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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: 1614
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).
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.
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.
#8. To: TooConservative (#6)
Vlad to the 'rescue':) This is old fashioned bribery and skulduggery.
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.
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#2. To: redleghunter, Pericles (#1)
#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
Replies to Comment # 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.
#13. To: TooConservative, redleghunter, A Pole, Marguerite (#6)
(Edited)
End Trace Mode for Comment # 6.
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