Greece’s pensioners to suffer MORE: Europe demands austerity as debt hits £268 BILLION

Desperate people campaign outside the Hilton hotel as the monied hold talks about their lives

Desperate people campaign outside the Hilton hotel as the monied hold talks about their lives

 

GREEK politicians are being told to go after the country’s already squeezed pensioners as it faces yet more austerity measures.

Germany and the International Monetary Fund (IMF) have failed to make an agreement over the conditions of a new bail out package.

And while the country’s debt bubble continues to mount, as it tries to cope with the migrant crisis from 2015, its citizens are being penalised. Continue reading

Greek Gov’t is 40% of GDP

 

QUESTION:  Hello, I do not understand what Martin say about the fact that the Greek debt doubled when it changed into euro. Indeed, if the currency is twice the value of the old one then all your debt will double as Martin said. However all your assets will double in value too. So it is the same situation as before. I may miss something, could you please explain me what I am missing? Continue reading

Greece on ‘Explosive’ Path Inside Euro and EU

Shutterstock

 

Latest crisis could spark the end of the Eurozone.

Despite years of austerity and economic reforms, Greece cannot dig itself out of its financial hole all the time it is tied into the disastrous Euro currency. Continue reading

Alexis Tsipras claims creditors are making Greek crisis worse

All roads still lead to Berlin, the powerhouse of Europe, which is now economically dominating the continent. Cypress was yesterday’s target, today it’s still Greece.

 

Prime minister hits out about delay in deal to resolve debt crisis when there is ‘light at the end of the tunnel’

Speaking at the Thessaloniki annual trade fair, where Greek leaders traditionally outline economic policy, Tsipras blamed a spat between the EU and the International Monetary Fund for putting off badly needed private investors.

“I would say that what is creating conditions of delay in regaining trust of markets and investors is the constant clash and disagreements between the IMF and European institutions,” he told reporters in a traditional no-holds-barred exchange. Continue reading

The Next Greek Crisis Is Coming

https://i0.wp.com/d.europe.newsweek.com/en/full/55039/04-29-greece-04.jpg

A refugee holds an umbrella as he tries to light a fire during rainy weather at a makeshift camp in the northern border village of Idomeni, April 8. Bulent Kilic/AFP/Getty

 

As you approach the northern Greek city of Kozani, which stands on a plateau surrounded by mountains, you start to see smoke—thick white clouds floating above the knotty shrubs and sun-dappled hills of Western Macedonia. This is the heart of Greece’s coal industry; the plumes come from the chimneys of power stations dotted around the region.

When most Greeks think of Kozani, they think of coal. In the 1950s, the Public Power Corp. (PPC), now Greece’s biggest electric company, took over the mines here and brought prosperity to this poor, largely agricultural corner of northern Greece. Locals soon abandoned their traditional ways of making a living: saffron cultivation, marble production and fur-making. Mining was not easy, but the workers were well-compensated. The city’s businesses flourished. Continue reading

Greek Crisis Still Simmering

The Greek crisis is still far from being solved with Athens struggling to implement the reforms it promised in order to receive the latest round of bailouts from the European Union. So far, Greece has only followed through on 14 out of the 48 reforms needed to receive the €86 billion (us$95 billion) promised in the third bailout agreement made in August. Süddeutsche Zeitung reported on Tuesday that European creditors are planning to delay the October payment of $3.3 billion, with the planned $27.6 billion bailout payment to recapitalize Greece’s banks also in jeopardy.

Continue reading

Greek Crisis Making Germany Richer, Study Shows

The study, conducted by the private, non-profit Leibniz Institute of Economic Research, showed that each time investors got bad news about Greece, they rushed to the “safe haven” of Germany. As a result, Germany’s interest payments on borrowed funds significantly lowered.

Germany has disproportionately benefited from these next-to-nothing interest rates, according to the report. The $111 billion it has saved amounts to over 3 percent of its gross domestic product. Government bonds in other countries such as the United States, France and the Netherlands have benefited but to a much smaller extent. Continue reading

Greek Capital Controls To Remain For Months As Germany Pushes For Bail-In Of Large Greek Depositors

Now Berlin’s Troika is gunning for the cash.

 

Two weeks ago we explained why Greek banks, which Greece no longer has any direct control over having handed over the keys to their operations to the ECB as part of Bailout #3’s terms, are a “strong sell” at any price: due to the collapse of the local economy as a result of the velocity of money plunging to zero thanks to capital controls which just had their 1 month anniversary, bank Non-Performing Loans, already at €100 billion (out of a total of €210 billion in loans), are rising at a pace as high as €1 billion per day (this was confirmed when the IMF boosted Greece’s liquidity needs by €25 billion in just two weeks), are rising at a pace unseen at any time in modern history.

Which means that any substantial attempt to bailout Greek banks would require a massive, new capital injection to restore confidence; however as we reported, a recapitalization of the Greek banks will hit at least shareholders and certain bondholders under a new set of European regulations—the Bank Recovery and Resolution Directive—enacted at the beginning of the year. And since Greek banks are woefully undercapitalized and there is already a danger of depositor bail-ins, all securities that are below the depositor claim in the cap structure will have to be impaired, as in wiped out.  Continue reading

Clouds on US Horizon: Greek Debt Crisis Knocking on Washington’s Door?

While Greece is suffering from a protracted debt crisis, facing new tough reforms, the question arises whether if the United States will soon become incapable to handle its own growing debts, asks Romina Boccia, the Heritage Foundation’s Grover M. Hermann Fellow in Federal Budgetary Affairs.

“The United States differs from Greece in important ways. The US economy is much larger and better diversified. More than half of the US debt is held by creditors within its borders, rather than by foreign entities. Moreover, the United States also creates its own money, enabling it to devalue its currency and debt to avoid defaulting on payments for a lack of cash,” the analyst underscored.

Continue reading

Greece Contemplates Nuclear Options: May Print Euros, Launch Parallel Currency, Nationalize Banks

As we said earlier today, following today’s dramatic referendum result the Greeks may have burned all symbolic bridges with the Eurozone. However, there still is one key link: the insolvent Greek banks’ reliance on the ECB’s goodwill via the ELA. While we have explained countless times that even a modest ELA collateral haircut would lead to prompt depositor bail-ins, here is DB’s George Saravelos with a simplified version of the potential worst case for Greece in the coming days:

The ECB is scheduled to meet tomorrow morning to decide on ELA policy. An outright suspension would effectively put the banking system into immediate resolution and would be a step closer to Eurozone exit. All outstanding Greek bank ELA liquidity (and hence deposits) would become immediately due and payable to the Bank of Greece. The maintenance of ELA at the existing level is the most likely outcome, at least until the European political reaction has materialized. This will in any case materially increase the pressure on the economy in coming days.

All of which of course, is meant to suggest that there is no formal way to expel Greece from the Euro and only a slow (or not so slow) economic and financial collapse of Greece is what the Troika and ECB have left as a negotiating card.

Continue reading

Greek Contagion Spreads As Several Italian Bank Stocks Failed To Open

This is how fragile the entire EU system is. If Greece sneezes, Italy coughs. The EU at best might be able to handle a Grexit, although that doesn’t look likely as stated here many times before. Look for the markets to go through a lot of turmoil but Greece is here to stay, whether its within the EU or a newly formed United States of Europe currently underway. Almost all experts agree it’s too strategically important to lose to the Sino-Soviet axis.

 

While things have normalized since the open thanks entirely to the SNB’s aggressive EUR-buying, CHF-selling intervention (good to see that central banks have read the BIS’ report and have learned from their prior intervention mistakes), earlier this morning we got a snapshot of what happens if and when the SNB, and then the ECB itself, finally lose control when as a result of the Greek crisis the contagion promptly spread a few hundred kilometers west to Italy where as the WSJ reported, “several Italian banks failed to start trading on Monday as fears over a Greek debt default induced many investors to shed peripheral stocks, including Italian, with banks suffering the most.Continue reading

Greece Will Default To IMF Tomorrow, Government Official Says

Earlier today, as the exchange between Greece and its creditors got increasingly belligerent, Estonian Prime Minister Taavi Roivas told public broadcaster Eesti Rahvusringhaaling in interview that a possible Greek decision to leave euro area wouldn’t soften stance of other EU countries and that Greece’s debt would still remain outstanding and creditors would expect this money back.” Continue reading

Marine Le Pen Calls Greek Austerity Measures ‘Debt Slavery’

And she’s right when she says Greece is enslaved. Proverbs 22:7 will tell you the borrower is slave to the lender. Both sides in this story are corrupt to high heaven as the German-dominated Troika is working to raid the coffers of Greek citizens and make Greece its next vassal state — like it did Cyprus. On the other side, you have Communists in power in Greece who are bent on remaining in power at all costs, even if it means throwing their national sovereignty under the bus or allowing Russia and China to colonize the country in order to bail them out, or both.

What we might be looking at in the near future is a violent overthrow of Greece’s leadership and an installation of a more EU friendly group, because it can’t win either way: Caving into the EU or selling out to the Soviet-Sino axis. The Greek people will not stand for either, and either way, they lose. The loans are also mathematically impossible to pay back.

Come June 30th, we’ll find out more.

 

Austerity measures for Greece demanded by international creditors are debt slavery, the leader of France’s right-wing National Front party said on Wednesday.

MOSCOW (Sputnik) — Athens is currently attempting to unlock financial aid from its primary international creditors to avoid a default on its multibillion-dollar debt. Its current bailout program expires on June 30. Continue reading

Greece Capitulates: Tsipras Crosses “Red Line”, Will Accept Bailout Extension

We’ve long said that negotiations between Greece and its creditors are more a matter of politics than they are a matter of economics or finance.

From the troika’s perspective, breaking Greece and forcing PM Alexis Tsipras to concede to pension cuts and a VAT hike is paramount, and not necessarily because anyone believes these measures will put the perpetually indebted periphery country on a sustainable fiscal path, but because of the message such concessions would send to Syriza sympathizers in Spain and Portugal. In short, the troika cannot set a precedent of allowing debtor nations to obtain austerity concessions by threatening to expose the euro as dissoluble. Continue reading

Greece moves closer to eurozone exit after delaying €300m repayment to IMF

Athens takes creditor by surprise, saying it will bundle together €1.6bn of debt payments due to International Monetary Fund and settle up on 30 June

Greece has moved closer to default and possible exit from the eurozone after telling the International Monetary Fund it would not be making a debt repayment of €300m (£219m) due on Friday.

A crisis that has been going on for more than five years entered a new phase when Athens surprised the IMF by saying it intended to bundle up four payments in June totalling €1.6bn and make them all at the end of the month.

The move came as the Greek government reacted angrily to what was seen as an ultimatum from its creditors – including the IMF – that demanded further austerity and unpopular reforms to VAT, pensions and wage bargaining as the price for €7.2bn in fresh financial help.

Continue reading