No More Mr. Nice Guy As IMF Set To Kick Out Greece

Tyler Durden's picture

It appears that following the resignation letter fiasco from Friday, the venerable IMF is trying to regain some level of credibility in the world. In a note obtained by SPIEGEL, senior IMF officials patience has clearly come to an end and has decided that, with Greece likely to go bust by September, it is no longer willing to provide additional Greek aid (we assume in light of the push-backs on the promised cuts that the aid was based upon). Pointing to this now being a euro-zone problem, their cessation of Greek aid is even more critical since both Holland and Finland pledged support because the IMF was involved. August 20th marks an important short-term hurdle as Greece is required to pay back EUR3.8bn to the ECB - and with collateral being withdrawn, we wonder how long before the ECB pulls the plug entirely - even on Greek T-Bills. Whether this is sabre-rattling before the delayed TROIKA visit or the IMF (and the rest of the TROIKA) indeed deciding enough is enough and realizing finally that more debt (or even maturity extensions) does not solve the problem of too much debt - only default will do that!

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LetThemEatRand's picture

Yet this will not be a credit event.

cossack55's picture

The only credit event "they" recognize is your credit card being declined.

engineertheeconomy's picture

Interest is only imaginary, it's a con game and the joke is on us

 2nd grade level math

 Human primates are no smarter than non human primates

AldousHuxley's picture

IMB kick out greece,  greece defaults, European  banksters (Fracen/Germany) suffer losses on greek debt, greek central bank prints a ton to make labor globally competitive, unemployment goes down while rest of europe is stuck at high unemployment.



yeah...doesn't like it is going to help IMF owners, France/Germany.



JPM Hater001's picture

Whoa whoa whoa whao whao whoa

You mean the solution to debt was not more debt?

CrashisOptimistic's picture

FYI, my recall is the IMF has NEVER had a loan defaulted, and this will be no exception.

Greece can say they default.  The IMF can shrug and put a surcharge on their oil imports, enforced by NATO ships.  

And that will take care of default.

DoChenRollingBearing's picture

It WILL be an interesting week, however.  I can hardly wait to see how the futures react to this...

Oh, wait!  I should already know this!


Aguadulce's picture

Tomorrows Greek response headline: "the nation of Greece is ashamed to have had any association with the fund at all".

Ancona's picture

Actually, it should say, "Greece restores national pride; Welcomes back Drachma"

Michael's picture

I truly don't believe TPTB have real control of exactly when the system collapses. They could pull the trigger today and everything will be done in two weeks but they won't because all their aristocrat family owned banking houses go bankrupt and cease to be. I believe their plans for world domination are not in place and the Ron Paul crew permanently killed their chances of pulling it off.  Their only game now is to preserve as much wealth for themselves as possible. Their monetary system is kaput as per my plans.

engineertheeconomy's picture

Lets compare Greece to Cali. If California leaves the Dollar and starts using it's own fiat currency today, nothing will change. Except, of course, that California could choose to use an honest monetary system that benefits everyone instead of the current dishonets one that only benefits the rich. The rest of the states would not collapse because they would continue to print the dollar and people would eat it up like apple pie. Wave a hundred dollar bill in front of a prostitute and tell me she's not going to fuck you!

ihedgemyhedges's picture

Thanks for the segway.  Your last sentence is the reason why a man shouldn't get married JUST so he has a steady supply of sex.  100 dollar bills versus 1/2 of ALL your dollar bills.  Not to mention 1/2 of the rest of your stuff too......

smiler03's picture

You porn obsessed unhappily married types are a sad reflection on ZH readers as a whole.

sessinpo's picture

One difference. CA would experience much higher bond rates then now. CA is way behind Greece and has yet to experience real monetary problems. The municipal bankruptcies are nothing.

In an already weak economy, this may drive more business out to neighboring states. Politicians in CA are doing the same thing politicians around the world are doing - nothing - waiting - and hoping for a bailout.

lynnybee's picture

 "I truly don't believe TPTB have real control of exactly when the system collapses."     ... i don't know whether to laugh, cry, or cheer !  

johny2's picture

It is the Karma, the Europe will break up, and the biggest loosers will be Germany.

JLee2027's picture

To quote Mr. Panos: "Greece has a problem? No, you gave Greece the money. You have a problem."


Silver Bug's picture

About time is all I can say. Let's get this over with so we can begin to rebuild.

Fish Gone Bad's picture

Greece isn't even a real country, so I don't think this will be considered even newsworthy.

Buck Johnson's picture

No kidding, they are doing everything they can to say nothing is a credit event.

THX 1178's picture

Faster and faster. Where it stops? ZH knows...

cossack55's picture

Iceland looks smarter and smarter every flippin' day.

Al Huxley's picture

Everybody knows WHERE it stops - the million dollar question is WHEN it stops. The 'kick the can' game has been prolonged a lot longer than any reasonable estimation of the situation would have suggested was possible.  I've given up and am now guessing maybe 2090 they'll finally hit the end of the road.

JenkinsLane's picture

If I get a further five years from now I'll think myself a lucky man.

Chuck Bone's picture

Only default... or a sudden coordinated devaluation of the euro.

Subliminal messenger's picture

I'm short CAC40, AEX and S&P. Bring it on.

DoChenRollingBearing's picture

+ 1

I think that you have a good bet there, sir!

Al Huxley's picture

Makes some good, logical, fundamental sense, based on the reality of the situation.  I think the pigmen are going to hand you your head in a basket.

Thomas's picture

Indeed. They will call it a "banana" and there are no credit banana swaps so all will be OK.

Abitdodgie's picture

Why will Greece go bankrupt when you can print as much money as you need , next you will be telling me what fair elections we will have this year, how about, Romney is totally different to Obama, and if we can just get him in everything will change or the UN gun treaty will not effect Americans.

new game's picture

or the UN gun treaty will not effect Americans.

Now that has me worried more than anything else.


debtor of last resort's picture

Save the banks, pull the plug, rinse, repeat.

nasdaq99's picture

yup, this should blow a $150b hole it the ECBs balance sheet and lots of collateral damage elsewhere.



ruffian's picture

Just push the Red (gold) button...........instant collateral of whatever value the global tender offer puts on it........Spain, Greece, italy have a shitload of gold as % of reserves............BRING IT  !!!

Al Huxley's picture

I recall reading back in 2006 or 2007 that Spain sold their gold because it had no yield - they traded it for sovereign debt.  Seriously.

ruffian's picture

spain 282 tonnes

portugal 385 tonnes

italy 2500 tonnes

ruffian's picture

all three counries in top 20 and italy is #3 in the world with 71% of it's foreign reserves in physical bullion

Piranhanoia's picture

"We're the IMF,  and we're here for you as long as you don't need us!"  

Joebloinvestor's picture

Does anyone know if the Greek pledged gold has been moved yet?

bob_dabolina's picture

August 20th - Greece

Labor day (Sept. U.S debt ceiling)

September - Spain

3 stock market crashes have occured during October:

oct 29th, 1929

oct 19th, 1987

oct, 2008

A plethora of econ. data already shows a contracting world economy.

Looks like a lot is coming to a head in the next few months. Will we see a repeat of past Octobers? He who sells first, sells best.

Strange concidence - A severe drought also occured during the depression of the early 30's.

Things that make you go hmmmmm.

Burnbright's picture

Strange concidence - A severe drought also occured during the depression of the early 30's.

Things that make you go hmmmmm.


Or governments have a nack of blaming low crop yields and production levels on natural occurances. Regardless if their is a drought or not, the problem isn't the drought itself but it just aids in destroying miss management and poor capital allocation that occurs from central planning. 

bob_dabolina's picture

I wasn't suggesting the drought of the 30's caused the depression.

I agree, central planning causes poor capital allocation. It's a fact that the more government gets involved in an industry/sector the more that area gets fucked up.

Hype Alert's picture

When did the great democratic state of Greece vote such power to the IMF?  Shocking.

MsCreant's picture



Load up on guns, bring your friends 
It's fun to lose and to pretend 
She's overboard and self-assured 
Oh, no, I know a dirty word 

Hello, Hello, Hello, How Low 
Hello, Hello, Hello 

With the lights out, it's less dangerous 
Here we are now, entertain us 
I feel stupid and contagious 
Here we are now, entertain us 

...Oh well, whatever, never mind

(Dave Grohl, Kurt Cobain, Krist Novoselic)


RobotTrader's picture

Wow, more and more money will be fleeing into U.S. Treasuries and California muni-bonds on Monday and Tuesday.


Gonna be fun to watch the epic meltup.

tahoebumsmith's picture

Now that is too funny Robo! Money fleeing Greece and into Cali muni bonds? Last I saw the debt in Greece was 450 million Euros? If you didn't know because the MSM has not published one article pertaining to the subject, Cali ended its fiscal year on July 1st coming up about 18.3 BILLION short!!!! LMFAO  Put that in your chart pipe and smoke it...

smiler03's picture

If US treasuries are so bloody fantastic then how come they don't have negative yields yet, like France?

DoChenRollingBearing's picture

@ RobotTrader

+ 1

Your calls have been spot-on re Treasuries.  10-Year yield down to 1.0% over the coming weeks/months?