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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marks an important short-term hurdle as Greece is required to pay back EUR3.8bn to the ECB - and with collateral being withdrawn, we wonder how long before the ECB pulls the plug entirely - even on Greek T-Bills.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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Sun, 07/22/2012 - 15:17 | 2640693 LetThemEatRand
LetThemEatRand's picture

Yet this will not be a credit event.

Sun, 07/22/2012 - 15:26 | 2640717 cossack55
cossack55's picture

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

Sun, 07/22/2012 - 16:04 | 2640807 engineertheeconomy
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

Mon, 07/23/2012 - 04:05 | 2641726 AldousHuxley
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.



Mon, 07/23/2012 - 09:37 | 2642236 JPM Hater001
JPM Hater001's picture

Whoa whoa whoa whao whao whoa

You mean the solution to debt was not more debt?

Sun, 07/22/2012 - 16:32 | 2640865 CrashisOptimistic
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.

Sun, 07/22/2012 - 15:26 | 2640721 DoChenRollingBearing
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!


Sun, 07/22/2012 - 15:44 | 2640765 Aguadulce
Aguadulce's picture

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

Sun, 07/22/2012 - 15:47 | 2640769 Ancona
Ancona's picture

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

Sun, 07/22/2012 - 15:58 | 2640795 Michael
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.

Sun, 07/22/2012 - 16:10 | 2640822 engineertheeconomy
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!

Sun, 07/22/2012 - 16:16 | 2640833 ihedgemyhedges
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......

Sun, 07/22/2012 - 20:06 | 2641240 smiler03
smiler03's picture

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

Sun, 07/22/2012 - 21:24 | 2641455 StychoKiller
StychoKiller's picture

Spoken like a true bachelor!

Sun, 07/22/2012 - 17:55 | 2641031 sessinpo
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.

Sun, 07/22/2012 - 17:44 | 2641007 lynnybee
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 !  

Sun, 07/22/2012 - 16:01 | 2640801 johny2
johny2's picture

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

Sun, 07/22/2012 - 16:05 | 2640811 JLee2027
JLee2027's picture

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


Sun, 07/22/2012 - 15:28 | 2640729 Silver Bug
Silver Bug's picture

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

Sun, 07/22/2012 - 17:35 | 2640990 Fish Gone Bad
Fish Gone Bad's picture

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

Mon, 07/23/2012 - 11:34 | 2642739 Buck Johnson
Buck Johnson's picture

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

Sun, 07/22/2012 - 15:17 | 2640694 THX 1178
THX 1178's picture

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

Sun, 07/22/2012 - 15:27 | 2640725 cossack55
cossack55's picture

Iceland looks smarter and smarter every flippin' day.

Sun, 07/22/2012 - 15:38 | 2640747 Al Huxley
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.

Sun, 07/22/2012 - 18:16 | 2641074 JenkinsLane
JenkinsLane's picture

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

Sun, 07/22/2012 - 15:18 | 2640696 Chuck Bone
Chuck Bone's picture

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

Sun, 07/22/2012 - 15:20 | 2640702 Subliminal messenger
Subliminal messenger's picture

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

Sun, 07/22/2012 - 15:27 | 2640727 DoChenRollingBearing
DoChenRollingBearing's picture

+ 1

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

Sun, 07/22/2012 - 15:39 | 2640755 Al Huxley
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.

Sun, 07/22/2012 - 15:21 | 2640705 Thomas
Thomas's picture

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

Sun, 07/22/2012 - 15:24 | 2640715 Abitdodgie
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.

Sun, 07/22/2012 - 19:03 | 2641138 new game
new game's picture

or the UN gun treaty will not effect Americans.

Now that has me worried more than anything else.


Sun, 07/22/2012 - 15:21 | 2640706 debtor of last ...
debtor of last resort's picture

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

Sun, 07/22/2012 - 15:24 | 2640713 nasdaq99
nasdaq99's picture

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



Sun, 07/22/2012 - 15:24 | 2640714 ruffian
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  !!!

Sun, 07/22/2012 - 15:40 | 2640760 Al Huxley
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.

Sun, 07/22/2012 - 15:53 | 2640782 ruffian
ruffian's picture

spain 282 tonnes

portugal 385 tonnes

italy 2500 tonnes

Sun, 07/22/2012 - 15:56 | 2640790 ruffian
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

Sun, 07/22/2012 - 15:26 | 2640723 Piranhanoia
Piranhanoia's picture

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

Sun, 07/22/2012 - 15:30 | 2640733 Joebloinvestor
Joebloinvestor's picture

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

Sun, 07/22/2012 - 15:41 | 2640736 bob_dabolina
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.

Sun, 07/22/2012 - 16:12 | 2640827 Burnbright
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. 

Sun, 07/22/2012 - 16:26 | 2640852 bob_dabolina
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.

Sun, 07/22/2012 - 15:33 | 2640739 Hype Alert
Hype Alert's picture

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

Sun, 07/22/2012 - 15:44 | 2640740 MsCreant
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)


Sun, 07/22/2012 - 15:40 | 2640743 RobotTrader
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.

Sun, 07/22/2012 - 15:50 | 2640766 tahoebumsmith
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...

Sun, 07/22/2012 - 20:11 | 2641245 smiler03
smiler03's picture

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

Sun, 07/22/2012 - 16:03 | 2640804 DoChenRollingBearing
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?

Sun, 07/22/2012 - 17:22 | 2640957 resurger
resurger's picture

why, did you buy some Tbills?

Lord Help us all

Sun, 07/22/2012 - 17:47 | 2641013 RiverRoad
RiverRoad's picture

So will we go negative too before this is over???

Sun, 07/22/2012 - 15:39 | 2640752 tahoebumsmith
tahoebumsmith's picture

I love the smell of deer in the headlights in the morning...

Sun, 07/22/2012 - 15:39 | 2640753 kito
kito's picture

too bad it wasnt greece doing the kicking.........

they should have taken the cue from ecuador a long time ago....kick the lifeblood sucking parasites out of their country......



Sun, 07/22/2012 - 23:01 | 2641559 Cosimo de Medici
Cosimo de Medici's picture

If you study the genesis of the current Greek situation closely, you might find that if ALL the parasites left the country.......well, let me put this another way using an old quote, "if my demons leave me, I fear my angels will soon follow".

Almost everybody, public and private, contributed to the Greek debacle.  The debt is everywhere.

Sun, 07/22/2012 - 15:39 | 2640754 silvertrain
silvertrain's picture

time to sell some more islands

Sun, 07/22/2012 - 16:02 | 2640805 The Navigator
The Navigator's picture

I'll take 1 - can I pay in Drachmas?

Sun, 07/22/2012 - 15:45 | 2640761 Conman
Conman's picture

German Vice Chancellor Philipp Roesler says

“If Greece does not fulfill its conditions, then there can be no further payments to Greece,”


“but then perhaps the discussion will start in Greece itself and the Greeks will themselves come to the conclusion that it is perhaps smarter to leave the eurozone.”


Yup Germans are hoping that the Greeks leave the euro by themselves, but will nudge them into it by withholding funds . Keep in mind he is also the economy minister, which makes you wonder if the germans have already decided a grexit (and in turn a euro collapse) is no threat to the german economy.


Sun, 07/22/2012 - 16:18 | 2640840 reload
reload's picture

The ECB is now holding most of the `troubled sovereign` paper that the German Banks were stuffed full of. I have always thought that once Germany had ensured their banks were a bit safer (and they are a long way from being properly safe) they would feel different about backstopping the entire Euro project.

With Spain beyond saving and Italy deteriorating how long before France comes into the `troubled sovereign` camp? Having had a couple of years to ubderstand the size of the problems, Germany must be thinking `it might be smart to walk away`.

Meanwhile, here in the UK the BOE continues to buy our governments debt as they miss all their own fiscal targets. Without the BOE where would UK yields be? 7% probably.

The house of cards feels more shakey than ever.

Sun, 07/22/2012 - 16:36 | 2640873 CrashisOptimistic
CrashisOptimistic's picture

For the 500th time, there is no mechanism in the EU treaty to allow a country to leave, or to force it out, or to acquiesce to it leaving.  

There is nothing for Greece to gain by leaving the Euro.  The debt they owe is denominated in Euros and no creditor will allow them to change that to drachmas.

They have no solution other than to evacuate the country.  Then the debt becomes meaningless.

Sun, 07/22/2012 - 17:58 | 2641037 Conman
Conman's picture

Germans will be forcing them to leave indirectly by starving them out, both in the literal and figurative sense. Greece can leave the euro currency whenever it wants by printing drachmas.

Sun, 07/22/2012 - 20:15 | 2641253 smiler03
smiler03's picture

There was no mechanism for the Euro zone to change the rules by a majority vote, it had to be unanimous. Germany pissed on that rule a while ago, so they can do what the hell they want, the rulebook has already been torn apart and used as toilet paper.

Sun, 07/22/2012 - 21:31 | 2641465 StychoKiller
StychoKiller's picture

What, is the EU army/navy gonna roll up to their border and FORCE them to stay?

Sun, 07/22/2012 - 15:43 | 2640762 negative rates
negative rates's picture

Is that before, or after, the newly printed cash arrives from London?

Sun, 07/22/2012 - 15:49 | 2640775 aleph0
aleph0's picture


Didn't that "announcement" come from the EU, rather than the IMF ?

You'd think they'd wait 'til Septmber wouldn't you ?
Almost like wanting to self-destruct.

Sun, 07/22/2012 - 15:51 | 2640779 Joebloinvestor
Joebloinvestor's picture

Lagarde grew some BALLS.

Sun, 07/22/2012 - 15:55 | 2640783 Conman
Conman's picture

You mean calling the Greeks tax cheats while not having to pay any taxes herself wasn't ballsy? Oh wait it wasn't it was just idiotic, and shows you how deranged these officials are.

Sun, 07/22/2012 - 15:52 | 2640781 belogical
belogical's picture

I think they have had enough time to net out the loses and now they want an excuse to pump money into the global economy. Greece did not jump ship in june as they thought so now they'll make life unbearable until they get thrown out. In will go the QE and the banks will hang on for a little longer

Sun, 07/22/2012 - 15:59 | 2640797 spekulatn
Sun, 07/22/2012 - 16:00 | 2640799 alien-IQ
alien-IQ's picture

This is shaping up to be an absolutely psychotic week in the FX market. I can't wait. Very exciting.

Sun, 07/22/2012 - 16:07 | 2640814 Poetic injustice
Poetic injustice's picture

Yes, money evaporating should really shock markets. In world which is sane, that is.

Sun, 07/22/2012 - 16:11 | 2640824 q99x2
q99x2's picture

Banksters must have robbed Greece of everything not nailed down. Spain next. To the front. To the front. The IMF moves to the front.

Sun, 07/22/2012 - 16:20 | 2640844 Grand Supercycle
Grand Supercycle's picture

As mentioned before, market intervention has only postponed the inevitable.

Despite short and medium term market vacillation - the following remains a constant :

>> USDX monthly indicators [ie big picture] continue to warn of significant long term USD upside. (thus EURUSD & AUDUSD etc bearish)

>> SPX monthly indicators [ie big picture] continue to warn of significant long term downside for equities which will be worse than 2008.

Sun, 07/22/2012 - 19:31 | 2641184 Bob
Bob's picture

That's what I love about the Tylers.  Hilarious!

Mon, 07/23/2012 - 03:27 | 2641715 doc_in_the_house
doc_in_the_house's picture

unbelievable !!

IMF pulling the $ spigot (welfare) from greece the PIIGS!! I saw this coming...just not this soon and i still can't believe it..

though i called the TOP of the casino on Thursday spx @ 1380 baby !!! = been riding since and will ride til Sept when greece goes bust = buy (cover shorts) on the news?? spx to 1100


whose your daddy?? LOL !! ROFLMAO !!! futures are down baby !!

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