May 20

Asked whether he would repeat an assurance he gave in late 2012 that Greece wouldn’t default, Wolfgang Schäuble told The Wall Street Journal and French daily Les Echos that “I would have to think very hard before repeating this in the current situation.” To which Moody’s had just one thing to add: there is a high likelihood of an imposition of capital controls and a deposit freeze.”


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The Gloves Come Off: Moody’s Warns Of Greek “Deposit Freeze” As Schauble “Won’t Rule Out Default” (ZeroHedge, May 20, 2015):

Ever since Syriza took over the Greek government and has refused, at least until now, to concede to every Troika demand of perpetuating a status quo which it was elected with a mandate to overturn, Europe has done everything in its power to make not only Syriza’s life increasingly difficult and hostile, but has taken every opportunity to turn the Greek population against its rulers, in hopes that a more “moderate”, technocrat government would replace the “radical leftists.” So far it has failed, despite the best attempts by the ECB and the European Commission to sput a terminal bank run. Continue reading »

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May 20

Greece-Euro

Greece Says That It Will Default On June 5th, And Moody’s Warns Of A ‘Deposit Freeze’ (Economic Collapse, May 20, 2015):

The Greek government says that a “moment of truth” is coming on June 5th.  Either their lenders agree to give them more money by that date, or Greece will default on a 300 million euro loan payment to the IMF.  Of course it won’t technically be a “default” according to IMF rules for another 30 days after that, but without a doubt news that Greece cannot pay will send shockwaves throughout the financial world.  At that point, those holding Greek bonds will start to panic as they realize that they might not get paid as well.  All over Europe, there are major banks that are holding large amounts of Greek debt and derivatives that are related to the performance of Greek debt.  If something is not done to avert disaster at the last moment, a default by Greece could be the spark that sets off a major European financial crisis this summer. Continue reading »

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May 20

greece

Greece To Tax Bank Transactions, Says IMF “Won’t Get Any Money” On June 5 (ZeroHedge, May 20, 2015):

On Monday we got still more bad news for Greece. Around one-third of Angela Merkel’s Christian Democratic bloc opposes further aid for Athens meaning the Chancellor faces an uphill battle in convincing German lawmakers to keep Greece on life support. Meanwhile, a new report from the Hellenic Confederation of Commerce and Enterprises suggests that each day without a deal costs the Greek economy €22.3 million.

Not to put too fine a point on it, but Tuesday’s headlines are even worse.

First, up is parliamentary speaker Nikos Filis confirming what the IMF leaked on Saturday: without a deal, Greece will default on June 5.

Via Reuters:

Greece will not be able to make a payment to the International Monetary Fund that falls due on June 5 without a deal with its international lenders, the government’s parliamentary speaker said on Wednesday. Continue reading »

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May 20

Euros

Are They About To Confiscate Money From Bank Accounts In Greece Just Like They Did In Cyprus? (Economic Collapse, May 18, 2015):

Do you remember what happened when Cyprus decided to defy the EU?  In the end, the entire banking system of the nation collapsed and money was confiscated from private bank accounts.  Well, the nation of Greece is now approaching a similar endgame.  At this point, the Greek government has not received any money from the EU or the IMF since August 2014As you can imagine, that means that Greek government accounts are just about bone dry.

The new Greek government continues to insist that it will never “violate its anti-austerity mandate”, but the screws are tightening.  Right now the unemployment rate in Greece is over 25 percent and the banking system is on the verge of collapse.  It isn’t going to take much to set off a panic, and when it does happen there are already rumors that the EU plans to confiscate money from private bank accounts just like they did in Cyprus. Continue reading »

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May 19

–  Each Day Without Debt Deal Costs Greek Economy €22 Million And 613 Full-Time Jobs (ZeroHedge, May 19, 2015)

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May 19

Merkel Faces German Parliament “Revolt” On Greece (ZeroHedge, May 19, 2015)

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May 19

Are They About To Confiscate Money From Bank Accounts In Greece Just Like They Did In Cyprus? (Economic Collapse, May 18, 2015)

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May 18

–  Shape Of Greek Endgame Emerges: IMF Discussed “Cyprus-Like” Plan After Tsipras Warned Of Looming Default (ZeroHedge, May 18, 2015):

The IMF discussed a “Cyrpus-like” take it or leave it solution for Greece last week, FT reports. With the countdown to outright insolvency down to two weeks, PM Tsipras will meet EU leaders in Latvia on Thursday to make one last push for a last minute deal. Meanwhile, the fate of the Greek banking sector hangs in the balance as the ECB has come under fire for the monetary financing of the Greek government.

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May 16

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Greece Will Default On June 5 Without Deal, IMF Leaks (ZeroHedge, May 16, 2015):

Another week came and went with no breakthrough in negotiations between Greece and its creditors. The IMF is now fed up and has reportedly refused to be a part of any new bailout program for Greece, after Athens drew down its SDR reserves to makes its latest payment to the Fund. That money will now need to be repaid and in a move that surely marks the new gold standard for absurd circular funding schemes, Greece will likely look to use the next tranche of IMF money to payback its IMF SDR reserve which it tapped to pay the IMF. The country’s public sector employees live in limbo, not knowing from one week to the next whether they will be paid and commuters are now subjected to a 50 second looped highlight reel of the Nazi occupation meant to rally the country behind the government’s quarter trillion euro war reparations claim (they might as well just ask for a ‘gagillion’) on Germany which has now become the symbol of tyranny and debt servitude for many Greek citizens.  Continue reading »

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May 12

H/t reader M.G.:

“Another interesting twist of events. Russia asked Greece to join their BRICS bank…….
That Greek port must be quite valuable…”


Russia invites Greece to join BRICS bank (RT, May 12, 2015)

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May 11

Greece-Troika-Sirtaki

The Situation Escalates – Greece Is Now Taxing Cash Withdrawals (Secular Investor via ZeroHedge, May 11, 2015):

The saga (or drama, if you like) in Greece is continuing and even though the country was able to make a 200M EUR interest payment to the IMF earlier this week, markets shouldn’t be too optimistic just yet as that payment is less than 5% of the total cash amount it has to pay in the next 4-5 weeks.

Indeed, Greece has just 3 days left to find 750M EUR to meet the requirement of a principal payment to the IMF which is due next Tuesday, and we consider it to be quite impossible for the country to meet this demand without finding additional sources to generate cash from. Continue reading »

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May 10

Schäuble Warns of “Sudden” Greek Default  (WolfStreet, May 9, 2015):

The governments of Greece – new and old – screwed up. Other debt-sinner countries are able to borrow at near-zero or negative interest rates, simply taking money from investors with a promise to return it on a given day in the future if investors give it new money to do so. These investors, it must be said, had their brains washed by the ECB and other central banks in order to allow this to happen. But the governments of Greece somehow missed that gravy train.

Now, no one wants to lend Greece money at negative interest rates, least of all the Greeks themselves, who know their governments better than anyone else on the planet and have less trust in it than anyone else on the planet: they’re yanking their euros out of their banks even as the ECB is propping them up with fresh euros that ultimately belong to taxpayers elsewhere. Continue reading »

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May 09

H/t reader M.G.:

screwed

Explaining the Greek Debt Crisis (The New York Times, April 8, 2015):

Greece, the weak link in the eurozone, is struggling to pay its debt as its people and its creditors grow more restive. The tumult poses a challenge to the euro and the Continent’s goal of economic unity. If Greece goes bankrupt or decides to leave the 19-nation eurozone, the situation could create instability in the region and reverberate around the globe.

What happened in Greece?

Greece became the epicenter of Europe’s debt crisis after Wall Street imploded in 2008. With global financial markets still reeling, Greece announced in October 2009 that it had been understating its deficit figures for years, raising alarms about the soundness of Greek finances. Continue reading »

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May 09

“From the New York Times, the US is urging Greece to turn away from Russian money…….
Russia wants the use of Greece’s ports……one is the third largest in Europe, and would be a valuable asset to sell Russian goods in Europe, so giving some much needed cash to Greece makes sense. Russia is the one player that can afford to loan Greece money, and they would get it back with the use of their ports……
US cannot afford to loan to anyone, but here they are trying to stop Putin’s inexorable move into the center of the world stage……Good luck is all I can say.”


U.S. Urges Greece to Reject Russian Energy Project (New York Times, May 8, 2015):

ATHENS — The United States, wading into the international efforts to shape Greece’s economic and geopolitical orientation, is pushing the leftist government in Athens to resist Russia’s energy overtures.

A State Department envoy in Athens urged Greece on Friday to embrace a Western-backed project that would link Europe to natural gas supplies in Azerbaijan, rather than agree to a gas pipeline project pushed by Moscow. Continue reading »

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May 09

H/t reader M.G. (commenting on this article Japan National Debt Rises To ¥1,053,357,200,000,000):

“Thanks to Fukushima, Japan is finished, but nobody dares to say so. They always kept a strong fiscal house……but can no longer do so, and their national debt is growing to unsustainable levels.

The same story with most of the western world……debt, and more debt.

Now, Greece’s situation has moved out of control………nothing can save it, but the debt funded stock markets continue to climb…happy days are here again.

From the Guardian…….”


Tsipras sees ‘happy ending’ for Greece in crisis talks as €750m repayment nears (Guardian, May 8, 2015):

Greece’s embattled prime minister, Alexis Tsipras, has insisted he is confident of a resolution to the country’s debt crisis, as his government struggles to meet a €750m (£545m) repayment to the International Monetary Fund next week and avoid default.

Greece is starved of cash but senior EU officials say there is no prospect of a deal releasing bailout money when the eurozone meets on Monday in Brussels. Continue reading »

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May 06


May 5, 2015

Related info:

US Trade Deficit Soars To Worst Since Financial Crisis; Will Push Q1 GDP Negative

US Economy Grinds To A Halt, Again: Q1 GDP Tumbles Below Expectations, Rises Paltry 0.2%:

Without this epic stockpiling of non-farm inventory which will have to be liquidated at some point (and at a very low price) Q1 GDP would have been -2.5%.

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May 05

Greek Deal In Limbo After “Serious Disagreement” Between EU, IMF (ZeroHedge, May 5, 2015):

On the heels of Monday’s news that the IMF may demand a write-off of Greek debt by European creditors before the organization will disburse its portion of a €7.2 billion aid tranche to Athens, it now appears the situation has deteriorated further with unnamed Greek officials reporting “serious disagreements” between the IMF and the EU which may make a compromise “impossible” by the critical May 12 deadline.

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May 04

“Greece is so far off course on its $172bn bailout programme that it faces losing vital International Monetary Fund support unless European lenders write off significant amounts of its sovereign debt, the fund has warned Athens’ eurozone creditors,” FT reports, indicating that the organization may force the ECB and implicitly the German taxpayer to take the hit if Greece wants to receive the last tranche of aid under its existing program


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IMF Splinters From Rest Of Troika, Threatens To Cut Off Greek Funding (ZeroHedge, May 4, 2015):

At this point it’s become fairly obvious to even the most casual observer that Greece is headed for some manner of default. The only real question is who gets shorted and when, as well as a relatively new question: which debt will Greece will default on first (just because it has so many choices). Continue reading »

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May 01

Flashback:

‘Greece Won’t See A Cent Of The GREAT BAILOUT’ (Telegraph) … It’s All For The Banksters!

Shame On Europe For Betraying And Raping Greece For Its Bankster Masters:

When we casually use a term like “bailout”, it is important to remember that it is not people who are being bailed out, or at least not the Greek people. The bailout will not save a single Greek life. The opposite is the case. What is being “bailed out” is the global financial system, including the banks, hedge funds and pension funds of the other EU member states, and it is the Greek people who are being ordered to pay – in money, time, physical pain, hopelessness and missed educational opportunities. The relatively neutral, even stoic, term “austerity”, is a gross insult to the Greek people. This is not austerity; at best it is callousness.

Max Keiser on Greece: ‘The IMF is a Financial Mafia’:

The only solution for Greece is to arrest the Goldman Sachs bankers immediately and all those involved in the fabrication of Greek economic data in 2000, when you became a member of the eurozone. The next step is to nationalize all banks like Sweden did in 1993. The International Monetary Fund is that last thing you need. You will lose your sovereignty. It exercises terrorism. You will be raped in such a way, that it will be the worst pain you have ever felt.

If someone burns down your house in order to sell you charcoal, would you consider this logical? That is exactly what Goldman Sachs did to the Greek economy. They burned you down like arsonists and then they tell you not to worry they’ll give you charcoal. It’s outrageous. The IMF has said that it can provide Greece with help. The Wall Street investment hedge funds are attacking Greece’s bond market so that the Greek economy collapses. And they’re doing this for a simple reason; to force the Greek people to ask for help from the IMF. The IMF will say, we came because you asked for our help. Wall Street bankers work very closely with the IMF. It’s a financial mafia and the hedge funds are the assassins. Research conducted on Goldman Sachs in the USA and in Europe show how big a mafia it is. They are involved in illegal activity throughout the world.


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Eurozone didn’t allow Greece to bankrupt in 2010 (The Real Agenda News, April 22, 2015):

French and German banks were weakened due to their heavy investment in Greek debt.

According to the documentary titled “On the Trail of the Troika“, the euro states prevented Greece from going bankrupt in order to protect German and French banks. Those banks, research shows, were exposed to almost €40 billion in Greek debt and were afraid to lose the money.

Not only did Germany and France not allow Greece to declare bankruptcy, but also used their taxpayers’ money to finance the never ending Greek debt financial system. Continue reading »

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Apr 30

THe GReeK STooGeS… (ZeroHedge, April 30, 2015):

THe GReeK STooGeS...

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