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German Economic News: 'The Greece-exit is a done deal'

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posted on May, 23 2012 @ 11:50 PM
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Original Article


The die is cast: the EU has given Greece. Crisis teams at various levels are preparing for the Euro exit. How exactly this is to run, no one knows. In the background has already begun to cover the cost of poker. For the Greeks must play. Therefore let no one wants to even look at their cards.

The Greece-exit is a done deal: According to the German economic news from financial circles EU and the ECB have abandoned the motherland of democracy as a euro member. The reason is, interestingly, not in the upcoming elections - these are basically become irrelevant. It has come to the EU to the very late realization that the Greeks, the agreements have not been met and will continue to be unable to meet. A banker: "We helped with the Toika. The help of the troika was tied to conditions. Greece has fulfilled none of the conditions, and has been for months now. "

The loud sounds of the left-politician Tsipras were just the straw that has brought the camel's back. In the EU, the ECB and the IMF have been completed with the issue. Greece must get out of the euro, it is generally agreed across all sectors. The information contained in the former central banker and technocratic Prime Minister Lucas Papademos had delivered. He had enough time to convince the one hand, the full extent of the calamity, and also by the unwillingness of the parties to save money. Basically, his tenure was a fact-finding mission on behalf of the EU. His conclusion: Mission Impossible. About the consequences, there are different views: the central bankers do not want to pay more because they see that the whole is a bottomless pit. The politicians, led by Angela Merkel reluctant yet. As always there are the politicians advocate the status quo, because they fear nothing more than the unknown. And there are unknowns with a Euro exit any quantities.


It begins with the question: How does it work really practical? An outlet to see the EU treaties before any more than one eviction. For safety reasons, both the ECB and the Bundesbank formed crisis teams that are preparing now as the commanders on various contingencies. A small consolation is believed to have, because the debt incision was made, and therefore actually is a direct contamination of the banks as rather unlikely. Although this may not confirm officially Banker: The unofficial interpretation is that the risk of infection by the average debt "significantly reduced" was.

Most debts are now in the public sector - ie the ECB and the IMF. In the case of a state bankruptcy of Greece on the Target 2 system, the German Bundesbank would be taken immediately. Altogether, it is so appreciated, are the Greeks with 200 billion euros at the ECB and the IMF in debt. Therefore, all of which are currently very careful with scenarios: One does not want to be in the cards look. And as even the most amicable divorce in the end always haggled over the cost. Even the ECB and the IMF want to see their money again. They need the cooperation of the Greeks. A representative of the public sector: "When it comes to the discharge, the creditors will negotiate with the debtor. The creditors have no interest that the debtor is no longer on the legs. "

However, the debtor to cooperate with the creditors, some skirmishes will be fought. The Greeks would say, then we throw it out once - we do not pay but not our debt.

This game can not last for long. Since Greece can take no money in the capital markets, Greece must cooperate with the Troika. Without money, the country is very fast at the end: it can pay its civil servants no longer afford no energy, public life threatens to spiral out of control.

Right here wants to start the Troika: The next installment is due in June, there will be only when the Greeks come up with a fairly reasonable exit plan. Until then, the ECB can keep up with their financial instruments, the Greek banks so far over water, not everything falls apart.

At the same time it is hoped the troika that the ESM is surprising, because then enough money is available to prevent the contamination of other states. Because you can answer a question no one, like a of involved banker says: "We all know not whether it comes after the withdrawal of the Greeks to a domino effect or whether it really is the great liberation has been." There is always some require "discretionary action" of the ECB to keep the situation under control. In plain German: As some will have to be printed on money, so the crash can not go but even the whole euro zone in the air.


Well the conversation in much of the media suggests a Greek exit from the Eurozone is only a matter of when it wil happen and what the possible repercussions of its exit will be. The damage inflicted may not be that severe, but the markets might then turn to other countries, and worse, other countries in the Eurozone may take liberty in following Greece example should it not be such a catastophic outcome, which then without doubt, will engender an economic disaster for Europe and the world. We're already seeing slower growth right across the global economy and many of the policy tools are having a depreciating positive effect on stimulating any meaningful growth. Another significant shock is going to be a huge blow against the efforts to contain economic deterioration and will be a very difficult test of resolve and resources. A Greek exit could be the beginning of the end of the current world financial and economic systems.

Commentary on ZeroHedge




posted on May, 24 2012 @ 12:02 AM
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And I wonder why they didn't just go that route to begin with. I guess there were some preparations to make.



posted on May, 24 2012 @ 12:02 AM
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They just said, and are still saying it literally right now on the BBC "news"...

"European leaders tell greece, we want you in the Euro".




posted on May, 24 2012 @ 12:11 AM
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reply to post by surrealist
 
Little mention has been made of Spain and Portugal. Even Italy.

Greece leaving the euro will not save the rest of the eurozone countries.



posted on May, 24 2012 @ 12:16 AM
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reply to post by surrealist
 





Well the conversation in much of the media suggests a Greek exit from the Eurozone is only a matter of when it wil happen and what the possible repercussions of its exit will be. The damage inflicted may not be that severe, but the markets might then turn to other countries, and worse, other countries in the Eurozone may take liberty in following Greece example should it not be such a catastophic outcome, which then without doubt, will engender an economic disaster for Europe and the world.


aaah yeah

isn't this what we're
all waiting for...


inevitability
edit on 5/24/2012 by spoonbender because: (no reason given)



posted on May, 24 2012 @ 12:19 AM
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The damage will be severe and noticeable very soon after. However, the real damage will be severely downplayed. For example, you'll hear about 15% unemployment when the truth will be 25-30%.
edit on 24-5-2012 by AnIntellectualRedneck because: (no reason given)



posted on May, 24 2012 @ 12:22 AM
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reply to post by surrealist
 


Dear surrealist,

We should also consider another possibility. Greece does not meet it's obligations, is removed from the Eurozone and goes into a greater depression. Whereas the Eurozone improves once Greece is out. This would then be a warning to Italy, Spain and Ireland to not leave the EU and accept whatever austerity measures were imposed upon them. If Greece returns to the Drachma, who would accept it as valid payment for anything?

Nigel Farage of UKIP recently spoke on why the Greeks needed to leave the Euro and one of the Greek Ministers asked what would happen to the new Drachma and Mr. Farage said it would probably lose 60% of it's value immediately. Imagine having your currency be devalued that much in a day, food, gas and everything else would double in cost overnight.

No matter how this ends, it will not end well for Greece. Just like a person, if you don't pay your debts, nobody trusts to loan you money. The question is whose debt is it, is it government debt or bank debt. The mistake we made in the United States was bailing out the banks. If we hadn't bailed out the banks then the debt would have been limited to the banks and they would go into bankruptcy. That would result in debtors getting paid, lets say, 70% on the dollar. Instead the government bailed out the banks and the citizens end up paying 100% of the debt. The biggest difference is that now the government is in greater debt and it effects our currency rate and we hit our debt ceiling.



posted on May, 24 2012 @ 12:28 AM
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I was talking to some relatives that live in Athens and apparently they are getting ready for the coming exit. They said that all the citizens are buying up everything in sight and stocking up on canned goods. I am really worried for my relatives since all hell will break loose.


edit on 24-5-2012 by JustBreathe11 because: spelling



posted on May, 24 2012 @ 09:08 AM
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Originally posted by JustBreathe11
I was talking to some relatives that live in Athens and apparently they are getting ready for the coming exit. They said that all the citizens are buying up everything in sight and stocking up on canned goods. I am really worried for my relatives since all hell will break loose.


edit on 24-5-2012 by JustBreathe11 because: spelling


Yes, that is in the cards, but not the real message. The message is to let little Greece suffer for a bit and then the major powers will sweep in and provide all sorts of "help" that will enrich themselves and leave Greece being owned by others. --Nothing new there, just a new twist of an old game already in play.

As Greece falls the others that could follow will see what is instore if they allow themselves to go that way. Of course, the real owners of the game will rather they fail also to become further assessts in the fire sale. None of these players are too concerned in the initial positions, but the final positions they will hold--maybe "amass" is a better word.



posted on May, 24 2012 @ 10:52 AM
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It's no longer a case of whether Greece stays or leaves EU. EU is doomed as long as Merkal remains stubborn and demand 'austerity'.

Austerity will NOT provide growth, where the real money is made. And Germany will be worst of the entire lot in EU when austerity kicks in by member states. Recession will be the norm. Euros will sink to the floor.

No one will buy german products to support its growth as EU had done well in the past. Germany benefitted the most, because now every nation in EU is stuck paying debts, which will only be going to bankers and hoarded up, not re-circulated to bring wealth.

Worse, EU will HAVE TO print more euro dollars as money is hoarded up, devaluing the dollar further. If one thinks Greece will be stuck with drachmas, EU dollar will be far worse. Inflation will rise skyhigh. Economies will shut down. US, Asia, Africa, Russia, MiddleEast will just have to trade with each other and watch europeans starve.

All thanks to Merkal, that stubborn......B...

As for Greece and other states in EU that leaves, yes, their own currency will flounder, but think of it this way - out of EU, they are gonna say to hell with debts, and tell the bankers to sue or seized from those whom signed on the dotted line and corrupted ALL those moneys.

They still DO HAVE revenues comming in, for Greece or Spain or Italy are not deserts, but flourished lands with resources and hardworking human capital. Instead of using revenues to pay EU debts, they will have funds to continue with social expenditure,on a more rational scale, and stimulate the economy for growth.

Inflation will hit, but it will only mean less imports, doing with lesser imported goods. Necessities are still grown and avaliable from own states, and be shared by temporary state control of prices. Properties will face a moratorium on foreclosures for a few years till citizens get back on their feet, with temporary halt on ALL properties and resource sales to foreigners, or will sold with short term lesses.

Greece and other exiting states can still control their fate. But puppet Merkal and the banking cabal with germany are doomed as long as she remains stubborn in the face of realities. So much of time...pain and suffering..could have been avoided if only they had been rational during earlier stages when the crisis hit....



posted on May, 24 2012 @ 02:34 PM
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Originally posted by fairguy
They just said, and are still saying it literally right now on the BBC "news"...

"European leaders tell greece, we want you in the Euro".



But can anyone explain why this was...................... Anyone......



posted on May, 24 2012 @ 06:14 PM
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reply to post by surrealist
 


Greece will have to go back to funding Socialism the old fashion way: Institutionalized poverty.

We all knew Greece would fall eventually. Just as we know most of Europe will eventually find themselves in the same boat.



posted on May, 24 2012 @ 06:20 PM
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reply to post by beezzer
 


once greece is out it will heat up in spain, portugal and italy and i believe by that time, france as well.



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