What happens if Greece defaults?

The bank runs are already seen as a foregone conclusion by the Greek government — and are already happening, which is why you see a war on cash. This is also occurring not only in Greece, but other nations. If cash is irrelevant banks cannot go broke because there is no physical liability owed by these same banks.

Please see the following posts for examples in the war on cash:

The War on Cash Is Going Completely Nuts in Europe

The Secret Meeting in London to End Cash

“Cash Is Coined Freedom”: War on Cash Becomes Official in Germany, Reaches G-7, Draws Withering Fire

Abolishing Cash – New Age of Economic Totalitarianism

The New Age of Economic Totalitarianism & the London Meeting to End Currency

 

Greece is completely out of money and time is running out to save it from bankruptcy.

The cash-strapped country urgently needs an €7.2billion (£5.6billion) bailout loan to stay afloat, but so far it has been unable to reach an agreement with EU creditors over the terms attached to the cash.

Until Greek and European leaders reach a lasting solution to the crisis, Greece’s future inside the eurozone looks highly uncertain and a so-called ‘Grexit’ a strong possibility.

In the short-term Greece faces a number of debt repayments in June to the International Monetary Fund. Continue reading

Greek Bank Deposits Bleeding Worsens in April

Deposits hit their lowest level since 2004

Deposit withdrawals from Greek lenders gathered pace in April, as a standoff between the country’s anti-austerity coalition and its creditors has renewed doubts about the country’s future in the euro area.

Deposits by households and businesses fell to to 133.7 billion euros ($146.7 billion) in April from 138.6 billion euros in March, a 3.6 percent monthly drop, and over €100 billion below the September 2009 peak, the Bank of Greece said today. The drop brings total outflows since the start of an election campaign which catapulted anti-bailout Syriza party to power, to 31 billion euros, or 18.8 percent of total deposits. Continue reading

ECB Prepares For Grexit, Anticipates 95% Loss On Greek Debt

 

Dear Greek readers: the writing is now on the wall, and it is in very clear 48-point, double bold, and underlined font: when the ECB “leaks” that it is modelling a Grexit, something Draghi lied about over and over in 2012 and directly in our face too, take it seriously, because it is time to start planning about what happens on “the day after.” And incidentally to all those curious what the fair value of peripheral European bonds is excluding ECB backstops, the ECB has a handy back of the envelope calculation: a 95% loss. Continue reading

Banks are preparing for “Grexit”

“Psssst!” whispers Süddeutsche Zeitung: Want to know the worst-kept secret of the big US and European banks? They’re preparing for the worst: the exit of Greece from the eurozone and even the break-up of the eurozone itself, writes the newspaper. “An army of management consultants and lawyers” have been working for weeks on “the infinite number of things to do” in response to bankruptcy in Athens. Tasks range from how to manage riots in the crisis countries, where the safety of bank employees will be an issue, through to ensuring the stability of the hot lines for advising investors and preparing computer systems to reckon in drachmas.

Full article: Banks are preparing for “Grexit” (Presseurop)

On the Relevance of Democracy

What seems to be an economic crisis is actually a premeditated assault via economic warfare in attempt to subjugate sovereign nations — and Greece is only the first.

When you hear Germany, Europe’s leader, speaking about stabilizing Greece, it means the desired result is capitulation and relinquishing of sovereignty in exchange to stay afloat just a little while longer — all for the United States of Europe project that was destined to fail from the beginning. Yet, they continue to push forward, piece by piece. What’s more, it was conceived to fail and it was known it would fail. The failure was only the tool for reshaping the continent to German will. In the case of Greece, the German government is well aware of the difficulty of convincing Greeks to willingly relinquish their national sovereignty. Therefore, the only way to achieve unification, without war, is through stealth. The people must not know that sovereignty is being and has been surrendered until it is gone.

Greece is only the beginning and the public is being prepped for possible military intervention should a the (planned outcome) crisis spin further out of control (hint, hint). We’re still yet to see what will become of the other largest economies in Europe such as Spain and Italy who see Greece’s fate as a benchmark. Furthermore, perhaps we may not see the same defiance with these since they are more compliant and politically allied. France has been known to toe the German line for quite some time now.

The same desired outcome with a twist, and a different game plan is in play.

As one article puts it:

Europe’s leaders are on the cusp of a unification project that will turn the disparate nations of Europe into a true superpower. As Europe’s debt woes increase, so too will the desire for further integration—at any cost. With each crisis, Germany’s position is strengthened. If unification is to proceed, it will be on German terms.

Those who are tuned out to reality or see the economic crisis for what it is only at face value on the evening news, this may seem highly unlikely, unfounded, ridiculous or even appauling.

For those who are tuned in: Make no mistake. Under a German-dominated EU superstate, the Fourth Reich is here.

ATHENS/BERLIN (Own report) – In the run-up to new elections in Greece, the German elite is discussing various scenarios involving the use of force to ensure control over Athens, including the establishment of a protectorate or the deployment of “protection forces” in that southern European country. The German austerity dictate, pushing Greece into destitution, is provoking growing popular resistance, which, apparently, can no longer be suppressed with democratic means. Berlin has failed in its efforts to force Athens into subordination by threatening to withdraw the Euro, as much as with its demand that Greece combines its parliamentary elections with a referendum on the question of remaining in the Euro zone. Berlin categorically rejects the option of retracting the austerity dictate and replacing it with stimulus programs, as is being demanded by leading economists world wide, even though the exclusion of Greece form the Euro zone threatens to push the currency, itself, into an abyss.

No Right to Respect

In addition, Berlin has obviously applied pressure on Athens to combine a referendum on remaining in the Euro zone with the elections. This tactic is aimed at weakening the opponents of austerity. According to reports, German Finance Minster Schäuble made this proposal already last Monday to his Greek counterpart at the meeting of the Euro finance ministers.[2] This proposal is obviously supported by the Chairman of the CDU/CSU parliamentary group in the Bundestag, Volker Kauder (“Now German will be spoken in Europe” [3]). A Greek government spokesman confirmed that Chancellor Angela Merkel urged Greek President Karolos Papoulias last Friday to implement the German plan for a Greek referendum, whereas in November 2011, Berlin briskly rebuffed the Prime Minister at the time, Giorgos Papandreou, when he publicly announced his proposal to hold a referendum. This led to his demise. Berlin’s open interference is met with outrage in Athens. The Greek population has a “right to respect,” the chairperson of the conservative Nea Dimokratia, Antonis Samaras, was quoted as saying. And the chairman of the opposition party Syriza, Alexis Tsipras, declared that Berlin is acting as if Greece “is a protectorate.”[4]

Protectorate

The sectors of the German elite, which refuse to consider this change of course proposed by Krugman and numerous other experts outside Germany,[7] are now publicly debating scenarios involving the use of force. In a newspaper interview early this month, the director of the prominent Hamburg Institute of International Economics, Thomas Straubhaar, called for establishing a protectorate in Greece – “regardless of the outcome of the elections.” The country is a “failed state,” he says, which is unable to raise itself “to a new start” under “its own steam.”[8] Athens needs “help in establishing viable state structures.” It, therefore, must be transformed into “a European protectorate.” “The EU must do it,” affirms Straubhaar. The EU “would have to help Greece modernize its institutions at every level, particularly with administrative staff, tax experts, and tax inspectors.” However, refounding Greece would demand “intuition” to “overcome national pride, conceit, and the resistance of interest groups.” This is referring to a sovereign democracy, a German ally in the EU and NATO.

Protection Forces

Last week, a leading German daily discussed the issue of dispatching troops to Greece. Should the country go bankrupt, it would then, as a “‘failing state,’ (…) be less in a position” to shore up its borders against migrants, writes the Frankfurter Allgemeine Zeitung. Just recently, the EU Commission announced that it finds itself forced to prolong the mission of its EU border troops at the Greek/Turkish borders. If Athens “should no longer be able to pay its officials, or can pay only in Drachmas,” the situation risks “chaotic.”[11] The country could possibly “be rocked by rebellions.” “Help for Greece would then no longer be on credit, but be transformed into a sort of humanitarian emergency aid,” prophesied the journal in its front-page lead editorial. “Hopefully, an international protection force, such as is stationed in the teetering countries further to the north, will not become an option.”[12]

Full article: On the Relevance of Democracy (German Foreign Policy)