Posted on 07/06/2015 12:17:36 PM PDT by McGruff
As chancellor of Germany, Angela Merkel leads a nation that prizes fiscal rectitude and adherence to the rules, and, after pledging tens of billions in bailout programs for five years, has expressed scant sympathy for Greece’s demand for more financial help.
As de facto leader of Europe, Ms. Merkel faces a very different set of responsibilities, starting with maintaining European unity in general and holding the euro together in particular.
(Excerpt) Read more at nytimes.com ...
http://www.nytimes.com/2015/07/07/world/europe/angela-merkel-faces-monumental-test-of-leadership-after-greek-vote.html?partner=rss&emc=rss
“She’s looking kind of haggard or haggered lately.”
And while she’s at it, how about paying back all the Western Nations for your WW debts?
I can’t wait to see the look on the Greek socialists when they realize that the banks aren’t going to open again.
which debts would those be?
Bloomberg says the ATMs run out of Euros in 48 hours - then the civil disobedience starts ... Where’s the popcorn eating gif?
Well Germany has tried to unite all of Europe a couple of time last century.
Why in the world would you loan more to a nation that is spending substantially more than it is taking in and still owes you for the last few multi-billion loans you gave them. It just guarantees that they will be back asking for more money every few years indefinitely. You are just shoveling more and more money to a country that has no intention of ever paying you back.
She’s lookin’ haggard, Merl................
I think the rest of the EU long ago resigned themselves to the fact that the debt is unpayable. In fact, Greece is probably still running a significant operating deficit, so the debt can only grow.
What they are trying to do is manage the Greek budget via the debt agreements so at least they can keep things under control. The EU compact doesn't give them political control but they're back-dooring it via the financing deals.
It's like any nation recognizing that one of their regions can't cut it, but they'll bite the bullet and subsidize it to keep the country together.
Late Wednesday night in Europe is pretty much the hard deadline for the Greeks. By Thursday morning, it’s likely that the banks will start falling one by one. The BBC’s Robert Peston wrote:
“But I understand that one of the Big Four Greek banks has already almost run out of cash. So the ECB statement means that bank has no ability to replenish its dwindling cash stocks.
In other words, the ECB has brought forward the fateful moment when the Greek banking system ceases to function in any meaningful way, for want of cash.
The Greek government and Bank of Greece today agreed with the banks that until Wednesday night, they will continue to allow cash withdrawals of up to 60 Euro per account - for those banks that still have paper money. And the ban on overseas transfers will be sustained until then.
Wednesday night therefore becomes a hard deadline for the Greek government to make serious progress in bailout negotiations with creditors - in the hope that the ECB is then persuaded to end the freeze on lending to banks.”
http://www.bbc.com/news/business-33420473
So that’s pretty much it. By Thursday morning, Greece is boned if some agreement isn’t reached.
Greece is a socialist economy poster child for failure. What they need is extreme capitalism to fix the problems. When I say extreme I mean it’s an extreme difference from their current state, but it’s the only way out.
And now the IMF chimes in:
“Just to make things clear, the IMF has told the Greek Prime Minister Alexis Tsipras, that it will not advance any more money to Greece. Why? Because it missed that last payment of €1.6bn. “The managing director [Christine Lagarde] explained the fund’s inability to disburse under its arrears policy,” an IMF spokesman said.”
http://www.bbc.com/news/live/business-33382332
“I can’t wait to see the look on the Greek socialists when they realize that the banks aren’t going to open again.”
Probably similar to the look on the Euro faces when they;
a) realize the are not gonna get paid.
b) see Chinese buying the rights to Greek oil and Gas offshore.
c) see Russians buying naval and air basing rights and pipeline routes.
d) realize the others in the PIGS group might decide default is survivable.
This could all get very nasty for them. (and ultimately for us, since somehow a Greek default to the EU will be handed to the US taxpayer to make right.)
Exactly, Greece should declare themselves a tax haven and a bastion of bank secrecy now that the Swiss share all with the IRS. Combine this with an extremely low corporate tax rate.
Then watch the cash flow in.
Of course, this would violate every rule the EU has, so they would need to walk. Frightening step to take, but they need to get free of the European socialist union.
“which debts would those be?”
Read this article. Evidently, Germany hasn’t ever repaid either of it’s WW debts, or so the author indicates. Knowing our government, Japan probably hasn’t either.
http://www.freerepublic.com/focus/f-news/3308317/posts
“Of course, this would violate every rule the EU has, so they would need to walk. Frightening step to take, but they need to get free of the European socialist union.”
Seems like “divorce” is the only option since neither party is happy with the “marriage.” But at least without being financially propped up continually by the productive EU countries any longer, Greece will be in the driver’s seat to fix themselves. But it’s probably going to look like someone withdrawing from using heroin.
The United States gave $13 billion (approximately $120 billion in current dollar value) in economic support to help rebuild European economies after the end of World War II.
Approximately 11% of that went to West Germany. The Soviet Union blocked any (Marshall Plan) aid going to East Germany or any other Soviet controlled territory.
That’s an amazing idea - I like it !
Germany is a “disciplined” country and why their monetarily where they are in the EU. Merkel will have no problem letting Greece exit the EU if it were left up to her alone.
I don’t think she’s sweating over Greece at all...
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