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The gEUR.QQ: "The Only Winners Are Foreign Banks"
In a brief though detailed clip, Stratfor's VP Peter Zeihan discusses the risk of contagion from Greece and the 'creative' - if not self-centered - suggestions for a solution to these problems. Earlier in the week we described Deutsche's suggestion of a dual currency - the GEURO - and that is where Zeihan focuses, noting that "The Greek economy is as deliciously non-competitive as the German economy is hyper-competitive" - this mismatch is the core of the crisis. The GEURO (trading as gEUR.QQ on the pink sheets) plan doesn't address this mismatch but extends it just a little longer while bailout funds will continue to funneled through Athens to the country's lenders (read European banks) but private capital would be unlikely to flow and without outside capital, they would be unlikely to stimulate the growth they need to regain any kind of solid footing. Greek debt levels to GDP would rise (not fall) under the plan as EUR debts would remain but GEURO incomes (devalued) would be the source of GDP - making a long-term recovery even less likely. The only winners - simple: foreign banks who have exposure to Greece. The Stratfor VP goes on to note that the vast bulk of Greek debt is held by the ECB, IMF, and the Greeks (Greek banks) adding that private losses would not be catastrophic in the event of another Greek default - though we point out that it is the contagion effects (as we have so critically established in the past) that makes the Greek imbroglio so important to watch.
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private losses?
this has never been about private losses of the Greeks!
The discussion of Greece and "contagion" is a silly distraction from the central issue.
We are facing a global debt bubble collapse created by our central banks which nobody wants to address.
exactly....greece needs to declare bankruptcy and print their own money. these stratfor folks appear more and more like shills for the powers that be. military senarios up the ass about iran and now economic senarios up the ass about bankers getting paid....lol. bankers getting paid for greece, italy, spain, portugal, ireland, france and iceland....oops not the last one listed....they went the other way!
Screw the GEURO, go straight to the GYRO....
banker bonuses are guaranteed in the constitution.
number one, make it so
The world works for banks and Facefuck.
I thought Stratfor bit the dust after the Anonymous fiasco.
Nope. They still have money to pay Zerohedge.
Nah, as Oscar Goldman said about Steve Austin, they are now stronger, better, faster than they were before...
Think ZH showed their stock in trade to be public knowledge of things rather than ideas. They collect data but don't show that their understanding of it is worth much.
Incorrect.
ZH, in my experience here, shows little to no bias. They present news and information RARELY found on the blogs spots (almost NEVER in the MSM), and let their readers decide if it's quality or ka ka.
Then, they don't come in like school marms and scold or censor the comments from those reports and blogs, like douchebag "news" sites "Newser" or that band of leisure world misspellers at Yahoo! - who have the editing sense of a drunk aardvark.
That cost 'em an awful lot of credibility. A company that "Provides strategic intelligence on global business, economic, security and geopolitical affairs" couldn't even secure its own subscribers' credit card details. Anonymous posted thousands and thousands of them, and then Wikileaks published a few million of their e-mails.
But Stratfor evidently still feels qualified to comment on how everybody else is shaping up.
their gimicks get more and more unbelievable.
The only winners - simple: foreign banks who have exposure to Greece.
isn't this what it's all about any way not the governments
GEURO?
Please.
How about GYRO?
Makes as much sense.
Greece needs to default on ECB and IMF and embrace the Drachma.
Anything else will just be feeding the European, and by extension, American banks; and those vampire squid need to be slaughtered and made into fried calamari.
A sandwich based currency is the only thing I've heard that makes any sense to me so far.
Interesting analogy between the GEURO and the GYRO...both conjure images of Greek meat roasting vertically on a spit, slowly turning in front of an electric broiler as strips are slowly carved away... I guess the main difference is time; the GEURO has been roasting for a few years while the GYRO takes much less time before the shaving begins.
I like it! only if we spell "G-Euro"- "Gyro".
Then we could have;
Greek- "Gyro"
Spainish- "Paella"
Irish- "Guiness"
The Italian- "Such-a-nice-Boy!"
And the Portuguese- "Masa" or "Chourico"
currencies.
A wonderful way to make European collapse more colorful.... Or should I say "Colourful"?
more bozos talking their book ... surprize, surprize
so, if I have this right, the smelly stuff is passd to the IMF and ECB where it is slowly monetized away thru inflation (devaulation).
Apparently so, in which case, theres actually NEVER a risk of any economic problem anywhere since it all can just be passed on thru the central banks. But then again, something tells me theyre all very much full of shit here and just trying to keep people placated.
HEY remember way back when like 6 months ago when a Greek exit was 100% guaranteed catastrophic and would definitely cause EZ implosion? Now, only a couple hundred bucks loss is possible, and furthermore BENEFICIAL to certain entities like foreign banks. HOOPAH!!
... yes, but don't forget that waiting in the wings is Spain ...
no way to sprinkle pixie dust on Spain and make it go away for a 'couple hundred bucks' ...
Right...but then ANYTHING seems possible here in Fantasyland....sure Spain is deemed a total disaster in the wings but Greece also was too and now deemed 'pretty much no big deal'.
managing perceptions.
We will tell you whatever you will believe.
OT but drudge has a link of bill clinton cavorting with two porn stars. One of them won numerous awards for her film "Mission Asspossible"
While we're all focused on Greece, does the Japan 225 kinda have that "about to shit the bed" look to it ?...
http://fiatflaws.blogspot.com/
Nope,
Hey,
Look over here!!!
Japan, N. Korea, Iran, Fukushima, US budget, FaceBook....
Forget it.
Eyes up,
LOOK AT ME !!!
"Greek imbroglio"
You mean Greek "implosio", don't you ?
So, if one "waits" as long as possible to address debt obligations, the more "suvivable" they might be.
So, this explains why it's ok to ignore stacks of in box assigbnments becasue they'll take care of themselves and I'll survive.
Greece has virtually no "actual" economic activity going on, asset values are de facto worthless and nobody's got any unencumbered (repo-able) assets left...
Didja ever notice, at some point, that they (banks) don't even really need actual humans that much, if at all? It's really just a race between each other to see who can securitise the last remaining assets.
angela! where are you?
Question: If/When Greece defaults and leaves the eurozone or leaves the eurozone and defaults, is there even then tiniest chance that the foreign semi-official and official lenders will write off their loans and guarantees? If they did, it would mean that contingent liabilites suddenly became liabilities and these countries would have to find some 300 bn euros (that's a number the German IFO instute reported) pretty quick. Germany will be able to borrow its 80 bn, but who is going to give Italy 50 bn and Spain 36 bn?
Politicians have constantly denied the obvious in the last two years, why should that change when the pain increases?
Wow. Another Stratfor "what Zerohedge has been talking about for years" video production.
I am so impressed. I must subscribe to their Kilowatt quality intelligence briefings.
Odd to see something this worthwhile in the NYT, but there is a position that having Glass-Steagall in place would not have stopped all of this. Interesting.
Actually, a very interesting piece. It's not all about GS. not close:
http://dealbook.nytimes.com/2012/05/21/reinstating-an-old-rule-is-not-a-cure-for-crisis/
the only difference between chinas relationship to the u.s. ---and germanys relationship to greece---is that the u.s. can continue to devalue its currency. that's pretty much it.
but that's pretty much the solution and everyone knows the fed controlled treasury will take us rapidly, and predicably, down this path of massive devaluation over the coming decades. no credit event to see here folks.
america is going the way of greece and soon, greece will cease to exist.
http://covert.ias3.com/expose/
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