Tag Archives: Australian Financial Review

Greece keeps on tracking the news in several UK papers and newscasts. Greece is big news in a few regards, but I will not go into that too deep. What should be known in this premise is that I still believe that Greece for the larger extent is playing a game, the fact that Greece is playing this game is because (as I agree), the downfall of Greece could topple Italy and France to a serious extent, which will hurt the United Kingdom to more than a minor extent (it would have been massively worse if the UK had the Euro) and it will debunk the premise of a united Europe in several ways.

Now let’s take a look at the news:

BBC (at http://www.bbc.com/news/world-europe-32790726) ‘Greek debt deal within next week, says Varoufakis‘, stated on May 19th, this gives us the oral deadline of no later than May 29^th.

I, the Lawlordtobe.com (that’s me) stated on May 6^th in the article ‘What’s the matter?‘ “You see, there we see May 1^st an IMF interest loan payment (now due May 6^th) and May 12^th we see the part that 760 million is due. The part that was unknown to me is also the part that is not loudly voiced to EEC nations, because this knowledge will influence the voters (as I personally see it). You see, the missing part that is not voiced in many sources is the small fact that two T-bill batches mature, the first one on May 8^th and the second one on May 15^th, each worth 1.4 billion“.

Now we know that the May 6^th payment was done, but the May 12^th payment could NOT be made, for this Greece used its own IMF emergency funds, this means that this is now due 30 days after May 12^th. In addition, the amounts due in June is 1.5 billion initially towards the IMF, yet because the May payment was not made, that debt is raised by 50% and Now we see that 2.3 billion will be due before June 30^th. In addition 5.2 billion in T-bills will mature, so how is that going to get paid for?

Alas, this is not all, even though payments are not due, the Greek debt ceiling has been raised (again) now giving to total debt ceiling at 80 billion, when we add the outstanding debt, this nation with 11 million people will be down almost half a trillion dollars! Now one fact that many are ignoring, this all amounts to an annual interest that is close to 22.5 billion a year, Greece cannot even raise 5% of that at present!

Let’s get back to the news!

The financial review gave us this news on May 19^th (at http://www.afr.com/news/world/greece-wants-europes-bailout-fund-to-pay-maturing-bonds-20150518-gh4ljr), the headline ‘Greece wants Europe’s bailout fund to pay maturing bonds‘ gives you the rising nightmare that I was pushing towards for some time now! The quote “Greece has proposed to its international lenders that Europe’s bailout fund pay back maturing Greek government bonds held by the European Central Bank as a way to overcome a funding crunch, Finance Minister Yanis Varoufakis said on Monday“. It feels a little like going to that nice place in Amsterdam (with all those red lights), then after you had your fun, you ask the girl if she would be so kind enough to ask Mr.  Eberhard van der Laan to front the bill (the current Mayor of Amsterdam). What do you think is going to happen next? Including May, through to August a total of 11 billion in Bonds will mature. So, how is this a good idea?

Syriza has, since it came to power, only made things worse for Greece. The Greek people might think that they are protected, yet as I see it, the only thing they achieved is to alienate its creditors, leaving them with no alternatives, for now let’s get back to the news!

Less than 20 minutes ago (whilst writing the draft), the Guardian got wind of a possible extension of 4 months (source: Helena Smith, the Guardian), which is likely today’s topic between Angela Merkel and Alexis Tsipras. Which now gives us more worry, because EVERY delay and every inaction from Syriza gives less and less chances for Greece. Yet from Reuters (at http://www.reuters.com/article/2015/05/21/us-eurozone-greece-schaeuble-idUSKBN0O61C220150521), we learn that there is no happy expectations at present. The quote “But Schäuble poured cold water on this idea, saying reports from the international institutions involved in negotiations with Athens suggested talks were progressing ‘very hesitantly’. ‘What I know from discussions with the three institutions does not back up the optimism arising from announcements from Athens,’ Schäuble said in an interview published on Thursday“, whether the latest news is more accurate is harder to see, because the ‘earlier’ news from the BBC amongst others see a game played where Varoufakis and Tsipras are in ‘managing bad news mode’ and overly optimistic, an approach already rejected by more than one participant and as I showed, the amounts due means that my prediction on May 6^th (in the article What’s the matter? at https://lawlordtobe.com/2015/05/06/whats-the-matter/), where I stated “Why do I feel that I am the only one seeing this, or at least the only one clearly voicing this, because the UK elections, when the voters learn that Greece is about to desire up to 30 billion before the end of the year, so that it can pay the outstanding bills“.

Now we see that Greece is hoping on an 11 billion bonds bailout, a bailout deal of 7.2 billion and an additional bailout is already a certainty, the amount at present is however not stated (possibly unknown to the involved players) and up to August we see the need for 6.7 billion in payments to the ECB. In addition there would be interest payments too. My prediction of the needed 30 billion has been surpassed, yet no one else made clear mention of these required funds, especially the UK papers, as this would have opened the floodgates towards UKIP. How informed was the British voter allowed to be?

Back to the news!

When we consider the extension, we also see first voices. Now let’s take a clear look at what the European public is being offered and the shear insanity of it.

1. “experts are saying after four months of seemingly stalled negotiations the gap-stop solution makes eminent sense – not least because it gives the leftist-led government enough time to either hold a referendum or call fresh elections, polls that the governing Syriza party would almost certainly win hands down”.
   a. How will new elections solve anything?
   b. Is Syriza wins again, then how will progress ever be made?
   c. Setting up an election takes months, which means that in 4 months no achievement will be made, whilst the internal costs of new elections will be added to the debt.
2. “Both scenarios would allow Tsipras to deal with militants in his party and move to the centre stage offering clarity to a political landscape blighted by Syriza’s two seemingly incompatible aims: to ensure Greece stays in the euro zone while at the same time eradicating austerity”.
   a. Is it possible that the militants Syriza were never the problem to begin with?
   b. Staying in the Eurozone and eradicating austerity is as I see it a mathematical (and statistical) impossibility. It is only possible if all debts are forgiven, which should never be an allowed option!
   c. Is it even possible to offer clarity to the current political landscape? The political landscape includes the people behind the banks and the bonds, which makes for very murky waters at best.
3. “This scenario makes sense because it would provide sufficient time for Greece to hold a referendum or election both of which would ease Syriza’s position,” said Kevin Featherstone, who heads the Hellenic Observatory at the London School of Economics, which basically reiterates the issues in point 1.

I cannot oppose Kevin Fatherstone academically as he is a professor and that title is not given out with boxes of Weetabix, but my logical insight in data opposes his view and a few others on intense levels. I have nothing against Greece and even less against the people of Greece, but why should we not hold politicians both present and past responsible and accountable for their acts? The current financial dilemma Greece faces should call for public scrutiny of what was done, which includes openly naming and shaming those who did this to the Greek people and in that regard, let’s all stop blaming ‘Ze Germans’!

But this view would not be complete without the two theatre plays that are also linked to this.

In one house we see Grexit, a Greek production with Director Tsipras and the supporting soundtrack by Varoufakis. You see, the emotional bytes from a Greek paramedic stating “We don’t have enough money to help people – we don’t have enough ambulances” is less than an appetizer, it is not even close to interesting, the issue is, how will the retired people of Greece buy water and bread? When the cash runs out, when people do not get paid and supermarkets cannot get paid, that will show the nightmare Greece is heading to in a very straight line, one that active non-posturing could have prevented in February 2015, Antonis Samaras was on that path, it was a painful path, no one will deny that, but the alternative we see now is about to get a lot harder and many times less humane! At http://www.bbc.com/news/world-europe-32332221 we see the bills due, most of it was a known part, now add to that the public sector wages of 2.2 billion. There is only one part that could offend me. The quote “For some economists, potentially the best option would be for Greece to pursue a ‘managed default’” is the one I cannot find peace with, you see, managed default means that it is a staged setting of non-payments. Yet in those situations, the banks, the causers of grief will get paid, the retirees are very likely to end with nothing, or perhaps a mere two drachma on the Euro deal. Now, I could be COMPLETELY wrong here. I do not know how a managed default would pan out, but in my view, the ‘for Greece‘ is not the same as ‘for the Greek people‘, the second one should take precedence no matter what, but that might just be me.

In the other house we see the upcoming production of Brexit, a split Farage/Cameron production in different halls. The production is in turmoil, because duo ‘Fat Cat’ and ‘Bully’ are taking notice of this production and they do not like either play. The newspapers have been mentioning these issues. Latest noise comes from Paul Kahn, the Airbus UK chief “the company would reconsider its position in the country if Britain left the EU“. Why, is my question at that point? These industrial settings were a reality before the Euro and as such, they should remain a reality after Brexit. Several banks (like HSBC) and other firms made similar noise, many of them reliant on people who would lose fortunes when the Euro debts would strangle the nations as the larger players try to remains relatively safe from the Greek collapsing fallout. I question (to some extent) the actual issues that are at play when a Brexit would follow. In my view, the strict regulation of Greece and its debts would have diminished that risk. The fact that the Status Quo game was played so long after it was not feasible is at the heart of all this. A certain group of people now feel that they are in danger as they kept on sucking on ‘the tits of plenty’. These people went for the breasts of milk and honey in perpetuity, whilst ANY mother can tell you that this is not possible, a mother must rest, regain strength and resources. With the minimum of common sense any man can tell that a mother will need these parts too, yet the economy is not a mother, it needs no rest, it needs no nourishment, it will continue ‘ad infinitum’, or does it?

So now we get news that is viewed as bully tactics from industrials and exploiters towards the UK, with the clear message ‘stay in the EEC or else!’ Now we have the issue at play, because Greece is the first of three elements that imply that staying in the EEC is no longer feasible. I personally believe that David Cameron is trying to push the referendum forward, not to get out of the EEC, but to stay in the EEC, because if National Front (France) does get the votes, they will move away on principle and then the British population will follow ‘en mass’! Which will only drive the power of Nigel Farage. This paragraph is again speculation, but I believe it to be the true path we all face.

Now for the final part of the speculation, again, it is like a virtual path in data, to get anything tangible is not an option. I do not move in the circles that these players move, so I have nothing but my instinctual view on data. You see, I mentioned them before. Yet, one piece I did find. It is at http://cib.natixis.com/DocReader/index.aspx?d=6159546E36436C53616F365A3346735064757A5239413D3D. (attached below)

Here we see what I predicted all along. It is nice to see confirmation on such a high level and they foresaw it before I did (but not by much). Their paper is dated 26^th May 2014, almost exactly a year ago. The quote that gives it is “It is therefore unlikely that we will see the GUE/NGL group – which brings together leftist tendencies from socialism to radical anti-capitalism – form a block with representatives from the PVV, the UKIP or the National Front. At the right, the ‘soft’ Euro sceptics in the ECR find it difficult to agree with the ‘hard’ in the EFD, as the parties they represent are often opponents on the national political arenas (e.g. Tories vs. UKIP or PdL vs. Lega Nord)“.

This is exactly what almost happened and the danger has not gone away, it is actually increasing. Yet, if the UK referendum falls before the French elections, the chance of separation is much smaller. Which means that with the UK referendum no longer an issue, if National Front does win, Natixis will have time to rescale their assets. That is at the heart of the linked matter. Natixis has well over HALF A TRILLION Euro in assets. One French firm, 15 members of that board (including 4 women) yield a bat that is more formidable then David Cameron can bring to the table and these people stay OUT of the limelight. Headed by François Perol, together with the members Daniel Karyotis, Thierry Cahn, Alain Condaminas, Laurence Debroux, Alain Denizot, Michel Grass, Catherine Halberstadt, Anne Lalou, Bernard Oppetit, Stéphanie Paix, Henri Proglio, Philippe Sueur, Nicolas de Tavernost and Pierre Valentin represent the unspoken brilliance of the assets economy! They achieved without the economic power of the United States, what Alan Greenspan couldn’t achieve with the powers of the US Federal reserve behind him. Consider that in the game of Roulette the bank always wins, in this game the bank lost and Natixis bested both the odds and the bank, they just did not advertise it. Now we see that the worry of Natixis never left and the play is still moving towards what Natixis regards to be a radical anti-capitalistic unity. I for one am not opposed to capitalism, but they too must be held to a level of accountability, an aspect that they denied existence of and as such the situation has escalated to the point where we are at now.

So, if this is all Greek to you, then you are not alone. I am not an economist and I am also in doubt on the correctness of my view, yet my data expertise pushes me to these elements and so far my predictions have panned out correctly. Which means that Greece is at the centre of many events and driving additional other events. Nigel Farage has grown UKIP and as the economy deteriorates that power growth is only getting stronger, but for the next 55 months it is not an issue, the French Milestone of National Front is only 22 months away and that is a worry for Natixis, 22 months is not enough to resettle well over half a trillion euros, especially when none of the moveable markets would remain stable.

So behind Greece and its debt is a tsunami of economic turmoil, the Greek people might not realise that Greece is small compared to some other issues, but those other issues will not allow the Greeks to be the reason for the other domino stones to fall. As I see it Alexis Tsipras was nowhere near ready to play the game he played on the level it needed to be played at!

Is it still all Greek to you?

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