Author: abramicus

THE GREEK PARLIAMENT MAY NOT APPROVE AUSTERITY REJECTED BY REFERENDUM! [Copy link] 中文

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Post time 2015-7-15 15:25:26 |Display all floors
This post was edited by abramicus at 2015-7-15 15:30

HOW MONETARY AUTHORITIES USE FAILED ECONOMIES TO FORCE SUCCESSFUL ONES TO BORROW.

Germany was so focused on not being cheated again of a single Euro after what happened to the first two bailouts that cost her nearly 30 billion euros in just 5 short years.  The bailout monies came from the public treasuries of the Eurozone governments.  

What people fail to see is that although Germany is the most powerful country in the Eurozone, its money comes from the ECB, just like Greece's does.  In order for Germany to "give" Greece any money to bail it out of insolvency, Germany has to borrow from the ECB and pay interest on it.  Thus, the ECB has every interest in asking the Eurozone members, including Germany, to loan Greece more money, because Germany will end up borrowing it from the ECB and paying interest on it, even if Greece should ultimately default on its principal and interest payments.  

When the IMF wants Germany to forgive some of the debt of Greece, it does not ask the ECB to forgive in turn the debt of Germany in exchange.  Oh no, the ECB was very firm that it cannot forgive loans, period.  As was the IMF on its duty to NOT forgive loans.  Thus, these two banks want Germany to foot the bill for the loans the Greeks got but cannot repay.  Why should Germany?

Merkel's mistake was her failure to explain to the world that the ECB and IMF cannot just rob German taxpayers in order to pay the Greeks' debt.  Instead, she focused on the austerity measures that Greece must comply with, when the fact is, austerity or not, Greece will default, and faster too with more austerity.  In short, no amount of loans will save Greece from financial insolvency, not when its debt is already 200% of its GDP, and in absolute terms, its debt would be worth 440 billion euros if the third bailout were to occur, something no country of 11 million people can repay ever.

Now, it is up to the German parliament to vote down the request of the Euro Commission for money to lend to Greece.  Germany has nothing to gain, and many more billion euros to lose.  It would be like asking Germany to recapitalize Lehman Brothers when it was beyond any hope of becoming solvent again.



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Post time 2015-7-15 16:35:59 |Display all floors
This post was edited by abramicus at 2015-7-15 16:43

THE ANGLO-FRENCH ALLIANCE AGAINST THE HANSEATIC LEAGUE ALL OVER AGAIN???

Already, you can see the British press lionizing Tsipras as hating to capitulate to the Germans on the severest terms of austerity. while in the meantime, Tsipras replaced the populist Varoufakis with an Oxford graduate as the new finance minister, willing to do everything Tsipras commands.  Tsipras' actions run counter to the will of the Greek people as officially expressed in the referendum on precisely such austerity measures, ending with a resounding NO to these same measures that Tsipras believes he has a mandate to accept because he does NOT have the mandate to exit the Euro.  The fact is, he does not have the mandate to remain in the Euro either.  On the other hand, with the NO victory in the referendum, he not only has a mandate to reject the austerity measures on behalf of the Greek people, he also has the duty to do so.  

Like the ECB and the IMF, the Bank of England's chancellor also told the press that the UK will not contirbute a single pound to the bailout of Greece.

Germany's anger directed at Greece should not be based on Greece's importunity, but rather, should be directed at the ECB and IMF that in effect want her to take the biggest hit, through paying the entire debt of Greece, by virtue of the fact that Germany's contribution to the bailout requires the use of Euros which she obtains only by borrowing it from the ECB.  Taken in this light, the target of the bailout is Germany and the other successful Eurozone countries, to make them indebted to the ECB to the tune of a combined 440 billion euros should the Third Greece Bailout be implemented.  Greece is no longer a credible party to the loans, as it can be safely assumed to be unable to repay its current 354 billion euro debt, and more so, its future 440 billion euro debt, even if it forfeits ownership of 50 billion euros worth of public properties.  Put in a different light, Greece is a hostage to foreign banks, and is being used to demand a ransom from Germany and the rest of the Eurozone countries which depend on the ECB lending them Euros to pay their own citizens, as well as to help the Greeks.

Instead, Germany is currently being painted as the villain wanting to crush Greece.  Nothing could be fatther from the truth.  Germany does not want Greeks to be its slaves, nor does it want to be their slave masters.  Germany wants to cut its losses, rather than invest more taxpayer's money on an investment that cannot be salvaged.  But in the name of EU solidarity, and in the name of humanitarianism, it has accepted its role as the creditor to Greece who can expect never be repaid, while the ECB plays to role of its creditor who will be repaid.  Is that the reason why its Finance Minister asked the question, "Do you take me for a fool?"



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Post time 2015-7-19 23:26:48 |Display all floors
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Post time 2015-7-20 00:36:21 |Display all floors
incarnate Post time: 2015-7-19 23:26
The Greeks are in a sand pit, buried with sand up to their necks. By accepting another bailout sum ...

It's better a sand pit than a Mongolian pit.




I've made my living, Mr. Thompson, in large part as a gambler. Some days I make twenty bets, some days I make none. There are weeks, sometimes months, in fact, when I don't make any bet at all because ...

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Post time 2015-7-24 08:55:55 |Display all floors
Revolutionar Post time: 2015-7-20 00:36
It's better a sand pit than a Mongolian pit.

China's overvaluation of the Yuan exchange rate is its "Mongolian Pit", large enough to roast an elephant.

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Post time 2015-7-24 10:37:03 |Display all floors
They did

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Post time 2015-7-24 10:40:27 |Display all floors
This post was edited by Revolutionar at 2015-7-24 10:44
abramicus Post time: 2015-7-24 08:55
China's overvaluation of the Yuan exchange rate is its "Mongolian Pit", large enough to roast an e ...

So you think the yuan is over valued?


I don't think so......neither do fund managers.


In fact more people think the yuan is under valued and kept at too low a level for too long......and if China wants to transform into a consumption economy, a higher level for yuan will certainly help.
I've made my living, Mr. Thompson, in large part as a gambler. Some days I make twenty bets, some days I make none. There are weeks, sometimes months, in fact, when I don't make any bet at all because ...

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