Posted on 01/27/2015 6:51:02 AM PST by C19fan
The new Greece of Alexis Tsipras will run out of money by early March. It will then face a series of escalating crunch points that will end in default and a return to the drachma unless it can reach a deal with EU creditors. Greece must repay €3.4bn to the International Monetary Fund in February and March. Tax revenues have collapsed as Greeks preempt what they hope will be a repeal of austerity taxes. “There is only €1.9bn left in the cash kitty, and the government has spending costs of $2.5bn coming up. Somebody needs to lend the country money soon,” said Megan Greene, from Manulife Asset Management. The Greek media reports that capital flight last week reached €10bn as it became the clear that the amalgam of Maoists, ex-Leninists and radical socialists known as Syriza would win the election. Barclays estimates the outflow at €20bn since early December, roughly 12pc of GDP.
(Excerpt) Read more at telegraph.co.uk ...
Gee, I wonder what would happen if I announced that beginning April 1, I will no longer be paying any of my debts, and at the same time placed a request for new loans?
Syriza’s program always held a strong dose of political fantasy.
Greece needs EU bailouts and without them the country would collapse. It can barely pay its bills right now.
Of course it can unilaterally scrap austerity and try to get by without international help but the pain maybe more than the Greeks are willing to bear.
Right now, its shaping up to be a game of political chicken between Athens and Brussels.
Eject them from the EU - let them eat drachmae.
Well if the Greeks refuse to pay and the next EU tranche doesn’t arrive, they’re going to be insolvent.
Syriza will simply not have the money to pay for its election promises.
Which I suspect suits the Germans just fine. Greece can go fly a kite.
A Greek government meeting.....
“Well, we basically have two choices. We can knuckle-down and produce something the rest of the world wants to buy, or we can get drunk. Which will it be?”
“Opa! Opa! Opa! Who wants to see me dance?”
Greece needs to bail out of the EU. Better all around.
If Greece goes into receivership, maybe Germany will take over their bureaucracy and run it with Germans.
Not as bizarre as it sounds on the surface, as in the time of the Czars in Russia, this is what they did, import Germans as bureaucrats. Lenin tried to abolish the German bureaucracy, and Russia came to a standstill, so he had to hire the Germans back.
Imagine the shock in Greece when they suddenly had bureaucrats who refused to be corrupted with bribes; as well as a serious crackdown on tax cheats?
They will collapse all over again.
Yes, but with Germans at the helm, it will at least be an *orderly* collapse.
Enter ISIS, stage left.
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