The Unvarnished Truth About Greece

Tyler Durden's picture

While Belize is comfortable buggering bondholders, the Greeks (following this morning's headlines) remain beholden to their euro-zone overlords - having survived a few more months on the back of reach-around 'bailouts' and ponzi-financing - all in the effort of providing more time for the 'rest of Europe' to figure out how to handle the 'Athens moment' that is surely coming. With September and October critical 'event-rich' months, Patrick Young, of DV Advisors, provides the clearest and least 'rose-tinted' perspective on where Greece has been, where they are now, and where this will all end. From the forged application for euro-zone membership to Oz-like fantasies of growth and austerity targets that remain pipe-dreams (and are constantly being missed), the bold Irishman in this brief clip explains "Greece has not done anything to really help itself, missed every deadline its been given" and the PM's comments on their 'spectacular come-back' clarifies the 'utter delusion' among the Greek political class because "Greece is bankrupt; full stop; game over" and Merkel must agree to 'let' Greece leave the Euro (post Troika) - as the rise of civil unrest, since whatever new money flows their way exits right out the back door and never 'helps' the people, is inevitable.

Especially following these mixed headlines (via Bloomberg):

  • Alexander Dobrindt, general secretary of the Christian Social Union, said he sees no way around Greece leaving the euro area, Bild am Sonntag reported, citing an interview.
  • Dobrindt sees Greece out of the euro in 2013
  • Greece should receive EU support when it leaves the currency union and have the option of returning: Dobrindt



Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Precious's picture

Sadly, where donuts were first made.

Michael's picture

Gerald Celente - "Iceland is the only country left with fight in it" - (14-Jun-11)

Media Military Complex- Same 6 owners for Media & Defense Ron Paul coverage investigative journ pt 2

malikai's picture

For the last two years now, we've heard nothing but "Greece will be leaving the eurozone in the next X", yet they haven't. Why don't people just give up on putting times on it and instead just focus on the facts?

Joebloinvestor's picture

Greece actually did leave the EU.

Point out one thing they are contributing besides misery.

malikai's picture

I don't think the Greeks themselves are contributing too much to the misery. I'd leave that one on their puppet government.

But you got me. Their country is really not contributing much of anything at all.

Precious's picture

The Greeks checked out.  The EU is just trying to decide what to do with the baggage.

morkov's picture

bailout of Greece is STILL cheaper than (hyper)inflating the Euro

Joebloinvestor's picture

I would really like to know if that gold that Greece pledged for the last bailout has been moved.

If so, good luck to Greece basing the drachma on anything.

AGuy's picture

No Worries, Greece will just switch over the Zoidberg Dollars:

The Zoidberg dollar will become the most wided distributed currency, when Spain, Italy, Japan an the US switch over.


"This Note is redempible for the entire contents of one Dumpster"


FeralSerf's picture

You can catch more flies with honey than you can with vinager.  This is not a new concept.

Belize gets to bugger the bondholders once, unless they're really, really, stupid stupid bondholders.   Greece buggers over and over again.

LeisureSmith's picture

-You can catch more flies with honey than you can with vinager- Well, i have tried to catch flies with honey, No dice. Vinegar on the other hand is very very effective if you want to catch fruit flies. What you do is: put one tea spoon of wite wine vinegar and a couple drops of dish soap in a wine glass and fill it half way up with water. Let it stand and do its thing. Murder made easy.

This has been a LeisureSmith Public Service Announcement.

Dr Benway's picture

You can shear a sheep many times, but you can only fleece it once.


I'm not sure how many times you can bugger it.

spdrdr's picture

Hey bro, can you shear that sheep?

No, cuz, get your own bloody sheep!


daily bread's picture

There is a conduit (called "debt") from future European taxpayers to current insolvent European banks.  On one section of the conduit is an unfortunate wart called Greece, in whose name certain moneys enter the conduit.   But the wart is like a cancer that has wormed its way through the the walls of the conduit and even into the interior -- so that you can't remove the wart without also destroying the conduit.

Still, so long as the PTB can keep the wart from removing itself [and thus blowing up the conduit], the PTB are willing to support any fantasy that makes the wart think it is alive.

Dead Canary's picture

"Who will rid me of this turbulent Greece!"

~ Henry the II

epwpixieq-1's picture

The truth about Greece is that every other country on the Balkans has an GDP per capita in the range of $5000 - $13000 per year and Greece has $30000, and there is only one way one lazy nation ( person ) to appear rich - DEBT.

If you ask any other nation on the Balkans who are the laziest ones, the answer is ALWAYS Greeks.

So, too bad that the hard working westerners has given money for about 20 years to the laziest culture on the Balkans.

God Bless the Debtor nations of the world, for without them, there is NO distribution of wealth form the hard working to the lazy ones.

morpheus000's picture

Thats BS. The Greeks were just following market signals, trends etc.The Greeks figured out that work gives the lowest returns esp in their place in the world division of labour so they chose to play the credit game. One concludes for such economies there are actually no real solutions. Why produce anything when you cant sell it etc? Problem Greece: they made the mistake of putting all their cards on the table. So why did they have $30 000 GDP per capital? Because the system has no norms.

morpheus000's picture

Thats BS. The Greeks were just following market signals, trends etc.The Greeks figured out that work gives the lowest returns esp in their place in the world division of labour so they chose to play the credit game. One concludes for such economies there are actually no real solutions. Why produce anything when you cant sell it etc? Problem Greece: they made the mistake of putting all their cards on the table. So why did they have $30 000 GDP per capital? Because the system has no norms.

timbo_em's picture

I just looked it up and according to the IMF's initial three year plan the Greek economy was supposed to shrink by 2.6 percent im 2010, then grow by 1.1 percent in 2011 and grow by 2.1 percent this year.

And I'm pretty sure that Greece is not the only country where political central plans are slightly hopium-biased. Is this the way those crooks want to restore confidence?

Peter Pan's picture

Perhaps Europe should have never re-financed the Greek debt. Instead it could have calmed the waters by simply undertaking to pay bondholders an interest rate of around 4% on Greek debt with no repayment as well as legislating that no credit default swaps could be paid out during that freeze of say three years. Something along the lines of Dubai.

The cost to Europe would have been around 10-15 billion per year which would have been a hell of a lot less than the present course.

Greece would in turn have been able to restructure itself far more easily given a vastly improved cash flow position.

My proposal may be overlooking something so I stand to be corrected.

piliage's picture

Anyone with an excel sheet in 2010 knew what the only logical decision was for Greece. Default and devalue.

But... who held the most Greek debt before the 'non-default restructuring' last year?


Who holds the most now?

The ECB, then France.

While ever logical synapse in my brain looks at the data and says there is no way Greece can't default, the fact remains that the most common element in the EU is Bullshit, and the politicians/whores will starve every single child in Greece, kill off every single Greek business, to preserve the Euro and the hubris ridden European Union.

These cancer ridden rats known as European Politicians deserve everything they will get when it all comes crashing down.

potlatch's picture

the rise of fascist military rule in the periphery is no way to prove to me the Euro was the dream of the Enlightenment son

Totentänzerlied's picture

Why not? Makes perfect sense to me, the pinnacle of Enlightenment political-economic philosophies seems to be national socialism, and from there fascist military rule is but a stone's throw away.

monad's picture

You never heard of the dark ages... you're facing the wrong way, son.

vincent's picture


Well, that places them in good company with the other deep thinkers.


Reported short interest in the metals is ridiculous. Gonna be an interesting week.

Atomizer's picture



Greece: We taught the American Government  how to become a tax spender, and how to provide everyone equally. If we do not receive our IMF bailout monies, we will sue the US Government over our intellectual property rights. Our retribution settlement will cover default + 20 points. See you in court bitchezes.




dirtbagger's picture

What did Greece have before the Euro?

Sunshine, cheap hotels, cheap ouzo

and after the Euro?

Sunshine, expensive hotels, expensive ouzo

Greece just needs to return to its roots.  OPA!

I am on to you's picture

So beautifull said:

Greece is was and will still be,the cheap sunshine resort for,fat pale, Northeren Europeans,where they go and play,billionairs,just like Spain and Italy and Portugal,even the poorest of the northerens grow to universal size in the south!

Its goood to be the King!

css1971's picture


3000 years of history and culture.


morpheus000's picture

Agriculture, light industry, shipping....

morpheus000's picture

Greece should go back to the phoenix a silver based coin currency. Nationalise its natural resources. Close its borders, mobilise its workforce. Use migrants as slaves. Send out its vast merchant shipping fleet as pirates. Seal its borders, fortify them. Destroy the power of the Anglo-Swiss based oligarchy. Turn the whole country into a war camp. Go rogue. 20 years of that and then it can return to a different world.

LeisureSmith's picture

What? Greece being a conduit for bank bailouts didn't save the world. Who could have known.

Get crackin with the stackin. 

Crash N. Burn's picture

 Way back when, society had a different way of dealing with bankers who went bust (as opposed to bailouts):


"In medieval Catalonia, a banker who went bust wasn’t merely humiliated by town criers who declaimed his failure in public squares throughout the land; he had to live on nothing but bread and water until he paid off his depositors in full. If, after a year, he was unable to repay, he would be executed…Bankers who lied about their books could also be subject to the death penalty."

Crime of the Millennium


Works for me.

Lucius Cornelius Sulla's picture

Its the same story all over the world.  People suffering because the banksters have captured governments.  The only solution to a solvency crisis is default.  The only question is who will pay for the default.  Clearly, the banksters have the upperhand in the USA and Europe where their politician toadies bleed the public on behalf of their masters.

KingTut's picture

When thinking about this, we should keep the American civil war in mind.  It was fought over exactly the same issues as Europe is facing today, economic inequality.  Somehow Lincoln mustered the courage and support to fight one of the bloodiest wars in history to save the union; to prevent even one state from leaving.

It took 100 years for the South to restore its economy to something resembling the rest of the US. 

My point is that if Greece goes, it creates a moral hazard for every other struggling country. Henceforth, leaving the EU will ALWAYS  be part of their strategic gamesmanship.  It gives them a fabulous new tool of extortion to play.  

So what happens when Spain threatens to leave?  They know they can ignore austerity pledges until the others have dumped their trillions in Spansih bonds.  Will the ECB be forced to buy them all?  But Spain can jut continue to threaten to leave unless they get the funding they "need".  This  level of extrotion and gamesmanship might be as destructive to the EU as Spain just leaving.

In the end the EMU will prove unworkable, but it is gooing to be excruciating to watch them random walk towards the inevitable conclusion.

Winston Churchill's picture

You may want to re read your history books there.

The roots of the civil war were indeed economic.The industialized north wanted

markets for its products.Slaves were unable to purchase said products.

It was the Feds trying to impose over staes rights in that matter that caused

the war.Had been simmering since Martin van Buren.Lincoln was just the final straw.

I hold no love for slaveholding,but many of our current dilemmas started there with

the abrogation of states rights and an ever overeaching Fed Govt. and executive.

monad's picture

You left out the Guelphes, our savior Peter the Great (and the revenge TPTB exacted for his contribution), the Monroe doctrine, the French, the Vatican, the Rockefellers, the Rothschilds, the Lehman brothers, the Krupps and the Irish. God bless the Irish! This was far from a local squabble. Follow the money...

Lednbrass's picture

It wasn't courage that Lincoln mustered, it was thirst for power.

And yes, it did take the South a long time, when family land was stolen by the government and given to its lackeys after the war, when family personal wealth was stolen by marauding soldiers and carried to their own homes, and family livestock stolen and slaughtered it took a long time to work back up after having their entire wealth confiscated at gunpoint. The Northern slavers made their fortunes selling slaves to the South, then went with armies and took whatever other wealth was not yet theirs.

On the good side, 150 years later things are looking up as company after company is picked off from the overtaxed North and relocated South and an ever greater portion of the Northern population get squeezed dry and ground into the dust by the exact sort of government their ancestors fought for. If it were only possible to prevent them from moving below the Mason Dixon and infecting that portion of the country with their presence it would be even better, but all things in good time...

hannah's picture

"PM's comments on their 'spectacular come-back' clarifies the 'utter delusion' among the Greek political class"


why do the authors of these article insist that TPTB are 'delusional' when the real term should be 'liar' and 'bullshitters'.  delusional implies that TPTB are somehow mistaken or not so bright or some other excuse. these people are simply lying to the peons and giving themselves more time to print and loot!

there is no delusion. if TPTB came out and stated 'we are making shit up so we can print and steal more from you'..then hopefully the peons would rise up...!

stop with the them what they are.

Totentänzerlied's picture

Same with the phrase "unintended consequences". How many times will they be allowed to do the same thing with the same outcome before we can be rid of this totally euphemistic and far too generous phrase.

In reality, the only unintended consequences of central planning are things which hurt central planners or benefit muppets, everything in between is intended.

jal's picture

Its not the fault of the Greeks that they have too much debt and cannot even pay the interest on their debt.

The money that the Greeks got was printed by the banks. (leverage)


Blame the smart bankers for causing the problems.

The bankers were and are the financial wizards.

Let the bankers lose their bets.

Totentänzerlied's picture

It's not the fault of the debtor that the creditor lent them the money they asked for? Creditors are mainly enablers.

Fractal Parasite's picture

Sooner or later Greece has to default on its parabolic debt.

They don't have to stop using the Euro currency, but their government does have to stop spending more than its revenue.

It doesn't require volumes of discussion to reach those conclusions.

deez nutz's picture

"          is bankrupt; full stop; game over"   << just insert your favorite country here!!! 

vegas's picture

"Greeks are not lazy; we are just resting."  - Mr. Panos

Well gee, it's not like delusional politicians is anything new. Only math brings them back to reality.