Samaras

ANOTHER Greek BAILOUT!

Off the keyboard of John Ward

Follow us on Twitter @doomstead666
Friend us on Facebook

Published on The Slog on December 3, 2014

tsipras14COMETH THE HOUR, IS HE THE MAN?

Discuss this article at the Economics Table inside the Diner

GREECE: Slog vindicated again as Athens calls for new €10bn bailout

It does strike me as very odd (as I’ve written many times before) than an old pro-am hack like me, hunkered down in the south west of France, seems able to understand the real Greek debt situation…..but most experts don’t. Or do, but don’t write about it – I’m never entirely sure.

Last January, I posted a long piece – “Mind the Gap” – pointing out with the use of simple maths that, without further bailout monies, Greece would default in May 2014; and even if they got that money, they’d be in trouble again during the Autumn and early winter.

So it proved. With the European elections as a handy distraction, I was nevertheless able to confirm on March 27th that the Samaras Coalition would be given €8.5bn toavoid default in May. The Wall Street Journal  ran a piece soon afterwards agreeing with the view. After some deliberate obfuscation, on 10th May Athens got the money it needed to make a dent in over €11bn of bond maturaties that became due.

The previous year, Angela Merkel had gone into the German elections and lied her fat head off about the Volk not being asked for any more money, and how the future was bright. She plodded home with ease, since when –  in general eurozone and specific Greek terms – things have gone from very bad to a whole lot worse.

Now Mish’s Global Analysis (which reblogged my January piece) reveals that, yes indeed, Athens needs more money. To be more exact, €10bn. Back in January, I said it would be €5.6bn….but then other targets were missed as the economy got worse and worse; and last week in Paris, the Troika up and mentioned that there were €2.5bn of cuts that the Greeks hadn’t fulfilled. So as I say, now it’s worse than ever.

One side of the devalued coin in this farcical saga is that – even allowing for the fact that Homo Kalamatus Antonikis Samaras has an olive stone where his brain should be – he has lied three times on national Greek television about the reality of the situation. So not surprisingly, Alexis Tsipras’s Party Syriza is now comfortably leading in the polls…..and with the Assembly vote for a new President coming up, Samaras possibly lacks the support required to carry the day. Technically, under the Greek constitution this is a resigning issue, and so we’ll get elections early next year rather than in 2016.

For Brussels, this has all the makings of the sort of nightmare in which a loose nuclear cannon is careering all over the eurozone and fomenting revolt. But sadly, Tsipras has toned down his rhetoric: today he claims that the loan package will have to be renegotiated, but he doesn’t want to dump the euro. Economically this is idiocy, but the Syriza leader knows he can only win the election by appearing ‘reasonable’…ie, he is – as David Cameron would say – a non-violent extremist.

I confess to being disappointed by Tsipras, and here’s why. If you look at the numbers involved in ‘saving’ Greece, then the four bailouts represent probably the most expensive face-saving exercise in history. To protect a potential original loss in the region of €40bn, the Troika threw confetti money at a debt write-off roughly equivalent to Cameron’s HS2 folly. As of this latest bailout, it will have poured €240bn of confetti money onto a debt conflagration that is raging like a Greek forest fire in August.

Do the Sprouts feel humble about this? They do not: “Greece is not in a position to negotiate“, they told the media last week. That is about as Betty Swollocks as Brussels fantasy gets: Although it has a huge debt, Greece at last has a current account surplus. If it renounces the debt, it could reverse the austerity nonsense, leave the euro and be quids in. Which is why I think Tsipras, if he does win the election, needs to play some serious hardball.

I posted at the weekend that 2 euros in 3 being ‘repaid’ by Greece are funny money. The truth is that – with most of the vultures having had their kilo of flesh – the ECB could write off two-thirds of the debt without losing any real money at all. Better that, I would’ve thought, than a defaulting defector with Italy now looming over the same horizon.

In licking the creditors like this, Tsipras is sending a signal to say he’ll be happy with a compromise. He says he wants “a €chunk” of the debt “forgiven”, whereas I think he should shout “fraud” and shoot for the Moon. It’s actually Brussels-am-Berlin that’s in no position to press too hard with the jackboot on this one.

Knarf plays the Doomer Blues

https://image.freepik.com/free-icon/musical-notes-symbols_318-29778.jpg

Support the Diner

Search the Diner

Surveys & Podcasts

NEW SURVEY

Renewable Energy

VISIT AND FOLLOW US ON DINER SOUNDCLOUD

" As a daily reader of all of the doomsday blogs, e.g. the Diner, Nature Bats Last, Zerohedge, Scribbler, etc… I must say that I most look forward to your “off the microphone” rants. Your analysis, insights, and conclusions are always logical, well supported, and clearly articulated – a trifecta not frequently achieved."- Joe D

Archives

Global Diners

View Full Diner Stats

Global Population Stats

Enter a Country Name for full Population & Demographic Statistics

Lake Mead Watch

http://si.wsj.net/public/resources/images/NA-BX686_LakeMe_G_20130816175615.jpg

loading

Inside the Diner

https://www.cnn.com/2019/12/11/business/chevron-oil-gas-writedown/index.htmlNew York (CNN Business)America's abundance of crude oil and natural gas i...

Organisers say some 20,000 people took part in the "climate emergency rally"Thousands of protesters have taken to the streets o...

The artist who ate Maurizio Cattelan’s work at Art Basel Miami talks about the concept behind his audacious stunt[img]https://i.guim.co.uk/img/media/8dc7267a177f01c51d0365959d88a48de6355073/0_120_3500_2101/master/3500.jpg?width=620&quality=85&a...

Quote from: Eddie on December 11, 2019, 06:57:12 PMI know RE. I consider him a friend. I don't happen to share his silly politics though, or his romantic notions. Unlike you, I'm nobody's sycophant.Insulting another Dine...

White House senior adviser Jared Kushner pushed back on some early criticism of the measure, saying in an op-ed the action "does not define Jews as a nationality."President Donald Trump signed an executive order on Wednesday that would effectiv...

Recent Facebook Posts

No recent Facebook posts to show

Diner Twitter feed

Knarf’s Knewz

Organisers say some 20,000 people took part in the [...]

The artist who ate Maurizio Cattelan’s work at Art [...]

ROME, Dec 9 (Thomson Reuters Foundation) – Climate [...]

The French government has unveiled details of a pl [...]

Diner Newz Feeds

  • Surly
  • Agelbert
  • Knarf
  • Golden Oxen
  • Frostbite Falls

Interesting article I found, which is good about t [...]

Doomstead Diner Daily December 12The Diner Daily i [...]

Doomstead Diner Daily December 11The Diner Daily i [...]

Quote from: Surly1 on December 09, 2019, 07:40:25 [...]

Quote from: RE on December 10, 2019, 10:08:36 AMQu [...]

Quote from: UnhingedBecauseLucid on March 18, 2019 [...]

CleanTechnicaSupport CleanTechnica’s work via dona [...]

QuoteThe FACT that the current incredibly STUPID e [...]

Organisers say some 20,000 people took part in the [...]

The artist who ate Maurizio Cattelan’s work at Art [...]

ROME, Dec 9 (Thomson Reuters Foundation) – Climate [...]

The French government has unveiled details of a pl [...]

Scientists have unlocked the power of gold atoms b [...]

Quote from: azozeo on August 14, 2019, 10:41:33 AM [...]

Wisconsin Bill Would Remove Barrier to Using Gold, [...]

Under extreme conditions, gold rearranges its atom [...]

The cost of gold futures on the Comex exchange inc [...]

OK, I gave it to myself.    Guaranteed FREE Shippi [...]

The remission is OVAH!  The Cancer is BACK!  I got [...]

1 week, even 2 here in Alaska is total BULLSHIT! Y [...]

Now UP on GEI!  REposted on 01 December 2019A Worl [...]

Alternate Perspectives

  • Two Ice Floes
  • Jumping Jack Flash
  • From Filmers to Farmers

Missing In Action By Cognitive Dissonance     As a very young pup, whenever I was overdue and not ho [...]

Politicians’ Privilege By Cognitive Dissonance     Imagine for a moment you work for a small or medi [...]

Shaking the August Stick By Cognitive Dissonance     Sometime towards the end of the third or fourth [...]

Empire in Decline - Propaganda and the American Myth By Cognitive Dissonance     “Oh, what a tangled [...]

Meanderings By Cognitive Dissonance     Tis the Season Silly season is upon us. And I, for one, welc [...]

Event Update For 2019-12-10http://jumpingjackflashhypothesis.blogspot.com/2012/02/jumping-jack-flash-hypothesis-its-gas.htmlThe [...]

Event Update For 2019-12-09http://jumpingjackflashhypothesis.blogspot.com/2012/02/jumping-jack-flash-hypothesis-its-gas.htmlThe [...]

Event Update For 2019-12-08http://jumpingjackflashhypothesis.blogspot.com/2012/02/jumping-jack-flash-hypothesis-its-gas.htmlThe [...]

Event Update For 2019-12-07http://jumpingjackflashhypothesis.blogspot.com/2012/02/jumping-jack-flash-hypothesis-its-gas.htmlThe [...]

Event Update For 2019-12-06http://jumpingjackflashhypothesis.blogspot.com/2012/02/jumping-jack-flash-hypothesis-its-gas.htmlThe [...]

With fusion energy perpetually 20 years away we now also perpetually have [fill in the blank] years [...]

My mea culpa for having inadvertently neglected FF2F for so long, and an update on the upcoming post [...]

NYC plans to undertake the swindle of the civilisation by suing the companies that have enabled it t [...]

MbS, the personification of the age-old pre-revolutionary scenario in which an expiring regime attem [...]

Daily Doom Photo

man-watching-tv

Sustainability

  • Peak Surfer
  • SUN
  • Transition Voice

First cut of the Madrid climate summit"“Buying an offset to fly here is absurd. It takes decades for a tree to grow enough to recoup [...]

"The drift towards near-term human extinction must be averted at all costs."I confess. I a [...]

"Since 2005, winters in Mexico have been my Hemingway Machine."  As winter descends upon m [...]

Waterboarding Flounder"Serious oxygen loss between 100 and 600-meter depths is expected to cover 59–80% of the ocean [...]

Of Warnings and their Ripple Effects"We need wooden ships, char-crete buildings, bamboo bicycles, moringa furniture, and hemp cloth [...]

The folks at Windward have been doing great work at living sustainably for many years now.  Part of [...]

 The Daily SUN☼ Building a Better Tomorrow by Sustaining Universal Needs April 3, 2017 Powering Down [...]

Off the keyboard of Bob Montgomery Follow us on Twitter @doomstead666 Friend us on Facebook Publishe [...]

Visit SUN on Facebook Here [...]

What extinction crisis? Believe it or not, there are still climate science deniers out there. And th [...]

My new book, Abolish Oil Now, will talk about why the climate movement has failed and what we can do [...]

A new climate protest movement out of the UK has taken Europe by storm and made governments sit down [...]

The success of Apollo 11 flipped the American public from skeptics to fans. The climate movement nee [...]

Today's movement to abolish fossil fuels can learn from two different paths that the British an [...]

Top Commentariats

  • Our Finite World
  • Economic Undertow

Joseph Tainter argues that, "Societies collapse when their investments in social complexity and [...]

I think the American Petroleum Institute should stop making its estimates. They are rarely even clos [...]

At the same time, Credit Suisse's research department is forecasting QE4 by yearend. The proble [...]

I think Elon Musk have the same sort of idea of using underground tracks for shuffling people around [...]

Bill Clinton was first boomer president, followed by Bush, Obama, and Trump. True, neither candidate [...]

Biden and Bernie are members of the Silent Generation. Neither one is a boomer. I think Trump is on [...]

@Steve: you're not really a boomer, are you? You must be one of the... Old Ones. *genuflects* [...]

RE Economics

Going Cashless

Off the keyboard of RE Follow us on Twitter @doomstead666...

Simplifying the Final Countdown

Off the keyboard of RE Follow us on Twitter @doomstead666...

Bond Market Collapse and the Banning of Cash

Off the microphone of RE Follow us on Twitter @doomstead666...

Do Central Bankers Recognize there is NO GROWTH?

Discuss this article @ the ECONOMICS TABLE inside the...

Singularity of the Dollar

Off the Keyboard of RE Follow us on Twitter @doomstead666...

Kurrency Kollapse: To Print or Not To Print?

Off the microphone of RE Follow us on Twitter @doomstead666...

SWISSIE CAPITULATION!

Off the microphone of RE Follow us on Twitter @doomstead666...

Of Heat Sinks & Debt Sinks: A Thermodynamic View of Money

Off the keyboard of RE Follow us on Twitter @doomstead666...

Merry Doomy Christmas

Off the keyboard of RE Follow us on Twitter @doomstead666...

Peak Customers: The Final Liquidation Sale

Off the keyboard of RE Follow us on Twitter @doomstead666...

Collapse Fiction

Useful Links

Technical Journals

Climate change imposes great challenges on the built heritage sector by increasing the risks of ener [...]

Deterministic–stochastic empirical mode decomposition (EMD) is used to obtain low-frequency (n [...]

At the sub-national level, the United Nations Convention to Combat Desertification (UNCCD) proposes [...]

The recent droughts in the American Southwest have led to increasing risks of wildfires, which pose [...]