“It's him that pays the piper. It's us that pipes his tune So long, fare thee well Pip! Pip! Cheerio! We'll be back soon.” -Oliver, Be Back Soon
The focus has
shifted. The all seeing orb is now focused on Spain but it may well turn back
to Greece soon. The loan money is exhausted again and the Greeks have elections
lined up on Sunday, May 6 which is coincidentally the same day of the French
run-off elections. To answer the question of at what point Greece might leave
the Eurozone and return to the Drachma is relatively simple; it will be the day
when the European loan spigot is shut off. Greece will pander, promise and
proclaim until that point and then they will say, “have a nice day and thanks for
all the fish.”
The Greek banks announced total losses of $37.22 billion on Friday. The Hellenic Financial Stability Fund had been loaned $33 billion by Europe and so that money is now all gone and additional debt of $4 billion have been taken on at the ECB as the scheme to protect the German and French banks and now the balance sheet of the ECB continues. Some of the conditions for all of this are earmarked in a leaked report from the European Commission. These include a 15% cut in private sector wages and a Germanic imposition of a collective bargaining scheme along with a mandated privatization of all Greek power utilities.
Last Friday, Poul Thomsen, the head of the IMF’s Troika team stated that Greece would not meet its targets once again and that he was not sure if Greece would fulfill any of the conditions that had been proscribed by the IMF. Later on the same day the head of Pasok and the former Finance Minister did a TV interview in Athens where he stated that Greece had not emerged from the crisis and that it could still exit the Euro and return to the Drachma. Then in a rejection of everything the Troika had demanded so that Greece could receive additional funds he said that Greece would not accept any new taxes nor will they cut salaries or wages from the present levels. So there you have it; they got the money and now “ta-ta and bye-bye and a little more Ouzo if you please.”
So after the Greek elections what are we likely to find; a new play brought to you live on the Athens’ stage. A Greece that has returned to its own currency and most likely not in the Eurozone at all unless more money is given. The recently issued new Greek debt; worthless or close to it. The old debt now held at the IMF, the ECB and the EIB; worthless or close to it. A wonderful show and a whole host of characters and a play that we will never forget.
The Greek banks announced total losses of $37.22 billion on Friday. The Hellenic Financial Stability Fund had been loaned $33 billion by Europe and so that money is now all gone and additional debt of $4 billion have been taken on at the ECB as the scheme to protect the German and French banks and now the balance sheet of the ECB continues. Some of the conditions for all of this are earmarked in a leaked report from the European Commission. These include a 15% cut in private sector wages and a Germanic imposition of a collective bargaining scheme along with a mandated privatization of all Greek power utilities.
Last Friday, Poul Thomsen, the head of the IMF’s Troika team stated that Greece would not meet its targets once again and that he was not sure if Greece would fulfill any of the conditions that had been proscribed by the IMF. Later on the same day the head of Pasok and the former Finance Minister did a TV interview in Athens where he stated that Greece had not emerged from the crisis and that it could still exit the Euro and return to the Drachma. Then in a rejection of everything the Troika had demanded so that Greece could receive additional funds he said that Greece would not accept any new taxes nor will they cut salaries or wages from the present levels. So there you have it; they got the money and now “ta-ta and bye-bye and a little more Ouzo if you please.”
So after the Greek elections what are we likely to find; a new play brought to you live on the Athens’ stage. A Greece that has returned to its own currency and most likely not in the Eurozone at all unless more money is given. The recently issued new Greek debt; worthless or close to it. The old debt now held at the IMF, the ECB and the EIB; worthless or close to it. A wonderful show and a whole host of characters and a play that we will never forget.
Why should we break our backs Stupidly paying tax? Better get some untaxed income Better to pick-a-pocket or two. -Fagin, Oliver
No comments:
Post a Comment