rustymason's picture

Will anyone in Athens notice the difference?

Fri, 09/21/2012 - 12:36 | 2818337 hyperbole2000
hyperbole2000's picture

Yes. When the toilets stop working and children start dieing of infectious diseases.

Fri, 09/21/2012 - 13:14 | 2818502 edifice
edifice's picture

Long outhouses!

Fri, 09/21/2012 - 14:23 | 2818804 Auroch
Auroch's picture


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