GREEK DEMAND FOR A HAIRCUT – IN ANY AMOUNT – WILL NOT HELP GREECE PAY ITS DEBTS !

NEWS FLASH !

THE NEW COMMUNIST GOVERNMENT OF GREECE’S DOGFIGHT WITH THE TROIKA, THE EU, THE ECB (EUROPEAN CENTRAL BANK) AND THE IMF IS USELESS!

THE DEMAND FOR CUTTING THEIR 320 BILLION EURO DEBT – IN HALF – WILL STILL NOT ENABLE GREECE TO PAY ITS DEBTS!

THIS ASTOUNDING REALIZATION COMES FROM THE OTHER “OBLIGATIONS” GREECE HAS – JUST OVER THE NEXT 2 MONTHS – AND ITS INABILITY TO FINANCE / REPAY THEM, MUCH LESS NOT HAVING ENOUGH MONEY TO PAY FOR ITS NEW EXPANDED GOVERNMENT SPENDING PROGRAMS.

THE GREEK ROSY SCENARIO IS THAT IN THE NEXT 2 MONTHS THERE IS A MERE PITTANCE TO REPAY – SOME 3.5 BILLION EURO TO THE IMF AND IN INTEREST TO THE PRIVATE INVESTORS WHO IN 2012 TOOK A 50% HAIRCUT IN EXCHANGE FOR NEW GREEK GOVERNMENT BONDS WITH LONG, LONG MATURITIES AND LOW, LOW INTEREST PAYMENTS.

WELL – NEW NEWS FLASH !

THERE IS ANOTHER ELEPHANT IN THE GREEK CLOSET – ALL THE NEW PRIVATE SHORT-TERM GREEK GOVERNMENT DEBT ! AND SOMEWHERE BETWEEN 6.5 – 10 BILLION EUROS COME DUE IN THE NEXT 2 MONTHS AND NEED TO BE REPLACED!

YES, LOST IN ALL THE NEWS OF THE EU GOVERNMENT TO GOVERNMENT BAILOUT BLOW-UP, IS THE FACT OF WHAT THE EU, ECB AND IMF BAILOUT ALSO ENABLED GREECE TO DO – GO BACK INTO THE PRIVATE FINANCE MARKETS. SO WITH THE BAILOUT IN PLACE, GREECE CLAIMED TO BE CREDIT-WORTHY AGAIN AND HAS BEEN DOING BILLIONS AND BILLIONS OF SIDE FINANCING THROUGH SHORT TERM GOVERNMENT PAPER SOLD TO NEW PRIVATE LENDERS / INVESTORS.

THESE NEW COMMUNISTS HAVE JUST ANNOUNCED TO THE WORLD THAT THE FOOLS, PRIVATE INVESTORS AND GOVERNMENTS ALIKE, ARE MORALLY RESPONSIBLE FOR “ALLOWING” GREEK TO GET INTO THIS FINANCIAL TROUBLE. GREECE DEMANDS THAT THESE “DOPE PEDDLERS” SHOULD BE HELD TO ACCOUNT FOR MAKING GREECE ADDICTED TO USING THEIR MONEY TO LIVE ON. AND THEY SHOULD THEREFORE BE PUNISHED BY NOT BEING REPAID FOR THE EVIL OF GETTING GREECE HOOKED ON OTHER PEOPLES’ MONEY.

IN THIS GREEK DOG-FIGHT, THERE IS NO REALISTIC CHANCE THAT NEW PRIVATE LENDERS WILL BE FOUND TO HANDLE A ROLL-OVER OF THESE BILLIONS; AGAIN SOME 6.5 TO 10  BILLION EURO OF WHICH IS CURRENTLY DUE.

SO GREECE HAS TO NOW BACK-DOOR THIS FINANCING BY GOING THROUGH THE ECB’S HIDDEN DOOR. IT HAS TO ISSUE NEW SHORT TERM PAPER, GET THE ECB PERMISSION TO INCREASE THE AMOUNT OF THIS SHORT TERM PAPER ISSUANCE, SINCE THEY HAVE ALREADY GONE TO THE PERMITTED LIMIT. AND THE ONLY BUYERS ARE THE GREEK BANKS (GREEK GOVERNMENT BANKS). AND THEY HAVE A LENDING FACILITY WITH THE ECB (REMEMBER THE STABILITY FACILITY).

SO GREECE WILL ISSUE NEW GOVERNMENT PAPER TO BE BOUGHT BY GREEK GOVERNMENT BANKS TO BE FINANCED BY THE ECB THROUGH THIS BACK DOOR. WHAT A WONDERFUL WAY TO HANDLE A CRISIS.

AND THE NEW COMMUNIST GOVERNMENT, CLASSICAL GREEK SCHOLARS THAT THEY ARE ARE NOW PILING PELION ON OSSA: RE-HIRE 9500 GOVERNMENT EMPLOYEES; RE-INTRODUCE GAS SUBSIDIES; INCREASE RENT SUBSIDIES; INCREASE WELFARE BENEFITS AND END PRIVATIZATION (SALE OF ASSETS FOR MONIES NEEDED TO PAY FOR THINGS).

JUST LIKE AS IN OLD – IT IS THE ATTEMPT TO SCALE MT. OLYMPUS AND OVERTHROW THE GODS OF THE IDEA OF A EUROPEAN UNION, A COMMON CURRENCY, OPEN TRADE, OPEN BORDERS, A FREE AND INDEPENDENT CENTRAL BANK, PRIVATE BANKING AND INVESTMENT.

THE NEW COMMUNIST GREEK GOVERNMENT DOES MARX ONE BETTER: FROM EACH EU COUNTRY ACCORDING TO OUR WANTS, TO EACH GREEK ACCORDING TO OUR NEEDS.

(Der Spiegel, Feb. 2, 2015, Desolate Finanzlage: Nicht einmal ein Schuldenschnitt wird Griechenland helfen)

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This entry was posted in budget, communist, ECB, EU, EURO CRISIS, Europe, EUROPEAN CENTRAL BANK, EUROPEAN UNION, Greece, Greek debt, Greek government, HAIRCUT, IMF, taxes, Taxpayers, Troika, Tsipras and tagged , , , , , , , . Bookmark the permalink.

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