Britain to be roped into EU rescue aid for Greece

The European Commission is planning use of EU budget funds for the next rescue of Greece, roping Britain into future responsibility for shoring up the eurozone currency structure.

Günther Oettinger, Germany's EU commissioner, said on Sunday that a third package worth over €10bn will be needed in 2014 and will partly come in the form of direct help rather than a debt haircut for existing creditors.

Most of the rescue aid so far for Greece, Portugal, Cyprus, and Spain's banking system has come from the eurozone's rescue machinery, outside the EU treaty structure.

Use of EU budget funds appears not to be targeted against the British government but would have the effect of drawing Britain into the morass, compelled to spend scarce resources perpetuating an EMU policy that many view as deeply misguided. It would also set a precedent that may be extended to Portugal if it need fresh help, and possibly larger countries if Europe's recovery falters.

Analysts said further debt relief in Greece must come from the EMU bail-out funds, inflicting losses on taxpayers in creditor states for the first time. This would require a line-item in Germany's budget and cause a storm in the Bundestag.

Back in March 2012, Jim Sinclair was interviewed and noted that the debts of Greece were the national ones and did not include Greek bank credit derivative liabilities....here is a link to the KingWorldNews intervies that discusses the real Greek financial system liabilities being...$37 trillion!!

No wonder that UK, broke itself, is being rounded up to participate in immediately needed funds to pay current interest damands of derivative liabilities.

The “shadow banking” derivative liabilities are real and are probably well over a quadrillion now as there is no real accounting of the world totals at all. All data regarding derivative liability totals reported by the BIS (Bank of International Settlements) are suspect as they are voluntarily reported to that bank with no accountability...all numbers reported are essentially bogus, but the world accepts them as fact. Progressive to be sure.

The fact that Sinclair states that Greece’s figures, the ones the European system deals with, are bogus and grossly underestimated augurs very badly with the issues of Portugal, Spain, Italy, France and the rest of them. THe worldwide problems are probably over a thousand trillion and multiple analysts think that they could really approach 1.5 Quadrillion dollars.

In the spring of 2009, the BIS reported $1.26Quadrillion of derivatives reported by multiple sources. In the summer, the figure was cut in half to a non-specific $600-700 Trillion. That figure abrupt change was not covered in the media at all. That figure has remained the official total of world wide derivative liabilities although derivatives have slowed not one bit in the meanwhile. No new update exists. If one accepts the BIS earlier reported totals of over a Quadrillion, one must suppose that the conceptual total is now....about $1.5Quadrillion or higher. The short term financing (five year standard) of long term debt is very bad.

Simply assuming long term debt goes out routinely to thirty years, then there are six short term refinancing periods to maturity of long term derivative instruments (including mortgage backed security instruments, govt bonds, etc).

From the crash of 2008, the first 5yr rollover period ends in 2013. We have not successfully met interest payments on debt service of derivative instruments anywhere in the world, and the world’s GDP and tax bases are not competent to service even a half percent interest on derivative instruments that exist.

Greece alone, as commented on by Sinclair, is beyond recovery....the rest is too.

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