April 3, 2015 at 3:23 pm #39711
Round and round it goes, where it stops nobody knows…..
“Greece draws up drachma plans, prepares to miss IMF payment’We are a Left-wing government. If we have to choose between a default to the IMF or a default to our own people, it is a no-brainer,’ says senior Greek official
“Syriza sources say are they fully aware that a tough line with creditors risks setting off an unstoppable chain-reaction. They insist that they are willing to contemplate the worst rather than abandon their electoral pledges to the Greek people. An emergency fall-back plan is already in the works.
“We will shut down the banks and nationalise them, and then issue IOUs if we have to, and we all know what this means. What we will not do is become a protectorate of the EU,” said one source. It is well understood in Athens such action is tantamount to a return to the drachma, even though Syriza would rather reach an amicable accord within EMU.
Bank of America warned that a “critical sequence of events could unfold” once Greece misses a payment to the IMFApril 3, 2015 at 3:36 pm #39713
Wow! The dominos are starting to fall. I wonder who is going to blink first. The EU Central banks may have pushed the Greeks into a corner. If the Greek people support their government and feel they have nothing to lose, they may very well back a default. The Greek economy is in shambles, and they may take an attitude that being a member of the EU is more costly than not being a member.April 3, 2015 at 3:41 pm #39715
The Greeks don’t have the capital to make the payments the money’s not going to get paid no matter what they contrive.April 3, 2015 at 3:56 pm #39718
You know what? They may be a little bit on the crazy side but I have MUCH respect for the Syriza party right now. They will be the first Western country to finally face the music, get it over with and rebuild. And this shows loyalty to the Greek people if you ask me!
On the other hand…
*Begins furiously digging bunker in the backyard*April 3, 2015 at 10:10 pm #39723
Germanwings may have been a harbinger of what will happen to Europe when Greece collapses from all the shoddy economic garbage piled on it. Faster faster faster till the thrill of speed overcomes the fear of death. 8 minutes of silence.
88 bye byeApril 3, 2015 at 11:13 pm #39726
WhiteKnight: I think you have a very good point. It’s like any of us if we overextend. At some point we either face the music and sell what we can, cut expenses, and try to rebuild our lives, or the sheriff comes with the eviction notice, and the repo man takes the car.
Greece is saying we are going to bite the bullet. Will they already be in the process of rebuilding while countries like Spain and Italy are collapsing under the weight of their debt to the Central Banks.April 4, 2015 at 12:21 am #39727
Did Greece recently elect in their version of the Communist party ?April 4, 2015 at 12:23 am #39728
First it was the East Germans and now it’s the Greeks. The sacrifice never ends does it.April 4, 2015 at 1:16 am #39729
As it is, Greece has been borrowing money from the EU to make loan payments to the EU. Other than kicking the can down the road a bit more each time, all this has done is put more paper profits into the hands of the big banks that have been allowed to pretend that those loans are still good. There is no happy ending for Greece without a whole lot of pain that must come first. The only real choice they have is when do they let the collapse happen so that they can start the rebuilding process. Of course the Greek people who voted in the current group didn’t vote for a collapse but rather for those they thought would just make all the problems go away. Personally I’d opt to let it happen so as to be able to start moving forward again rather than treading water indefinitely.April 4, 2015 at 1:28 am #39730
or maybe new chinese bank buys up greece for pennies on the dollarApril 4, 2015 at 1:47 am #39732
Namelus, I would suspect the vultures will be moving in from all kinds of places, but I suspect China may be among the first and foremost!
And Tolik, from what I have read, the Syriza is indeed hardcore socialist. Perhaps, however, the pressure of the collapse will create an environment where freedom might break out? Unlikely, perhaps, but I am hopeful.April 4, 2015 at 3:48 am #39737
I would think Iceland would be the first country and it’s political party to stand up to the EU and thumb their noses at them and they are doing just fine without them. I’m not so sure about Greece being all that successful, even if they do stand up to the EU. They have been a corrupt country and don’t have that great of a manufacturing base because of it(that’s just my opinion though), for what it’s worth.April 4, 2015 at 12:13 pm #39741
Iceland was both a stronger and better run country than Greece and though they did pay a price for not bailing out the banks they appear to have weathered the storm. If I recall correctly Iceland even held the bankers criminally liable. Greece has been a welfare State to an extreme and now has a populous that only knows govt. as the answer to everything. It will be a difficult road for Greece to reinvent itself as a viable economy again, but they really have no choice. They can’t pay their debts without greatly reducing the welfare State.April 4, 2015 at 10:55 pm #39750
I forgot about Iceland! They are proof that it is possible, I would agree though that Greece will surely be a much bigger struggle.
Although the Greek people are absolutely at fault for voting the way they did for so many years, I still feel for them. I genuinely hope they bite the bullet, grit it out and rebuild anew.April 4, 2015 at 11:00 pm #39751
To me , all the problems the experiment in economic Communism called the EU is having and will continue to have , until it eventually breaks up , just proves Communism is a failure in any form it takes .
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