Quote:

Greece will also have to pass within the next two months a new law that gives paying off the debt legal priority over funding government services. In the meantime, Athens has to set up an escrow account, managed separately from its main budget, that will at all times have to contain enough money to service its debts for the coming three months.

OK, so how is this anything other than a transfer of wealth to the banks and senior bond holders?? None of the money goes to the people or the country from what I can tell. This is just a bank bailout as far as I can tell and just another circle jerk in a long line of them that the people will never accept.

Seems like the Marx Brothers are running the show over there. Nothing "real" going on, just entertainment.

The latest heist idea all over the world is to steal money from the future and give it to the currently-living one percent, or to government workers/pensioners.

They think this is really clever.

Must be a weird day when even the Krughman agrees with Karl.

Quote:

What’s happening is that nobody is prepared to take the plunge into either of the paths that might eventually lead out of this: sustained aid (not loans) to Greece, or departure from the euro, leading eventually to higher competitiveness and faster growth.

So it appears that the real final outcome will be war. I said it before there are 2 possible outcomes to the debt which cannot be paid back.

1. Debt collapse with lenders going BK.

2. War

It is amazing to me that no one talks about it is impossible to pay of the debt. When the population is stripped of everything, they will have nothing to lose. Truly a sad day on planet Earth.

It gets better:

Ann Barnhardt wrote..

What the ECB has done is arbitrarily and unilaterally CHANGE THE INDENTURE TERMS of all of the Greek bonds that it is carrying. Specifically, the ECB has removed the "collective action clause" from the bonds that it is holding - and ONLY the ECB-held bonds.

What is a "collective action clause?" It is a clause that allows a majority of bondholders to agree to debt restructuring terms that APPLY TO ALL BONDHOLDERS. By removing the "collective action clause", the ECB has set itself above and apart from every other Greek bondholder, and made itself "preferred", meaning that if there is a Greek default, the ECB goes to the front of the line, gets 100% of the salvage value that may remain on the Greek paper, and everyone else gets NOTHING, simply because the ECB Greek bond position is large enough that it will clean everything out in the salvage, easily. The ECB has, completely outside the rule of law, subordinated every other Greek bondholder.

If they can do this, they can do anything. Any terms on any debt can be changed without notice. It is just a matter of time before the ECB does this with other Eurozone nations, and it is just a matter of time before the Federal Reserve starts doing this here.

-Uwe-

Yep.

To continue from Uwe's post: ...and then bondzilla shows up...for real this time.

So who gets to host the escrow account? a Greek bank? London? MF Global? Who would you trust to not play shenanigans with the escrow money?

And why are they messing around with escrow anyway? Why not just call a spade a spade and ask for three months prepayment of all interest? Amounts to the same thing.

Or does the escrow host gets to make some bank on the flow of large amounts of cash. More $$$ for the banksters? hmmmm.

Ill ask the same question I did yesterday in the Finland ticker. How do the banksters (ECB) enforce this exactly? What happens when the new Greek political party comes to.power soon? UN troops get called in?

And poor Dimitri will go ape when what he was told he'd get for himself and his family goes instead into the escrow fund for the Banksters. Now Dimitri can throw a "brick" at Greek politicians way more easily than some distant EU banker.

Greek politicians know this.

Bondzilla is being kept as a pet by the fed right now. He's been quite thoroughly neutered.

As I said in the other thread, I've been waiting for a dividing line that would stick in people's minds...

Quote:

Greece will also have to pass within the next two months a new law that gives paying off the debt legal priority over funding government services.

That's it.

I think Stuart is very likely right: This will ultimately lead to war. But it may have to simmer for ten years.

Ten years? They have an election in April.

I don't know, if there is a major correction in the market forcing large bond demand, it may overshadow what is happening in Greece.

I can't help but notice every time Bondzilla is about to show up the market tanks.

Hello karl you wrote :

"when you cut government deficit spending you're guaranteed to get at least one dollar of GDP decrease for every dollar of deficit spending you slash."

Hum if you can have a glance at France you would be surprised... We have cut expenses this year :

http://www.performance-publique.budget.g....

Our deficit has come from 149 billion € to nearly 91 billion this year...

"Le solde général d’exécution au 31 décembre 2011 s’établit à -90,8 Md€ tandis qu’il s’établissait à -148,8 Md€ à la même date en 2010."

I don't expect a negative 60 billion GDP (nearly 3% of total GDP) this year and I don't think this amount (60 billion) has been compensated at an other level of the state... I suspect the amount that has not been borrowed has been used by private investors for other purpose and make his way in the GDP in another way...

Jwm, I think Greece has the largest army in Europe. Invasion by blue helmets might be the impetus for them to use it and regain their manhood and self-respect.

@Jwm the escrow account probably serves as a protection against immediate repudiation of debt by the April incoming government. It gives the bankers three months of can-kicking, threatening-with-armageddon wiggle room.

Is the recently-alleged "March 23 Greek Default" still on, or does this postpone it?

Jpg: Apparently it's irrelevant now. They have two months to make the changes or they don't get the next wad of cash.

I guess that's one way to delay the inevitable. Just cloak it in lots of behind door meetings and tell everybody that everything changed when you come out.

You know the last guy in the last hannibal lector movie? Yea. You're him. Smells good!

There is absolutely no reason to believe that Greece will do anything they are "required" to do because of this recent bailout. They just agreed to whatever to get the money. they continue to do what they have been doing as any drug addict does.

"There is absolutely no reason to believe that Greece will do anything they are "required" to do because of this recent bailout. They just agreed to whatever to get the money. they continue to do what they have been doing as any drug addict does."

I was going to post exactly this. Word for word.

Did we ever doubt a Greek bailout would occur? This is non-news. Relevant news, however, DOW 13k! Unbelievable achievement for the Federal Reserve and Mr. Bernanke. Equities absolutely refuse to crater and the market continues its rocket launch to the moon. Now that is something not a soul on TF saw coming.

This is laughable. I wonder which part of Greece the bankers in Europe want? They are going to have to liquidate property to have a chance of paying this debt. The only way it is going to be done is to run a trade surplus. They are all broke. All the governments are broke. This means they are all going to run a trade surplus. Remember, that is Obama's solution. It is the Republicans solution. It is supposed to be the bankers solution, but their real solution is to own all the property under lien and once they do, they will not worry too much about the rest of the debt. They will merely send the depositors a bill for insuring their deposits, which the bankers lost in the bad loans.

The Greeks should do what the French did in the 1930's. They should demand Euro notes for every dime they have in all the banks in Europe, just as the French sucked the money out of the US, despite owing the US financial industry what amounts to near trillions today. Lets see if the ****ers can fund it. As Karl has said, we should do the same thing here with the TBTF banks. Get them where they can't fund their liabilities.

The NAR is now running their bull**** homeownership ads. Doug French at the Ludwig von Mises institute wrote an easy to read 90 page book on the history of government and the NAR getting together and pumping up home ownership. There is nothing wrong with the idea, save for the fact that we aren't talking about home ownership, but bank ownership with the need for constant inflation to keep the debt afloat. In the meantime, Realtors drive Cadillacs and their customers pay the note. Legitimate debt has been replaced with make believe.

There is a clear link between how Greece is being handled and how the housing mess in the USA is being handled. It is nothing but pretend and extend while the bankers run wild inflating another bubble for which we will get the bill. The current oil bubble, stock bubble, gold bubble, government debt bubble. They are nothing but games to be run long enough to pass the bag to some poor fool that can't resist. The only one that the holder won't lose all or most of their money is likely gold, because man loves his trinkets whether gold will ever again be the measure of purchasing power again or not. Many show it to be the measure, which shows the stock market in a constant bear against gold. Maybe this is or isn't a clear measure, but providing bankers with trillions of funny money to paper over their mess and inflate their assets isn't real either.

The main point is the bankers can't pay their liabilities. There is nothing else one needs to know if they wish to investigate what is happening. Thus we are paying them so they can continue to gain possession of our property. So, the banker gets a bonus, which he uses to purchase property, or better yet, set himself up as one of the owed instead of one of the debtors. It becomes apparent, asset prices crash, banker buys and we get the bill. They not us know when the bottom is going to be put in.