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Title: Greek Central Bank pleads for deal to avoid Grexit
Source:
The Guardian online
URL Source: http://www.theguardian.com/business ... block-55813052e4b05c5f91d25758
Published: Jun 17, 2015
Author: Staff
Post Date: 2015-06-17 15:20:41 by redleghunter
Keywords: None
Views: 1504
Comments: 16
Greece’s central bank has issued an urgent plea to both sides to hammer out a deal, warning that the country could be forced out of the European Union. In a new report to the Greek parliament, the Bank of Greece said an agreement was now a “historic imperative”. Otherwise, the country risks being relegated to just “a poor country in the European South”. It’s a chilling warning of the risks that Greece currently faces. The Bank says: Failure to reach an agreement would....mark the beginning of a painful course that would lead initially to a Greek default and ultimately to the country’s exit from the euro area and – most likely – from the European Union. A manageable debt crisis, as the one that we are currently addressing with the help of our partners, would snowball into an uncontrollable crisis, with great risks for the banking system and financial stability. An exit from the euro would only compound the already adverse environment, as the ensuing acute exchange rate crisis would send inflation soaring. And the impact on the Greek people would be desperately severe: All this would imply deep recession, a dramatic decline in income levels, an exponential rise in unemployment and a collapse of all that the Greek economy has achieved over the years of its EU, and especially its euro area, membership. From its position as a core member of Europe, Greece would see itself relegated to the rank of a poor country in the European South. For that reason, the Bank said, the risk of a “credit event” (ie, a default), must be removed “once and for all”. It also reported that around €30bn has already left Greek bank accounts since October, as the “dragging-on of negotiations” hit confidence. That has: ...largely taken the form of cash withdrawals and hoarding, while flight of capital has also been recorded. — Ioan Smith (@moved_average) June 17, 2015 #Greece | Deposits down to '04 levels...Comical Ali says still no bank runs here pic.twitter.com/IXl2y3bHDy And if all that wasn’t bad enough, the Bank also predicted that the current recession will probably get even worse: The deterioration of economic sentiment indicators and financing conditions in the private sector suggest that the slowdown of the economy is likely to accelerate in the second quarter of 2015, putting the economy at risk for a renewed bout of recession. Poster Comment: TC posted an exhaustive article on how local and federal "IOU" pension funds are near collapse. This update from the Guardian on the potential default of Greece to her German and French masters is an example of what happens to countries who overspend and use social programs as cash cows.
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#1. To: TooConservative, liberator, CZ82, GarySpFc, tomder55 (#0)
Thought this would be of interest (no pun intended).
Truly my soul waiteth upon God: from him cometh my salvation. He only is my rock and my salvation; he is my defence; I shall not be greatly moved. (Psalm 62:1-2)
Putin keeps flirting with Greece, just to make the EU nervous. And he has an uncommitted $15B in aid that he no longer has to give Ukraine... It wouldn't surprise me if Greece starts negotiating with Putin (again) as a way to force the Germans to bail Athens out (again) just to keep Putin out of Greece. I admit, I would enjoy watching that scenario. Brussels in turmoil, Daniel Hannan and Nigel Farrage mercilessly ridiculing the EU and Britain's participation, etc.
Check this out: Fed holds off on interest rate hike, downgrades economic forecast Did not know A K A Stone's policy on the LA Times so just the link and this excerpt: Fed officials sharply downgraded their economic forecast for this year. They projected the economy would grow between 1.8% and 2% this year, well below the range of 2.3% to 2.7% in its last forecast in March. If they’re correct, annual growth would be the worst since 2011 and would be far from the breakout performance some economists had hoped for this year. Truly my soul waiteth upon God: from him cometh my salvation. He only is my rock and my salvation; he is my defence; I shall not be greatly moved. (Psalm 62:1-2)
Call it what it is for heaven's sake.
The Fed wants (and needs) to stop its money-printing habits. They just are not confident they can do so without the economy going into a tailspin. Yet, the growth of federal debt has also reached a tailspin. We are in the jaws of a debt vise, not all that different from Greece.
Ah, I really hate quoting and replying to myself. : ) However, Vlad still has his hand in Greece and with another motive, it seems. Grexit live blogging at The Telegraph: Tsipras is due to meet with Russian president Putin on Friday - the day after one of the last possible moments for a deal to be struck. Bloomberg has suggested that one reason for Tsipras to be courting Putin is that Greece would veto an extension of EU sanctions in exchange for Russian largesse, and to gain leverage over its creditors. EU sanctions require a unanimous vote by the 28 governments, and opponents will have one more chance to block them before the decision becomes final. EU officials, led by EU President Donald Tusk, today agreed a preliminary accord to continue the sanctions for six months until the end of January.
Call it what it is? Our future here in the USA if we keep plugging the same failed social welfare policies that made Greece broke. Truly my soul waiteth upon God: from him cometh my salvation. He only is my rock and my salvation; he is my defence; I shall not be greatly moved. (Psalm 62:1-2)
Vlad to the 'rescue':) This is old fashioned bribery and skulduggery. Truly my soul waiteth upon God: from him cometh my salvation. He only is my rock and my salvation; he is my defence; I shall not be greatly moved. (Psalm 62:1-2)
You have to admit, it would have tremendous appeal to Vlad, the old KGB man. He buys Greece's favor with an initial loan floated for $5 billion on favorable terms. Greece stays barely afloat and vetoes the continuation of sanctions against Russia. Vlad could afford to pay $15-$20 billion, given the slow damage that has accrued from the sanctions. And the EU has badly hurt itself with these sanctions on Russia. Many would welcome the end of sanctions, especially the Germans. Of course, you'd have to put the media neocons in restraints and use full straitjackets for McStain and Lady Lindsey.
This should make Pericles happy, means his handouts will continue for awhile longer.
“Political correctness is a doctrine, fostered by a delusional, illogical minority, and rapidly promoted by mainstream media, which holds forth the proposition that it is entirely possible to pick up a turd by the clean end.”
And THAT is the truth that must be spoken -
Another punk ass American talking behind another's back like a woman.
That's the Eastern Roman Empire's Double Headed Eagle behind them. Byzantium. New Rome. Orthodoxy. In the Middle East we are seeing the Sunis and Shite's grouping. The Greeks only joined up with NATO and the EU because of anti-communism/Cold War fears. What happens when that goes away as it did? Huntington's thesis is in play.
A nice image with a lot of history behind it for both Greeks and Russians. I noticed both Vlad and his spokeman said Russia would consider a loan to Greece if asked. After the meeting, they said that Greece didn't ask. Russia says it is primarily interested in the new Turkish-Greek pipeline they're building now. We don't know all they discussed, naturally.
Russia says it is primarily interested in the new Turkish-Greek pipeline they're building now. We don't know all they discussed, naturally. A loan is prblematic - but money for a pipeline access route and a % of the revenue passing through it's territory? That is a justifiable business deal - made sweeter by the fact that while totally justifiable and legal - it's not what NATO/USA/EU wants due to them wanting to weaken Russia's petro power in the west.
Doesn't your government give you things like this? If not they should, if they do then start using them. “Political correctness is a doctrine, fostered by a delusional, illogical minority, and rapidly promoted by mainstream media, which holds forth the proposition that it is entirely possible to pick up a turd by the clean end.”
#2. To: redleghunter, Pericles (#1)
#3. To: TooConservative (#2)
#4. To: redleghunter (#0)
“...a poor country in the European South...”
Tell the darn truth.
Lying will not change reality in any way.
#5. To: redleghunter (#3)
Fed officials sharply downgraded their economic forecast for this year. They projected the economy would grow between 1.8% and 2% this year, well below the range of 2.3% to 2.7% in its last forecast in March.
#6. To: All, redleghunter, Pericles, A Pole, Marguerite (#2)
It wouldn't surprise me if Greece starts negotiating with Putin (again) as a way to force the Germans to bail Athens out (again) just to keep Putin out of Greece.
Vlad buying up Greece just so Greece can stay in the EU to veto continuing sanctions on Russia would make me laugh my ass off. I suppose it is a long shot. To prevent that happening, the Germans would bite the bullet (or the pillow) and bail out Greece themselves.
14.56
To Russia with love
#7. To: Chuck_Wagon (#4)
Call it what it is for heaven's sake.
#8. To: TooConservative (#6)
Vlad buying up Greece just so Greece can stay in the EU to veto continuing sanctions on Russia would make me laugh my ass off. I suppose it is a long shot. To prevent that happening, the Germans would bite the bullet (or the pillow) and bail out Greece themselves.
#9. To: redleghunter (#8)
Vlad to the 'rescue':) This is old fashioned bribery and skulduggery.
#10. To: redleghunter (#1)
#11. To: redleghunter (#7)
Call it what it is? Our future here in the USA if we keep
plugging the same failed social welfare policies that made
Greece broke.
here and there. Truth is truth.
(Except when politicians speak it.)
#12. To: CZ82, redleghunter (#10)
(Edited)
This should make Pericles happy, means his handouts will continue for awhile longer.
#13. To: TooConservative, redleghunter, A Pole, Marguerite (#6)
(Edited)
#14. To: Pericles (#13)
Byzantium. New Rome. Orthodoxy.
#15. To: TooConservative (#14)
(Edited)
noticed both Vlad and his spokeman said Russia would consider a loan to Greece if asked. After the meeting, they said that Greece didn't ask.
#16. To: Pericles (#12)
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