The Greek €107 Billion Contingent Liability Gorilla Exposed

Tyler Durden's picture

From Mark Grant, as a follow up The Eight Hundred Pound Greek Gorilla Enters The Room


When we have been given the data on Greek sovereign debt it appears we have been misled. I have added up now the ISDA debt issuances and I present them to you; all of these issuances are GUARANTEED by the Hellenic Republic; full faith and credit.

GREEK SOVEREIGN GUARANTEED DEBT                                AMOUNT

The New Economy Development Fund                              $139,000,000.00

The Hellenic Railway                                                          $2,240,000,000.00   

Structured Notes (Not counting Floating Rate Notes)         $20,683,000,000.00   

Athens Urban    Transportation                                         $837,000,000.00

Greek Bank Guaranteed Debt                                            $83,314,000,000.00

TOTAL GREEK GUARANTEED. DEBT                                $107,213,000,000.00

Here is $107 billion of OTHER debt; guaranteed debt that does not appear to be included anywhere in the official Greek sovereign debt figures. Contingent liabilities that are not counted any longer perhaps as the accepted manner of doing business now in Europe. Most of these issuances are governed under British law with “Default” clauses and “Negative Covenant” clauses. Greece defaults on €105 billion Euros and adds new debt, the IMF/EU loans, of 130 billion Euros and we are told that Greece is better off today than yesterday. What drivel! With the addition of the new IMF/EU loans of $172 billion and the revelation of the guaranteed debt at $107 billion Greece now has $279 billion of new and hidden debts.

All of the meandering, all of the charades, all of the red nail polish applied will, in the end I forecast, not be able to hide the reality that the barking dog is a greasy Pig.

A Dose of Reality:

  1. If Greece borrows money from the IMF/EU which means that they have more debt now than they did before they defaulted then they are worse off and not better off as they have a larger debt.
  2. If Greece has an additional $107 billion in debt that has not been accounted for because it is not in the name of the Hellenic Republic but is guaranteed by the Hellenic Republic then how are they going to pay off this debt?
  3. If the goal of this entire exercise was to reduce Greece’s debt to GDP ratio to 120% then how will a larger debt accomplish this as it is fiscally impossible.
  4. If the “real REAL goal” was to pay off the European banks so they wouldn’t default then Europe has accomplished this goal but at a terrible cost to Greece and to the Greek people.


“The time has come, the Walrus said, to speak of many things. Of ships and shoes and sealing wax, of cabbages and kings. Of why the sea is boiling hot, and whether pigs have wings.”
                                         -Lewis Carol



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Ahmeexnal's picture

This will not end well.

All the conditions are ripe for a pan-european HOLODOMOR.  It is already starting in Greece.

And the same could/will happen in other parts of the world.  Global population reduction needs not nuclear weapons nor fancy virii.  Just close the food spigot, and the sheeple will bake/grill/fry/saute one another.

Are you prepared to eat your kids?

maxmad's picture

Kids... the other white meat!


BLACK MONDAY!!!!  Dollar has 2 weeks left!!!

Atomizer's picture

Just eat your FDA approved pink slime meat and STFU.


Manthong's picture

How could anyone have anticipated this?

Mercy me. I am shocked.

tom a taxpayer's picture

Breaking News: EURO SHOCK! Interpol alert for 100 billion euros missing! 

At 1930GMT Interpol announced a dragnet to find100 billion euros missing from Eurozone banks, insurance companies, and pension funds. The gravity of situation was indicated at the Interpol press conference when Chief Inspector Jacques Clouseau stated that he himself is taking charge of the unprecedented investigation. When asked how anyone could possibly walk away with 100 billion euros, Clouseau said, "It is a mystery. That is precisely why I am taking charge…to solve the mystery. It is my sacred duty. For this critical investigation I am putting aside solving other mysteries, such as who is allowing their dogs to poop on the sidewalks of Paris."

When asked why he doesn't say the money was stolen rather than missing, Clouseau replied, "I do not jump off the 30 meter board, I do not jump the shark, and I do not jump to conclusions. All possibilitieeees are under my microscope. For example, a recent case in America shows that money can vaporize…disappear into thin  air. To check this possibiliteee, I have contracted with Corzine Forensics and with the Vatican Miracle Investigation Unit."

Caviar Emptor's picture

Oh THAT 100 billion! Don't worry,  I just exchanged em for $1 Trillion in Reagan bonds 

SgtSchultz's picture

"Hello, Jon Corzine?  So can you please review those tips again?" 

GetZeeGold's picture



Free Jon Corzine!!!!


Oh wait......he is.


crazyjsmith's picture

Turn off cable!!

Could you imagine the population just turning off their TV? The impact that would have on their ability to instil fear and chaos?


Their ability to sway an election?


Their ability to wage war on false pretense?


Their ability to turn the indexes into nothing but measures of fraudulant data and divergent to the measures of the real economy?

Turn off the damn TV

The Boomers especially need to turn off the TV. That big block is currently hypnotized.

The Big Ching-aso's picture



The gorilla has exposed itself.  Great.  What next, dung throwing?

Oh regional Indian's picture

Well, watch the great Gorrilla (literally as he is being portrayed) KONY, not to be mis-taken with SONY be hunted down on prime time TV. That will take care of a lot of "revenge" and blood-lust the proles feel.

And the HELLenic Re-Pube-lick, which really is what any re-pube-lick is really (a feel good fantasy), well it's just living up to it's moniker.

The greatest illusionists in the world are at work in their Tavistock inspired labes(!), so we may get fooled again.



GetZeeGold's picture






We can't even prosecute Black Panthers with baseball bats at a polling station......on video I mind you.


I vote we fix our house first.


LongBalls's picture

Ron Pault is Ron Paul's gold buyer. He told me that gold is about to get hammered in terms of Dollars and to empty my piggy bank. The tsunami is about to take the gold water out to sea. But will return....and when it does...........

toadold's picture

He's kind of like Buck Godot, "Always available, never for free."

Ralph Spoilsport's picture

The Winslow knows what to do.

Kobe Beef's picture

Oh THAT 100 billion! Don't worry, it's loaded up on pallets for Baghdad..

putaipan's picture

me thinks thou sthock is stuffed full of meat glue.

resurger's picture

Black Monday !!!!! 3 days teh markets were


Poooooooooooooooooooooooooooof! Gone...

non_anon's picture

it's on like Donkey Kong or Jr.

Cadavre's picture

If you liked the circle jerk ponzi snake's head as a metaphor for embezzlement and fraud eating its tail metaphor, extortion, rolling through K-Street Back Allies wearing a G-man vest all the while recycling our alleged government's well documented corruption, you really gonna love this hidden bit of Kosher Nostra news that momentarily blipped the wires yesterday:

GAO: Banks Paying Back Tarp with Federal Money 

The Government Accountability Office says in a new report that banks that have repaid the Treasury Department's TARP bailout program did so with funds they received from other federal rescue programs.

The GAO’s finding undercuts the Treasury’s prior statements that effectively assert the Troubled Asset Relief Program has earned a profit for taxpayers. Specifically, the GAO says that, according to its new review, “as of January 31, 2012, 341 institutions had exited,” TARP, almost half by repaying...with funds from other federal programs.” For more, click here.

Juxtapose what the GAO said yesterday with the anthem CNBC sings all the time:

TARP "Most successful US Program Ever": Bove

In a research note, Bove noted that the controversial TARP saved the banking industry as well as the broader economy while generating a hefty return for taxpayers.

 Former President George W. Bush signed the $700 billion program into law on Oct. 3, 2008 as banks suffered a liquidity crisis brought on by the collapse of the subprime mortgage market. TARP recapitalized banks across the board—even many that didn’t need the extra money.

Bove praised the program for restoring faith in the system even though it has received a largely negative public perception.

Let us consider the so called diffusion air ventilation system:

CNBC business news reminds of low end track housing. Specifically the "vent" systems installed in low end track house bathrooms. In "not much higher ended residential development projects", the bathroom vent is coupled to a PVC pipe that actually vents the poopy smell outside the house. In low end homes, the vent system is just a fan box and not coupled to a vent pipe. The "vent" does nothing more than recirculate the stinky back into the bathroom. The post digestive bouquet remains in the house. A non ventilating ventilation system is referred to in the trade as a diffusion ventilation system. The stinky is not ventilated, is diffused, or stated differently, just mixed in, or diffused, into the existing air.

Diffusion Economics is the holy grail of Keynesian theory. The "stinky" don't get vented,

We ain't seen nothing yet! With every unchallenged legalese wrapped government pig 'n a poke, they get bolder - and pretty soon everything will smell like shit. It will be the "new" normal.

We bought it - now we must eat it - so the hopium narrative goes ... stay tuned .. the undeniable nothingness approaches, accelerates. You can see it's tentacles flailing just above the horizon.  It arrives and absolutes execute as they always have. 300 Million American Assholes will stab that bitch right down her throat, and beleive me baby, it is gonna hurt like an unspeakable metaphor.

Caviar Emptor's picture

Only two types of US citizens: those in on the Ponzi and those takin it up the ass

Michael's picture

This is why I just thank God every day for the complete and total worldwide economic collapse. It's the only thing that will fix our problem at this point.

ISEEIT's picture

Holy shit I love you Michael, you are seriously funny. (and correct).

GetZeeGold's picture



What's that infamous line about getting raped again?


I can't actually say it......I'm thinking about running for Governer for the state of Texas.


Cadavre's picture

Sumpin like, "when you're getting raped you may as well just sit back and enjoy it"

duo's picture

That's a great line for Clint Eastwood.

ViewfromUndertheBridge's picture

Those who do, and those who don't...acknowledge their Greekness.

duo's picture

"There are two kinds of men in this world, Duco, those in on the Ponzi, and those who take it up the ass.  You lube up."

Jendrzejczyk's picture

The GAO report linked goes to "file not found", but I think it is here:

Look through the charts till you see the pretty blue USA map.

Another interesting tidbit is in the footnotes to the next chart down.

SBLF is a $30 billion capital support program, separate from TARP, that encourages small and midsize banks and community development loan funds to lend to small businesses. When SBLF closed on September 27, 2011, the program had approved $4 billion in disbursements...

So a $30 billion program to help small businesses only managed to lend out $4 billion before closing down.

.gov loves small busines. Right!

Cadavre's picture

For sure that particular GAO report will be shuffled through a bunch of "safe houses" using a variety of assumed names in attempt to hide the bread crumb trail.

So a $30 billion program to help small businesses only managed to lend out $4 billion before closing down.

It's not their fault. There's a lot of overhead in the "taxpayer monies redistribution industry". Those in the "somebody else's money redistribution chain" include our our CSPAN politico super stars and drive by talking CNBC head gangster bankers and K-Street bag men. Whad'ya expect(?): smart, ethical, efficient, dedicated low paid public service patriots? This is the Banana Banking Colonies of America man! And thats just the way it be.

gov loves small busines. Right!

gov loves itself

sessinpo's picture


BLACK MONDAY!!!!  Dollar has 2 weeks left!!!


I doubt it. The Greek situation was prepared and gives the banks a little time (week or so at least). Two weeks left on the dollar? Before what? If you are referring to the US dollar, the situation in Europe only strengthens the US dollar at this point.


maxmad's picture

True the dollar will have a short lived rally as the other fiat toilet paper goes down the drain, but then-whack!!!!  Dollar will get crushed!!  US banks have so much tied up in Europe/Greece....  Most US banks will be bust, FED will print Quad-trillions of dollars, China, Russia will dump all their dollar holdings.... Dollars will come flooding back in----- all in 2 weeks!!!

valley chick's picture

how much exposure does the US have in this?

MinnesotaMD's picture

According to Dimon , barely any exposure. I can't believe that though. CDS was aBig piece at AIG. I don't think anyone knows for sure how much is out there. The layers of CDS exposure make it hard to know.

sessinpo's picture



"True the dollar will have a short lived rally as the other fiat toilet paper goes down the drain, but then-whack!!!!  Dollar will get crushed!!  US banks have so much tied up in Europe/Greece....  Most US banks will be bust, FED will print Quad-trillions of dollars, China, Russia will dump all their dollar holdings.... Dollars will come flooding back in----- all in 2 weeks!!!"


Look at your comment. That is making a lot of assumptions into the future with many market participants. My experience has told me not to do that. Take it one step at a time.


What if Europe goes up in flames as was the first premise. You are suggesting that China and Russia will dump dollar holdings. But what if they are having just as much trouble and the US dollar remains the safe haven?

If that were to happen, the US dollar would see amazing and unpredicted growth counter acting massive printing. That has been the Federal Reserve game plan and why they haven't been called on their corrupt policies. Can you  foresee beyond the rest of us that the Federal Reserve might not pull some hat trick to deal with a flooding back in? I can't though I think we would both be in agreement it wouldn't be a permanent fix and would ultimately fail.


Look, I agree with most of you that fiat currency, namely the US dollar, is corrupt and will/may eventually fail. I have also traded and studied markets for several decades and I learned a long time ago not to make to many assumptions into the future. Let's take it one step at a time. Do I really need to make the cliche about assumptions making an ass out of U and me?

MolotovCockhead's picture

"My experience has told me not to do that. Take it one step at a time."

While my experience tells me, he who panic first, panic best!

sessinpo's picture



"My experience has told me not to do that. Take it one step at a time."

While my experience tells me, he who panic first, panic best!"



Or perhaps a better saying is he that needs to panic is in the wrong place in the first place.

I had no money in Greece - no worries for me. I also find it awesome that so many have taken advantage of precious metals in the past. What are their dollar worries. I think they are smiling. Keep on your toes and take it one day at a time. To much manipulation and corruption to deal with. You'll go crazy if you don't take it one day at a time.

disabledvet's picture

It is interesting to listen to Maria B "think about a date"...and that would be the number of a month and a day kind of date...namely "We have until March 20th." Not that she isn't looking for the other kind of date of course. In my opinion "that really is the answer to this crisis." You know..."are ya' gettin' any?" I mean no one really has any control of this thing now. (That would be the situation in Greece, Maria. I know what you're really thinking however: that's me in the white in case yer wonderin'. "back in the day" as they say...

Cadavre's picture

Sure as Bambi is  liar, everyone knew from the get go Greek would default - the back and forth was a con to buy time so the central banks could stock up on ink jet cartridges, Spain and Portugal (and the UK) will be belly up soon.

To keep the dollar weak and still in currency war contention, a rating agency, will, just in the nick of time, save us from a strong dollar, and reassess US credit worthiness to B (do not forget US/capita public debt is tons more than Greece. Sheeeit - it's tons more than any body else period).

Hard to say what, if any, plans the invisible hand has in store for the markets. Easy to assume a strong dollar outcome, and based on the last two decadent decades, how a strong dollar outcome will affect equities,

Fridays market is an example: It was obvious that bearish HFT droids chumming bull bait was last week's setup. These days our poor HFT's are "playing' themselves . They're their own best marks! However, the expected carry correlation went fuzzy Friday. Most of the market the USD was more in demand than the EUR (strong dollar). Yet, the indexes remained somewhat positive but so did precious, energy and commodities. Gold passed through a 40$ trading range, and according to kitco, gold is [still] 10$ higher than its highs for the previous two markets.

A great short term timing opportunity will present, for sure, but to successfully play requires a clearer understanding of what the invisible hand has in the works. Was Fridays market the work of the invisible hand, or was it despite the invisible hand? Inquiring minds want to know!

Uchtdorf's picture

You're going to have to explain what you mean by the "2 weeks left" comment. I'm dense...go slow.

Bringin It's picture

madmax re. BLACK MONDAY!!!!  Dollar has 2 weeks left!!!

Do you mean March 27!!!

maxmad's picture

Could be..... I should say 2 weeks from when the Euro collapses... It will take at least a few more weeks for the Euro to collapse-but this will start it...

espirit's picture

I dunno.  So few carbon based traders left that SkyNet can ramp markets up or down correlating to or inverse the dollah, dEuro, etc.

This last friday proved the manipulation is inclusive of the global eCONomy, CONgress, CONstitution, CON... CON... CON...

Buck Johnson's picture

No kidding, I knew that there was major lies going on and they wouldn't be fighting so hard for a measly 3.2 billion in CDS's.

Xibalba's picture

"Black Monday", "Gorilla", ....  I thought Potus would be mentioned here.  

kito's picture

back to the bunker.........................

roccman's picture



Welcome to the Great Killoff