- Greece Runs Out Of Money. Again (ZeroHedge, July 31, 2012):
While we are not certain how many times we have used the above headline in the past we know it is not the first time. Nor the fifth. Yet here we are again, reporting that Greece is out of money again. “Near-bankrupt Greece is fast running out of cash while it waits for its next installment of aid from international lenders, a deputy finance minister said on Tuesday, sounding the alarm on the country’s precarious financial position. Greece’s European partners have repeatedly promised the country will be funded through August, when it must repay a 3.2 billion euro bond, but the details of the funding have yet to be disclosed. In the absence of that money, Greece would run out of funds to pay everyday public expenses ranging from police and other public service wages to pensions and social benefits. “Cash reserves are almost zero. It is risky to say until when (they will last) as it always depends on the budget execution, revenues and expenditure,” Deputy Finance Minister Christos Staikouras told state NET television” In other words just like the US yesterday, Greece has also overestimated its revenues and underestimated its expenditures; also Greece in August is what the US itself will be in about 3-4 months, when the debt ceiling is hit. Luckily, the political environment in D.C. is open and cordial, and a prompt resolution to both the debt ceiling issue and the fiscal cliff, especially as they all coincide just in time for the presidential election is guaranteed.
The tragic Greek lament continues via Reuters:
“[W]e are certainly on the brink, we did not receive the aid tranche we were supposed to and we have the pending issue of an ECB bond maturing on Aug. 20.”