Scandal: Greece To Receive "Negative" Cash From "Second Bailout" As It Funds Insolvent European Banks
Earlier today, we learned the first stunner of the Greek "bailout package", which courtesy of some convoluted transmission mechanisms would result in some, potentially quite many, Greek workers actually paying to retain their jobs: i.e., negative salaries. Now, having looked at the Eurogroup's statement on the Greek bailout, we find another very creative use of "negative" numbers. And by creative we mean absolutely shocking and scandalous. First, as a reminder, even before the current bailout mechanism was in place, Greece barely saw 20% of any actual funding, with the bulk of the money going to European and Greek banks (of which the former ultimately also ended up funding the ECB and thus European banks). Furthermore, we already know that as part of the latest set of conditions of the second Greek bailout, an 'Escrow Account" would be established: this is simply a means for Greek creditors to have a senior claims over any "bailout" cash that is actually disbursed for things such as, you know, a Greek bailout, where the money actually trickles down where it is most needed - the Greek citizens. Here is where it just got surreal. It turns out that not only will Greece not see a single penny from the Second Greek bailout, whose entire Use of Proceeds will be limited to funding debt interest and maturity payments, but the country will actually have to fund said escrow! You read that right: the Greek bailout #2 is nothing but a Greek-funded bailout of Europe's insolvent banks... and the Greek constitution is about to be changed to reflect this!
The smoking gun quote:
The Eurogroup also welcomes Greece's intention to put in place a mechanism that allows better tracing and monitoring of the official borrowing and internally-generated funds destined to service Greece's debt by, under monitoring of the troika, paying an amount corresponding to the coming quarter's debt service directly to a segregated account of Greece's paying agent.
As for the priority of payments - it is more than clear:
Finally, the Eurogroup in this context welcomes the intention of the Greek authorities to introduce over the next two months in the Greek legal framework a provision ensuring that priority is granted to debt servicing payments. This provision will be introduced in the Greek constitution as soon as possible.
So there you have it: the Second Greek bailout is nothing but the first Greek bailout of Europe's banks! And the Greek constitution is about to be changed to reflect that.
Congratulations Greece - you just got royally raped by your own unelected rulers and you didn't even know it.
Full Eurozone document (source).
(29 votes)
»
- Login or register to post comments
- 33310 reads
- Printer-friendly version
- Send to friend
Similar Articles You Might Enjoy:
- PSI Scenarios And Greek Bond Trading Thoughts
- Greek Bailout Or Deliverance?
- RANsquawk European Morning Briefing - Stocks, Bonds, FX etc. – 20/02/12
- RANsquawk European Morning Briefing - Stocks, Bonds, FX etc. – 08/02/12
- CMA Now Officially Assumes 20% Recovery In Greek Default - Time To Change Sovereign Debt Risk Management Defaults?
What should we expect from a bunch of thieving technocratic banksters?
Ah the ability to call a debit a credit and a credit a debit is a wonderful thing...
and an insult to humanity...
"So there you have it: the Second Greek bailout is nothing but the first Greek bailout of Europe's banks! And the Greek constitution is about to be changed to reflect that."
constitutions are so 18th century lately.
and in a stunning move, Harlequin001 was found living half way around the world and showing nothing if not a middle finger to Europe.
Go fuck yourselves, twats, and take your Tax Information Exchange Agreements with you...
Let's just be thankful that these guys are in charge and go fuck ourselves.
I've been trying to fuck myself all my life but it seems the easiest way is to simply move to Greece.
Et Voila, instant shagging...
Greedy broke bansksters are gettin' desperate.
LOL. Watch the world crumble in a matter of months. Fuckers are ruining all forms of finance. Idiots.
Yesterday what was real is now surreal. Tomorrow what's surreal will be unreal.
Banksters own the earth, thanks to Deep Capture & the fractional reserve banking Ponzi of a foundation that the economy is built upon.
Any questions?
EU Bailout ...
Giant Ponzi Fraud ???
(( Maddoff Wondering WHY He Is In Prison... ))
The really important part of the deal is that the Greek Constitution is being amended so that imterest and principal on Greek Bonds will be paid FIRST, before anything else. Think about that.
@ Truth
They don't own ALL of the gold.
From someone far more of an insider (and vastly more intelligent) than myself:
People are stupid and get what they deserve.
To long Greek people lived in paradise of promises and "credit cards" spending. Greeks continuesly elected polititions who promise a lot for notyhing.
What do they expect now? Jewish Banking Mafia will take care of them. Another general strike. It is really the time to face reality and to take care of trators among them.
ahhh, i love the smell of tear gas in the morning..........
What if Greeks just physically abandoned the EU (pronounced EeeewwwWWW!!) and started getting in little boats to cross the Mediterranean bound for Libya, declaring themselves to be refugees fleeing an unelected tyrannical dictatorship that was starving them to death, and robbing them of what little they have remaining, and enslaving their children, and vociferously lobbied the UN for sanctions to be imposed on the Eeeeewwww's exports, and an oil embargo, plus relentless precision airstrikes on Brussels, in advance of a Russian and Chinese backed regime-change, to rid the world of a barbarous dictatorial vermin class?
da sickurity council will savor us!
this is finance? is this what they teach in college? damn...the best major ever?
What do you expect from a world that considers a liability to be an asset?
a freebie handout per chance?
A pound of flesh?
Whatever you call it, debit, credit, royal screw job, the bankers win again. Can I get the franchise rights for selling KY jelly in Greece?
You can, but I don't think anyone's got any money...
No, but you will be able to sell a truckload of KY on the streets of America very soon.
We are going to need more than what Walmrts has in order to take the cost of this up the USA's ass....because we all know who is going to pay for it and it is NOT the French and it is not the wealthy.
Why would Greeks want Kentucky Jelly?
1)better than sand
2)astroglide supplies are depleted
Don't expect anything. Just sit back and watch the well deserved failure to fall out of this venal nonsense. We are dealing with thieving gold-diggers (don't want to give whores a bad name).
I remember this one POS gold digger chick who would have her real estate pal illegally check out the income of guys she would go on prospective dates with from online sites where she would troll -- funny how in the end she ended up screwing a broke bum in the backseat of her car all while living at her mom's house to better afford her fake lips -- this is karma boys and this is what is going to happen to our pals in Greece -- let's just hope after this shit gets cleared up Greece can model herself after Iceland, though i doubt it....
Your analogy is rather poor. A better analogy would be to blame the teen addict who took heroin free of charge from a 40 year old multiple felon drug dealer with the promise of more. Eventually the drug dealer wanted money and when the teen couldn't pay, the dealer forced him out on the streets to suck the cocks of bankers to pay for his own addiction.
Were the Greeks dumb for taking the money? Sure. Did they have a choice? Probably not really. By the way pal unless you live in Singapore your government is borrowing money in YOUR name and you will get Greeked in due time.
The difference between Greece and Iceland is that Iceland was slightly less corrupted and controlled. Sounds like Iceland is getting it in the can from vulture funds instead of banks which are probably owned by the same people. No where to run from the New World Order. Keep thinking you are morally superior though, you'll learn...the hard way.
My analogy is not poor at all, it is just incomplete: the women in question WAS an ADDICT! So thanks for filling it in. And yes I am morally superior to the trash, maybe not to you and your sanctimonious judgements of posters here!
And don't you find it funny that you equate an ancient culture and nation like Greece, home of Plato and Aristotle and essentially origin of all Western thought, to a child whereas the criminals of Europe are the 40-somethings -- that is the poor analogy!
They did run around talking about 'the gods' a lot and buggering both little boys and slaves. Can you really blame us?
I hope Heraclitus can get an exit visa.
i guess greece today is the little slave boy to europe. oh well, the ANALogy is quite apropos. and the gold digger chick is still probably getting it in the you know where...
And just like the greek politicians knew exactly what they were doing, so did the bankers. but alas, the gold digger and the banker always revert to the identical excuse: we didn't know what we were doing. getting fucked (over) with a smile.
vast', pardon the rude interjection here, but would you happen to have her phone number? I'm kinda low on cash right now, but I've cleaned out the back seat of my '91 gmc pickup. thanks in advance.......
Hah! No I don't have her digits. But I'm sure you can get some VD from fake-titted fake-lipped gold diggers elsewhere, no? And '91 is nice vintage for ur GMC btw.
You knew that chick, too? Good news is, I'm not a bum anymore. I must say she did have a nice backseat.
let me assure you that the bum is still a bum and the gold digger is, well, fatter and older and still a sad case, more at cationary tale.
Ah, different gold digger then. They all get what they deserve, in the end. Karma, bitchez.
The real thieves here are the members of the Hellenic Parliament who bought the story that there was nothing that could be done to save the people of Greece but if they voted to change the constitution they could at least save themselves...
At least the banksters are happy: that's what we're all here for anyway.
sounds just like the AIG "bailout"
Storm in a teacup, as ever. Greece will be saved next month. Believe me, "they" will not let Greece default, on a lousy 14 billion euros. In the end, mr Draghi will simply print that tiny amount and Greece can pay off. No default, no collapse. Markets will rally. Boring world we live in.
They will start to know later in the week when it hits them how much they have been robbed.
I wonder if Greece gets a toaster with the deal?
Squeal like a pig
For about the 100th time, maybe Greece shouldn't have a technocrat in charge?
For about the 1000th time, maybe Greece has a legally and freely elected PARLIAMENT that is responsible to put a government in charge? http://en.wikipedia.org/wiki/Hellenic_Parliament AND http://en.wikipedia.org/wiki/Parliamentary_system
Complete loss of faith in the political system unless they actually get an opposition that understands the innerworkings and has the courage to halt the corruption. Short of that, it only gets worse.
the cupid leading the blind leading the impoverished. Greek hamburger, three layers, all to be eaten by the banks.
I thought the only reason to undertake an opposition stance was to muscle in on your share of the corruption?
this applies to many politicians - though not for (careful, heavy word incoming) patriots
every nation get's in some tight spots, from time to time, I have some faith in the Greek spirit of patriotism, I personally witnessed some. It just has to emerge...
I notice a lot of rubes saying Greece is just taking it and not doing much. But I've seen a lot of Greek riots, bombings of banks, burning buildings, and even burning people since March 2010, plus regular massive strikes and demonstrations, and relentless attempts to storm the parliament, as well as prominent politicians being attacked, bashed and fleeing for their lives, while being denied the ability to vote on any of it, in the home of democracy, and even resorting to covering gigantic monuments with even larger banners, telling the Eeeeewwww to get-stuffed.
The Greeks are making it very clear what they think.
Only the traitors in cushy high official positions are ignoring this and you can be sure their names are known and they are on very lengthy 'TO-DO' lists.
element, before you criticize the Greek political process please state what exactly your ideal political process would be. there are very few republics based on democratic principles that use referendums. is referendums you are asking for? and if yes, do you hold referendums as binding?
in theory you can have some 10% of the population rioting, 20% sympathizing and 70% sitting at home and being against it - what would your response be?
There is some good news. Greece cannot institute a new amendment to its constitution until 2013. So any new bailout provisions that require one can be blown off, assuming the Greeks stick to what their constitution actually says.
Greece cannot institute a new amendment to its constitution until 2013.
Didn't you get the memo? Policy and law don't matter anymore. If the banksters want this year, they will get it this year.
ahhh yes... the Golden Rule ...
Or the principle which states it's easier to bribe one room full of men than each citizen directly.
For about the 1000th time, a parliament is nothing but a collective abstraction, therefore "it" has no capacity for responsibility, let alone a means of acting, or thinking, or anything. Is it really so hard to recognize these things called governments are nothing more than covers for the criminals (a.k.a. real, tangible beings) operating within them?
Please put down the Kool-Aid and step away from the bar. If you believe that a ruling-class criminal cartel shares any interest with the commoners they lord over, then you are but their servant, witting or not.
the Greek Parliament is not an abstraction, they are 300 very real citizens that were elected by the people to take care of the state, by appointing a government and making or amending laws.
I don't know where you live, perhaps in some dictatorship. I, for myself, live in a democracy and want to preserve that. and so I feel I have to respect the democratic procedures of a foreing country. I might disagree with them - respect is still due.
Fraud fraud fraud
This is a ponzi with a three card Monty game tacked on it to give it the veneer of legitimacy
What a scam
They cannot be that stupid. The people will find out about this and the riots will move to the next level. European bankers and politicians have turned into mass rapists.
This cannot Stand!
it has been this way all along, and will end the same way in all countries with rothschild controlled central banks. The New World Order is in essence a banker controlled world government.
Your thoughts and conclusion makes you a genious. You have just articulated what many fear to acknowledge. Greece is the blue print for total bankster domination. Their financial schemes give them implied control. The undermining and destruction of national governments through fraud and debt slavery give them actual control.
Supra national, unelected organizations have been doing bankster bidding, since WW 2.
Right--the Greeks will also hold their breaths until their faces turn blue...
First thought: Of course, we knew that this was the whole point.
Second thought: Ha-Ha-Ha-Ha-Ha-Ha-Ha-Ha-Ha- <<sarcasm>>
Third thought: Wars are fought over this sort of thing. Big wars.
If someone wrote a novel and fictionalized what is going on in the world today, it would never get published. The publisher would tell you it's too far-fetched, no one would believe it.
nah L0L!!!
eat, sleep, shit, fuk, + ?
oh! and blog on zH!
Slewie, I think you forgot ... WORK
I think they need to start naming names. I would like to see all the names of negotiators on both sides being published along with the names, if any, of the executives directing them if they are not involved directly. They should also publish home addresses and family members names. These assholes need direct confrontation by the masses.
Can someone confirm that if Greece fails to fund this "escrow" account, with money they don't have and that is earmarked to fund EU banks, that they have agreed to forfeit their gold holdings? Wouldn't that be the absolute biggest kick in the balls yet? These pirates need to be stopped ASAP.
Greek citizens = slaves to the new pharao(s) (ECB & money center banks)
The Greeks let this shit happen while the getting was good, so the bankers and politicians (even the un-elected ones) aren't totally to blame.
The EU is complicit also for accepting the fudged #'s from Greece to join the EU (they were turned down twice).
Nice to see the "evil ratings agencies" have started to give their $0.02 on the results (downgrades).
My dear friend, the people got their cue from vote buying politicians and from bankers buying politicians everywhere. As they say, a fish smells from the head.
Isn't this about Greece? Why all the discussion on how America is run? Oh wait... My bad.
I reject your anti-Democratic and anti-liberty argument that individuals can be held responsible for the debts and deeds of other individuals simply because they happen to be citizens of the same country. Most Greeks never had a say in the matter, and the young Greeks are feeling all of the pain without any of the benefit. How about I run up $50,000 in credit card debt then send you the bill? Sound fair?
What's funny is that no matter where JoeBlo lives, somebody's already borrowing and spending in his name.
There is an unstated order to this socialism: wealthfare first welfare second, or put another way all PIIGS are equal but some pigs are more equal than others.
"some pigs are more equal than others"
Makes me remember this line:
Four legs GOOD. Two legs BAD.
http://en.wikipedia.org/wiki/Animal_Farm
The novel addresses not only the corruption of the revolution by its leaders but also how wickedness, indifference, ignorance, greed and myopia corrupt the revolution. While this novel portrays corrupt leadership as the flaw in revolution (and not the act of revolution itself), it also shows how potential ignorance and indifference to problems within a revolution could allow horrors to happen if a smooth transition to a people's government is not achieved.
Unstated order? Yea, like the New World Order.
Cdad is taking the under on the number of days until the Greek Parliament building catches fire. Cue StopCartel TV.
Rod Serling is jealous!
They really want to push this beyond tear-gas and burning buildings, do they?
Gotta create the casus belli for WWIII somehow. After all, it isn't like wars start on their own accord.
Rynak in a messenger window 5mins ago: "There is no interest anymore in keeping the host alive. They're now looting on fire until the host drops dead."
Why didn't occurr that to me?
Never trust a Press Release where they spell program as "programme".
Au contraire I find lots of UK press objective and interesting. Many BBC programmes are exceptional. Adam Curtis comes to mind. His latest documentary, "All watched over by machines of loving grace" is good as are his other works, e.g. "The Living Dead" and "The Trap."
http://www.youtube.com/watch?v=hc-YMpgcqKg
"Au contraire" is French BTW. And the presumably excellent "programmes" you mention are entertainment and not specious documents issued by onerous banksters.
The documentaries are entertaining and educational.
I get it. You work for the BBC. Thanks.
I am not not trying to raise your ire by speaking Francaise about British programmes. I referenced the BBC and a press "programme" to provide continuity between our comments. I think Adam Curtis documentaries are entertaining, as you said, and they also cover many aspects of our current financial quagmire. For example they mention that after the IMF bailed out countries during the Asian Crises and the bankers got their money, all of the economies collapsed. The bailouts were so that the bankers got their money. Will probably see something similar in Greece. I did not red or green flag you. I have finished working for anyone else. You're welcome.
"the Greek bailout #2 is nothing but a Greek-funded bailout of Europe's insolvent banks."
Of course, what else that can be? QE, LTRO are all designed for the same purpose.
None of this matters because it will all be repealed after elections. Oh wait, can homeless people vote?