Greece – Painless poverty is better than embittered wealth.
The title is from a Greek proverb. We’ve been covering the Greek situation here since the launch of the site on May 11th, as those who have been following the news stories will know. This is a short summary – a synopsis – a ‘meze’ of morsels to give the flavour of what is currently on the table.
Before we set out some dishes – here’s the background cloth.
Greece’s short- term ‘repayment’ schedule
Here’s the repayments till August 2015 http://static6.uk.businessinsider.com/image/55252ad282e985b661d8da30-808-697/hsbc%20greece.png
Unfortunately Greece couldn’t ‘stump up’ the June payments – so
The International Monetary Fund on Thursday allowed Greece to bundle its four debt payments due this month into a single payment now due on June 30.
(How very kind of the IMF?)
But that ”concession” follows the temporary indigestion of The Bailout Farce in May. http://davidstockmanscontracorner.com/the-bailout-farce-greece-borrows-imf-funds-to-pay-imf-now-will-need-new-imf-loan-to-repay-next-month/
Greece Borrows IMF Funds To Pay IMF Now; Will Need New IMF Loan To Repay Next Month
and at that point
GREECE CASH RESERVES STOOD AT APPROXIMATELY EUR 90 MILLION – EUROSYSTEM SOURCES
(Maybe just go back and check that chart of what’s still outstanding?)
Now Greece has declared that the debt is
Illegal, Illegitimate, And Odious“ as we posted on here yesterday (thanks zerohedge)
Then we have Lagarde (who is clueless) http://davidstockmanscontracorner.com/christine-lagarde-is-clueless-70-words-of-pure-keynesian-claptrap/
Greece will be in default if it fails to meet a €1.6 billion repayment to the International Monetary Fund due on 30 June 30, Christine Lagarde said on Thursday. There would be “no period of grace” for Greece, Lagarde told reporters.
So where are Greece going to get the euro dosh?
Russia Won’t Comment on Aid to Greece Ahead of Tsipras Visit. http://hosted.ap.org/dynamic/stories/E/EU_RUSSIA_GREECE?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2015-06-18-05-18-36
And Russia has already invited Greece to join BRICS
– and BRICS is –a brave new world where leading developing countries finally challenge the iniquitous international system.
Now. Take a rest between courses and ask a question.
Is it just about the money?
Why should it matter to Brussels/the Troika if Greece gets the money from Russia?
Well the secret ingredient is this:
Unless Greece agrees economic reforms (or sells off assets) with its creditors by the weekend, EU officials believe time will run out for Athens to access a much-needed €7.2bn tranche remaining in its bailout programme before it expires in two weeks.
So the Greeks get another loan – which goes to repay an earlier loan – but ONLY if they DO AS THEY’RE TOLD
Let’s not forget what hidden jewels Greece harbours
What’s the best way for 3rd parties to get hold of those assets cheaply I wonder?
Well – a bank run always helps?
ECB TOLD EURO ZONE FINANCE MINISTERS IT WAS NOT SURE IF GREEK BANKS WOULD BE ABLE TO OPEN ON MONDAY- OFFICIALS
followed by an official denial: EU OFFICIAL: ECB DIDN’T SAY GREEK BANKS MAY NOT OPEN MONDAY
then undermine Tsipras and scaremonger
Stournaras approved a coruscating statement released by the BoG condemning Tsipras and asserting (rather than hypothesising) doom for Greece unless it agreed to the latest Troika demands. Stournaras also sits on the IMF Board
Threats that Greece will be forced out of the EU and spiral into economic collapse without a rescue deal are crude intimidation
The central bank did not present these as potential dangers in a worst case scenario – something we might all accept – it asserted that they would occur unless Mr Tsipras agrees to terms imposed by Brussels before the Greek treasury runs out of money.
Never before has such a “monetary policy” report been published by the central bank of a developed country, or indeed any country. It is a political assault on its own elected government.