The eurozone has given Greece an ultimatum of one week to request an extension of its bailout deal, as Athens turned down the offer dubbing it “absurd” and “unreasonable”. Greece’s finance minister said they were ready to sign – but something different.
But despite not reaching a deal, Greece Finance Minister Varoufakis insisted Athens is “ready and willing” to reach a deal and that he is confident of reaching one in 2 days, he said in statement after the talks. Continue reading
One of the bigger problems facing the new, upstart Greek government, which has set before itself the lofty goal of overturning 6 years of oppressive European policies and countless generations of Greek cronyism, corruption and tax-evasion is not so much the concern about deposit outflows and bank runs – even though it most certainly will be in the next few days unless the Tsipras government finds some resolution to the dramatic standoff with Merkel and the ECB – but something far more trivial: running out of money.
Recall that two weeks into the Greek elections, Greece was rocked by a dire, if entirely underappreciated development, when its already “tax-paying challenged” population decided to completely hold off paying any taxes in advance hopes that the Tsipras government will “overturn” austerity. We wrote:
… while there will be no official confirmation whether Greece did or did not have a bank run for months, unless of course some bank keels over and dies in the interim, one thing is certain: with an increasing probability they may not have a “continuity-promoting” government in less than two weeks, Greeks tax remittances to the government, which were almost non-existent to begin with, have ground to a halt! Continue reading
Just what the market had hoped would not happen…
- *ECB SAYS IT LIFTS WAIVER ON GREEK GOVERNMENT DEBT AS COLLATERAL
- *ECB SAYS IT CAN’T ASSUME SUCCESSFUL CONCLUSION OF GREECE REVIEW
What this means simply is that since Greek banks are now unable to pledge Greek bonds as collateral and fund themselves, and liquidity is about to evaporate, the ECB has effectively just given a green light for Greek bank runs, as suddenly it has removed, both mathematically but worse politically, a key support pillar from underneath the already bailed out Greek banking system, (or merely a negotiating move to let Greece see just what kind of chaos this will create ahead of the big D-Day on Feb 25th when ELA could be withdrawn). Continue reading
Today Dr. Paul Craig Roberts stunned King World News when he said that the new Greek government may be assassinated because the stakes are so high. The former U.S. Treasury official takes KWN readers on a terrifying trip down the rabbit hole of government lies and assassinations, where the stakes are high and governments play for keeps.
Dr. Paul Craig Roberts: “There is much more involved here with Greece than just the interests of the creditor banks, who still want to be paid 100 cents on the dollar. There is another strong interest and this is the interest of the centralizing European Union government and the interest of the European Central Bank as the policy-maker for all of the countries.
So they are using the Greek crisis to establish that ruling power structure….
“That makes it difficult to make an agreement with the new Greek government to ameliorate the conditions imposed on Greece. So it makes the EU inflexible. That inflexibility gives Greece the cards to say, ‘We’re not playing your game — we’re going to play a different game and accept Russia’s offer.’ Continue reading
FRANKFURT–The European Central Bank said Wednesday it would suspend a waiver it had extended to Greek public securities used as collateral by the country’s financial institutions for central bank loans. Continue reading
As Deutsche Bank’s George Saravelos politely puts it, “Developments since the Greek election on Sunday have moved very fast.” And indeed, so far the new Tsipras cabinet, and here we focus on the words and deeds of the new finance minister Yanis Varoufakis, has shown that the market’s greatest hope – that the status quo in Greece will continue – has been crushed into a pulp (and so have Greek stock and bond prices) especially following yesterday’s most recent comments by the finmin in which he said that Greece “does not want the $7 billion” from the Troika agreement and that it wants to “rethink the whole program”, culminating with an epic exchange with Eurogroup chief Jeroen Dijsselbloem in which Greece made it clear that the “constructive talks” are over.
And suddenly the Eurozone is stunned, because what had until now been its greatest carrot when it comes to dealing with Greece, has become completely useless when the impoverished, insolvent nation itself says it no longer needs a bailout, seemingly blissfully unaware of the consequences. Continue reading
The bailout program, which the outgoing Greek government signed with the EU, is dead and will be renegotiated, Yiannis Milios, chief economy policy maker at the leftist anti-austerity party Syriza said after it won the country’s parliamentary election.
European Union Finance Ministers are scheduled to meet in Davos on Monday, but Milios said that Greece’s current finance minister, Gikas Hardouvelis, will attend the gathering only to “close pending cases of technical matters.” Continue reading
As earlier described, don’t count Greece out of the picture, as they are much too critical for the German dominated EU to lose. Germany needs energy independence from Russia and needs to keep the EU in tact as a whole, otherwise a broken up European continent would not provide the solidarity needed to stand up to the Soviets. Without one, or both, Germany would otherwise remain a stagnant useless nation plagued with external and internal security issues. Greece will become a major, if not the major, energy transit hub for all of Europe. China also once hailed Greece as the “gateway to Europe”.
Amid the hard times Greece is going through, the assertion that it is turning into an important regional player in the natural gas scene is not an exaggeration. Its geostrategic location on the map offers a number of advantages, which can translate to an economic competitive advantage, as well as to an upgrade of its geopolitical role in South-East Europe.
Firstly, Greece’s role in the international chessboard of pipelines becomes critical. The selection of the Trans-Adriatic Pipeline (TAP) as the avenue for EU’s Southern Energy Corridor, as well as the pending project for the Greece-Italy Poseidon (IGI) pipeline with the participation of DEPA, is decisive; not only will it support local economies during the construction phase, but also ‘locks’ this particular route through Greece as the main entrance hub of Azeri gas to Europe. Continue reading
ATHENS/BERLIN (Own report) – New allegations of corruption have been leveled at leading German arms manufacturers. According to a former employee of the Greek defense ministry and several mediators of the arms industry, German arms manufacturers paid millions in bribes to induce Athens to purchase German weaponry, worth several billion Euros. Krauss-Maffei Wegmann and Rheinmetall were among the companies named. These deals helped inflate the country’s debts and were, therefore, in part responsible for escalating the crisis. Others, such as Siemens, had also paid millions in bribes to land lucrative contracts from Athens. According to a Greek journalist, who has done extensive research on corruption in Greece, German companies are the “main beneficiaries” of Greece joining the Euro zone because they subsequently profited from highly lucrative Greek government contracts. The sumptuous contracts helped plunge Greece into crisis while they, at the same time, helped the German industry to blaze its trail to the predominant position in Europe. Continue reading
If you were, lets say, a sinister EU and you wanted to guarantee a supply of energy resources because you have none, how would you go about doing it?
Expanding on the relations between Cyprus and Greece pointed out by this article, one could say in a nutshell, this is how: The EU, which is ran by Germany via the “Troika”, subjugates Greece through forcing it to give up chunks of sovereign rights while simultaneously destroying the Cypriot economy for generations via bank depositor theft. While some control of both countries over their economies is retained, they forge natural relationships for a common cause (keeping Turkey and it’s revived Ottoman empire dream out of their region) that bring about resources that will ultimately be under the Fourth Reich’s EU control mechanism.
Perhaps this is too ahead-of-the-curve, but it is a very plausible outcome. Europe in general does not wish to remain dependent upon the Russian bear for all of its energy resources, nor the Middle East. This would be a life saver for them. They have no fear of economically or politically, openly raiding and plundering countries as shown in the last three years. Even if it doesn’t come under EU control, it’s also within the realm of possibility that the energy resources will be sold at very cheap prices to the EU in return for paying off country debt and regaining some sovereignty. Either way, you can look forward to the EU getting in on the action. Expect Israel to also fit into the equation as it also is a deterrence to Turkish aggression.
The Cyprus issue, energy security and the exploitation of hydrocarbon reserves in Cyprus’ Exclusive Economic Zone were examined during a meeting in Athens between the Defence Ministers of Cyprus and Greece, Fotis Fotiou and Panos Panagiotopoulos, respectively.
Fotiou also discussed with Panagiotopoulos the situation in the wider south-eastern Mediterranean region and Turkish threats against Cyprus with regard to oil exploration.
He thanked the Greek government and its people for supporting the Republic of Cyprus and for being the firm and permanent supporter of the sovereignty and territorial integrity of Cyprus and its economy, adding that “with hard work by both governments we can support one another and give hope and prospects to the people”. Continue reading
The German finance ministry is pushing for Greece to declare itself bankrupt and to agree to a ”haircut” on the bulk of its debts held by banks, a move that would be classed as a default by financial markets.
Euro zone finance ministers meet today to approve the next tranche of loans from the EU and the International Monetary Fund, designed to stave off national bankruptcy while the new Greek government puts the country’s finances in order. But the severe austerity measures being demanded have caused such fury in Greece, and the cuts required are so deep, that German Finance Minister Wolfgang Schauble does not believe that any government would be able to implement them.
Full article: Germany prepares for ‘inevitable’ Greek crash (Canberra Times)
Plans for Greece to default, potentially leaving the euro, have been drafted in Germany as the European Union begins to face up to the fact that Greek debt is spiralling out of control – with or without a second bailout.
“The idea instead is that the Greek government should officially declare itself bankrupt and begin negotiating an even bigger cut with its creditors. For Schäuble, it is more a question of when, not if.”
The German finance minister’s comments are certain to plunge the authorities in Athens into even deeper gloom. On Saturday they tried to sound optimistic, with a cabinet meeting to thrash out the final details of an austerity package.
Full article: Germany drawing up plans for Greece to leave the euro (The Telegraph)