The Conclusion Of Another Greek Tragedy

Tyler Durden's picture

Via Mark Grant, author of Out of the Box,

“Greece is like a Rice Crispies Square. She’s snapped, crackled and now I am waiting for the final pop.”
                                                   -The Wizard
The new Greek Prime Minister had an eye surgery and cannot attend the EU summit meeting. The new Greek Finance Minister became ill and cannot attend the EU summit meeting. Both a tragic turns of events; I am sure. Both coincidental you may think; but not me. Perhaps upon ascending to power and examining the books they have found that everything was not exactly, how shall I say this; Kosher comes to mind. Perhaps the records indicated a far more serious excursion from the facts than previously thought. It may be that a “smoothing out” is underway before the Men in Black arrive and examine the books and records. It would not be the first time that medical excuses have been used to postpone the inevitable.
The Troika was set to send inspectors to Greece. They were going to assess just how well Greece had done in meeting the terms of their agreement with the EU and the IMF. They were due to arrive on Monday but their inspections have been postponed and perhaps at the suggestion of the Greek government.
The new Greek government has prepared a term sheet; a white paper outlining what they need/want. There are all manner of roll backs, cuts in the austerity measures that Greece had previously agreed to and, of course, a request for new money to get them through the next few months. Apparently the request for new funds is staggering but not unexpected as I am sure the Greeks figured it was a place to start that could be negotiated; but maybe not. After listening to the pronouncements of the German Finance Minister on Sunday; very maybe not.
The Germany Finance Minister came just about right out and said, “no more money.” His statement was about 1/32nd of a degree from it and so close that a very sharp knife could not fit in between his comment and an outright denial. Greece may now be in the final scenes of their tragedy where they got all of the money that they could, where they soaked Europe for each and every penny that could be squeezed and where they have reached the end of their long tether. The game appears to play out like this: pleading, begging with the other troubled and southern countries for help, an official roll out of expectations and demands, pleas for European unity, eventual examinations by the Troika, austerity measures fixated one more time on some phony eventual sale of assets and on cutting out corruption and the like and finally an eventual refusal by Germany et al to fund any more money. Then Greece will scream and scream some more, decide to stay in the Eurozone or not, default on all of its debts, reintroduce the Drachma and receive some sort of debtor in possession financing from the European Union. The final scenes will get very ugly, the default will likely be worse than most think because the Europeans probably believe the nonsense that they have manufactured and it will be the sovereign debt, the bank debt, the state guaranteed corporate debt, $90 billion in derivatives, the regional Greek debt, the Greek portion of the Traget2 funding and the collateral and securitizations pledged at the ECB which will all go into default and cause myriads of headaches and consequences. Only if there is debt forgiveness, which will not be happening, or more money once again soaked out of Germany can default be avoided and I think that now Germany is prepared to stop the flow of cash and deal with the consequences. Cans may get kicked down the road but each road, every road, eventually comes to an end and I think we are barely inches now from the end of this road for Greece.
The Separation of Fantasy from Reality
“The appropriation of public money always is perfectly lovely until someone is asked to pay the bill.”
                                          -President Calvin Coolidge
There will not be any Eurobonds or Eurobills; Germany is against it.
There will not be any grand European Banking Authority; Germany is against it.
The ECB will not become the lender of last resort; Germany is against it.
Nothing of significance will happen in the European Union unless Germany approves it. (Please repeat this five times and write it on your whiteboard if necessary.)
“You've decided... DECIDED! Past the point of no return. No backward glances... our games of make-believe are at an end!”
                                          -The Phantom of the Opera

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BobPaulson's picture

Soros is babbling about it being at a crossroads this week. That certainly means it is not. I'd say this boring, boring train wreck still has many chapters remaining.

kito's picture

never ever believe anything that man says in a public statement........................

WonderDawg's picture

Rumor has it that it wasn't a detached retina, but that Samaras's eyes popped out of his skull when he saw the REAL Greek debt situation.

OneTinSoldier66's picture

Yes, please. Let it crash already!


But the TPTB don't want it to ever end. Because that means the end of them being in power, being in charge. They want to continue having the world revolve around them through the use of force and/or coercion, blackmail, extortion, and fraud.


Buy Gold and Silver and keep it outside of the status quo establishment Banking system! That will turn the tables on them, and would be financial repression for them. Give them a taste of their own medicine, without any blackmail, extortion, or fraud on your part. Sound, honest money. Take the power back!

The trend is your friend's picture

who still believes any of this can be saved but the bansters

tradebot's picture

Banksters need more time to collect themselves before they can let it go.

GeneMarchbanks's picture

Another opportunity missed for you to write something about the US fiscal situation. Shame really.

Stoploss's picture

Looks like were down to about 3 frayed threads from coming completely unwound.

Cognitive Dissonance's picture

"Perhaps upon ascending to power and examining the books they have found that everything was not exactly, how shall I say this; Kosher comes to mind."

Sort of like bedding a fine female only to "discover" she isn't a she, but a he? Too much liquid refreshment perhaps?

Not that I would know anything about that. :)

bigwavedave's picture

Every Road Leads to Rome 

midgetrannyporn's picture

The party of "Nein!"

Merkel, party of nine?

Youri Carma's picture

It’s only very logical that in the end Germany’s triple-A status would be challenged when implying to be the ‘lender of last resort’. First Germany and the like were laughing and pushing Greece around cause as long as the money streams were diverted into the big banks the show could go on.

But now they’s not laughing anymore because now it has become crystal clear to everyone that EU’s total debt impossibly can’t be payed by Germany alone. Even less so now Europe’s economical situation is deteriorating rapidly. Also because of insane austerity measures which do not only not work but accomplish exactly the opposite in causing a sharp economical downfall in an increasing ‘debt spiral’. We don’t have to quess anymore what that looks like because that’s exactly what has happened to Argentina before and we’re seeing exactly the same happening now in PIIGS.

Soevereign debt rollovers are no longer possible at a low prices while tax money income dries up in a totaly sqeezed private deleveraging debt hole further battered down by high inflation numbers mainly trough high sustaining oil prices which affects almost everything including food. All in all the ECB would need around an estimated 6 trillion to accommodate their imediate and inter-imediate funding needs. One can imagine that this is a very dead street the ECB would be turning into because debts which can’t be payed won’t be payed even if you’re called ‘Germany’.

FROM: Wonder What Would Alice In Wonderland Say To The Vampire Squid?
27 November 2011, by Youri Carma (FPP)

BRIC-layer's picture

Focus more on France, gentlemen!

Youri Carma's picture

I would say focus more on Spain, Italy and then France beside China and India.

chubbar's picture

There is X amount of firepower that Germany has left to use before it is apparent that they are out of bullets. Germany would like to use these funds to force the PIIGS into giving up their sovereignty. Once all the countries are subjugated under ESM like rules, then the solution will change from a Germany centric solution into some sort of mutually guaranteed print fest. Of course they could print now but then that would take away from the NWO end game and be a waste of this crisis in the eyes of the elite.

OneTinSoldier66's picture

Panic in the New World Order -Gary North


"For the first time in my career, I see the international establishment, sometimes called the New World Order, facing a crisis so large that its very survival is at stake. For the first time, these people are scared."

potlatch's picture

The financiers and central bankers, have, unfortunately, learned how to print time

Jethro's picture

Actually, this whole ordeal would make a great Greek play!  It would make better sense for Greek Parlament to dress in classical theatrical dress, repleat with masks, oaths and vomiting.  If we are to have a farse, let's make it entertaining...

I just hope hope it doesn't last as long as the Iliad...

MS7's picture

Even the NYTimes had an article about how most of the money in the so-called bailout does not go to Greece but to the creditors. Greece would be better off without the money. It is not clear why all the Greek politicians want to continue with the relationship with the EU/Germany. Perhaps they know that once Greece defaults they will be kicked out of office. The people, especially the older ones who listen only to MSM in Greece, believe the world as they know it will end without the euro. That is not the case. Greece was doing ok without it, much better than it is now.