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Just as Greece complies at last, Europe pulls the plug
The Telegraph ^ | 2/16/2012 | Ambrose Evans-Pritchard

Posted on 02/16/2012 9:28:25 PM PST by bruinbirdman

Officials from the EU and the International Monetary Fund made two grave errors when they swooped into Greece in mid-2010 and dictated the now hated "Memorandum".


"Strange, you'd think he didn't want to."

The regime of drastic cuts has tipped the economy into a violent downward spiral. They thought that private industry would muddle through as the state went through the austerity mincer. What the EU-IMF "Troika" did not fully understand is how many firms were really part of the state in disguise.

"The Greek government outsources everything," said one official with close knowledge of the events.

Faced with the guillotine, the state first slashed procurement contracts and then stopped paying its bills altogether. The government is now €7bn (£5.8bn) in arrears to private companies, including €3bn in unpaid VAT refunds for exporters. It is why business has borne the brunt of the fiscal squeeze, suffering 450,000 job losses, and why Greece's unemployment has soared to 21pc.

At the same time the banking system seized up. More than €60bn of deposits were withdrawn. By November, no Greek bank could issue a letter of credit accepted anywhere in the world, with calamitous implications for trade – and for exporters trying to meet Troika demands for export-led recovery. "Greece became a leper, and is now stuck in Catch-22," said one official.

Hellenic Petroleum was unable to import basic fuel. The reason why Greece's reliance on oil imports from Iran jumped from 15pc to 70pc in a two-week period in November was because Tehran agreed to take on the credit risk.

"They need to find some way to unblock this or the Greek economy is going to suffocate from lack of oxygen: we are reaching the limits," said Dimitris Daskalopoulos, head of the Hellenic Federation of Enterprises. The

(Excerpt) Read more at telegraph.co.uk ...


TOPICS: Business/Economy; Crime/Corruption; Foreign Affairs; News/Current Events
KEYWORDS:

1 posted on 02/16/2012 9:28:32 PM PST by bruinbirdman
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To: bruinbirdman

What, the EU’s really the bad guy here? Who’s surprised?


2 posted on 02/16/2012 9:34:37 PM PST by Olog-hai
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To: bruinbirdman

The Troika is not working.


3 posted on 02/16/2012 9:35:22 PM PST by mylife (The Roar Of The Masses Could Be Farts)
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To: mylife

No, they’re working for themselves. Which is actually what was expected . . .


4 posted on 02/16/2012 9:38:49 PM PST by Olog-hai
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Triumvarat~ Panic On 5th Ave
5 posted on 02/16/2012 9:43:09 PM PST by mylife (The Roar Of The Masses Could Be Farts)
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To: Olog-hai

Indeed.


6 posted on 02/16/2012 9:43:54 PM PST by mylife (The Roar Of The Masses Could Be Farts)
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To: bruinbirdman

Yikes


7 posted on 02/16/2012 10:13:11 PM PST by F15Eagle (1 John 5:4-5, 4:15, 5:13; John 3:17-18, 6:69, 11:25, 14:6, 20:31; Rom10:8-11; 1 Tim 2:5; Titus 3:4-5)
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To: bruinbirdman

So if Greece collapses... it screws Iran. Yes!


8 posted on 02/16/2012 10:21:21 PM PST by rwilson99 (Please tell me how the words "shall not perish and have everlasting life" would NOT apply to Mary.)
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To: bruinbirdman

Golly, Greece really is like California!


9 posted on 02/16/2012 10:26:52 PM PST by RobbyS (Christus rex.)
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“government is now €7bn (£5.8bn) in arrears to private companies”

Stiff workers to pay freeloading banksters.


10 posted on 02/16/2012 10:53:10 PM PST by Milhous
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To: bruinbirdman
"What the EU-IMF "Troika" did not fully understand is how many firms were really part of the state in disguise."

That's what is not fully understood about our USA, but then leaders of all kinds refuse to think about it, much less discuss it. All hail the government-debt-dependent "service industry," which is not really industry. As for established exporters relying on credit for continuing business, that's a stylish but flawed business model.


11 posted on 02/16/2012 10:59:01 PM PST by familyop (We Baby Boomers are croaking in an avalanche of rotten politics smelled around the planet.)
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To: bruinbirdman

Greece essentially talked the game but couldn’t play it.It is their loss and Europe’s gain.


12 posted on 02/16/2012 11:03:51 PM PST by Del Rapier
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To: familyop
"government-debt-dependent "service industry," "

Now including lunch box inspectors, an idea straight from UK. In fact that's where Michele got all her bogus collectivist nutrition ideas.

yitbos

13 posted on 02/16/2012 11:09:11 PM PST by bruinbirdman ("Those who control language control minds." -- Ayn Rand)
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To: Milhous
Stiff workers to pay freeloading banksters.

I believe your "banksters" have already taken a 70% write-down on the Greek bonds.

14 posted on 02/16/2012 11:09:45 PM PST by okie01 (THE MAINSTREAM MEDIA: Ignorance On Parade)
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To: Del Rapier
Greece brought all this on themselves....they complain that their country is now being run by “outsiders”...but when a someone goes bankrupt an executor is appointed and you no longer have control of your assets, did they somehow think this would be an exception for them? They begged for money from the EU....then failed to even comply with a single point of that agreement... just what did they expect?

Greece has been “playing” their same old game for eons. They lied to the EU just to get accepted and then they wonder why the hammer is coming down.

"Borrower will always be servant to the lender"

15 posted on 02/16/2012 11:41:23 PM PST by caww
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To: caww
Bankers now directing Greece, just print more money and throw it in that general direction. Locals have more time to burn down things since there are no jobs available. Looks like VAT was just enough to suck up any extra available cash to put Greece in the red since they were borderline already. BTW, a Letter of Credit (LC) guarantees whoever is delivering the goods, gets paid. If one contemplating issuing a LC doesn't want the risks of say, maybe, Iran going to war during shipment of oil or Greece defaults before the oil arrives at its destination besides insurance issues and product quality guarantees, you can see where one might not sign a LC because of possible losses at this time esp. when the US doesn't want Iran making money.
16 posted on 02/17/2012 12:29:06 AM PST by Razzz42
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To: caww

Yep. It’s amazing how many, even here, are in denial about that simple truth.


17 posted on 02/17/2012 4:25:28 AM PST by Moltke (Always retaliate first.)
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To: bruinbirdman

Scary NY Slimes article on Greece.

Some of these faults are now apparent in the USA, such as the MSM being the propaganda arm of the current regime.

http://mobile.nytimes.com/2012/02/19/magazine/the-way-greeks-live-now.xml;jsessionid=B81E11BDA478E70A82EB8C83AA5BBFA5.w6?rec=t


18 posted on 02/17/2012 7:59:26 AM PST by Bon mots ("When seconds count, the police are just minutes away...")
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To: okie01

So it’s OK with you for governments, such as the state of Illinois, to refuse to pay private companies for services rendered?


19 posted on 03/08/2012 1:01:48 PM PST by Milhous
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To: Milhous
So it’s OK with you for governments, such as the state of Illinois, to refuse to pay private companies for services rendered?

Excuse me. But where in hell did I even suggest such an outcome?

If you somehow misdirected this comment to me, I'll accept your apology.

20 posted on 03/08/2012 4:09:16 PM PST by okie01 (THE MAINSTREAM MEDIA: Ignorance On Parade)
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To: okie01

You first. What the hell does your allegation of banksters supposedly taking a 70% writedown have to do with my comment about banksters stiffing workers?


21 posted on 03/08/2012 4:16:09 PM PST by Milhous
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To: Milhous
Did the international bankers take a 70% writedown on their Greek bondholdings, or did they not?

That doesn't make them "freeloaders", does it?

And the statement is true, whether they "stiffed workers" or not.

22 posted on 03/08/2012 5:40:53 PM PST by okie01 (THE MAINSTREAM MEDIA: Ignorance On Parade)
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To: mylife

I actually have that on vinyl. Haven’t listened to it in years.


23 posted on 03/08/2012 5:47:02 PM PST by Lurker (The avalanche has begun. The pebbles no longer have a vote.)
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To: Lurker

I break the old stuff out on occasion.


24 posted on 03/08/2012 5:50:46 PM PST by mylife
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To: Milhous

At this point anyone stupid enough to do business with the State of Illinois deserves whatever happens to them.


25 posted on 03/08/2012 5:50:55 PM PST by Lurker (The avalanche has begun. The pebbles no longer have a vote.)
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To: okie01
Did the international bankers take a 70% writedown on their Greek bondholdings, or did they not?

Once again, so what? Banksters who make stupid loans need to go out of business instead of socializing losses by sticking it to workers.
26 posted on 03/08/2012 6:59:21 PM PST by Milhous
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To: Lurker
At this point anyone stupid enough to do business with the State of Illinois deserves whatever happens to them.

As the State of Illinois deserves whatever happens to it.
27 posted on 03/08/2012 7:04:21 PM PST by Milhous
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To: Milhous

Agreed.


28 posted on 03/08/2012 7:06:15 PM PST by Lurker (The avalanche has begun. The pebbles no longer have a vote.)
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To: Lurker

Alright then. BTW, in this context “State of Illinois” refers to the mob that appropriates goods at the point of a gun. “State of Illinois” does not mean the land nor the common folk living on that land. All common folk deserve honest government.


29 posted on 03/08/2012 7:12:45 PM PST by Milhous
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To: Milhous

Common folk deserve the government they vote for, nothing more.


30 posted on 03/08/2012 7:17:29 PM PST by Lurker (The avalanche has begun. The pebbles no longer have a vote.)
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To: Lurker

You still believe in the bankster’s obfuscation ploy known as “the vote?” LOL. Didn’t Bush starting the TARP bailout and “Bush with a tan” Obama finishing it teach you anything? ROTFL.


31 posted on 03/08/2012 8:07:58 PM PST by Milhous
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