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Greece Virtually Out Of Cash One Day Before Critical Bond Maturity
Curious why the topic of tomorrow's €430 million non-Greek law bond maturity payment (which we first pointed out as a D-Day type of cash outflow for the Greek people) is particularly touchy? Simple: if Greece makes the payment it will see its already in the red cash balance drop by another 30% to a sub redline €1 billion. Which would mean the country will likely not pass go and go straight into looting mode once the people realize that some evil, evil hedge fund hold outs (who are doing precisely what they are contractually entitled to, and what we said back in January would be the event that breaks the bank, i.e., holding out) have been paid in full despite the Greek restructuring, while there is no money to pay anything else... Because as Bloomberg points out, "the level of funds in Greece’s state coffers has fallen below 1.5 billion euros ($1.9 billion), Imerisia reported, citing “reliable information.” If the state doesn’t receive predicted revenue for the rest of this month, it will find it difficult to pay for social services, pensions and public-sector wages, the newspaper said." Translation: when the money runs out, it's game over. But it will also be game over if and when Greece either does not want to or does not have the cash to pay tomorrow.
Things are moving fast now.
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Faster is better
Just wait and see what happens when the police and fire departments don't get pay checks next week ...
Things start getting REAL ugly in 3 ....2.... 1...
That's where EUROGENDFOR is for; International Riot Police to the rescue! shoot to kill mandate and everything...
Totalitarian EUSSR it is... welcome to 1984
http://www.eurogendfor.eu/
After visiting the web site, it is obvious that this is the muscle for the EU to use in quelling any nationalistic aspirations anywhere the EU decides it wants them quelled. I noticed in the FAQ that getting the permission to deploy from the invaded country never arises; this is all about the EU deciding on its own to invade, a la the Warsaw Pact invasions of Hungry, and Czechoslovakia.
So the Greeks could do whatever they want, and the EU could declare their actions a threat to civil stability in Europe, and send in an invasion force to take over the country by taking over control of the capital, and then installing their puppets to run things under the EU mandate.
So much for the smart remarks about the EU not having a military force at its disposal . . .
Thanks for sharing that link and educating us.
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that's not what she said
Might help to explain why Greek 10 yr sovs jumped over 200 bps today. Spain is no treasure either. Charts are frightening!
http://confoundedinterest.wordpress.com/2012/05/14/med-uncertainty-greek-and-spanish-yields-spike-10-yr-us-treasury-futures-highest-on-record/
Stock futures are all at the edge just hanging on. Maybe someone should offer them just one thin mint? It's time for them to pull that rabbit out of the hat.
Can't pull a rabbit out of a hat.
They ate it 30 years ago and wrote chain options around it's demise and the non-rabbit is acting as the corner stone of the pension industry.
but it's waffa thin.... http://www.youtube.com/watch?v=rXH_12QWWg8
"Turn out the lights, The party's over. They say that All good things must end. Call it tonight The party's over, And tomorrow starts The same old thing again "
At this point in time it appears that there is essentially one man, the head of that SZIRIOS party, who stands in the way of the world getting a coalition in Greece to keep the wheels turning and continue the bailout.
One guy.
Do you really think the EU and the world will let him do this?
Either he dies in the next few days or more likely the other 3 parties who are saying no unity government without him will be bought off and decide they can have a unity government without him.
Odds of new elections in Greece . . . low. It looks inevitable, but the EU will never allow it. Just look at the shit they did in 2011 to make it happen. You think they'll let one guy undo it all?
On CNBC this morning, they were explaining how the market has "priced in" a Greek exit. They bought themselves time etc. Translation -- all the big private money is out and now the public will be left holding the bag.
What for Santelli....not sure why he's still there. Maybe they're holding him hostage.
lol, indeed. To Satelli at the AM: "Just promote the party line, and we'll let you go home, you know, "buy stocks, buy bonds debt is different at governmental levels"". Soon as he sees that red light on that camera, he know's it'll be another night in the basement at CBoT.
Here's somethign that people should understand about money.
It's fungible. Private or Public money doesn't matter. While the private end may take a profit, the sheer size of the problem (I think we're up to 2 trillion Euro in just ECB loans over two years.).
The tiny, miniscule amount offered by private counterparts is nothing in comparison to the debt shoveling that has been going on in the Central Bank Sphere. The Federal Reserve is on the hook for a trillion of that if anyone recalls. Remember the co-ordinated actions last summer?
UK
USA
Canada
Japan
They all threw their public pensions at the problem.
Something else people should know about money....
Future public debt in the form of future taxpayer burden spends just as well in our system as cold hard cash. Need money to support your Ferrari and Monaco mansion habit? Call up Ben and Lagarde and have them print some more and send the bill to the future taxpayer. Later, you can have your purchased politicians and media pundits explain to the taxpayer how he needs to tighten his belt because he's received too many entitlements and public spending is out of control.
Talk about hitting it exactly correct. Great observation.
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and that is why kicking a can is always an option politicians and central bankers will try
Money is created out of debt through central bank reserves or fractional reserve lending and the debt is not at all fungible. It is sticky.
A trillion!? Hahaha
Try gusts above 15 trillion, fool.
"The Public" will be filling the bag with what they have left at gunpoint.
Seig O!
"Priced in.
B U L L S H I T E.
As far as the metals... wait...
30 or 28 or 35 won't affect you that much for buying and taking delivery.
Oil sold off and paper will sell off to raise money first.
The end of a 10 year fat Greek wedding party!
Only thing worse is a Catholic wedding.....those things go on forever.
no shit there! I got sentenced to one once. ONCE haha
Pfft! Ever been to a Hindu wedding? They have an intermission!
I can one up you.
Italian Catholic Weddings. 24 hours of eating fantastic food, then a week of indigestion. Fun though, nearly impossible to get drunk with the amount of food at them. It's an endurance test.
There always seems to be a party for a party for a party for a church thing, for another party, then a wedding, then a couple of get togethers, then more food, a pre reception, reception, post reception and then Breakfast with hugs and kisses to everyone over the course of 2 hours.
Italians know the secret of slowing down time and turning it fun. I my theory that eggplant is involved somehow.
It's only the boring bits that go on forever.
Have you ever been to a Catholic funeral? Jeez....
if you think a funeral is too long then eternity will be hell...
Haha, I alredy bought my 'Official Catholic Iindulgences' get out of hell pass.
It's the high speed carpool lane for heaven. No hanging with the plebes in Purgatory.
Dominus Vobiscum y'all.
May you be in heaven half an hour before the Devil knows your dead.
May you be in heaven half an hour before the Devil knows your dead.
NOT FAST ENOUGH.
The paper is all gone, be their physical assets and human capital isn't. Fuck the paper pushers. I am loving it.
When was the last time having cash on hand was necessary to "pay off" maturing sovereign debt?
Yes, why can't the greeks do what we do - You pretend to make me a loan and I will pretend to pay it back. Oh that's right, reserve currency. Wonder how long we will have that privilage? Can't be long now.
Yup, that can is due to start kicking back very soon.
Gearing up for the Mother of all Michigan bottle return runs
I grew-up in Muskegon, the bottle return runs are were essential.
two donner kebabs, one ouzo, three of those eggplant things and oh fuck u im not paying.
Two possible plays:
1. Just default and create the new Drachma, distributing it to people.
2. Create the new Drachman and "China-style" peg it to the Euro 1:1. Then, tell Europe that henceforth they will only receive new Drachmas in payment "and they will like it!" If they Europe accepts the Drachs in payment, instead of taking the default or declaring a war, then they have solved a bunch of problems and not only theirs.
Or,
http://www.zerohedge.com/news/guest-post-crazy-idea-might-just-work-greeces-new-currency-us-dollar
Yeah, saw that ...
A. they still have to default/repudiate the debt
B. they still put the control of the money in other people's hands. (Not something Jeffereson would have approved of... and the Rothschilds would salivate over.) Control is all about who creates the money and my guess is that Greeks are not wanting to substitute one master for the same master under another name.
The Greeks can go to any currency they wish, including a new drachma, and still not have control. If they go to a new drachma, the banks can write derivatives denominated in the new drachma and expand the money supply to the point of hyperinflation. No market? No problem. Call your buddy and trade or trade within subsidiaries.
The Greek people can be owned unless they can produce their own food, energy, and medical supplies. The banks will have control if so desired.
Notice to all parties: That only works as long as the courts [e.g. our justice system] enforce all valid contracts.
Solution is for courts to refuse enforcement of all unregulated contracts. Derivatives et al no longer can be shifted onto publics' shoulders. The burden stays on the parties to the contract, where it belongs and where it self-regulates with the justice system monitoring any criminal behavior that may be employed to privately enforce.
And the new Drachma would maintain that exchange rate on the black market how?
When will these Greeks (people) take over the country and kick out all these paper counterfeiting criminals? Time for a revolution!
And that will help how? One of the biggest problems was the degree to which the State had become the economic driver through promises, unions and debt. This was done by the folks routinely elected by the Greek people who wanted their 13th and 14th payment. No outside forced this situation on them except for the idiots who bought the debt.
Greece (indeed, any social welfare state) will fail unless the number of workers grows and the number retiring declines. In Europe (and particularly in Greece) the exact opposite is happening - declining population with skyrocketing retirees. No revolution is going to change that.
Greek people love that paper. That's the only way you can have everything for free, like retiring at 55, free school, free medical care, free, free ...
Every Greek public asset to be sold to continue the ponzi scheme that little bit longer.
I smell another FED bailout
Not until there is blood in the streets and I mean a lot of blood. The next bailout will be the one that pushes everything over the edge and uncle Ben knows this. It will be a have-to situation.
There will be more blood than you can handle once The First Gay President seizes power and offs YT....
European markets down 2-3% across the board - US futures nudge down only a tad - the Market's surety of a "Bernanke put" is disgusting.
The gold market doesn't agree with you.
Maybe it is just that US companies don't care that much about a tiny market like Greece which has been broke for decades.
Don't forget. Kicking the can down the road has value for politicians. Greece is not now, nor will they ever pay anybody anything back. All the money for the payments is borrowed. The pain the Greeks are suffering is the pain associated with cutbacks to the level their real economic activity. If you make $50,000 and spend $80,000 a year for a decade, even if you never pay any of the interest or principal, (always borrowing it) the cutback from $80,000 to $50,000 will feel like hell. Easier for the greek politicians to bame the Germans.
Kicking the can down the road has value for politicians.
I'm on my tippy toes wondering what they're going to do.
The suspense is killing me.
They could just keep printing the social service checks and handing them out. Everybody else is "printing".
Issue virtual checks to buy virtual food and virtual fuel.
Hold the front page. Strong rumours of a short term (2-3 month) pro-bailout coalition to hold the fort in Greece ... and then presume to ignore democracy. That will bring the left and the neo-Nazis out onto the street. We could be witnessing 'hystery'. Left and right out together to protest about the same thing. The world is going fu**ing crazy.
Arrrgh. The phony BenBernanke Industrial Average is way down!
Danger, Will Robinson!
Orthodox Greek Church is sitting on piles of cash. The church has more money than the government. Greeks know this and can figure out where to go if they're "in need".
For those that want Greece to Fail in a Globalised environment i have to say that you are living in the past. If you think that you will not have problems after this then i rest my case...
If Greece was a boat:
http://www.google.com/search?q=cruise+ship+sinking+2012&hl=en&client=fir...
If Greeks had half a brain...they would go to Disneyland in Paris and trade ther Euros for Disney Dollars ASAP.
People have been predicting this gloom and doom for Greece for quite a while now, and it always just ends up with someone giving them more cash. What's to stop either the EU or the United States from printing them some more money for them to go through?