Posts Tagged ‘Greece’

The Choice For Cyprus

Thursday, March 21st, 2013

It’s not Greek v. Turk, this time it’s Ireland v. Iceland!

Essentially, the Cypriots have to choose between substantial haircuts for bank depositors (most of them foreigners who like tax evasion and money laundering), which effectively ends the only large industry other than tourism, and leaving the Euro, which will undoubtedly increase tourism and give the finger to the Germans and Russians (no bad thing).

Staying in, as Ireland has found out, means years and years of grinding poverty and high unemployment. Never joining, as Iceland found out, means you can screw the banks, use and devalue your own currency, and get back to sustainable growth more quickly.

Gorilla says, “Saying goodbye to Euroland is always the easiest solution!”

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Final Notes For The Week

Friday, August 24th, 2012

Mitt Romney’s birther joke: Reflects precisely upon this candidate: a racist, cowardly liar.

Empire State shooting: A circular firing squad is a circular firing squad, whether those firing are cops or crazy people who have easy access to guns.

Lance Armstrong: who cares? Our society is drug addled from childhood, and moves in lockstep with a need for corporate shilling heroes that seems inexhaustible.

Greece and Germany: The Greeks still don’t understand that they have all the leverage. The “bailout” is a bailout of Northern European banks. Angela Merkel remains both a liar and a coward (the female Mitt Romney). Default’s the best way to concentrate everyone’s minds.

Anders Brevik: let us hear no more from him ever again.

Gorilla says: “Another week for mass murderers and liars, can’t wait for someone decent and honorable to emerge from the carnage!”

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Greeks In Syria

Sunday, June 17th, 2012

Gorilla says: “It doesn’t matter who wins in Greece, and no one’s going to war over Syria, so this weekend’s hotly watched diversions will not end in climax!”

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Still No Plan In Euroland

Wednesday, May 30th, 2012

As Spanish banks go bust, and Greece continues its slow march to the drachma, what is the ECB doing?

Absolutely nothing!

There seems to be little understanding about what the stakes are.

Put simply, unless the ECB is willing to act as lender of last resort, ramp up Eurobonds, guarantee bank deposits (and possibly impose capital controls), and raise the inflation target to at least 5%, there is no chance whatever that the Euro will survive.

A continent wide depression is now on the cards, and with it will come yet another financial crisis for the global economy.

The cowardice and lying by Euroland leaders, in particular Chancellor Merkel (certainly the worst German leader since Hitler), is breathtaking.

Gorilla says: “There will be revolution if there is no resolution!”

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A Billion Here, Now A Billion There

Wednesday, May 16th, 2012

In Greece, that’s real money fleeing…

At this point, leaving the Euro is Greece’s only viable solution, given that the country’s German paymasters would rather see the country destroyed than have to admit lying continually to their own voters.

Unfortunately for Greece, leaving will make things much more difficult in the short-term. A drachma devaluation of roughly 50% is needed to make the economy more competitive. The banking system will be destroyed, with no prospect of financing from anywhere for at least a decade. Unemployment and social upheaval will increase. Civil war is not out of the question.

Once Greek leaves, it’s very likely that Portugal, Spain, and Ireland will follow quickly. Bond yields in those countries are unsustainable, as is the utterly stupid pursuit of austerity at a time of vast unemployment. It’s not out of the question that Italy and France will also be forced to leave Euroland.

How to put out the fire? The ECB must become the lender of last resort for all sovereign debt, the Northern Europeans need to engage in big-time stimulus to promote consumption, and a higher inflation rate must be maintained to bring make competition more competitive within Euroland.

Gorilla says: “It’s back to 1939: Germany torching a whole continent in pursuit of a morally bankrupt, confident dream!”

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It’s Over For Both Greece And Germany

Monday, May 14th, 2012

And now the Germans will have to decide which kicked can they finally want to pick up from the road!

At this point, there are essentially three choices:

The Germans must send a clear signal that the ECB will become the lender of last resort, that more stimulus will be undertaken in Northern Euroland, and that a higher inflation rate of 5%/year will be tolerated until competitive balances within Euroland are restored.

Alternatively, the Germans could decide that they and their richer counterparts will depart the Euro, which would allow for the necessary currency devaluation to correct the competitive balance, but will not change the need to shore up what is becoming a non-functioning financial system.

The final possibility is allowing Greece to leave the Euro, but it’s very likely that this will force, Ireland, Portugal, Spain, Italy, and possibly France to also consider leaving. The danger of this contagion is that it will prompt massive capital flight to Northern Europe and make the austerity undertaken so far seem very benign as the banking systems in those countries collapse and a continent-wide depression ensues.

What’s absolutely essential at this point is for the Germans to understand that they have no more than a month to make up their minds.

The Greeks are screwed regardless, they simply don’t have the resources or the capability to keep going without at least a 50% change in the competitive balance.

Anyone in Berlin who thinks that austerity remains a viable solution is living in the fantasy world created by Angela Merkel and the Bundesbank.

Gorilla says: “For the third time in a century, the Germans must crawl out of the devastation they’ve created!”

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Shirt Losing Eurozone Style

Tuesday, March 6th, 2012

Well the bondholders sure aren’t happy!

But there’s little they can do, other than finish the Eurozone off for good!

A trillion dollars in bad debts is a lot of money, but not enough to tank the enterprise.

It’s apparent the ECB will try to to keep European banks from crash landing.

But until there’s a clear declaration that the ECB will be the lender of last resort, coupled with a German decision to start printing money and promoting domestic consumption on a big scale, the contagion and the threat to the world economy will continue to be real.

Gorilla says: “Small beer down Merkel’s back, but the deluge is coming!”

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Default 1 Or Bailout 3

Tuesday, February 21st, 2012

It’s one or the other for Greece, regardless of this week’s bailout sequel.

So long as austerity continues, and so long as there are massive, unsustainable trade imbalances, Greece will soon have no choice but to default and leave the Euro.

This may well be what the stupid, punishing Germans want, but they’ll find out very quickly to be careful what you wish for!

Gorilla says: “The cradle of democracy is becoming a terrible toddler!”

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Out Of Control

Wednesday, February 15th, 2012

The Eurozone that is, as it’s clear Greece will default, it’s likely Portugal will default, and sooner or later contagion will spread to France, Italy, and Spain.

What’s desperately needed is what’s been needed all along: a clear statement by the ECB that it will serve as the lender of last resort for all Eurozone members.

What’s also needed is serious leadership by a German government whose entire fiscal and monetary policy is an amoral pack of lies foisted upon the German people.

Gorilla says: “It’s not 1923, it’s more like 1933!”

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Minor Subjects Of Derision

Wednesday, February 8th, 2012

Rick Santorum: demonstrates beyond doubt that Romney is a very weak Know Nothing candidate, unable to win decisively anywhere. Romney will get the nomination, but looks like a landslide loser in November.

Greece: still going nowhere. The ECB is ponying up a little, while the foolish Germans enjoy their own form of austerity, at home and abroad. Default and contagion are still very real possibilities.

Syria: no one’s going to war over Syria, so the empty posturing by the West and recalcitrance by the larger dictatorships of the East will continue.

The War on Women: long past time to eliminate all tax preferences and subsidies for organized religion. Misogyny and homophobia should not be a goal of any Administration or any tax code.

Gorilla says: “These are tiresome times indeed!”

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