The world is gathering around and watching the economic expiration of Greece and Venezuela.
Posted on 05/16/2016 2:46:27 PM PDT by Lorianne
Irreconcilable Positions
Greece owes the Troika over €11 billion in bailout repayments through the end of July. Greece is unable make those payments unless the Troika releases the funds.
Position 1: “We need a big debt restructuring, no more kicking the can,” says Greece’s Minister of State.
Position 2: Germany offers a possibility of unspecified debt relief, at a future point in time, only if necessary. First, Greece must make another round of budget cuts on top of the pension cuts its just made. Greece has caved in every time, and in the most humiliating ways. Greece even caved in on pension cuts last week.
Why should anyone believe Greek demands now?
Please consider Greek Bailout Deal Must Have Concrete Debt Relief, State Minister Says.
“Greece will not accept a bailout deal without a concrete agreement for debt relief from the country’s European creditors, a top aide to Prime Minister Alexis Tsipras said.
“We want real solutions, not interim solutions,” Nikos Pappas, Greece’s Minister of State, said in an interview Friday after several days of talks with senior U.S. officials. “No more kicking the can down the road.”
Without fresh bailout funds, Greece faces bankruptcy in July at the latest. That could revive risks across the eurozone, which is already grappling with a migration crisis, a movement in the U.K. to leave the European Union and the rise of populist parties across the continent.
European powerhouse Germany is pushing Greece and the IMF to accept another bailout agreement based on possible debt relief in the future. The fund, trying to regain credibility it lost in the first two failed Greek bailouts, is taking a firm stand on debt restructuring.
“There are disagreements between the IMF and our European partners,” Mr. Pappas said. “But we have made our position clear that we need a big debt restructuring.…There should be no delay.”
U.S. Treasury Secretary Jacob Lew said Friday he’s pushing Germany to accept some form of restructuring. “I have very much communicated to all the parties that debt relief is necessary,” he said.
But Mr. Lew signaled that the IMF and Greece would also need to compromise. The IMF is pressing for Greece to commit to wage and pension cuts if the country doesn’t meet its budget targets in the coming years. Athens has instead said it would approve across-the-board reductions in spending, a proposal the fund says isn’t credible.”
Well they got themselves there, let them get themselves out of the mess they have made....America has her own problems!!!
Russia and/or China will bail them out......for a price.
It doesn’t appear to me that Greece is in any position to be making demands.
In other words, most people giving us money have run out, so we need money from anyone who has any left.
I though borrowing was the Only way to prosperity?? See Obama
Just tell the creditors to go pound sand, refuse any and all restructuring of debt, complete write down of ALL DEBTS, nothing else go to a cash basis for everything.
Or maybe they have all the position. Not like anybody wants to repossess a country. At least not one in that bad a shape.
Default, Greece. See what happens.
Seriously, it is the only answer. Investors (and debt enablers) priced all the default into it, if there can be no chance of default, then the rates should have been significantly lower.
I’m not saying play chicken with your economy - I’m saying your economy’s already gone, and time to man up and stand strong.
Interesting. BTTT
I don’t blame Greece anymore, this is solely Brussels fault for perpetuating the crisis.
Greece should have defaulted 8 years ago, it would have been painful but the new Drachma would have evened things out.
Instead, they bail out continuously pretending there is no crisis and trap Greeks in an arrested state of financial misery. All to preserve their power.
Sell the Parthenon or a few of your islands, you socialist slackers.
Reminds me of a local oriental rug store that has an annual ‘Going Out of Business’ sale.
The world is gathering around and watching the economic expiration of Greece and Venezuela.
You are everywhere posting this silliness.
With no debt, the entire world becomes a third world economy.
Greece should have been cut off long ago and the entire EU was doomed from the start, but not because debt is a bad thing.
Debt used improperly leads to bad things, just like a gun or any other tool used improperly leads to bad things.
Debt used improperly leads to bad things
Money created out of Debt leads to Much Much Worse regardless of your good intentions.
A debt Based Monetary system is the very definition of servitude.
About 16 years ago, a liberal colleague of mine just got back from a vacation in Greece. He was raving about their lifestyle and how he wished the United States was more like Greece.
I reminded him of that recently ... he claims that he can’t recall having said that.
I think once the SHTF there, there will be some kind of way to blame all of this on the United States ... that will be the crap he’ll regurgitate regarding Greece and the other members of PIIGS ... I’m sure he will then recall making that claim that he made 16 years ago and will say that had it not been for the evil USA meddling in world economic affairs, the 3 hour work week or whatever they have there in Greece would have worked well.
They need to rip the band aid off this wound and let the natural flow of things run its course. I am well aware that decision would lead to one hell of a war centermed mainly on the “peaceful, better, more enlightened than the USA” European continent, but the eventual outcome is only going to get worse as time marches on.
They’ve already bred two powermongers with visions of world domination in the past couple hundred years ... I guess its almost time for a third.
As far as the USA is concerned, we could do quite well if we’d just stay the hell out of the whole thing when it implodes ... we have more than enough resources and plenty of people looking for work.
The payments will NOT be made.
Its sovereignty is at an end.
Greece is now a vassal state.
Spin: Greece found that making budget cuts was "humiliating". They borrowed it, they have to pay it back.
Counter spin reality: The Greeks are socialists. All socialists are parasites.
But they’re not without their tireless advocates, even here. :’)
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