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Greece Promises To Front-Load Austerity Even As Troika Has Not Yet Agreed To Provide Next Dose Of Monetary Heroin

Tyler Durden's picture




 

After Greece realized that it is not America, which can pretend it will do an infinite does of austerity... just not today... and not tomorrow...and really everything will be back-end loaded to some point 9 year from now (when it is some "other administration's problem") and the IMF made it clear that cuts have to happen immediately if not sooner, the country has released a statement that in exchange for getting the latest round of Troika funding (which it needs desperately: recall that it has another €2 billion debt paydown this Friday), it will front-load some of those mythical austerity measures that otherwise would have never really occurred. Which means that strikes (most notably by the tax collectors), riots and all around fun is about to become the prime time TV highlight from Syntagma square all over again, as tens of thousands of more government workers are fired or furloughed, or just generally lose their pension benefits, courtesy of living in an insolvent country. In the meantime, the European banks can pretend the contagion from a Greek fall out will be contained and the Fed's infinite swap lines will mask any and all completely unexpected black swans. Best of luck with that. 

From Reuters:

Greece has agreed to front-load austerity measures and is close to securing a deal with its international lenders, a Finance Ministry official said on Tuesday.

 

"I feel confident that the next tranche will be disbursed. We are close to clinching a deal with the troika," the official told Reuters, speaking on condition of anonymity.

And in other news, while the IMF did succeed to call Greece's bluff, it still hasn't shown its hand. And it won't, but not until October as was reported earlier, but next week. Which means this week's next bond payment will once again put the market on edge.

The mission of top inspectors from Greece's international lenders will return to Athens early next week to resume its review of the country's progress in a 110 billion euro ($150 billion) bailout programme, a source close to the team said on Tuesday.

 

The representatives from the European Union, International Monetary Fund and European Central Bank had earlier held a conference call with Greece's finance minister on steps Greece must take to receive an 8 billion euro aid tranche it needs to avoid running out of cash next month.

 

The source close to the so-called troika said good progress was made during the call and technical discussions would continue in Athens in the coming days.

In other words: nothing is settled, daily headline risk remains, except that the Greek government should immediately start charging royalty payments for RiotVisionTM, which in this next coming iteration should be quite a spectacle.

 

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Tue, 09/20/2011 - 17:36 | 1690189 flyr1710
flyr1710's picture

sounds like we're going to have more of a recycle, rinse, and repeat of headlines for the next few months

Tue, 09/20/2011 - 18:29 | 1690315 He_Who Carried ...
He_Who Carried The Sun's picture

NO, please, no, I will be wrangling some cattle in Wyoming by then.

This bailout nonsense is getting uber boring!

Tue, 09/20/2011 - 17:36 | 1690192 maxmad
maxmad's picture

Troika, Bitchez!

Tue, 09/20/2011 - 17:36 | 1690195 papaswamp
papaswamp's picture

Guess they didn't want to wait until winter...I'm telling you rioters won't come out in winter...but start the austerity now and you will have a mess on your hands quickly...

Wed, 09/21/2011 - 04:28 | 1691485 StychoKiller
StychoKiller's picture

Coming to a network near you:  RTV, the Riot channel, featuring such award-winning shows as:

"Funny Rock-Throwers"

"Burning Down this Old House"

...

ya get the idea!

 

Tue, 09/20/2011 - 17:37 | 1690196 maxmad
maxmad's picture

Parastroika, that is, bitchez!

Tue, 09/20/2011 - 17:53 | 1690241 Herman Strandsc...
Herman Strandschnecke's picture

I was thinking more 'Peyronies-troika'

Tue, 09/20/2011 - 18:08 | 1690268 WestVillageIdiot
WestVillageIdiot's picture

Glasnost = Openness

Perestroika = Restructuring

What a bunch of bullshit.  I have yet to see one ounce of openness during this dog and pony show and have not seen one gram of restructuring where it really counts.

Strap yourself in boys and girls.  The ride is about to get bumpy.  I believe Greece about as much as I believe Obama. 

Tue, 09/20/2011 - 17:42 | 1690211 boom goes the d...
boom goes the dynamite's picture

Why this econonmy is automatic
It's systematic
It's hydromatic
Why it's Greece lightning, 

Word,

Tue, 09/20/2011 - 17:43 | 1690213 Mr.Kowalski
Mr.Kowalski's picture

Greece will continue to be "saved" until the people Storm the Bastille and throw the bums out. Portugal is next in line. 

Tue, 09/20/2011 - 17:45 | 1690221 nah
nah's picture

im hoping to see a practcical greece for greeks solution...  coerce youd have to get it by the banks and politicians by forcing revolution down their throat... but with the iron fist of status quo bearing down on the birthplace of the western world

.

who fucking cares

Tue, 09/20/2011 - 17:45 | 1690222 lizzy36
lizzy36's picture

So you fire 500K public service employees, and what happens to tax reciepts?

I mean this is just a fucking brilliant strategy.

The banks are made whole, no consequences for their stupid investing, and the country implodes into civil war.

Euroland bank bonuses were in the several Billions of dollars in 2010. The banks didn't raise capital, don't have proper risk management, and on the whole continues to operate in a "status quo" manner.

If the Greeks are going to suffer in this manner than they mine as well leave the EU, as there may be upside to having the drachma back in about 5 years. Can't see any upside to them staying in the EU at anytime in the next 20 years. 

Tue, 09/20/2011 - 18:04 | 1690261 CrashisOptimistic
CrashisOptimistic's picture

 

You have to see the big picture.  If the country did NOT explode into civil war and put bullets in the skulls of bankers and politicians, more or less escaping all consquence, then Italy, Spain and Portugal would be irresponsible not to follow suit.

There HAS TO BE CIVIL WAR and senior politician blood or the other PIIS will do the same thing.

Tue, 09/20/2011 - 18:09 | 1690271 Bam_Man
Bam_Man's picture

Unfortunately, the Greek people have and will continue to have ZERO say in this matter.

The decisions are being made for them ("for their own good", of course) by the international banking cabal and its enforcement arm, the IMF.

Status quo 4-ever, bitchezzzz!

Tue, 09/20/2011 - 18:10 | 1690273 hambone
hambone's picture

Lizzy,

but isn't this what it's going to come down to for all the nations who run deficits and have economies where 30, 40, 50, 70% of jobs are government jobs.  At some point no more can be borrowed and no more can be taxed and no more can be maintained in government jobs...

Your point that banks (and corporate interests and many other winners of the ponzi-conomy) are walking away winners and the average man is being left to bear the brunt of the clean up is correct.  Maybe at some point the average man will get mad enough to support a politician, a party, and/or a revolution that will rise and represent all the people rather than the interests of the few (I seem to recall something about of the people, by the people, for the people).

 

Tue, 09/20/2011 - 18:32 | 1690324 lizzy36
lizzy36's picture

I agree with you.

Public sector employment is not the answer. There are consequences for overborrowing and overspending. Just not for the banks that lent the money.

My point is in the absence of burden sharing, forcing this type of austerity on a country like greece is a receipe for civil unrest leading to civil war. Perhaps that is the natural outcome regardless of whether or not burden sharing exists.

 

Tue, 09/20/2011 - 19:30 | 1690472 BarryG
BarryG's picture

In the EU they could have the Germans run their trains, utilities,....... their parliament.

http://germanywatch.blogspot.com/2011/09/political-cover-using-crisis.html

Tue, 09/20/2011 - 20:18 | 1690580 disabledvet
disabledvet's picture

actually the bankers would make more money if there really was a Civil War. That's "one of those things" that does what bankers love: lower prices. A Holocaust isn't bad either but it has obvious legal concerns. (Just ask Turkey.) No...the only explanation for all this self-flaggelation is simple, rank stupidity. Nothing more.

Tue, 09/20/2011 - 17:48 | 1690228 ArkansasAngie
ArkansasAngie's picture

Since nothing matters to the market, this won't either.

I do suggest writting your congressional representatives and telling them you rememebr them in 2012 if they allow your tax dollars to go toward the European money pit.

Geez ... war may be cheaper.

Tue, 09/20/2011 - 18:10 | 1690275 WestVillageIdiot
WestVillageIdiot's picture

Churchill viewed his efforts to save Greece from the communists as his greatest accomplishment after the end of WWII.  Too bad he couldn't save them from the bankers.

And, no, I don't think old Winston was a member of the banker inner circle.  That son of a gun got smashed by the stock market crash and never had all that much money.  The boys of London must have had a jolly good laugh at Winston.

Disclaimer:  I still like Winston.  "Better to die on your feet than to live on your knees" is still my favorite Churchill-ism.  The boys in Chelsea probably wouldn't understand that one.  They like........never mind. 

Tue, 09/20/2011 - 20:20 | 1690585 disabledvet
disabledvet's picture

Actually writing them a letter asking "what happens to New Jersey" might be better. There are no greater delusions than American delusions. It's part of "what being on top" is all about actually.

Tue, 09/20/2011 - 17:48 | 1690229 Id fight Gandhi
Id fight Gandhi's picture

Greece promises are as reliable as a broke crack whore jonesing for the next hit.

Tue, 09/20/2011 - 18:01 | 1690255 WestVillageIdiot
WestVillageIdiot's picture

That is what I was thinking. 

We have a friend we gave several thousand dollars to so that he could get on his feet and start his own little business.  After doing that I would get regular updates, most of them were one form of whining or another.  Then I didn't hear from him for a while.  Finally, on Christmas Eve I heard from him once again.  He told me how he planned to pay us back every penny we gave him.  Several months later I spoke to him and felt like he was angling to get even more money out of me.  I need a divorce like I need a third nut.  It has now been months since i"ve heard from him and I haven't seen a penny.

When we gave the money we knew we may never see it again.  Damn, I should have just bought Krugerrands.  "A friend in need is a pain in the ass."  Amen, to that. 

Tue, 09/20/2011 - 18:18 | 1690294 lapedochild
lapedochild's picture

I always went by this...

If you lend a friend 50/100/1000 dollars and you never see him again, it was probably worth it

Tue, 09/20/2011 - 18:18 | 1690297 zorba THE GREEK
zorba THE GREEK's picture

I have loaned money in the past to obnoxious family members just for the benefit

of not having to see them again, as they avoided me after getting the cash.

Sometimes it is more than worthwhile.

Tue, 09/20/2011 - 20:23 | 1690592 disabledvet
disabledvet's picture

That's why my last letter from my former investors thanked them for paying their taxes because "i've qualified!" my dream of course is to stiff them for half a billion as "this is considered heroic on your planet." Wait 'till a use the proceeds to start a bank! you will think me some kind of God or something!!!

Tue, 09/20/2011 - 17:50 | 1690233 Lord Welligton
Lord Welligton's picture

daily headline risk remains

That's about it really.

Tue, 09/20/2011 - 18:11 | 1690277 drider
drider's picture

The only real headline would be a revolt of Greek people after finally realizing what their own elites have in store for them:

"The most important people of Greece outside politics have said to me repeatedly over the past six months "you're wrong and you lose the target, the true challenge of the Greek economy is that of universal privatization of public property" 

Servaz Deruz - EU commision representative in troika

http://translate.google.com/translate?sl=el&tl=en&js=n&prev=_t&hl=el&ie=UTF-8&layout=2&eotf=1&u=http%3A%2F%2Fwww.tovima.gr%2Fpolitics%2Farticle%2F%3Faid%3D384161&act=url

Tue, 09/20/2011 - 19:03 | 1690396 Lord Welligton
Lord Welligton's picture

The most important people of Greece outside politics

We can take it that he means self interested bankers who will raise funds outside of Greece to buy assets for cents on the Euro.

Wed, 09/21/2011 - 05:55 | 1691540 drider
drider's picture

I will add this quote from the article:

"The chief expert of the European Union revealed that a "flood privatization" is what persistently ask the same big businessmen, top bankers, prominent economists and executives "think tanks" of Athens."

So not only bankers... I think that I was accurate when I used the word Greek "elites"...

Tue, 09/20/2011 - 17:59 | 1690249 andypavlovic
andypavlovic's picture

I wonder if "Going Greek" gains in popularity?

Tue, 09/20/2011 - 18:20 | 1690300 zorba THE GREEK
zorba THE GREEK's picture

I love going Greek, but my girlfriend hates it.

Tue, 09/20/2011 - 18:04 | 1690260 moldygoat
moldygoat's picture

just use the EMP, drop the dirty bomb, cyber-attack us or whatever false-flag-du-jour you are planning and lets get this over with. The patience of these global masters is killing me!

Tue, 09/20/2011 - 18:04 | 1690262 PicassoInActions
PicassoInActions's picture

At least we may be in the range bound for eur/usd and that is easy way to make some money up and down

 

Tue, 09/20/2011 - 18:07 | 1690266 jtmo3
jtmo3's picture

"In the meantime, the European banks can pretend the contagion from a Greek fall out will be contained and the Fed's infinite swap lines will mask any and all completely unexpected black swans. Best of luck with that."

 

This could go on for a hell of a lot longer. Until, and not until, someone calls foul, who or what is going to stop them from monotizing to the moon? Which CB is going to "cheat" their country by not participating. It's easier to ask forgiveness than to ask permission.

Tue, 09/20/2011 - 18:21 | 1690301 lapedochild
lapedochild's picture

In the back of my mind I keep thinking that even though the IMF is threatnening not to give the next tranche, in reality they can't wait to stuff it in Greece's face. Can you imagine when the IMF decides NOT to give that payment... Greece won't be able to pay back on it's bonds and defaults which is not an option for IMF's banker friends.

Tue, 09/20/2011 - 18:24 | 1690308 ejhickey
ejhickey's picture

the answer for the Greeks can be found in a 30 year old movie - te Blues Brothers .

"Jake: Your women. I want to buy your women. The little girl, your daughters... sell them to me. Sell me your children! "

 


Tue, 09/20/2011 - 19:26 | 1690456 BarryG
BarryG's picture

The blackmail of Greece and bailout propaganda, is actually designed to make Europeans accept loss of financial sovereignty.

Axel Weber, German Banker has confirmed the crisis is being used for "political cover"

http://germanywatch.blogspot.com/2011/09/political-cover-using-crisis.html

Tue, 09/20/2011 - 20:07 | 1690543 Tuffmug
Tuffmug's picture

"Jabba" Venizelos : G Pap, those Troika shits are really squeezing our balls! They won't pay the 8 billion till we start to lay off everyone we promised.

G Pap : OK, get the engravers to create a New Drakma note. Put my face on the front and Kim Kardasian's ass on the back,  Printed up oh about 5 million of them.

"Jabba" : But G Pap, to switch currencies we need 10000 times that and.....

G Pap: No "Jabba", when the Troika members come back next week bring them to the West conference room. We'll get the money when they see the wallpaper, chairs and conference table all made out of those fine New Drakma notes.

"Jabba" : They'll shit those 8 billion Euro's right out! You da MAN G Pap! 

G Pap : I didn't get an A+ in Extortion at Harvard for nothing Jabba.

 

Tue, 09/20/2011 - 20:29 | 1690604 disabledvet
disabledvet's picture

Poopy-Doo is really flailing about these days. Now Turkey is threatening Noble Energy over drilling in the Med. LAUNCH THE F-16'S POOPY! LAUNCH! LAUNCH! LAUNCH! Have you learned nothing from history? IT'S TIME FOR A BAIL IN! When will these people ever learn? "You were nobody's but for the Cold War....and that's been over going on 20 years now." Now he's married to the Euro..."and that bitch ain't puttin out."

Wed, 09/21/2011 - 03:25 | 1691437 nickbackup
nickbackup's picture

Greece was supposed to default yesterday…what happened??! No more crap please…

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