Tag Archives: Helena Smith

Wackadoo for a game

The E3 is done, the 2015 San Diego Comic Con is on and I am missing out on all of it this year. Whether it is addiction, compulsion or enslavement. It might be the last one, yet my feelings for Elite: Dangerous are no less than the same feeling I had when I had when the original  on the Commodore 64 was released in 1985. There was one shop who had it on the first day, which meant a 4 hour train ride, two hours there, and two hours nail biting trip back. Yes, it was one hell of a day, but the result was exceeding expectations, the game would be my number one game to play for a very very long time, all because a friend showed it to me on his BBC Micro B one year earlier (1984).

Enslavement is what I have in common with Greece on several levels. Like Greece, I did this to myself, whether my DNA made me desire this videogame more than sex or whether it is just the animation of pretty pictures that move because of my interaction does not matter, it was all me! Now it is so simple to blame David Braben (like calling him ‘Jerry’), but it is me, only me and I very much realize that.

It seems that the press and many others (like Greek Politicians) cannot see that. So I feel miffed when I see ‘The euro ‘family’ has shown it is capable of real cruelty‘ (at http://www.theguardian.com/commentisfree/2015/jul/13/euro-family-angela-merkel-greek-bailout) by Suzanne Moore. In January 30th 2013, I wrote ‘Time for another collapse‘ (at https://lawlordtobe.com/2013/01/30/time-for-another-collapse/). In there I stated “Greece is fighting just about everything from no longer payable debts and unemployment figures to phantoms of their past“, in February 2013 in ‘The Italian menace?‘ I wrote “Politicians are also to blame. For that I would like to mention papers like “Investing in Greece: an Olympic opportunity”. It came from Costas Bakouris in 2001. The thoughts were all fair enough. However, how much came to happen? How much money did come in?” This list goes on and on, I reported on it well over two years ago, no one truly dug into these matters and everyone seems to live by the credo: ‘if Goldman Sachs can hide it and the press does not report on it, it does not exist‘.

Now, the Greek people will get a harsh dose of the consequences of not holding its politicians to account.

Than 22nd January 2014 ‘Cooking the Books?‘ (at https://lawlordtobe.com/2014/01/22/cooking-the-books/), where the quote by Business Week “Europe’s having a bond rally and the PIGS are playing host. Portugal, Ireland, Spain—and even Greece, where Europe’s debt crisis began—are heading back to the bond markets and enjoying their lowest borrowing costs in years, as investors appear reassured that the region’s sickest economies are on the mend” is centre in all this, the part ‘investors appear reassured that the region’s sickest economies are on the mend‘ is the delusion to outrank all other delusions. In all this there is a link of power players promoting one another through unnamed sources. Greece should have known better! And in all this, as I stated before, these power players will sell Greece down the river in a heartbeat, because the fallout of Italy and France would be massively worse (10 times worse). All what we see now is the direct consequence of inaction, inaction for 3 Greek administrations and especially these last 6 months when the Greeks gave faith to what I regard to be a rock star (Varoufakis) and a paper tiger (Tsipras), all this, a mere consequence of inaction.

Was all this inevitable? Yes, personally I believe so, even though I believe that Antonis Samaras was on the right path, yet overall, that path was just prolonging a bad situation that had no long term future path.

In all this the Press is equally to blame, in conjunction with economic forecasters, power players and political whatever you want to call them. They were all about demonising ‘austerity’, it was all about how bad austerity is. The plain, bland and bitter truth is that austerity is nothing more than keeping a proper budget, yet several of the previous parties are ALL ABOUT SPENDING! Which is delusional! Just like I cannot speed up the release of Elite: Dangerous or No Man’s Sky, they cannot write away debts, there will be a consequence.

So when I read “Alexis Tsipras has fought tooth and nail for something resembling the debt restructuring that even the International Monetary Fund acknowledges is needed. The incompetence of a succession of Greek governments and tax evasion within Greece is not in doubt. But the creditors of the euro family knew this as they upped their loans, and must now delude themselves that everything they have done has been for the best” which is nicely written Miss Moore, but the following parts remain an issue “something resembling the debt restructuring” is not even close to a reality unless you keep your spending in order, which has not been done for decades.

It is her last paragraph that bothers me the most “The euro family has been exposed as a loan sharking conglomerate that cares nothing for democracy. This family is abusive. This “bailout”, which will be sold as being a cruel-to-be-kind deal is nothing of the sort. It is simply being cruel to be cruel“, in all this governments are to blame, in all this the press took a back seat to ignore what needed to be done, keep a proper budget, in all this close to ALL EEC nations failed. You see debt, even governmental one needs to be paid back, that part has been ignored for too long. The EEC now has an accumulated debt that is closing in on the size of the US debt. It almost looks like a plan by the banks in global charge to equalise all debts making them in charge of everything. Is that such a large leap? You see the debt only seems to go down in Malta, Czech Republic and Belgium. Belgium is essential because its debt is already too large, but at least they are making a positive change, only them and no one seems bothered about this. As per today they are all bothered with the upcoming consequences, now as Greece has seemingly pulled the bunny out of the hat, we will see changes of another nature, because Marine Le Pen will not let the momentum she can gain from this unanswered issue and as France is down 2.6 trillion, she will now emphasize on the benefit of moving away from the EEC, which heralds future for France, the French product and the all-round future of France. Is she right? I cannot tell as there are a few too many unknown factors here, but beyond Suzanne Moore there is more to see.

For that we need to look at gung-ho go-getter Helena Smith of the Guardian, who writes “It will take years – decades perhaps – for Greeks to get over this crisis. Catastrophe may have been averted, but it comes at the expense of conscious national failure: an overriding recognition that the state formed after the fall of military rule provided 40 years of peace and stability, but has ended in extraordinary ignominy. The promise of unending progress did not occur. Of all the truths that Greeks must now confront, that will be the hardest“, personally she writes well, but the truth is (as I see it), that the Greek issue will take generations, likely 3 of them to get it all under true control, in all this the deadly issue was not changing when it was possible. A hard-line change in 2005 would have made all the difference, now we get the added pain of a decade of spills whilst the economy is down further and more people are unemployed, all factors changing the game.

Helena writes “In return for a third bailout – this time staggered over three years and amounting to €53bn – Greeks essentially have been told to walk through the valley of the shadow of death. And that is the good scenario. The alternative – Grexit – would have bypassed purgatory but taken crisis train passengers straight to hell“, even that is not completely on par. Yes Helena is correct, but what she (validly) abstains from, is the part that is depicted by ‘the valley of the shadow of death‘ is a road of reformation of administrative law, criminal law, taxation law and taxation regulation. In addition there will be pension reformation and consumer taxation. If any of these matters are not initially resolved in 18 months, with this I mean proper reformation design from day 1 (tomorrow), not a collection of empty meetings with governmental paid lunches and dinners.

It will take long working weeks (50 hours plus) to make this happen in 18 months and that draft will be decent enough to truly change the tides. If any of these changes are not done by then (so even if they get all but one done), than the Greeks will only have hell to look forward to, the Purgatory station will not be an option at that point. Changes that if Syriza had seriously started talking and started on changing them, the last week would never have happened. In all this there is one other advice the Greeks need to take home, no matter how proud they are, their survival will now depend on changing their family structure.

Let me explain, as time is now too short for those who have an option, the Greeks have one option left to survive (if at all). Consider a family with grandparents, parents and children. We call them iteration 1, 2 and 3. They need to sit down and see where the lowest debt is. If at all possible, make to all debts the minimum payments then, take every coin they have left and place that on the lowest debt. Do not hide behind pride and time and just pay them all. Get rid of them one by one as fast as possible. Banks will all state that this will not work, but they need these people all enslaved. Create safety by removing the first debt, then the second and so on. As the debts fall away, so does the interest, Greeks need to make momentum and the banks are ALL about longevity. They will twist, spin and make all kinds of brazen projections, but Greece will be in a bad place well beyond 2020. So the Greek people, if possible need to move away from all debt, after that, whomever has shed the debt, they can move forward, they can acquire and grow.

In all this, it will be another Greece, one that has a retirement system which can no longer work in the previous path, there will be a Consumer tax setting that will up the cost of living and the health care system in Greece will remain a matter of nightmares, possible it can only be accessed through the purgatory station the Greeks hopefully avoided, but in all this, taxation laws will have to change at first light, it will also mean that the very wealthy Greeks will move to another place, not unlike Gerard Depardieu. There is no telling where they will end if they want to avoid taxation of that what they avoided for so long and it is equally wrong to speculate how much taxation is due, I lack the pure data on that. What is cause to all is the dire need for the Greeks (and many EEC politicians) to stop spending money they did not have and money they were unlikely to receive. all this is centre to the fall of Greece and it is not over yet because even though Greece when over the edge, France and Italy are right there with Greece (which is why they were so opposed to Grexit) and with these two we face a 5 trillion Euro tumble, 10 times the debt of Greece.

So are we wackadoo for a video game, are we going wackadoo for the game of economics or are we just wackadoo for a totalitarian enabling of banks through debt?

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Dress rehearsal (part 1)

That is the question in my mind, are we in the final preparations of a new theatre play that will change everything? In the Green Room we have the people in preparation of the new mess they are about to bestow on the people of the EEC. A game that changes everything, yet the people behind all of this have a short term solution, because soon they will move out of the seats of power with a golden parachute, a golden umbrella, a golden handshake and a gold watch. They will get the most luxurious life imaginable, only by prolonging the power players. That is the very first thoughts going through my mind when I was looking at the article ‘Greek debt crisis: day of decision for Alexis Tsipras‘ (at http://www.theguardian.com/business/live/2015/jun/30/greek-debt-crisis-day-of-decision-for-tsipras)

When we look at this production in the limelight, we get a few parts, the introduction is all about comedy with the quick comedy play ‘It’s Greece’s problem, says Kremlin‘, yes, as Russia distances himself from that lefty organisation called Syriza that has elements of Marxist–Leninist, Trotskyist and Euro-communist. Must feel really nice for Alexis Tsipras to be the debutante at a Kremlin ball, only to realise he gave away his cherry for naught and got left out in the cold afterwards. Which means that one option he thought he had just left the exit on the left.

The intro act comes from Mariano Rajoy, our Spanish player. The quote ““What would happen if Greece came out of the euro? There would be a negative message that euro membership is reversible,” Rajoy said in a radio interview. “People may think that if one country can leave the euro, others could do so in the future. I think that is the most serious problem that could arise (from a Greek exit).”“, reflects not on Greece, but emphasizes on the danger France is about to pose. The players are comprehending the dangers, the news on Greece is coming from a few direction, but right from the bat, the others are now starting to manage the news any way they can. My reasoning?

Reuters reports: “Greece has not yet made any movement in response to a last-minute bid by creditors to broker a deal to end a deadlock over the Greek debt crisis, the European Commission said on Tuesday. Greek Prime Minister Alexis Tsipras called European Commission President Jean-Claude Juncker on Monday night and Juncker, after speaking to the chair of euro zone finance ministers Jeroen Dijsselbloem, explained what a last-minute deal could look like, Commission spokesman Margaritis Schinas told reporters. “This would require a move from the Greek government which President Juncker asked (for) before midnight last night. As we speak, this move has not yet been received, registered, and time is now narrowing,” Schinas said“.

In addition we see from Reuters:

30-Jun-2015 11:19:20 – EUROPEAN COMMISSION SAYS DOOR OPEN FOR GREEK DEAL, BUT TIME RUNNING OUT QUICKLY
30-Jun-2015 11:20:27 – EUROPEAN COMMISSION SAYS NO MOVE HAS BEEN RECEIVED FROM GREECE
30-Jun-2015 11:21:05 – EUROPEAN COMMISSION SAYS GREEK GOVERMENT WOULD NEED TO ACCEPT PUBLISHED PROPOSAL

In addition we see in the Guardian: “Danuta Huebner, chair of the committee on constitutional affairs at the European Parliament, has tweeted about the legality of Grexit“, she gives the following Tweets “A member state’s exit from #EMU without a parallel withdrawal from the EU, would be legally inconceivable #Greece

The link refers to a PDF (at the end of the article), where we see in the abstract “that a Member State’s exit from EMU, without a parallel withdrawal from the EU, would be legally inconceivable; and that, while perhaps feasible through indirect means, a Member State’s expulsion from the EU or EMU, would be legally next to impossible. This paper concludes with a reminder that while, institutionally, a Member State’s membership of the euro area would not survive the discontinuation of its membership of the EU, the same need not be true of the former Member State’s use of the euro

So, if the abstract holds any level of water, have we, the audience been played? Are we the people now being misdirected by missing legislation because politicians could not do their job properly? That is the question, because one EU paper, does not policy make. The introduction gives us “Until recently, to talk of ‘secession’ from the European Union (EU) would have been next to absurd“, really? Did you policy makers remember a man named Adolf Hitler in one corner and Arthur Neville Chamberlain with the Munich agreement in the other corner?

A paper linked to all this by Karolina Boronska-Hryniewiecka called ‘The Risky Game of EMU Withdrawal‘, which is implied to come from the Polish institute of international affairs gives us: “The EC’s statement about the legal “impossibility” of EMU withdrawal stems from the fact that no European treaty has included a provision for how a Member State could leave the single currency area. While Art. 50 of the Lisbon Treaty provides that any Member State may withdraw from the EU on the basis of a negotiated agreement with the EU institutions, it does not mention anything about the possibility of exiting EMU itself. At the same time, Art. 140 Treaty on the Functioning of the European Union (TFEU) provides that the rate at which the former national currencies are substituted by the “euro” for EMU members has been “irrevocably” fixed. What also follows from the EU treaties is that while membership is voluntary, participation in the EMU, apart from certain exceptions, is a legal, if eventual obligation of every EU Member State.

The links come from Danuta Hübner, Chair of the Committee on Constitutional Affairs, European Parliament. So why did no one properly look into this, or even report on this? I personally expected that the European members of constitutional affairs had their affairs in order, which means that if one local yokel (Alexis Tsipras) cannot get his act in order, there are decent steps that can be taken to either get that person in line, or expel his nation. Now we seem to get introduced that expulsion is not really an option. So in all the theatre plays we watched, it seems that the part, ‘expulsion is impossible‘ was never ever mentioned, was it?

And in addition we get “Reports are mounting that the Greek prime minister has not only accepted a deal but will travel to Brussels, possibly as early as this evening, to discuss it with senior EU officials. The deal, based on reforms proposed by EU commission president Jean-Claude Juncker late last night, is believed to have been rubber stamped at a meeting of senior government official held at the prime minister’s office, the Megaron Maximou, this morning. The German daily, Bild, is also backing up the reports, saying Tsipras has had contact with high ranking EU officials whom he will meet imminently. “The prime minister’s plane is at the ready,” the paper said.

This all comes from Helena Smith from the Guardian reporting. So, I feel comfortable trusting the source here. So now we have ourselves a fifth act. You see, in my view this is all about opening 7.2 billion if the 1.6 billion get paid. It must be really comfortable for any banker to underwrite a 7 days loan, with a nice percentage knowing that this payment is the first payment out of 7.2 billion. At 1% that banker ends up with a 16 million euro bonus, that is, if it is only one percent.

Yet, is it not me? Am I trivialising things, perhaps even over-dramatizing it?

Consider the next news “Here’s Bloomberg on Schaeuble’s comments: German Finance Minister Wolfgang Schaeuble told lawmakers in Berlin that Greece would stay in the euro for the time being if Greek voters reject austerity in a referendum scheduled this week, according to three people present. Schaeuble also said the European Central Bank would do what’s needed to protect the euro if Greeks voted against the bailout terms in the July 5 referendum, according to the people, all of whom participated in the closed-door meeting on Tuesday. They asked not to be identified, citing the private nature of the discussion. The German Finance Ministry declined to comment.

Now we have a ballgame. There is also an issue, why do they need to be ‘not identified’? It seems to me that the European Central Bank would need to do what’s needed to protect the euro. Yet, in light of what made the news from Danuta Huebner, chair of the committee on constitutional affairs at the European Parliament, we now need to consider what options are there?

These are important questions to keep in mind. Consider all the news I have brought in the last 6 months through my blog. This is now ‘set’ in the limelight with the Guardian article ‘Alexis Tsipras: Mr Reasonable seizes the initiative from Project Fear’ (at http://www.theguardian.com/business/2015/jun/30/alexis-tsipras-greece-deal-vote-referendum), how misguided is that title? The quote “Faced with Project Fear, Tsipras wants to be seen as Mr Reasonable“, is as misguided as it can. They have not just changed the game, they have left, what should be regarded as criminal activities open to reactivation. (I will get to that part in part 2).

First two quotes “It little mattered that the new blueprint from Athens had a shelf life of only a couple of hours before Angela Merkel said there could be no fresh negotiations until after Greece’s referendum on Sunday” and “Somehow or other, Greece’s debt burden will be reduced. It can happen through a deal in which Athens gets debt relief for economic reform. Or it can came through a default that would swiftly follow Greek exit from the single currency. Everybody knows this, and it is bizarre that an explicit proposal for debt relief was not formally made to Tsipras in last week’s talks

You see, the game is changing, yet some elements have been ignored and some were never given clarity. So as Greece wants another extension 2 minutes before midnight, as they want another bailout of 30 billion with better terms, the game is now taking another term, one that the people behind the screens cannot contain, in the end, they are cutting their own veins even deeper than Greece ever did, but let me back that up with some facts, because without facts, this all becomes a rant (which anyone can get whilst reading the Telegraph, or an equally disastrous form of news coverage).

The quote “Juncker earlier told Tsipras that a last-minute deal was still possible if Athens agreed to sign up to the creditors’ proposals presented last Friday. He also dangled the prospects of debt relief for Greece and a €35bn “new start for jobs and growth” programme” from the Guardian (at http://www.theguardian.com/world/2015/jun/30/greece-brink-financial-collapse-imf-deadline-hours-away) gives us the salutation I made on May 6th (at https://lawlordtobe.com/2015/05/06/whats-the-matter), where I stated “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“, so not only was I right all along, it is possible that the Greeks delayed because of the fear what it would do to the UKIP numbers and subsequently a first serious move away from the EU. Now, not only is Juncker offering 5 billion in addition, it comes with very little extra hardship for the Greeks, especially the previous Greek politicians.

Yet, now, as I mentioned, the game changes. With the migrant issues in Calais, Marine Le Pen is about to take control of another piece of France, which will soon prove to be really bad news for President Hollande. In addition, the quote “In January she asked French President Francois Hollande to suspend the visa-free Schengen Area in Europe and strip dual nationals of their French citizenship if they carry out “barbaric crimes”“, give us an additional change. It is not a given that the changes to Schengen will happen, but if it does, it is clearly in addition a preparation to move France away from the EU. Her statement a week ago clearly indicates the change she wants to impose.

In all this, Greece now stands alone, because the drive on the shores of Brexit and Frexit are now clearly stated in the news, stated by these politicians, which in case of Marine Le Pen is not a good thing for Europe, because unless her demands are met, she will call for an exit from the EEC, not just the Euro, which changes the game by a massive margin. So when I see the quote “but what Tsipras has done is seize the initiative“, it must be stated that it is an incomplete view, because the response from both the UK and France is about to give the world of finance a massive headache, one that will continue for the next 20 months, especially as Marine Le Pen ends up as the next possible leader of France, for which she is currently in the lead, ahead of Sarkozy and Hollande. The laughing whisper two years ago, is now a realistic threat, interesting how so many journalists missed this escalation.

There are more signals, all indicative of one more act on the floors of the theatre.

And the act starts with a gloomy theatre, men and women in black, handing a folder, from person to person, they all look at it for a few seconds and give it to the next person. This goes on and on. Yes, we get to the article ‘IMF: austerity measures would still leave Greece with unsustainable debt‘ (at http://www.theguardian.com/business/2015/jun/30/greek-debt-troika-analysis-says-significant-concessions-still-needed). The story already starts with questionable statements “Greece would face an unsustainable level of debt by 2030 even if it signs up to the full package of tax and spending reforms demanded of it, according to unpublished documents compiled by its three main creditors“, the reason that I call it questionable, is because Greece is what I call a 3G nation, which means it will take three generations for this debt to become close to manageable. So, with that I imply that the debt is still a massive form of pressure in 2061, there is no escaping it. Even with reforms Greece is no longer able to meet the interest payments and the payments after the payment reduction, unless it makes MASSIVE changes to its laws and its social system. This includes holding politicians accountable for overspending, making them prosecutable for criminal negligence if they cannot meet the budget. It is close to the only change that will start stopping the madness. In addition, tax laws need a massive overhaul, one that should be part of the IMF demand before Greece gets one additional eurocent.

By the way, Greece is not alone, Spain, France and Italy are all 3G nations at present. The UK is not that deep yet, but it will take a generation of hardship to get the debt under control.

That (secret) document also states “that under the baseline scenario “significant concessions” are necessary to improve Greece’s chances of ridding itself permanently of its debt financing woes”, is that even a surprise? I figured that out over a year ago, doing the math of my fingers, an Abacus was not required, this is exactly why I opposed Greece to be allowed back on the market selling another 5 billion in bonds. But the power players wanted their commission and as I see it a 100 million euro bonus is just too good to pass up.

So here in short is part one of this story. Certain elements are in play and have been in play for some time. Greece has done next to nothing to clean up its act, its laws and its massive shortcomings. As we see again the voices of many shouting against Austerity, we have to wonder whether people even realise what they are shouting against. You see, austerity is merely keeping a budget, for close to two decades governments have overspend every year, this is how Greece got into this mess, it had spent money that it never had. It is not alone in this pretty much every EEC nation is guilty of this and whilst some are still afloat, Greece is the first one who cannot even commit to the due interest bill, that is at the foundation of this debacle. So austerity is not a punishment, it is not a right, it is a mere responsibility and it has been forfeited by nearly every EEC nation for much too long.

I will give more answers in part 2 of this article, hopefully the day after tomorrow.

Withdrawal and expulsion from the EU and EMU

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When a joke is too pathetic

This is the first thought that came to mind when I saw the ‘headline’ ‘IMF has ‘criminal responsibility’ for Greek crisis‘, which was in the Guardian Live part. So, is Alexis Tsipras just too stupid to be allowed as a politician? Let’s face it, after 6 months he achieved absolutely nothing, so is my question that far out of bounds? He created decline in diplomatic bonds by accusing everyone, except the ones really responsible, which were the Greeks themselves!

Let’s take a look at some of this, for this I am taking a larger step back, back in time. You see, after the Olympics of 2004, we should have seen an influx and a positive result for Greece, which it did, but only to the smallest extent. Compared to other nations that influx was not as strong as many expected it to be. When we look at the data the OECD (at http://www.oecd.org/) has, we see that the investment in Gross fixed capital formation (GFCF) was up in the year before the Olympics (that makes sense), then collapsed, only to go up steeply in 2006 and 2007, after that it goes down a lot, far below the average, guess what, after it hit a low (-26%) in 2012, suddenly there was a spike in investments, to minus 9.5% in 2013 and plus 2.7 percent in 2014. Yet, investments by whom? If we look at investment on % of GFCF by government we see that they represent 23.3% in 2013 and 20.7% in 2012. All this whilst corporate invested 34.9% in 2012 and 38.3% in 2013, households are in the basement, so the picture does not make sense (to me), when we compare this next to let’s say, the Netherlands, the picture looks even more distorted. Greece spiked its general government investment as % of GFCF far beyond the Netherlands, especially in 2009 and 2013. Greece has nowhere near that funding. Now, we see that it is just ‘% of GFCF’, yet spiking’s of 7% difference makes a lot more sense for the Netherlands than for Greece (the Dutch have dikes, harbours and plenty of assets to worry about). The Greek spending under former PM George A. Papandreou as well as spending by former PM Antonis Samaras, or should I say spending whilst they were in charge? Spending on transport equipment, other buildings and cultivated assets went up consistently, especially since 2012, whilst investment for dwellings went down from 2011 to 8% in 2014. These investment parts cannot be denied to some extent, yet the spiking implies that it is done at a moment’s notice, on the whim of emotion, lacking long term insight and stability. You only need to compare Greece to nations like the Netherlands and Sweden to see that the ‘spikes’ reflect what I would call: lacking vision and insight.

The questions only increase when you consider that Greece’s net trade never comes close to -20, -25.2 is the best they were able to achieve from 2003 onwards, and this is in billions of dollars, so as we see a decade of minus 20 billion or worse, it was -64 billion in 2008, questions should be asked, especially from the Greeks. A nation in trade deficit for ever a decade adds up to questions on WHY they were allowed onto the bond market in 2014, no one clearly asked those questions. In that light I need to add a blog (at http://yanisvaroufakis.eu/2014/05/11/how-the-greek-banks-secured-an-additional-hidden-e41-billion-bailout-from-european-taxpayers/), the article called ‘How the Greek Banks Secured an Additional, Hidden €41 billion Bailout from European taxpayers’, so how come that these matters are not on the front page? So as I see it, these massive indicators are shown that when it comes to ‘criminal responsibility’, Alexis Tsipras should also knock on the doors of previous PM’s and Greek political bigwigs (if they actually have any). For the simple reason that massive austerity would have been needed in 2006 onwards, how much was cut? How was this achieved? You see 2005 was already a clear indication that overhaul of property taxation, tax collection and tax evasion was a clear given, especially when you come up short by THAT much. Yet in over a decade no achievements were made and neither was anything truly done in the last 6 months.

In addition, we see the dangers of the title ‘Athens threatens to miss IMF payment‘ (at http://www.theguardian.com/world/2015/jun/16/eurozone-greek-exit-athens-imf-grexit-tsipras), whatever the Eurozone braces for is an unknown to me, considering the large players downplayed the event. The quote ‘threatens to miss IMF payment‘ is also slightly misrepresented. As I see it. As I see it, Greece no longer has that much money at their disposal, I reckon the shift by using the IMF emergency funds was a clear given. There is also a ghostly silence when it comes to the bank run. No clear indication how strong that pull is, or are the banks perhaps already empty? That is not a speculation, it is the question, especially as political parties and banks are debating ‘Grexit’. The problems will only intensify when the bank runs are complete. Actually, I expect that escalations will occur a lot faster when people can no longer withdraw. There is presently no indication when it will happen, but as payments are missed, the dangers of banks no longer handing out cash (emphasis on ‘being able to’) after June 23rd is not out of the question, if the bank run continues, that date might be even before that date. It will be a new low in humanitarian economics, as retirees will no longer receive payments, how will they be able to pay, when the Greek government allowed in March for the dipping into pension funds. Depending on how many Greek bonds these pensions ended up with, when money is not coming, which is extremely realistic, the pension funds themselves will not be able to flood the monthly retirement pay out, which is due in less than 2 weeks, at that point, how will the population react?

I expect to stay away from Greece until that dust cloud settles as it will be a harsh reality for Greeks to watch tourists walk around whilst they can no longer afford to feed themselves. The escalation with refugees all over Greece (Kos being the most visible one) is not helping any. The fact that posters are appearing with texts like “I am an immigrant, I’m here to rape your children” is not helping any. You might think that they are separate issues, but they are not. You see, this fuel of hatred is hitting Greeks every day, the unrest is growing amongst both sides. The entire debt mess is hitting the Greeks, who now see that what is left would be lost to the refugees. We are all about humanitarian aid, but how many will give them your last sandwich? How many will give food to the refugees when it means that your children will not eat? You might think that this is an exaggeration, but after next week, that might not be the case. When the announcement of a default meeting is given, the banks will get overrun, people will take all their money out, they might already be starting that today, when THAT is gone, how exactly will groceries be paid for? All this, because the two players Alexis Tsipras and Yanis Vardoulakis have basically been sitting on their hands for 6 months. It is nice to see the headlines ‘No new reform proposals for Eurogroup‘ and ‘Varoufakis rules out ‘Grexit’, deal possible if Merkel takes part‘. Well, as we are seeing now, it is no longer up to Varoufakis and Tsipras. as they pushed away reforms, accused the IMF and as we see ‘Europe Struggles Toward Solution as Tsipras Rips Into Creditors‘, we have to wonder, the Greeks made these deals, a I see it, the acts of THIS administration is now killing their own options, burning the bridges behind them. At this point, as I see it. Greece can no longer state “Grexit not a possibility“, at this point, we have arrived at the stage that Greece gets notified that Greece will be ejected from the Euro, perhaps even the Eurozone. The latter part is not that likely, but in sight of the Greek acts, no longer an impossibility. Now, only 2 hours ago we see “US urges compromise after Greek PM attacks IMF” (at http://www.theguardian.com/business/live/2015/jun/16/greek-crisis-negotiations-deadlocked-as-time-runs-short-live-updates). Now we see “US Treasury secretary Jack Lew has telephoned Alexis Tsipras to urge him to reach a realistic compromise, urgently. In a statement, the Treasury revealed that Lew told Tsipras that the Greek people, and the global economy, would suffer if Athens can’t reach a deal with creditors

My cold war view (I miss those old days) is: “Jack, buddy boy! Did you miss certain facts? Did you consider that this is exactly what Alexis Tsipras wants all along? He is a communist! This scenario will have a massive impact on America, he is meeting Putin on Friday. Perhaps they will walk through the Hermitage on Saturday, a family outing, special tour and as they turn around the corner he gets his new golden future, if he can push Greece over the edge, massively hurting the US (please do not deny that it will not hurt the US), than he will have a nice future, he might even get the Star of Lenin on May 1st 2016. Instead of meeting with European parties, he is having another meeting with Putin. This guy met with Putin more often than the bulk of the Europeans together

This might look like my shallow view, but consider the past of Syriza, their foundations, is my view so far-fetched? He has done absolutely nothing to propel the debt situation in any positive way. Is all war not based on deception? (Source: Art of War). Look at all the photo’s the papers have, all posing moments and all presentations of the moment (which politicians tend to do), has Alexis Tsipras been anything but a petulant child? As he went on and on in the style of: ‘Just give me my cookie now!‘ (Reference to the 7.2 billion bailout). In 6 months no clear reforms, no clear mention in any direction that could have eased any kind of resolution. The icing on the cake would be if the US would now take on some of these debts too. It would be a total victory for Tsipras, he can tell the Greek population has been dealt with and he’ll be living next to the Kremlin for daily Caviar and Vodka, the new Russian superstar!

This is just my view, it is a view and there is no reliability on my view, but oddly enough, my view matches all the facts we see, so is it less or more likely? Consider yourself, when you are in deep water with your bank, would you not try to get a dialogue and understanding? Would you not plead ‘there is no money now, but as soon as some comes in, we start paying!’ of course, the bank cuts you off, but the bank realises that waiting is better than losing, especially when the client has sincere intentions. So pissing of your bank, accusing them of ‘criminal responsibilities’ and letting them pay for it all, how does that help?

When the fence between you and the tiger is gone, posturing seems pointless, even if it is the only thing left to you. So, are the Greek politicians in charge now the joke that is too pathetic?

From accusations to ‘trying to make up’ as Helena Smith of the Guardian reports, “Over in Athens the government’s spokesman has just released a statement attempting to douse tensions with EU commission president Jean-Claude Juncker“. Is this part of the play, or have the members of Syriza lost direction and focus? This is the question for many, you see, accusations followed by carefully phrased corrections is about emotion, limelight and posturing, as I see it an almost empty gesture to keep a non-conversation going. In here, I mean non-conversation as a means to continue a dialogue that allows for non-actions to continue too. Will this go on for 30 hours until the upcoming near-fatal meeting to be? That will be a question to consider, because tomorrow might be the last chance before certain members meet separately to put Grexit to the vote. That last part is again just my view, but it is a distinct possibility, because the reality of Grexit has now been voiced, and the change from ‘if’ to ‘when’ Grexit commences needs a start date, Germany, France and Italy would want to keep control of that moment, just to make sure that they will not be terminally affected because of it, a consequence that is still an option!

As I see it, the game will change massively for France when Grexit happens, as such, France would want to champion that meeting for valid reasons of cost impact.

 

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Is it all Greek to you?

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 29th.

I, the Lawlordtobe.com (that’s me) stated on May 6th in the article ‘What’s the matter?‘ “You see, there we see May 1st an IMF interest loan payment (now due May 6th) and May 12th 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 8th and the second one on May 15th, each worth 1.4 billion“.

Now we know that the May 6th payment was done, but the May 12th 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 12th. 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 30th. 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 19th (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 6th (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 26th 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?

Natixis_20150522

 

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