Tuesday 30 June 2015

The Greek crisis: Athens Is Being Blackmailed

My ire is directed at the 1%-ers in this country that have aligned themselves with the most extreme right-wing agenda of the Empire.

Listen for a moment to this arsehole....

This headlines says everything about the propaganda line in this country. We are not allowed to think that small countries should follow their own national interests.

Greece accused of egotism in walking away from debt talks

First the version from the NZ Herald.

Crisis-ready Europe urges Tsipras to step back from brink

Greece's Prime Minister Alexis Tsipras promised to return "dignity" to the people and reject budget cuts imposed by creditors. Photo / AP
Greece's Prime Minister Alexis Tsipras promised to return "dignity" to the people and reject budget cuts imposed by creditors. Photo / AP

30 July, 2015

European leaders are raising pressure on Greek Prime Minister Alexis Tsipras to 're-engage', saying it's up to his government to step back from the brink and stay in the euro.

With Greece under capital controls and banks closed, German Chancellor Angela Merkel and French President Francois Hollande offered no concessions beyond saying that they remained open to talks, even after the referendum on the European Union's aid proposal planned for July 5. European Commission head Jean-Claude Juncker said the "whole planet" would view a "no" vote as Greece turning its back on Europe.


Leaders were emboldened by a measured investor response to a weekend of turmoil as Tsipras' government took emergency steps to avert the collapse of Greece's financial system. While his decision to hold a ballot increased the risk of Greece exiting the euro, evidence of contagion elsewhere was limited, reducing his leverage over credдtors.

"Europe can cope with such crises much, much better today because it has taken precautions," Merkel said in a speech in Berlin on Monday.
The euro erased its losses after earlier dropping to a near one-month low against the dollar, and traded 0.3 per cent higher at $1.1204 as of 7:00 p.m. in Berlin. European equities sank, with the Stoxx Europe 600 Index down 2.7 per cent, while bond yields jumped in Italy, Spain and Portugal.

A crowd of 12,000 gathered in Syntagma Square to call for a ''no'' vote against the EU proposals. Photo / AP  A crowd of 12,000 gathered in Syntagma Square to call for a ''no'' vote against the EU proposals. Photo / AP

Those countries have all suffered bond panics since 2010 on concern they could slide into a Greek-style crisis. Their leaders moved to assuage concerns about contagion.

Italian Finance Minister Pier Carlo Padoan took to Twitter to reassure followers about his country's direct exposure.

Greece's problems show "the difference between the serious policies and those policies which aren't very serious," Spanish Prime Minister Mariano Rajoy said at a news conference.

In Athens, people have taken to the streets. A crowd of 12,000 gathered in the centrally-located Syntagma Square late on Monday to call for a ''no'' vote against the EU proposals, according to police estimates. Banners were displayed in front of the parliament building. One read: "Our lives do not belong to the credдtors."

Greece has also become another thing for old Cold War foes to disagree on. Russia weighed in, with Foreign Minister Sergei Lavrov said he understood Tsipras' actions. The United States instead is urging the Greeks to do what they must to stay in the 19-member currency bloc.

"We've long made clear that we expect the Greeks to keep their commitments," White House press secretary Josh Earnest said on Monday.

European leaders sought to reach out to the Greek people while offering Tsipras's government little leeway after he broke off negotiations over future bailout aid at the last-minute on Friday. Tsipras, who promised to return "dignity" to the people and reject budget cuts imposed by creditors, appealed for "calm" after weekend-long queues at ATMs and gas stations.

Elderly people, who usually get their pensions at the end of the month, wait outside a closed bank in the northern Greek port city of Thessaloniki. Photo / APElderly people, who usually get their pensions at the end of the month, wait outside a closed bank in the northern Greek port city of Thessaloniki. Photo / AP

The prime minister's efforts to shield the poorest Greeks from the effects of his decision are already starting to unravel. Twelve hours after issuing the capital controls decree, the government revoked a provision in the law exempting pension payments from the 60-euro (NZ$98) daily limit on bank withdrawals.

The about-face came as industry officials warned that the move to waive limits for pensions would have soaked up much of the system's remaining liquidity and highlights the hurdles Tsipras still has to overcome to reach the July 5 vote.

Jeroen Dijsselbloem, the Dutch finance minister who leads meetings of his euro-area counterparts, said he regrets that the Greeks walked away.

"But they've chosen their path and we cannot interfere," he told reporters in The Hague.

- Bloomberg

EU's Juncker feels 'betrayed' by Greece situation!!!  

Max Keiser, whom I would trust a hundred times over Bloomberg reporting through the NZ Herald says it how it is - especailly about the EU's Juncker

From the Guardian - 

Germany, France and Italy joined the European commission in insisting that Sunday’s poll is about continued eurozone membership

Greek debt line: Banks close, ATM lines mount & IMF payment looms

The chief of the European Commission Jean-Claude Juncker has made a last-ditch effort to keep Greece from leaving the Euro. He said that the creditors' terms are not - quote - "stupid austerity" and that the Greek people should "not commit suicide out of fear of death" in the upcoming referendum on those terms, on July 5th. Mr. Juncker also repeatedly pointed out that he's not the one to blame for putting the country on the brink of financial ruin and now let's head to Athens, where the people are anxiously following the news from Brussels. RT's Peter Oliver and Harry Fear have more on the ongoing Greek crisis.

And Zero Hedge....

Greece Will Default To IMF Tomorrow, Government Official Says

29 June, 2015

Earlier today, as the exchange between Greece and its creditors got increasingly belligerent, Estonian Prime Minister Taavi Roivas told public broadcaster Eesti Rahvusringhaaling in interview that a possible Greek decision to leave euro area wouldn’t soften stance of other EU countries and that Greece’s debt would still remain outstanding and creditors would expect this money back."

"If Greece leaves, the value of their new national currency would decline very fast, so their solvency would still worsen further. They will either have to cut spending or improve their tax revenues. There are no other options."

So did this latest antagonism change the Greek mind? According to a flash headline by the WSJ released moments ago, not all. In fact, Greece just made it official that it would default to the IMF in just over 24 hours.
Greece won't pay IMF tranche due Tuesday, government official says http://t.co/xnCG6c6baX
WSJ Breaking News (@WSJbreakingnews) June 29, 2015


Greece won’t make a debt repayment to the International Monetary Fund due Tuesday, a senior Greek government official said Monday.
Earlier this month, Greece had notified the IMF it plans to bundle its loan repayments falling due this month into one payment of around 1.6 billion euros ($1.7 billion), which is due Tuesday. 
The IMF has said that Greece will immediately be in arrears if it fails to make the debt repayment.

So, as per game theory, the Greek plan - at least until the social mood turns very ugly - remains just one:

The problem is what happens then...
Greek bank chief: "Few billions left, so we are OK until next Mo or Tue BUT if no deal, there will be no money left” http://t.co/2ZyO2Bcd6l
Pieter Cleppe (@pietercleppe) June 29, 2015

Having told the citizens of Greece that the European leaders will not kick them out of Europe because "the cost of throwing them out is too high, enormous," it appears Greek PM Tspiras has another plan to ensure - no matter what the outcome of the forthcoming referendum - that there is no actual Grexit. As The Telegraph reports, Greece has threatened to seek a court injunction against the EU institutions, saying "we are taking advice and will certainly consider an injunction at the European Court of Justice. The EU treaties make no provision for euro exit and we refuse to accept it. Our membership is not negotiable."

Speaking earlier Tsipras stated:


Greek Supermarkets Begin To Resemble Those Of Venezuela

......As we noted yesterday, in clear rejection of Tsipras' plea for calm, the Greek population stormed (now empty) ATMs, grocery stores and gas stations as they scrambled to obtain, or convert, paper currency into tangible products.

This morning, the NYT picked up on the realization that for Greece ATM runs were last week's story. Now, it's all about the "Supermarket Sweep"... and hoarding. To wit:

Beside the lines at A.T.M.s, people were also lining up at gas stations and in grocery stories. In the small town of Spata, outside Athens, residents had stripped grocery shelves bare by Saturday night. The local Shell station had run out of regular unleaded and had only premium gasoline to sell. “Doom,” the gas attendant responded, when asked to describe the mood.
The frenzy at gas stations across the country prompted Greece’s largest refiner to issue a statement assuring that there would be enough supply...

And this is how Athens is slowly starting to look like Caracas.
On Monday supermarket shelves in #Athens emptying as Greeks stock up for coming days #Greece#Grexit #Greferendum pic.twitter.com/q61PVM17d9
Julia Damianova (@JuDamianova) June 29, 2015

This is what is out from Wikileaks on the French economy.

French Economy In "Dire Straits", "Worse Than Anyone CanImagine", Leaked NSA Cable Reveals

Earlier today Wikileaks released a new batch of NSA intercepts among which one in particular stands out: an intercepted communication which reveals that then French Finance Minister Pierre Moscovici believes the French economic situation was far worse, as of mid-2012, than perceived.

The Russian media - Sputnik...

Head of Bundestag Committee on European Union Affairs predicts that Germany could lose billions of euros if Greece goes bankrupt

Pepe Escobar

Prime Minister Alexis Tsipras allows the Greek people to decide their own fate via a democratic referendum. That’s enough to send the troika – the European Central Bank (ECB), the European Commission (EC), and the International Monetary Fund (IMF) - into a paroxysm of rage. Here, in a nutshell, is everything one needs to know about the EU “dream”.

And two other sources

IMF’s Managing Director Christine Lagarde finally found the needed strength to express her view on Greece’s Referendum. Speaking to BBC, Lagarde said that next Sunday (July 5th) referendum will not be valid as the creditors’ proposal and program end on June 30h.

Greece’s creditors hope that by unleashing chaos, they can bring the country to its knees ahead of Sunday's referendum. Greeks must not give in

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