6 replies to this topic

[Lee Adler]

By Marshall AuerbackHere's the draft of the supposed agreement to "sort out" the Greek debt problem once and for all.  According to Bloomberg, here are the essentials: Greece's 2012 GDP will shrink by as much as 5%.Greece is expected to return to growt...

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[heritage_ray]

Awesome demonstration of power...and they do it right in your face!  

excerpts from The London Banker blog: Greece - Cutting out the Middle Man

"It seems that central bankers and politicians are endlessly resourceful when it comes to innovating ways to profit themselves and bankers at everyone else's expense, regardless of what Greek politicians or citizens may choose to do.

There’s the new plan to take the 130 billion that would have gone to Greece in the second bailout, and put it in an escrow account. The account may be labelled "Greek Government", but Greek politicians will not have any authority over the funds. The funds will be disbursed by a non-Greek overseer to pay holders of Greek debt. Official creditors will receive full payment. Private creditors will receive the new discounted rates agreed with the IIF for restructured debt."

Also, the agreement protects the credit insurers, as the International Swaps and Derivatives Assoc (ISDA) will find there is no credit event, regardless, and thus eliminate need for insurers to pay any claims under existing default provisions.

"The fear among the creditor states of the eurozone was that irresponsible Greek politicians might use any new money to pay civil servants and pensioners rather than bankers and hedge funds. With funds held in escrow and disbursed by a non-Greek overseer, they needn't worry about such excesses of sovereign generosity.
This plan amounts to cutting out the middle man - the debtor. Bailout funds are used to bail out Greek creditors, without ever passing through Greek hands."

So in the end we get to see who really matters in the whole mess. It is not the people, for sure...

http://londonbanker....middle-man.html

[qqqbear]

What is almost always missing in these stories is the collection of taxes. Southern Europe, in general simply, treat paying taxes as a game and mosy anything goes in this game.
Not unlike this country. All the wailing and gnashing of teeth about the 10s of billions that get spent here and there (food stamps, etc) to provide a safety net, while an estimated $300 billion in taxes goes uncollected every year. Every year. Ebery year. Does it add up?

[Lee Adler]

This will absolutely render all credit default swaps absolutely worthless.

[Slipnslide]

Greece getting raped by the rentiers?  Wouldn't a better headline be, "For First Time in Decade, Rentiers Demand Reach-Around from Greece"

[HYPERTlGER]

Pump 100's of Billions into the global trade system...and get the Greeks to sign on the dotted line to pay for it.

All that is being pumped in is basically just flooding out...

[HYPERTlGER]

The rich live off the taxes they extract from the poor.

The top lives off the yield from the bottom.

Interest attached to money is a tax that those with money make those without money pay...

And since banks create money out of nothing...they have the benifit of taxing all the money out of circulation...so the only way to sustain a circulation is to request banks to create money faster than it is being taxed out...

Until the poor have been taxed to death to sustain the rich...then the whole tax systam implodes.

The yield on 1 year bondage is 500%...is that not a high enough tax rate?