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European Deathwish Exposed: Greek Bailout Package Delayed By Three Months

Tyler Durden's picture




 

Looks like Europe plans (and we use the term very loosely) on pushing its fate literally to the wire. Yesterday we explained why for Greece March is D(eadline)-Day, and as Greece itself stated, absent bailout cash coming in, it is game over: for Greece, for the Eurozone, and for Europe as the serial chain of defaults and exits begins. Which is why we read with great surprise minutes ago that according to the European Commission, the entire Greek bailout package has been delayed by three months because of delays in payouts of the 2011 tranche! Naturally this is supposed to have the optics of punishing Greece for doing absolutely nothing to fix its fiscal situation but all it will do is send the market (the European one that is - America is still stuck in some idiotic limbo where it fools itself that it can exist in isolation from the world's biggest economy) even more into Risk Off mode, as the world will be forced to wait until the 11th hour and 59th minute to find out if the Euro and Eurozone will survive for a few more months. In the meantime, Mario Monti is off to Brussels to satisfy an unscheduled craving for Belgian beer and chocolate, or something.

From Reuters:

The next 5 billion euro tranche for Greece that was originally scheduled to be paid in December 2011 is now to be paid out in March 2012, Commission spokesman Olivier Bailly said.

 

A further 10 billion euros that Greece was originally to receive in March this year, will now be paid only in June and all of those sums can also be delayed if inspectors judge Athens is failing to deliver promised fiscal reforms.

 

"That cannot be changed," Bailly said, referring to the three month rhythm in paying out tranches of the first Greek rescue programme.

 

Last year, Athens repeatedly said it faced the risk of defaulting if the EU and IMF did not pay out scheduled tranches. Europe's political leaders have made it clear that as long as Greece meets criteria on reforms, it will be financed as necessary by the EU and IMF, but investors with money in Greek bonds are watching its cashflow closely.

 

The payouts are part of the aid that Athens has been promised under a 110 billion joint EU/IMF financing programme in 2010 in exchange for fiscal austerity and structural reforms that are to make public finances of the highly indebted country sustainable.

 

Out of the total, 73 billion euros have already been paid, and 37 billion remain to be disbursed.

 

The delay in the payout of the money last year, which meant 8 billion euros from September were only paid out in December, was caused by Greece's failure to keep up with its commitments to implement austerity and structural reforms.

 

Bailly said that if Greece fails to meet the aid conditions again, more delays in pay-outs would follow. A team of EU and IMF inspectors will visit Greece on January 14-16 to verify reform progress.

 

"If our mission in mid-January concludes that there is a delay in progress, we would have to review March (payment due then)," Bailly said.

 

Euro zone leaders agreed on a second, 130 billion euro financing programme for Greece in October to maintain the country's access to emergency financing for longer after initial expectations that Athens would be able to return to markets in March 2012 proved optimistic.

 

But details of the second programme, which includes a 50 percent haircut on Greek bonds held by private investors, are still under negotiation.

Sure enough, the EURUSD is now firmly under 1.28 as the printers are starting their warm up sequence.

 

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Thu, 01/05/2012 - 10:44 | 2035306 Squishi
Squishi's picture

rigidity is the mother of all printing...

Thu, 01/05/2012 - 11:17 | 2035410 Hugh_Jorgan
Hugh_Jorgan's picture

First the Banking "concrete" begins to harden. Then as it does, it begins to take the load from the outstanding financial pressures. Cracks begin forming as the pressure builds and builds and builds. Then...

Thu, 01/05/2012 - 11:39 | 2035482 Au_Ag_CuPbCu
Au_Ag_CuPbCu's picture

I know there are a lot of peeps saying there is no way we get more QE but the stronger the dollar gets the higher the probability that we will.

Thu, 01/05/2012 - 10:45 | 2035308 lolmao500
lolmao500's picture

FINALLY.

Thu, 01/05/2012 - 10:46 | 2035310 ZeroPower
ZeroPower's picture

Hell was breaking loose this summer in the credit and equity markets while EUR held a bid. Quite the opposite now, i suspect some heavy FX players are either closing out their long USD positions and/or China might be re-thinking their EUR "diversification".

Thu, 01/05/2012 - 10:47 | 2035316 surf0766
surf0766's picture

So we should see a 2000 pt drop in the dow to make up for all the hope/over optimistic rallies.... Right?

How many dam headlines have they run . Markets rise on EU hopes... yadda..

Thu, 01/05/2012 - 11:55 | 2035535 YBNguy
YBNguy's picture

A 2000 pt drop would be a blessing for Helicopter Ben as it would be the perfect excuse to start QE-nTH...

Thu, 01/05/2012 - 10:47 | 2035317 Clam McCain
Clam McCain's picture

risk on, off....bitchez

 

Thu, 01/05/2012 - 10:48 | 2035319 Irish66
Irish66's picture

Petroplus is done, absolutely no credit available

Thu, 01/05/2012 - 11:13 | 2035403 lolmao500
lolmao500's picture

And? Boohoo.

Thu, 01/05/2012 - 10:48 | 2035320 Toolshed
Toolshed's picture

This is OT, but what a hoot! Check out this article on the WSJ about Ron Paul's portfolio:

http://blogs.wsj.com/totalreturn/2012/01/05/how-weird-is-ron-pauls-portf...

Here is a quote to give you a feel of the absurdity:

“Yet we would argue that performance alone can’t tell you whether an investment approach is sensible or not.”

Cue Twilight Zone theme.

Thu, 01/05/2012 - 10:57 | 2035353 a growing concern
a growing concern's picture

There was a funny comment on there to the WSJ: "You guys need to stick to something you are good at... like hacking phones."

 

Plus one for that guy.

Thu, 01/05/2012 - 11:18 | 2035417 Toolshed
Toolshed's picture

That would be me. Thanks.

Thu, 01/05/2012 - 11:06 | 2035375 Al Huxley
Al Huxley's picture

The quality of the propaganda is really dropping lately, I mean really "performance alone can't tell you whether an investment approach is sensible or not." That's just so fucking dumb it's impossible to respond to.

Thu, 01/05/2012 - 12:03 | 2035574 centerline
centerline's picture

Funny.  I was thinking the same thing the other.  Where is the creativity?  I guess consolidation and control leads to some unfortunate side effects.  Just wondering when (if) we see the first journalist to flip out and try to expose the invisible hand.  Got to be someone in that profession with a spine somewhere.  Maybe.

Thu, 01/05/2012 - 12:22 | 2035673 ElvisDog
ElvisDog's picture

Here's an investment approach for you - pay off all of your debt. Perform any maintenance on your house and car that will be needed in the next 2-3 years right now. Have 2-3 months (or more) living expenses in cash. Then, keep your investment powder dry and wait and see how things shake out.

Thu, 01/05/2012 - 12:57 | 2035859 ucsbcanuck
ucsbcanuck's picture

Agreed - less than 10% of my portfolio in the markets right now. Mainly cash and bonds.

Thu, 01/05/2012 - 15:10 | 2036317 Buckaroo Banzai
Buckaroo Banzai's picture

It's all about the Big Lie, baby.

Tell people that "Making money in gold is the newest strategy to lose money!" loud enough, and maybe they'll believe it.

Thu, 01/05/2012 - 11:15 | 2035406 Real Estate Geek
Real Estate Geek's picture

I see that WSJ made sure to put this hit-piece on the free side of the pay wall, too.  Not surprising at all.

Thu, 01/05/2012 - 10:48 | 2035321 MFL8240
MFL8240's picture

The fuckin clowns are back to work after the holiday.  Time to help Bernanke make the US look stable and destroy Gold.  This shit is getting real old.

Thu, 01/05/2012 - 10:48 | 2035322 misterc
misterc's picture

Market wants to see Draghi's hand. Call!

Thu, 01/05/2012 - 11:34 | 2035464 Instant Wealth
Instant Wealth's picture

... that's right - what's even better, it seems to be prized in already.

Thu, 01/05/2012 - 10:49 | 2035324 MFL8240
MFL8240's picture

The fuckin clowns are back to work after the holiday.  Time to help Bernanke make the US look stable and destroy Gold.  This shit is getting real old.

Thu, 01/05/2012 - 10:50 | 2035327 disabledvet
disabledvet's picture

This sounds more like a full fledged panic than some money-printing scheme. Forget runs on banks...in this day and age we get runs on entire nations. I say all hell breaks loose over the weekend as institutions realize the EU is finished right now.

Thu, 01/05/2012 - 10:50 | 2035329 Cult_of_Reason
Cult_of_Reason's picture

Just default like Argentina, get over with it already, and start growing the economy with a clean balance sheet.

 

Thu, 01/05/2012 - 10:56 | 2035344 CrashisOptimistic
CrashisOptimistic's picture

This is what so very many don't understand.

There is no international bankruptcy court.  There is no expungement.  Declaring default means NOTHING.

If you are a bondholder and Greece says "sorry, we are defaulting", you just nod and say nothing.  You continue to send bills.  You continue to smash their credit rating.  

You Continue To Compound The Numbers.

If Greece were to EVER have any assets outside Greece, in perpetuity, you file confiscation papers with that country's courts.

The point being  . . . THERE IS NO DEFAULT.  IT'S FOREVER.

Iceland is paying back that money.  So is Argentina.  Everything didn't turn out great and won't.

Thu, 01/05/2012 - 11:02 | 2035366 Everybodys All ...
Everybodys All American's picture

They do still carry the debt but it would be paid in their own currency and could very easily be renegotiated at better terms. Default and go back to the Drachma. Move on and move out of the Euro.

Thu, 01/05/2012 - 11:11 | 2035396 CrashisOptimistic
CrashisOptimistic's picture

The debt instrument says Euros.  Not drachmas.

It's forever.  Their only hope is to hold money in yen or dollars and wait for the euro to crash.  Or oil.  Nothing else has enough liquidity to try this.  There is not enough gold in the world to try this.  They have to try to repay in cheaper Euros.

There is no way to do that.

There is no answer.  All problems do not have solutions.

Thu, 01/05/2012 - 11:43 | 2035490 Mitzibitzi
Mitzibitzi's picture

Sure there is...

The Greeks merely point out that they have armed forces and the creditor does not..

Which will obviously only work until the banks DO, in fact, have their own armed forces - say... September, or thereabouts, allowing for some basic training and instruction into the Rules Of Engagement for Kleptocratic Enforcement Personnel (it's fine to kill people, but don't break anything that looks valuable and portable - that kinda thing).

;-}

Thu, 01/05/2012 - 13:22 | 2035972 Ned Zeppelin
Ned Zeppelin's picture

Hence the beauty of socializing losses by swapping private debts for public debts - the recipient (bankster) is guaranteed collection, absent collapse.

Thu, 01/05/2012 - 11:19 | 2035419 tmosley
tmosley's picture

Iceland is paying back that money.  So is Argentina.

Citation needed.

Thu, 01/05/2012 - 11:39 | 2035480 reload
reload's picture

would have greened you Mr Mosley -but italics prevent it.

If Iceland is paying back monies owed (including deposits taken by its now dead banks) why has the UK govmt made wholeits citizens who held money in Icelandic accounts (up to the insured max) and why have municipalities (which we call local authorities) had to write off larger sums. IIRC the county of Essex has written of £12M.

what does icelandic debt (issued pre 2008) now trade at? does it trade at all?

Thu, 01/05/2012 - 13:24 | 2035976 Ned Zeppelin
Ned Zeppelin's picture

Wait a second - Iceland chose not to socialize the bank losses. Iceland (as a country) wins. Ireland socialized them - loser.

Thu, 01/05/2012 - 13:31 | 2035992 Freddie
Freddie's picture

Argentina paying back bondholders? Where?  Argentina's politicians and populace are the biggest deadbeats like GReece.  The pols grabbed the pensions and savings of responsible Argentinians to keep the party going for the deadbeats that vote in the Peronists.

I think these bonds get written off eventually and the whole scam starts over.  The IMF gives them aid money etc.

Thu, 01/05/2012 - 12:10 | 2035612 centerline
centerline's picture

The default is coming. Money that cannot be paid back, won't. This truth will assert itself at some point. Somehow.

But, "growth" is not coming back, unless you are talking about the beginning of a new monetary system/cycle built on similar principles of MMT. In the physical world, we are going to have to deal with an entirely different reality from what we are leaving behind. Real constraints... not how many zeros can a silicone chip handle. These constraints are here now and will persist. Maximum population. Maximum burn of fossil fuels (lagging extraction). Maximum social complexity. Etc.

Thu, 01/05/2012 - 10:50 | 2035330 bank guy in Brussels
bank guy in Brussels's picture

Just small amounts on the liquidity swap lines from Ben B. ...

Can kicking shall proceed.

Thu, 01/05/2012 - 10:50 | 2035332 Irish66
Irish66's picture

When does IBEX get halted?

Thu, 01/05/2012 - 10:51 | 2035333 CrashisOptimistic
CrashisOptimistic's picture

Serial microphone sprinters.

We'll be seeing them run to the microphone just about daily to announce ***agreement*** over and over again.

There is no fucking miracle coming.  They Don't Have Any Money.  They Owe Trillions.

It's over.  End it.

Thu, 01/05/2012 - 10:51 | 2035334 fonzanoon
fonzanoon's picture

Bank of America is down almost 1%!!!!! what a bunch of shit.

Thu, 01/05/2012 - 10:52 | 2035335 apberusdisvet
apberusdisvet's picture

I'm really surprised that NATO hasn't already invaded Greece, for "humanitarian" reasons of course.

But since the country's gold has already been expropriated and there are no energy resources, it appears that the only resources worth pillaging are some islands which have already been spoken for by Eurocrats.

Thu, 01/05/2012 - 11:24 | 2035437 RichardENixon
RichardENixon's picture

How about confiscating the Acropolis and turning it into "AcropolisLand" complete with rides, zany costumed characters, and outrageously overpriced food, hotels and souvenirs? You could squeeze some decent revenue out of that.

Thu, 01/05/2012 - 12:59 | 2035871 ucsbcanuck
ucsbcanuck's picture

+1 for the mental image it evokes 

Thu, 01/05/2012 - 10:52 | 2035337 LawsofPhysics
LawsofPhysics's picture

Extend, pretend (all the while preparting to take everything by force).  Same as it ever was.

Thu, 01/05/2012 - 10:52 | 2035338 Peter K
Peter K's picture

But, but.... the Sep payout was to be E11b or Greece would be out of cash by Oct 17. Obviously no payout, and nothing happened. Now Greece had a bond redemption of E2.5b on the 19th of Dec and another E5.7b on the 29th of Dec. But the E8b Euro payed out in Dec would only cover thsi redemption. And since then, Greece had E1b to through into the NBG. So how is Greece funding the expense side of the Greek Income Statement?

Thu, 01/05/2012 - 10:53 | 2035340 SheepDog-One
SheepDog-One's picture

SURE new world economic model is 'Delay total implosion by 3 months'...whatever!

Thu, 01/05/2012 - 10:54 | 2035343 DutchDude
DutchDude's picture

This is megalomaniacs calling Greece's bluff on wanting 75% haircuts instead of 50%, nothing more...

The kicks to the can are getting smaller and smaller...that's for sure...

Thu, 01/05/2012 - 11:00 | 2035361 CrashisOptimistic
CrashisOptimistic's picture

There don't have to be any haircuts.  The banks can just go quiet and keep sending bills to Greece for payment.

There is no expungement mechanism to make that debt go away.  The EU can only threaten bond holders with jail, and at some point the bondholders will leave the area and CONTINUE to send demands for payment.

There is no international bankruptcy court.  The money is owed.  Pay it.  If you don't pay it, it compounds forever.

The F word.  Forever.

Thu, 01/05/2012 - 13:10 | 2035853 earleflorida
earleflorida's picture

this can - this infamous can, that's been kicking down the road, so, so long, has finally been severed in half,... having been kicked down the road so long - forever, yet lastly, overtaken by leather taps of  metal fatigue from the once high-heeled-rollers above - always riding high the gutters edge, flippin-and-a-floppin, down the road -spinning tirelessly out of control - thrashing and rimming the center thin upon stone-cold - and now, how ironic,... now, but two tin cups with a  tethered tear as ballsy handles - now applicable, but fabulously,... only suitable for begging - a fitting bifurcation to bestow upon the sizing stools of europe, and america when kicking the can down the road couldn't have gotten any more  richly, and lavishly rewarded,...  

Thu, 01/05/2012 - 10:56 | 2035348 RobotTrader
RobotTrader's picture

WFC and JPM now green.

 

Crisis is over.

Thu, 01/05/2012 - 11:16 | 2035405 lieutenantjohnchard
lieutenantjohnchard's picture

jpm @ $45. robottrader: jpm is best in breed. i'm all in.

jpm @ $35. robottrader: hey, i'm yielding 2.9% on my jpm dividends.

Thu, 01/05/2012 - 12:04 | 2035578 Hippocratic Oaf
Hippocratic Oaf's picture

JPM is the 800 lb. vampire squid in the room. Fuck 'em 

Thu, 01/05/2012 - 12:38 | 2035751 lieutenantjohnchard
lieutenantjohnchard's picture

from my brain to your words. exactly.

Thu, 01/05/2012 - 10:56 | 2035349 fonzanoon
fonzanoon's picture

WTF is up with BAC? Up now.

Thu, 01/05/2012 - 10:59 | 2035356 youngman
youngman's picture

Now BAC is up....WTF....

Anyway..maybe Greece needs to collect some taxes for a change...pay for themselves...:::NOT..its beg beg beg...for the sheepherders..

Thu, 01/05/2012 - 10:59 | 2035359 scatterbrains
scatterbrains's picture

Russel2k closed the New Year pop gap and leading to the downside. If this is the index the Bernank is targeting then does this mean he's going to let equities fall for a bit ?

 

http://fiatflaws.blogspot.com/2012/01/russel-2k-closing-gap-leading-lowe...

 

Thu, 01/05/2012 - 11:03 | 2035369 PrintingPress
PrintingPress's picture

I'm lovin' it!

Thu, 01/05/2012 - 11:05 | 2035372 Iriestx
Iriestx's picture

The Fed will just bail them out again. Default will never be allowed to happen as long as there is ink in the printer.

Thu, 01/05/2012 - 11:06 | 2035377 Jlmadyson
Jlmadyson's picture

To the bitter end. These guys are nuts. All was foretold however.

2012 where reality meets markets.

Thu, 01/05/2012 - 11:07 | 2035378 rsnoble
rsnoble's picture

No. We only use good news for rallies. Bad news is swept under the rug.  I've noticed it's getting pretty full under there though.

Thu, 01/05/2012 - 11:07 | 2035379 sangell
sangell's picture

Look, Greece has as it PM the same guy who, as finance minister, doctored Greek books to get into the Euro. You think he's not going to try that same kind of tricks to cheat the same bunch again?

Thu, 01/05/2012 - 14:43 | 2036236 redux2redux
redux2redux's picture

As the golfer Chi Chi Rodriguez used to say "the most powerful wood in your golf bag is the pencil "

Thu, 01/05/2012 - 11:08 | 2035382 Sudden Debt
Sudden Debt's picture

WHERE'S MY FREE BILLIONS BITCHEZ!!!

GIVE ME MORE OR I'LL TELL EVERYBODY AND NOT JUST TO YOU THAT I WON'T REPAY IT!

 

Thu, 01/05/2012 - 11:09 | 2035384 crawldaddy
crawldaddy's picture

and now shit is happening under the fukushima nuclear plants, they are calling them "earthquakes" but shallow earthquakes right under the plant area,  More like china syndrome is starting to play out.

Thu, 01/05/2012 - 11:35 | 2035468 Non Passaran
Non Passaran's picture

Useless

Thu, 01/05/2012 - 11:10 | 2035388 FutureShock
FutureShock's picture

Greece had prime water front office space here in my US town and they sold it off, cut the head reps salary by 20% and took away all expense account funds. Their ass is in gear I suspect and I think they will get their funds.

Thu, 01/05/2012 - 11:22 | 2035431 TzaristBondHolder
TzaristBondHolder's picture

Tyler,

So let me get this straight:  no money is coming for another 3 months, more strikes and unrest for 3 months....while they are threatening to leave Euro.  Isn't it easier to say "go"?

Thu, 01/05/2012 - 11:46 | 2035502 fall
fall's picture

They can't, Greece has to agree to such decision as well and they won't. They might act all tough now but leaving the Euro zone would completely destroy everything what's still left of the country.

Thu, 01/05/2012 - 11:26 | 2035447 toadold
toadold's picture

I'm reading that some parents in Greece are dumping their children on state sevices because they claim they can't afford to feed them anymore.  If I'm reading things right, "Austerity" is a code word for increase your tax rate so you can pay us.  However going austere on the cluster fark that is Greece will just make things worse.  If Greece won't or can't pay up what is the EU going to do invade? do they have enough money to pay an occupiying force to go there and keep it there.  Once they are there what exactly are they going to take for payment.  Oh, they and do like thie UN did in the Balkans, set up brothels and turn Greece into a sex slave camp. Yeah that would work. 

Meanwhile I was reading over at the American Spectator about how pervasive astrology is through all strata of French sociiety...I guess that explains the economic policies. 

Thu, 01/05/2012 - 11:49 | 2035513 Mitzibitzi
Mitzibitzi's picture

French policies in general, really.

Don't get me wrong, I have met French people who weren't 'a bit odd', but not many of 'em.

Thu, 01/05/2012 - 12:10 | 2035611 eurogold
eurogold's picture

Mitzibitzi, I work with a French company...........trust Me, the French  are really really wierd / bazaar!

Thu, 01/05/2012 - 12:29 | 2035706 ElvisDog
ElvisDog's picture

Yeah, but I love how French women are thin and wear dresses that expose their cleavage. American women are either land whales, tatoo sluts, or have body-image issues that compel them to wear non-sexy clothes.

Thu, 01/05/2012 - 15:01 | 2036293 Peter K
Peter K's picture

I'm with you 100% ElvisDog. French women define style and grace. Don't you just love the way they speak. It's like they are preparing to perform a .... well anyway.

If I was King of Europe, I would make all women speak French and all the men speak German. German is such a woody language:)

Thu, 01/05/2012 - 20:28 | 2037566 smiler03
smiler03's picture

French women define style and grace.

I wholeheartedly agree. They look chic whatever they wear.

Thu, 01/05/2012 - 11:46 | 2035503 SDRII
SDRII's picture

dont miss the russian exercises with greece consent off thecoast. And more rumors of cancer hitting Erdogan.

Thu, 01/05/2012 - 12:51 | 2035826 Griffin
Griffin's picture

Its a bit odd how common it is for people in politics to develop Cancer.

Shortly after the crash 2008 in Iceland, both leaders of the coalition parties in goverment got Cancer and had to retire from politics.

Geir Haarde, leader of the Independence party and Prime minister got pancreatic cancer and Ingibjorg Solrun Gisladottir leader of the Social democrats got a brain tumor.

The gov was toppled by a revolution in Iceland and all the top staff of the Central bank was also cleared out.

There were 3 CB governors, one of them, Eirikur Gudnason was hired by the Norwegian CB, shortly after he returned to Iceland and started working for the new Icelandic Govt, in the basement of the Icelandic CB in the documents department, he died from cancer Oct 31.

The CEO of the Icelandic stock exchange, Thordur Fridjonsson was on vacation in Friedrichshafen Germany and surprisingly died from Cancer feb 8.

 

Thu, 01/05/2012 - 15:23 | 2036360 Buckaroo Banzai
Buckaroo Banzai's picture

Nothing weird about it. Royal Rife discovered how to cure cancer by subjecting tissue to various radio frequencies back in the 1920s.

The flip side of that was, he also discovered how to CAUSE cancer using different frequencies.

Google "Royal Rife" to see what happened to him after he made these discoveries. Regular ZH readers can probably guess.

Think about that the next time someone in power gets cancer.

Thu, 01/05/2012 - 20:30 | 2037575 smiler03
smiler03's picture

Microsoft versus Apple!! Say no more.

Thu, 01/05/2012 - 12:08 | 2035598 eurogold
eurogold's picture

You Know ........I was really looking forward to the end of the Euro-zone, and now this.......another delay! 

Thu, 01/05/2012 - 12:14 | 2035636 Ghordius
Ghordius's picture

you should look forward to a gold-standard EuroZone, now would this not be a good start?

you might be too young to remember how it was with 17 fiat currencies instead of one

Thu, 01/05/2012 - 14:55 | 2036276 Peter K
Peter K's picture

Remember them well, and miss every last one of them. My personal favorite was the DEM. Now that was one hell of a currency:)

And the last time I checked, 70% of the Germans agree:)))))

Thu, 01/05/2012 - 15:45 | 2036475 Ghordius
Ghordius's picture

yes, spoken like an FX trader licking his chops - now just tell me what kind of "heaven" the "normal" economy in the EZ would have

Thu, 01/05/2012 - 15:54 | 2036534 Peter K
Peter K's picture

Actually, a Fixed Income trader. But close.

As to the economics, the most important aspect of having your own currency is that you can print your own money. And set your own interest rate that reflects the economic reality in your own country. And if you are prudent with managing your own affairs, you will be ok. Oh and lastly and most importantly, you will have what is called "soveriegnty". This will allow you to make your own decisions. And if you align with the correct country, you might even obtain freedom. 

Now I don't know about you, but I can't see a better situation to be in:)

Thu, 01/05/2012 - 20:33 | 2037586 smiler03
smiler03's picture

When I drove around 12 European countries in 7 days back in 1986 I just didn't stop when I drove through countries which I had no currency for.

Just one mistake, I accidentally got on a toll road in Italy and was short of 11,000 Lira. Ooops.

Thu, 01/05/2012 - 23:16 | 2037926 tabasco71
tabasco71's picture

You mean it wasn't a good idea to tie your Greek rowing boat to the back of the German powerboat and then hope that you could eventualy learn how to row fast enough to keep pace?

Thu, 01/05/2012 - 14:50 | 2036261 Peter K
Peter K's picture

It's like the Soviet Union. You keep asking yourself, how much longer can this go on. And than one day you wake up and it's gone. Patience is the key, and keep your short Euro positions manageable:) Oh, and enjoy the ride:)))))

Thu, 01/05/2012 - 12:17 | 2035648 ElvisDog
ElvisDog's picture

"That cannot be changed", Bailly said.

I love pronouncements like these that make it sound like they come from God above. Exactly why can't the 3 month interval between tranche payments be changed? Doesn't the Troika pretty much have the power to do whatever the hell it wants in Europe?

Thu, 01/05/2012 - 12:28 | 2035654 tabasco71
tabasco71's picture

TD, hats off, I am "actually laughing".  

While I respect the effort that goes into keeping these insights coming, a well placed sarcasm such as below is also worth its weight in pm's.... 

"In the meantime, Mario Monti is off to Brussels to satisfy an unscheduled craving for Belgian beer and chocolate, or something."

Maybe its because I have been puzzling since yesterday about how the Greeks actually were going to get around their fairly important upcoming milestone.  My conditioning prevented me from realising that the answer was simply to move the goalposts yet again on another arbitrary rationale

At least I am slowly geting over the misconception that printing is not something to be taken lightly, so I'm obviously learning.

Thu, 01/05/2012 - 15:26 | 2036379 Buckaroo Banzai
Buckaroo Banzai's picture

Finest chocolate, mussels, and beer. Does Brussels have hookers also?

Oh wait, they're the top destination in Europe for hookers. I wonder why. I guess there must be a real demand for them there. I wonder who would be demanding so many hookers in Brussels.

"Belgium is listed by the UNODC as a top destination for victims of human trafficking.[11] Many sex workers organisations feel that the present grey area in which prostitution operates leaves sex workers vulnerable to exploitation."

http://en.wikipedia.org/wiki/Prostitution_in_Europe#Prostitution_in_Belgium

Thu, 01/05/2012 - 22:41 | 2037843 tabasco71
tabasco71's picture

Makes you wonder why DSK bothered to fly all the way to New York really...

Thu, 01/05/2012 - 12:33 | 2035731 fredquimby
fredquimby's picture

commitments to implement austerity

Hey politicos ---> Try just saying "COMMITMENTS TO STOP SPENDING SO MUCH"

Oh, I get it......that would put military spending, Politicans salary spending and all the other unnecessary public sector spending,  firmly into the lets cut it spotlight.

....That said, maybe cutting the 400 new Greek tanks on order from the USA maybe a good place to find some initial austerity commitments....

http://www.defencegreece.com/index.php/2011/10/the-u-s-approved-to-grant-400-m1a1-abrams-to-greece/

 

Thu, 01/05/2012 - 12:49 | 2035812 tabasco71
tabasco71's picture

Probably cheaper than shipping them back to the US from Iraq/Afghanistan...?

Thu, 01/05/2012 - 14:42 | 2036234 jmcadg
jmcadg's picture

Greece will never change. They just wait for the next bailout then spend, then wait, then spend. This will go on ad infinitum. Default already. Let's just get on with whatever happens. Waiting only makes the inevitable worse and makes for a miserable time in the waiting.

Thu, 01/05/2012 - 15:09 | 2036309 Curtis LeMay
Curtis LeMay's picture

America is still stuck in some idiotic limbo where it fools itself that it can exist in isolation from the world's biggest economy

Mmm, yeah we can actually.

Sure we would take a hit, but we wouldn't tank...

If the American people have to tighten their belts for a while in order to rid the world of EU tyranny, so be it.

Better now than later...

Thu, 01/05/2012 - 15:39 | 2036438 Griffin
Griffin's picture

I guess when Europe tanks, it will create a storm of debt guaratee payouts that will cause big problems for much of the world incl USA.

There are no easy solutions, and even if there were any i doubt that the bankers that control our economies would prevent the crash. If there is a way for them to reset the system and mold it as they wish i am sure they will do just that.

 

Thu, 01/05/2012 - 15:41 | 2036447 The Reich
The Reich's picture

German Handelsblatt just wrote that the Troika is going to Greece next week to negociate about a "super tranche" of 89 billion payable in March 2012.

It seems as if they are going to press this gift upon Greece at all costs.

 

So who said thoughtlessly the inmates are running the asylum?

 

Thu, 01/05/2012 - 15:47 | 2036490 Peter K
Peter K's picture

I think we can classify the above as the official "get the Euro off the floor" EOD rumor. Finally the EuroBazooka is firing on its two cylinders:)

Thu, 01/05/2012 - 16:47 | 2036744 Curtis LeMay
Curtis LeMay's picture

I smell the Brussels Politburo...

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