Guest Post by Karl Denninger
In the end, Tsipras had to swallow the worst. Creditor governments essentially ordered the one-time Communist youth activist to adopt unquestioned capitalism to earn aid of as much as 86 billion euros ($95 billion) and keep Greece in the euro.
Greece is already in the hole by nearly €300 billion!
Now Greece is being forced to transfer €50 billion into a “fund”; the only concession that Tsipras got was to keep the “title” in Greece, instead of sending the “assets” to Luxembourg.
Note that Greece only has about $230 billion in GDP annually, and yet now, with this new “bailout” has roughly double that in debt!
Let’s look at the numbers on this and make a few reasonable assumptions.
We’ll assume an extremely low 2% interest rate on the entire roughly-400 billion Euro debt. That’s €7.7 billion annually in interest payments. We’ll also assume that over 30 years the debt will be paid down. That’s another €12 billion, more or less. So now Greece has to come up with about €20 billion, more or less, in payments to international bankers out of their economy every single year.
Greece has about half of their GDP coming from government spending. This means close to 9% of every euro in GDP goes to those creditors and about 17% of the government’s spending goes there too!
It’s never going to happen. Never.
The claim that we can do this with a new “three year” deal is an abject fraud and anyone that believes otherwise is a lying snake.
The so-called “lenders” didn’t loan anything; the entire process from day 1 was and remains a fraud-filled pile of crap and the fact of the matter is that ever since Greece entered the Euro all of it, including the nation’s entry into the EU, was a function of fraudulent accounting followed by fraudulent transfers from private banks (that intentionally made bogus “loans”) to the people of the EU through yet more fraud-laced processes!
This is reason for financial market euphoria? It ought to be good for an all-on market crash; that it is not tells you everything you need to know about what passes for a “market” these days.
Oh, and while you’re at it note that the ECB did not expand the ELA, which means Greek banks remain shuttered.
You really think that continuing to deny arithmetic is going to work eh?
GOOD LUCK!
No comments:
Post a Comment