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Showing posts with label drachma. Show all posts
Showing posts with label drachma. Show all posts

Friday, May 18, 2012

Start Printing The Drachma!

Reuters reports that De La Rue, the British bank note printer, has drawn up contingency plans to print drachma banknotes should Greece exit the Euro.

Unsurprisingly, shares in De La Rue have risen by 11% over the last month on anticipation of this news.

Why use a UK priner, as opposed to a Greek printer?

Well, as Zero Hedge states, Greece ran out of ink when it tried to print tax returns!

In other news EU trade commissioner, Karel De Gucht, has said that the European Commission and the European Central Bank are working on an emergency scenario in case Greece has to leave the Eurozone.

As befitting an organisation that couldn't run a whorehouse, let alone manage a crisis, this statement was denied later in the day by (a subordinate of Gucht) who claimed that no plan is in the works.

Suffice to say, no one believes Olivier.

Monday, May 14, 2012

The End Game For Greece

Markets are falling and Greek debt yields are rising as a result of the failure of Greece to form a government. and the increasingly hostile attitude to Greece continuing to remain in the Euro from other Eurozone nations.

To add fuel to the fire Greek government spokesman, Pantelis Kapsis, has told the media that no decision has yet been made on repaying May 15 bond. This implied threat of default is Greece's attempt to raise the stakes in their game of poker with the Eurozone.

Finance ministers from the 17 Eurozone countries will meet this afternoon at 4pm GMT for talks that, one senior EU official told the Wall Street Journal, would be "very political".

It is clear that Greece will leave the Euro, it is not clear when this will happen. However, as and when Greece leaves, it will timed to "surprise" the markets and the population of Greece so that the necessary controls (eg prevention of mass capital flight) are in place.

Friday, May 11, 2012

The Return of The Drachma

Unsurprisingly, it seems that banks are preparing for the return of the Drachma.

Get those printing presses rolling!

Monday, February 13, 2012

Athens Burns Whilst Berlin Fiddles

Amid scenes of chaos, disorder, petrol bombs and destruction in the streets of Athens, the Greek parliament by a vote of 199-74 passed the austerity bill that, in theory, will give Greece access to the long awaited second bailout.

However, the German finance minister Wolfgang Schaeuble added fuel to the flames by telling the Welt am Sonntag newspaper: 
 
"The promises from Greece aren't enough for us any more.

Greece needs to do its own homework to become competitive whether that happens in conjunction with a new rescue programme or by another route that we actually don't want to take."

The German Economy Minister, Philipp Roesler, expressed a degree of scepticism about whether the vote was enough and said

"It is good that the laws were passed and with a large majority but what counts now is the implementation of structural reforms.
 
We have gone a step in the right direction, but we are still a long way from the goal.
 
We have to see the troika report. They will assess whether the measures are sufficient to assure Greece's debt sustainability.
We want to see what comes after the legislative process because the legislative process is one thing, implementation is another."


Bailout or not, most now consider that it is only a matter of time before Greece exits the Eurozone; contingency plans for a return to the Drachma have already been made (its is indeed quite possible that the printing presses are already running).

Wednesday, January 4, 2012

Juncker Goes Back To The Future

Eurogroup Chairman, and prime minister of Luxembourg, Jean-Claude Juncker has stated that Greece is not contemplating a return to the Drachma.

However, he is always saying things like that:

"We have not been discussing the exit of Greece from the euro area, this is a stupid idea, it is in no way, it is an avenue we would never take."

Unfortunately for him, Greece and the EU no one believes him!


Thursday, October 20, 2011

Why Greece is a Busted Flush

As our "respected" Eurozone "leaders" contemplate pumping more money into Greece, and the Greek parliament considers inflicting more austerity measures on the hard pressed Greek people, here is why the efforts of both the Eurozone and Greek governments will achieve nothing.

The text below is an open letter from Greek journalist, Kostas Vaxevanis, to Greek Finance Minister (and formerly Justice Minister) Evangelos Venizelos.

The letter highlights why Greece (sadly for its people) is in effect a busted flush, and why further bailouts and austerity measures will fail. Any further bailouts (which are not offered by the Eurozone out of sympathy, but in order to protect the status quo and vested interests of the Eurozone ruling "elite") will be syphoned off by corrupt officials/organisations, and will not resolve the systemic failings within the Greek economy.

In order for Greece to extricate itself from the self inflicted mess that it is in, Greece needs to address its internal corruption, leave the Euro and deflate its debts using a "new" Drachma.

Source Pastebin

A translation by the AnonLegionGR team.

Open letter of Greek Journalist Kostas Vaxevanis to Greek Finance Minister (and formerly Justice Minister) Evangelos Venizelos

The original Greek text is here.

"Mr. Venizelos,

What I am writing is well-known to both you and me. It is suspected, I believe, by the people as well. I would have stopped at our "showdown" on Nikos Chatzinikolaou's TV show, had you not stepped on my toes with your "you are a journalist of the State TV and you are paid by the Greek people" line. I hope you do not mean what everyone understood you meant.

So, I am a journalist and at this time I happen to work in the Public Television, and not State TV, as you call it. This is of great importance, as it reflects the perception each one has about ERT. It is a journalist's job to scrutinise those in power. The fact that I am "paid by the Greek people" is an additional responsibility for me, as I must be "worthy of my wage". The conclusion is that we are both paid by the Greek people. You are being paid by the Greek people since 1989, I am being paid by the Greek people for the past 2-3 years that I am part of ERT's staff.

The second thing that sounded as a threat on that show was that you would publicise journalists' origin of wealth. Amen to that! For the time being, do publicise on the internet the origin of wealth of Greek Parliament Members, as dictated by Law 3979/2011 (the Ragousis Law), because at the time I write these lines you are in violation of the Law. I would also suggest to examine the origin of the assets owned by our millionaire MPs and tax it. It is far more ethical and effective than slashing 300-euro pensions. I do not accuse any Greek politician of being a thief. But you do know what they say about Caesar's wife. Although it seems that in the Greek Parliament, Caesar is the MP's wife, who also simply happened to have a significant dowry.

Now, on to more difficult matters. Mr. Venizelos, you are a very important unit of what we call the political system. The system that is, in no small part, responsible for what the country is. We like to talk in general terms about it, but I have learnt to speak specifically. In the Ministries you have served, I keep encountering your laws (yes, I know, they are the Parliament's laws, but you know very well what I am talking about) during my investigations, finding they act as a "protection shield" for the political system and its vital space. The "Ministers' Responsibility" law, i.e. the law that grants complete unaccountability, immunity and impunity to Greek Ministers, is a creation of yours. This abomination that leads to a complete lack of punishment, that measures the duration of the Statute of Limitations by (hear, hear) terms an MP has served in the Parliament; this abomination that is a provocation against society. This is the law that Mr. Constantinos Karamanlis used to "erase" the crimes of his Ministers in the Vatopedi scandal - and beyond.

Yours is also the law that governs how TV stations work. In this country, one cannot even open a cigarette-selling kiosk without a permit. But TV stations can. These power centers work on temporary permits. Thus, media owers and governments can blackmail each other and "self-regulate" themselves.

Yours is also the law that "regulated" the debts of the Football (n.b. for our American readers: read "soccer" here) Clubs, i.e. a number of S.A.'s, under the "public demand" of football fans. These corporations were thrown deeply in the red by their owners (they even issued fake invoices) and you erased their debts. The money their owners stole. You took my money and gave it to the scoundrels and the ones that have been (and keep) setting football (soccer) games up.

Let us now leave your previous legislative work aside and move on to the second. That is, the Proton Bank scandal. I note, preliminarily, that all evidence shows that this is all a personal machination on your behalf and not a government decision. This has nothing to do with a personal "aggressive planning" on my behalf but with reality. In the Cabinet, you were fiercely attacked for the Proton Bank case, but you proceeded anyway.

The newspaper "Eleftherotypia" revealed that, in July 2011, you decided to give 100 million euros from the State's undisposed funds to the Proton Bank of Mr. Lavrentiadis. At that time, Mr. Lavrentiadis and his bank were under investigation for embezzlement. Furthermore, the 2362/1995 Law (a law created specifically to prevent new Koskotas-like embezzlement scandals) did not permit you to fund the bank. The State General Accounting Office's staff had told you this is illegal. You did it anyway. During our on air confrontation, you said the decision of the staff of the State General Accounting Office "was illegal because it was published in a newspaper". Now this is something new. The legality of an action is determined by whether it complies to the Law and not by the newspapers' circulation. The one that broke the Law was you, according to the 1995 law.

You knew it well. This is why you proceeded to create another legislation. In an unrelated law, the 4002/2011, you added an article that gives you pre-emptive immunity and impunity. You legislated that, when it comes to issues of banks' systemic stability, you have the right to decide on banks' funding. This "systemic stability" thing is a new invention. As if that was not enough, the law immunises Finance Ministers (including you, of course), since 1997. Why 1997? Did we have "systemic instability" back then or is a certain Minister of the Simitis government facing an instability problem?

After you gave the bank the 100 Million euros, you now put the State deeper in debt by making it pay 800 Million euros extra for the nationalisation of the bank. Of course, the fall of Proton Bank has nothing to do with the recession and the crisis. It is a result of its mismanagement by its bosses. They funded themselves. Instead of recruiting the Bank of Greece (another sinful story: a private bank presenting itself as an institutional instrument of the Greek State) to investigate the matter, you funded them and saddled us with this extra burden.

And you did not stop at that. Mr. Lavrentiadis, who allegedly embezzled 51 Million euros, will not go to jail. There will not be so much as a prosecution. The reason is another law you have passed. Your signature is on this law, too. With the 3904/2010 law, you legislate immunity and impunity for those who embezzle funds but return them before being prosecuted. So, Mr. Lavrentiadis, by returning the 51 Million euros (after investing this money, profiting from it or whatever else), has immunity. This is another legal "revolution" under the pretext of relieving prisons from overcrowding. As a former Justice Minister, you know that various laws "against the overcrowding of prisons" hid the release of a few famous convicts. In the past, in the name of "relieving prisons from overcrowding", Makis Psomiadis and various lawyer-fraudsters from Thessaloniki were released...

I can tell you a lot more. A lot, and it is my job to tell you. How are these things called in Court when a lawsuit against a journalist (another law of yours) is judged? "Facts and evaluational judgments". That is precisely what I am doing. One more reason is that I am being "paid by the Greek people", as someone who works in the Public TV that governments view as their personal property. I would urge you to respect it. And waste a little of your alleged intelligence and eloquence on giving me a reply. Because this is your obligation. Unless you prefer to fire me.
"



Wednesday, October 19, 2011

Strike

As Greek Prime Minister, George Papandreou, appeals for support from Greeks ahead of a vote later today on tax hikes, wage cuts and layoffs Greece has gone on a 48 hour strike. The strike will shut down government departments, businesses, public services and even shops and bakeries.

Sadly for the people of Greece, if the austerity measures are actually implemented (which of course they won't be, even if the vote passes) it will not make one jot of difference wrt improving the country's (or indeed the citizens') financial situation. 

Greece went bust a long time ago, and is only being kept going by grudging handouts from the EU.


The only solution is for Greece to leave the Eurozone, and devalue its debts under a "new" Drachma.

Tuesday, September 13, 2011

The Return of The Drachma?

Reuters report that the Greek Prime Minister, George Papandreou, will hold a conference call today with French President Nicolas Sarkozy and German Chancellor Angela Merkel.

The call comes amid renewed talk among eurozone policymakers about a Greek default, prompted by the country's failure to meet the fiscal goals set out in its EU/IMF bailout.

Sarkozy's office denied earlier on Tuesday that Paris and Berlin would issue a joint statement on Greece, after a French government source had said a statement would be made.

There is another rumour circulating that Greece will, tomorrow, announce a return to the Drachma. This is ironic as on 19th August I tweeted the following:


Ken Frost
@
Greece to introduce "new Drachma" around 15 Sept..apparently..

Friday, May 27, 2011

The Greek Tragedy - The Return of The Drachma?

Jean-Claude Juncker, the chairman of European Finance Ministers, has stated that Greece may not receive further IMF funding because it is unlikely to be able to guarantee its funding over the next 12 months.

He is quoted in the Telegraph:

"The IMF can only be active when there is a refinancing guarantee for 12 months."

Needless to say, this statement caused a fall in the Euro and flight from Greek debt.

Greece realises that it is staring into a financial and political abyss. Maria Damanaki, European Commission's Greek representative, is quoted by AFP:

"We either agree with our creditors on a programme of tough sacrifices that brings results, and assume the responsibilities for our past, or we return to the drachma. The rest is secondary under today's conditions."

Either way, Greece is facing a lousy choice. This of course would not have happened had previous Greek administrations not falsified their economic statistics in order to gain entry to the Euro club.

Tuesday, June 1, 2010

Euro Faces The Perfect Storm

Those whom the gods wish to destroy, they first make mad.

It seems that that the European Central Bank (ECB) has been affected by a bout of madness, by making an announcement that will further undermine its beloved Euro and the financial stability of the main countries in the Eurozone.

The ECB has announced that banks in the Eurozone face having to write off another Euro 195BN in bad loans over the next 18 months. The banks have already written off Euro 238BN.

Meanwhile, Greece has been urged by Centre for Economics and Business Research (CEBR) to leave the Euro and allow the revived Drachma to float downwards (thus absorbing some of the pain of its financial turmoil). Rumours are that discussions are already underway in Berlin, as to how a "graceful" exit can be achieved. Needless to say, "graceful" exit or not, German and French banks face serious losses as and when Greece exits.

Finally, as if for good measure, the President of Germany (President Köhler) has resigned; throwing Chancellor Merkel's government into chaos, and undermining Germany's political/financial stability and strength within Europe.

The Euro is going to face a very long, hot and uncomfortable summer.

Wednesday, April 28, 2010

Stephanopoulos and Son

S&P has cut Greece's credit rating to junk status, thus bringing to a head the ongoing the crisis that has been brewing for months.

Juergen Stark, European Central Bank Executive Board member, has warned that the current trend is not sustainable:

"The current trend in fiscal policies is simply not sustainable. ... The onus is now on governments to ensure that the crisis that initially affected the financial sector, and subsequently the real economy, does not lead to a full-blown sovereign debt crisis.

Averting it will require very ambitious and credible fiscal consolidation efforts. In fact, substantially stronger consolidation efforts than those conceived so far
."

S&P also went on to cut Portugal's rating by two notches to A-. Thus upping the ante on the Eurozone governments to resolve this crisis one way or another.

Greek regulators have announced a ban on short-selling on Greece's stock market, following steep falls (9%) in bank shares.

Asian and European markets have fallen sharply, as it is clear that the Eurozone has yet to satisfactorily address this issue.

It is clear that the only solution (for both the Eurozone and Greece) is for Greece to leave the Euro and refloat the Drachma.

The longer this decision is put off, as a result of political posturing and fake "machismo", the greater the pain will be for both Greece and the Eurozone.

The Eurozone and Greece need to get real!

Tuesday, April 27, 2010

Return To The Drachma

The Greek tragedy continues apace.

Angela Merkel, the German Chancellor, had to make an emergency statement yesterday "promising" aid to Greece in response to the continued pressure brought to bear by the markets.

However, her politician's promise (which contained a pre condition) failed to mollify the markets who suspect that Greece will not be able to restructure its economy nor meet its debt obligations (even if Germany does finally agree to the bailout plan).

The interest rate on two year Greek debt rose to almost 14% yesterday, in response to rumours that Greece was seeking an emergency restructuring of its short-term borrowings.

The trouble with financial rumours is that they have a habit of becoming self fulfilling, especially during financial tsunamis; ie the increase in rates, brought about by the rumour, will force Greece to restructure its debt obligations.

Angela Merkel's statement contained a hidden threat which can be easily understood by anyone:

"I say quite clearly, Germany will help, if the corresponding pre-conditions are met."

She added:

"If Greece is prepared to accept tough measures — and not just for one year but for several years — then we have a good chance to keep and secure the euro as a stable currency for us all."

The domestic reality for Greece is that it simply cannot enact the tough measures demanded of it by the Eurozone.

The only viable solution for the Eurozone and Greece is for it to leave the Euro, and return to the Drachma.

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