Posted on 09/12/2011 2:45:48 PM PDT by ronnyquest
The decline of London, Berlin and Europe-wide stock indices by at least two per cent each on Monday morning, along with the fall of the euro to a 10-year low against the yen and a seven-month trough against the U.S. dollar, came as no surprise to Europeans who watched the battle between Berlin and Athens over the Greek debt crisis go ballistic over the weekend.
Greece, pushed to the wall by a sequence of German-led bailouts that have done little more than pile on more debt, announced on Monday that it is nearly out of cash. Deputy Finance Minister Filippos Sachinidis said in a TV interview that the country only has funds to last until mid-October.
After that, it will depend on another tranche of bailout funds from the International Monetary Fund – but with its domestic economy sliding sharply backwards as a result of previous bailouts and tax revenues therefore dwindling, Greece is unlikely to meet the IMF’s fiscal conditions. This has led to desperate measures. On Sunday, Greece announced an emergency property tax of about 50 cents per square foot on all buildings, payable immediately, in an effort to top up government coffers enough to meet bailout conditions.
Senior German officials leaked suggestions to the media that Greece be forced out of the 17-country euro zone and returned to the drachma – a move that would likely do terminal damage to German banks, which hold huge shares of euro-denominated Greek debt, and might send Italy and Spain plummeting into default.
(Excerpt) Read more at theglobeandmail.com ...
'Günther Oettinger, Germany’s representative on the European Commission, said last week that Europe should send United Nations soldiers to Greece to liquidate its assets and force tax collection, according to the Daily Telegraph. This resulted in headlines in Greece denouncing the “Fourth Reich” and “terrorism against the Greeks.”'
In situations like this, one thing markets aren’t is “patient.” When the fundamentals aren’t there, markets are brutal to anyone who goes against them, including governments. Europe may be heading for a Depression—not just a Recession. God help us.
I guess Greece finally ran out of other peoples’ money............Thank you, Lady Thatcher.......
I like that part too. Precisely how Europe is going to detail UN troops anywhere, especially as Germany's debt collections agency, is a bit of a mystery. The Wehrmacht used to be in the asset liquidation business, as I recall. Wonder whatever happened to them?
“I guess Greece finally ran out of other peoples’ money............Thank you, Lady Thatcher.......”
Yeah, for sure. About the property tax; no one in Greece pays their income tax. What makes anyone think they will pay their property tax? What kind of dream should we label this? Something to do with wet....
Right. Greece doesn't need other people's money; newly-printed bills will do just fine. In the end, of course, it all comes out of everyone else's money, but that's way down the road.
EU to ECB press-operator, "Let's roll!"
GimmegimmegimmegimmegimmeOpa!Opa!Opa!payingtaxesisforsuckersandgermansgimmegimmegimmegimmegimmegimme!
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