Greece Economic Crisis Declared Over: It Isn't

Authored by Mike Shedlock via MishTalk,

Mainstream media is all aglow over the alleged end of the Greek economic crisis. Mainstream media is wrong.

RTE says Greece Crisis Declared 'Over' as Eurozone Agrees on Debt Relief

The BBC says Greece Hails 'Historic' Debt Relief Deal

The Financial Times says EU Commissioner Calls End to Greek Crisis

Can-Kicking Deal

This was another can-kicking announcement according to Eurointelligence.

Here it is. Finally, a deal on debt relief for Greece. It is a fudge of sorts, but a deal that ends the eight-year-long Greek debt crisis - for now. These are the main components of the deal:

  • A €15bn loan disbursement at the end of the programme, of which €3.3bn can be used to buy back IMF loans;

  • A 10-year extension of the EFSF loans, and a ten-year deferral of interest payments and amortization starting from 2033; and

  • A return of profits from Greek bonds (SMP and ANFA) held by Eurozone central banks, a total of €4bn, with semi-annual payments and subject to reform targets.

There is no growth clause, no interest-rate cuts, no major buyback programme. This is not debt relief in the way the IMF defines it, but debt relief of the kicking-the-can-the-road variety.

It also leaves Greece with a significant exposure to IMF loans. Even if Greece were to use the €3.3bn to buy back IMF loans, that still leaves €7.1bn to be repaid by 2024.

The IMF abstained almost entirely from the debate as it is now officially leaving the programme and will only participate in the post-memorandum oversight, writes Kathimerini. Christine Lagarde refused to make any statements about Greece. What this means for the IMF role after the programme ends is yet to be seen.

So this is it, after eight years, three bailout programmes and endless eurogroup meetings. And with debt nearly at 180% of GDP, there is still the potential for things to turn wrong. But for now, everyone seems happy.

Hold the Cheers

Reader Lars, from Norway, offered his assessment of the situation this morning via Email, to me and Egon von Greyerz at Gold Switzerland.

Hello Mish and Egon

It's hard to keep a straight face these days. Greece is now out of the crisis according to the EU. And the MSM seems to go with that narrative.

Loan servicing has been kicked down the road som Greece will stay a debt slave for many, many years. Most focus on debt as a percentage of GDP. That's not the correct place to start. Compared to the productive share of the Greek economy, it's game over. Greece will never raise under this debt burden. New debt is required to create growth, but who will lend to a nation loaded with debt. So investments will have to be 100% equity.

Nobody looks at the dynamic picture. What will things look like in 10 years time? Same as in 2010.

It's sad that this type of propaganda is spread.

With everything included, Greece has a public debt of close to €500 billion (contingent liabilities included) for a private sector of €80-90 billion. The banks are filled sky high with Non-Performing-Loans. Youth employment is over 30%. What kind of future is that?

Regards

Lars

Egon responded: "Greece is now totally enslaved by Brussels. The only way for the Greeks to get out of slavery is to revolt by reneging on all EU/ECB debt and launching a new Drachma. It will come."

No One Looking Ahead

No one has bothered to ask what happens to Greece, Italy, or the Eurozone in general, in the next recession. Whatever the recession possibilities are in the US, they are far greater in the EU.

Trump's tactics are such that an EU recession can happen at any time.

I envision a destructive breakup of the Eurozone, but the trigger will be pulled by Italy, not Greece.

On may 25, I posted an email from Lars in which he details why debt-to-GDP ratios understate the true nature of the problem. For discussion, please see Fed's Dilemma: Debt-to-GDP Ratios Dramatically Understate the Debt Problem.

Comments

Heros Last of the Mi… Mon, 06/25/2018 - 07:22 Permalink

"A return of profits from Greek bonds (SMP and ANFA) held by Eurozone central banks, a total of €4bn, with semi-annual payments and subject to reform targets."

What happened here is when the ECB did "whatever it takes" and brought down interest rates on Greek sovereign debt several percent, those holders of that debt profited enormously.  The same thing happened in 1788 when the new US government, empowered by the constitution, bought up all the old continentals at face value, making Hamilton and his Rothschild masters a fortune.

All those banks and government holding Greek debt that made all these profits are facing a form of clawback.

In reply to by Last of the Mi…

beebpop DownWithYogaPants Mon, 06/25/2018 - 12:11 Permalink

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Leakanthrophy's PORN  and  MoreSun's WHACKED RAVINGS  and Biblicism SPAM ( Wadalt: "IsraHELL did it")    AND    TodaysFox SPAM ("I made $7000 sucking cock on the Internet") --> IT's ALL THE SAME SPAMMER ---> ME!!! (Hi!)  

>>>WELCOME  to our new Today's Fox SPAMMING tranny:  Aleena.ang

>>>WELCOME  to our new 2JobsDay SPAMMING tranny:  "Bronze"

>>>WELCOME!  "Cryptopithicus Homme" -- "crypto" SPAMMER!!!!

HELLO SPAM-LOVERS!!!   BIG UP from the SPAMMER BUNKHOUSE here in the Methfilled Valley Trailer Park in Methfilled Valley, PA.  Good to see my men powow, Leakanthrophy and Wadalt and  PrivetHedge  and our newbies  MoreSun (a real bacon-loving attack dog!) and CHEOLL and sanctificado  and  gzcekkyret  out from under the couch sucking their own dicks at 3 a.m. and back on the threads SPAMMING like a Grease Fire in the middle of the night!!!! 

Welcome newbie MoreSun talking some heavy attack shit at 3am!    DARWIN, our Master Spammer is whacked!!!

THIS is an important week here in the SPAMMER's BUNKHOUSE (the leaking moldy single-wide in the trailer park).  This week I (we?) are celebrating SEVEN YEARS AND TWO WEEKS here on ZH, obsessively SPAMMING every thread we can with off-topic comments.  You see, there are dozens of "personalities" living in this one single sad SPAMMER's sick little mind, which he calls "Spammer's Bunkhouse."  How sick is that? 

Each of "us" (these innumerable fake log-on's) is represented by an ACTION FIGURE that Master Spammer ("DARWIN" is his name -- can you believe that?)  lines up on his kitchen counter and TALKS TO!!  WHACK JOB!!!

 

SAD BUT TRUE!!  I (we?) have wasted my (our) youth (or at least the last seven years) with at least one hand in my pants and the other hand SPAMMING ZH.  Yes, indeed.  DOZENS and DOZENS (maybe hundreds) of log-on's banned -- 
>>  "I made $7500 last week on the Internet sucking cock!": that's me.
>>  Biblicism: that's me.
>>  All the porn at Celebrity-leaks: that's me.
>>  Daily Westerner: that's me.
>>  "In the news....SPAMMER broomsticked by furious readers" -- registered in Nigeria) :: that's me TOO!! 

That's our life (all of us living in Master Spammer's Mind): mopping the floor at the Porn Cinema at 2am, working the French Frier at SONIC (demoted from the drive-thru window 'cuz my ZIT-covered face scared the customers), sucking cock on the Internet, and spamming ZH with an enormous Excel spreadsheet of the log-on's of dozens of "digital friends" who upvote one another and virtually suck my little micro penis..

MEET my current imaginary friends.  We all live in one SPAMMER's HEAD (and as ACTION FIGURES on his kitchen counter) but as for me, I have gone off the reservation.  These other "personalities" are pretty troubled.

More Sun  <<<  NEWBIE (a real bacon-loving attack dog!)
Cheoll   <<<  NEWBIE
Powow  <<<  NEWBIE
sanctificado  <<<  NEWBIE

gzcekkyret     <<<  NEWBIE
Wadalt
Leakanthrophy
PrivetHedge
bobcatz
Jumanji1959
Annunaki

s12940448 <<< NEWBIE  sucks cock on the Internet -- joined "The Fallen"

ll951983  <<< NEWBIE  sucks cock on the Internet -- joined "The Fallen"
Mr Hankey  [R.I.P]   <<<  total utter WHACK JOB  -- joined "The Fallen"

You know SPAMMERS never die on ZH -- here's just a sampling of the banned log-on's ("The Fallen Spammers") ---

 beepbop, pier, lloll, loebster, ergatz, armada, Mtnrunnr, Anonymous, luky luke, Cjgipper, winged, moimeme, macki mack, tchubby, sincerely_yours, HillaryOdor, winged, lexxus, kavlar, lhomme, letsit, tazs, techies-r-us, stizazz, lock-stock, beauticelli, Mano-A-Mano, mofio, santafe, Aristotle of Greece, Gargoyle, bleu, oops, lance-a-lot, Loftie, toro, Yippee Kiyay, lonnng, Nekoti, SumTing Wong, King Tut, evoila, rp2016, alt right dude, altright-girl, alt-right girl, Blufin, Schlomo Scheklestein, BraveForce, Mr Hankey, sandraloopz0, enf83, ll951983

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

In reply to by DownWithYogaPants

cstu7011 Mon, 06/25/2018 - 05:06 Permalink

What next? I bet the Greeks will now be required to declare all gold fillings in their teeth.

After that... probably their kids organs will be confiscated.

 

Commeth and taketh... by da Joos

beebpop aleena.ange Mon, 06/25/2018 - 11:48 Permalink

It's ALL THE SAME SPAMMER!!!!  --> ME!!  (I'm BACK!!!)

Leakanthrophy's PORN  and  MoreSun's WHACKED RAVINGS  and Biblicism SPAM ( Wadalt: "IsraHELL did it")    AND    TodaysFox SPAM ("I made $7000 sucking cock on the Internet") --> IT's ALL THE SAME SPAMMER ---> ME!!! (Hi!)  

>>>WELCOME  to our new Today's Fox SPAMMING tranny:  Aleena.ange

>>>WELCOME!  "Cryptopithicus Homme" -- "crypto" SPAMMER!!!!

HELLO SPAM-LOVERS!!!   BIG UP from the SPAMMER BUNKHOUSE here in the Methfilled Valley Trailer Park in Methfilled Valley, PA.  Good to see my men powow, Leakanthrophy and Wadalt and  PrivetHedge  and our newbies  MoreSun (a real bacon-loving attack dog!) and CHEOLL and sanctificado  and  gzcekkyret  out from under the couch sucking their own dicks at 3 a.m. and back on the threads SPAMMING like a Grease Fire in the middle of the night!!!! 

Welcome newbie MoreSun talking some heavy attack shit at 3am!    DARWIN, our Master Spammer is whacked!!!

THIS is an important week here in the SPAMMER's BUNKHOUSE (the leaking moldy single-wide in the trailer park).  This week I (we?) are celebrating SEVEN YEARS AND TWO WEEKS here on ZH, obsessively SPAMMING every thread we can with off-topic comments.  You see, there are dozens of "personalities" living in this one single sad SPAMMER's sick little mind, which he calls "Spammer's Bunkhouse."  How sick is that? 

Each of "us" (these innumerable fake log-on's) is represented by an ACTION FIGURE that Master Spammer ("DARWIN" is his name -- can you believe that?)  lines up on his kitchen counter and TALKS TO!!  WHACK JOB!!!

 

SAD BUT TRUE!!  I (we?) have wasted my (our) youth (or at least the last seven years) with at least one hand in my pants and the other hand SPAMMING ZH.  Yes, indeed.  DOZENS and DOZENS (maybe hundreds) of log-on's banned -- 
>>  "I made $7500 last week on the Internet sucking cock!": that's me.
>>  Biblicism: that's me.
>>  All the porn at Celebrity-leaks: that's me.
>>  Daily Westerner: that's me.
>>  "In the news....SPAMMER broomsticked by furious readers" -- registered in Nigeria) :: that's me TOO!! 

That's our life (all of us living in Master Spammer's Mind): mopping the floor at the Porn Cinema at 2am, working the French Frier at SONIC (demoted from the drive-thru window 'cuz my ZIT-covered face scared the customers), sucking cock on the Internet, and spamming ZH with an enormous Excel spreadsheet of the log-on's of dozens of "digital friends" who upvote one another and virtually suck my little micro penis..

MEET my current imaginary friends.  We all live in one SPAMMER's HEAD (and as ACTION FIGURES on his kitchen counter) but as for me, I have gone off the reservation.  These other "personalities" are pretty troubled.

More Sun  <<<  NEWBIE (a real bacon-loving attack dog!)
Cheoll   <<<  NEWBIE
Powow  <<<  NEWBIE
sanctificado  <<<  NEWBIE

gzcekkyret     <<<  NEWBIE
Wadalt
Leakanthrophy
PrivetHedge
bobcatz
Jumanji1959
Annunaki

s12940448 <<< NEWBIE  sucks cock on the Internet -- joined "The Fallen"

ll951983  <<< NEWBIE  sucks cock on the Internet -- joined "The Fallen"
Mr Hankey  [R.I.P]   <<<  total utter WHACK JOB  -- joined "The Fallen"

You know SPAMMERS never die on ZH -- here's just a sampling of the banned log-on's ("The Fallen Spammers") ---

 beepbop, pier, lloll, loebster, ergatz, armada, Mtnrunnr, Anonymous, luky luke, Cjgipper, winged, moimeme, macki mack, tchubby, sincerely_yours, HillaryOdor, winged, lexxus, kavlar, lhomme, letsit, tazs, techies-r-us, stizazz, lock-stock, beauticelli, Mano-A-Mano, mofio, santafe, Aristotle of Greece, Gargoyle, bleu, oops, lance-a-lot, Loftie, toro, Yippee Kiyay, lonnng, Nekoti, SumTing Wong, King Tut, evoila, rp2016, alt right dude, altright-girl, alt-right girl, Blufin, Schlomo Scheklestein, BraveForce, Mr Hankey, sandraloopz0, enf83, ll951983

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

In reply to by aleena.ange

sparkadore markj113 Mon, 06/25/2018 - 17:47 Permalink

Wow I read the BBC report and just one person after the next was saying what a great thing that says the problem has been resolved it's all the wonderful thing and then someone else thinks it's wonderful the next person thinks it's wonderful everybody thinks it's wonderful. Where is journalism that has two sides of the story? What a crock.

Where's the little kid that says the emperor has no clothes.

In reply to by markj113

BritBob Mon, 06/25/2018 - 05:20 Permalink

The crazy EU.  Gibraltar - where the entire voting population wanted to 'remain in the EU'

Speaking to GBC, Sir Joe said it was disgraceful that the EU has effectively given Spain a veto over the application to Gibraltar of any Brexit deals made with the UK. He said it was a complete betrayal of the trust that the people of Gibraltar had in the EU. (Gib Chronicle 31st Jan 18).

Even after effectively giving the territory away on 3 separate occasions Spain persists with her claim to Gibraltar!

Gibraltar – Spanish Myths and Agreements (single page):

https://www.academia.edu/34608739/Gibraltar_Spanish_Myths_and_Agreements
 

BigJim BritBob Mon, 06/25/2018 - 06:26 Permalink

Don't worry Bob, the Gibraltarians will secede from the UK so they can stay in their beloved EU, and so will the Malvinas Islanders, and then you can finally relax and learn to think about something else.

The UK can sell its pointless aircraft carriers to the new EU military and then it'll be EU taxpayers who ensure the Malvina sheep population remain blissfully Argentine-free.

In reply to by BritBob

lizzoilz Mon, 06/25/2018 - 06:03 Permalink

.

Implications (and contradictions) of new all-time highs in the RUSSELL 2000 and NASDAQ indexes need to be watched closely.  

WTI-CRUDE OIL saw an OUTSIDE UP WEEK ending on June 22. Remember in May WTI saw an OUTSIDE DOWN WEEK.  This is just one example of the volatility we should still be anticipating for the upcoming weeks.

Now we also have an OUTISDE DOWN WEEK technical pattern in Gold from two w

 

Festus Mon, 06/25/2018 - 06:08 Permalink

If you doubt the depravity and corruption of socialism, simply look at what it has done to Cuba, Venezuela, Greece, the old Soviet Union and to the Democratic Party.

 

OverTheHedge Festus Mon, 06/25/2018 - 06:24 Permalink

I would put the blame for Greece on the EU, and Germany particularly, much more than on the Greeks. 

Greece wanted to join the eurozone, but were unable to comply with financial requirements. Don't forget that the EU also wanted very much for Greece to join, and were more than happy to turn a blind eye to the Goldman Sachs scam.

Then Greece was just pillaged - joining the euro meant instant inability to compete, huge unemployment and jobs leaving the country. Great for the exporting powerhouse, but a bit crap for Greece. To offset this, the Greek government, who were utterly purchased by the EU and German corporations, then employed anyone with a heartbeat in made-up, fake government jobs. This was known across the EU, but no one said anything, and no one offered any help, unless selling vast amounts of unnecessary weaponry counts as help. By 2012, 15% of German arms exports went to Greece. Think about that - 15% of total exports sent to a nation of 11 million people. What could possibly go wrong?

Then the whole thing collapsed, and hey presto! the Greek people get to transfer their remaining wealth to German and French banks. As scams go, this one has been spectacularly successful, and can only possibly end in default (but the EU owns the debt now, not the German and French banks, so all is good).

I may have missed some of the moves, but I think I have covered most of it. Germany stole the Greek wealth by underhand, mostly illegal methods. They probably did much the same in other countries. Their powerhouse economy might not have too many years left, before things change dramatically, as the idiots have stolen too much wealth from too many countries. It will be noticed.

https://en.m.wikipedia.org/wiki/Siemens_Greek_bribery_scandal

In reply to by Festus

OverTheHedge BigJim Mon, 06/25/2018 - 06:40 Permalink

It is on its way.

Of course, you only get to vote for the people they let you vote for: were Hilary and Donald truly the choices of the people? However, things may change here. A lot of people going galt, so the ability of the government to raise taxes is being stretched. It is now considered the moral choice to NOT pay tax, unless you can't possibly avoid it. Let's see what happens in the next few months, with Italy.

In reply to by BigJim

shovelhead OverTheHedge Mon, 06/25/2018 - 07:55 Permalink

The Greek politicians borrowed and pissed away the money the Greek people are stuck paying back. Nobody complained when the gravy train was rolling, but they never do.

I get banks trying to loan me money and credit cards all day. It all goes in the trash. I could be stupid and greedy but I choose not to be. Banksters love stupid and greedy. I wonder why?

In reply to by OverTheHedge

sparkadore OverTheHedge Mon, 06/25/2018 - 07:57 Permalink

I am halfway through the book Confessions of an Economic Hitman by John Perkins. Free online pdf version.  If you want the chilling details on how the destruction of other countries occurs under the guise of helping in the hands of the military-industrial complex this book is for you.  The actions of the US government make the mafia look like school kids. And yes I am afraid to post this. The chilling effect of the pervasive surveillance organs is tangible.  So I have to add that the above was simply a rant on a friend of mine and has nothing to do with my opinion.

I want to establish the fact for my alphabet agency friends who are listening that I am a solid supporter of America's exceptionalism. I still believe as I was taught as a young child in America that America is God's hand in this world bringing Freedom liberty and justice to the Dark Places.

In reply to by OverTheHedge

Escapedgoat Festus Mon, 06/25/2018 - 06:42 Permalink

Would you call the Right Wing  New Democracy Party of Greece (The one governed by the Nepotistic Karamanlis and Mitsotakis Crime Families), SOCIALISTS???

The so called PASOK (Socialists in the Blair image, is the Papandreou Crime Family, as well as some other minor families like Simitis of the Siemens Party

Are You Nuts?

You instantly need a Doctor.

 

In the USA you have the Mafia,

In Sicily they have the Cosa Nostra,

In Napoli they have the Camorra,

In Bari the Ndraghetta,

In Greece they have the Above mentioned Crime Families and they call it, THE GOVERNMENT.

And guess what? They ALL COOPERATE in the same scum.
 

In reply to by Festus

Escapedgoat Mon, 06/25/2018 - 06:30 Permalink

Greece went into a Memorandum of Understanding with a manufactured debt of 120%

And brought in the IMF, ECB and ESM (not quite  sure which) , basically the TROICA.

They are sent into the "Markets" with a Debt of  over 180%

Wtf, who do they think are fooling? I think they past caring about "image" anyway.

Escapedgoat dark fiber Mon, 06/25/2018 - 06:52 Permalink

They inflated the Figures with a certain Mr Georgiou a Statistician an IMF employee, from 4.9% to 15%

At he moment Mr Georgiou is hiding in the USA for a conviction by the Greek Courts of the above crime. The ECB and the Greek Government even though he was sentenced, let him get away.

Mrs.Georganta blew the whistle on him and ever since she was hounded and even attempted car  threat to her life on the main Athens to Lamia Motorway.

 

 

In reply to by dark fiber

Memedada Escapedgoat Mon, 06/25/2018 - 08:08 Permalink

Very true. And the usual suspect ”Goldman Sachs” played an active part as well.

The US-indoctrinated nutcase above (the one who blamed this on “Socialism”) clearly knows nothing about quo bono in relation to Greece (or everything else that's going on in global politics at the moment). Greece has been robbed by the gang of privately owned banks and their minions (ECB, IMF and EU/Germany’s banking elite).

IMF has “SAP’ed” the third world since its creation (SAP = structural adjustment programs). Now IMF have started SAPing the so-called first world – starting with Greece. The SAP’s are the capitalists wet-dream (capitalist defined as an owner of capital – and in this relation the owners of about 80% of the world capital – the bankers). SAP’s are basically privatizing everything profit-generating, cutting down public expenditures (apart from what is used to pay for the leeches/bankers) and usurping the democratic institutions (making them indebted serfs/bowing down to the power of capital).

In reply to by Escapedgoat

OverTheHedge dark fiber Mon, 06/25/2018 - 10:41 Permalink

https://www.theguardian.com/world/2012/apr/19/greece-military-spending-…

"Just under 15% of Germany's total arms exports are made to Greece, its biggest market in Europe," Papadimoulis said, reeling off figures from a scruffy armchair in his party's parliamentary office. "Greece has paid over €2bn (£1.6bn) for submarines that proved to be faulty and which it doesn't even need.

"It owes another €1bn as part of the deal. That's three times the amount Athens was asked to make in additional pension cuts to secure its latest EU aid package."

Real debt, but for real reasons? Qui bono?

In reply to by dark fiber