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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 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

Wow....can they do that?

 

Fri, 09/21/2012 - 09:34 | Link to Comment 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 | Link to Comment Careless Whisper
Careless Whisper's picture

The Careless Whisper Morning News Update & Threadjacking

 

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

http://gothamist.com/2012/09/20/nypd_will_be_at_apple_stores_on_iph.php

Woz Waits In Line To Buy iPhone5 In Australia

http://www.latimes.com/business/technology/la-fi-tn-iphone-steve-wozniak-20120920,0,3985092.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)

http://www.youtube.com/watch?v=Gv25v46Knm8

Full Debate; Scott Brown - Elizabeth Warren (VIDEO)

http://boston.cbslocal.com/2012/09/20/video-wbz-senate-debate/

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

http://dailycaller.com/2012/09/20/obama-slammed-on-fast-and-furious-in-spanish-language-tv-interview-shouldnt-you-fire-eric-holder/

 

 

 

 

Fri, 09/21/2012 - 09:43 | Link to Comment Short Memories
Short Memories's picture

Ouch!

Fri, 09/21/2012 - 09:49 | Link to Comment BaBaBouy
BaBaBouy's picture

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

Fri, 09/21/2012 - 09:54 | Link to Comment hedgeless_horseman
hedgeless_horseman's picture

 

 

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

Fri, 09/21/2012 - 11:28 | Link to Comment 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 | Link to Comment 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 | Link to Comment fourchan
fourchan's picture

ooh paah!!

Fri, 09/21/2012 - 09:46 | Link to Comment 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 | Link to Comment 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 | Link to Comment tip e. canoe
tip e. canoe's picture

with a cigarette dangling from their lips

Fri, 09/21/2012 - 11:59 | Link to Comment XitSam
XitSam's picture

There are no guns allowed in NYC.

Fri, 09/21/2012 - 13:02 | Link to Comment 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 | Link to Comment 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 | Link to Comment Colonel Klink
Colonel Klink's picture

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

Fri, 09/21/2012 - 09:34 | Link to Comment 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 | Link to Comment Theosebes Goodfellow
Theosebes Goodfellow's picture

Bith said no such thing.

Fri, 09/21/2012 - 09:43 | Link to Comment 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 | Link to Comment 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 | Link to Comment Son of Loki
Son of Loki's picture

No Tickee, no Shirtee.

Fri, 09/21/2012 - 09:56 | Link to Comment disabledvet
disabledvet's picture

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

Fri, 09/21/2012 - 09:32 | Link to Comment 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 | Link to Comment 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 | Link to Comment Seasmoke
Seasmoke's picture

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

Fri, 09/21/2012 - 10:03 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment tocointhephrase
tocointhephrase's picture

And the music stops ooooooooooooooppa

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

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

BANKSTERS HEAVEN!!

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

Japan gave us Nintendo..  what has Israel provided?

Fri, 09/21/2012 - 09:39 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

A royal pain in our ass?

<What did I win dark pool?>

Fri, 09/21/2012 - 17:44 | Link to Comment 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

http://www.cosplay.com/photo/1441249/

 

 

Fri, 09/21/2012 - 09:41 | Link to Comment tocointhephrase
tocointhephrase's picture

smoked salmon bagel with cream cheese? 

Fri, 09/21/2012 - 09:49 | Link to Comment 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 | Link to Comment Darth Sidious
Darth Sidious's picture

the bible

Fri, 09/21/2012 - 11:15 | Link to Comment tocointhephrase
tocointhephrase's picture

Ding ding ding WE HAVE A WINNER!

Fri, 09/21/2012 - 11:31 | Link to Comment 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 | Link to Comment 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 | Link to Comment Scalaris
Scalaris's picture

90% of the world's financiers?

Sat, 09/22/2012 - 00:16 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment Its the Vatican...
Its the Vatican Stupid's picture

On a more positive note, free parking!

Fri, 09/21/2012 - 09:42 | Link to Comment 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 | Link to Comment 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 | Link to Comment AUD
AUD's picture

I think this also happened in the 1930's.

Fri, 09/21/2012 - 09:50 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment Debtonation
Debtonation's picture

Why don't they just declare bankruptcy?

Fri, 09/21/2012 - 09:47 | Link to Comment 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 happen...got to keep them game going no matter how bad it fucks the unwashed masses.

Fri, 09/21/2012 - 09:38 | Link to Comment 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 | Link to Comment yogibear
yogibear's picture

Where's suguar dady Draghi?

 

Fri, 09/21/2012 - 10:27 | Link to Comment Element
Element's picture

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

Fri, 09/21/2012 - 09:43 | Link to Comment 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 | Link to Comment larz
larz's picture

Doh!

Fri, 09/21/2012 - 09:45 | Link to Comment 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 | Link to Comment tmosley
tmosley's picture

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

Fri, 09/21/2012 - 09:47 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment apberusdisvet
apberusdisvet's picture

The bankster dicks are getting hard; BEND OVER WORLD.

Fri, 09/21/2012 - 09:52 | Link to Comment icanhasbailout
icanhasbailout's picture

Game Over - Insert Coin

Fri, 09/21/2012 - 09:53 | Link to Comment 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 | Link to Comment rustymason
rustymason's picture

It's all for the children!

Fri, 09/21/2012 - 09:54 | Link to Comment Osmium
Osmium's picture

Bullish

Fri, 09/21/2012 - 09:58 | Link to Comment Seasmoke
Seasmoke's picture

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

Fri, 09/21/2012 - 09:58 | Link to Comment Careless Whisper
Careless Whisper's picture

Note to Greece: ICELAND

Fri, 09/21/2012 - 09:58 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment FiatFapper
FiatFapper's picture

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

*too ffs

Fri, 09/21/2012 - 10:41 | Link to Comment 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 | Link to Comment FiatFapper
FiatFapper's picture

You mean there are echelons of plebs?

Fri, 09/21/2012 - 10:46 | Link to Comment Nussi34
Nussi34's picture

Finally. Was about time!

Fri, 09/21/2012 - 10:56 | Link to Comment Snakeeyes
Snakeeyes's picture

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

http://confoundedinterest.wordpress.com/2012/09/21/eurozone-deflation-netherlands-housing-spanish-mortgages-but-greek-yields-fall-below-20/

Fri, 09/21/2012 - 11:08 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment rustymason
rustymason's picture

Will anyone in Athens notice the difference?

Fri, 09/21/2012 - 12:36 | Link to Comment hyperbole2000
hyperbole2000's picture

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

Fri, 09/21/2012 - 13:14 | Link to Comment edifice
edifice's picture

Long outhouses!

Fri, 09/21/2012 - 14:23 | Link to Comment Auroch
Auroch's picture

LONG  PIG

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