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Greek Tragedy

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Joined: 27 May 2009
Posts: 1014

PostPosted: Mon Jun 15, 15 9:03 am    Post subject: Greek Tragedy Reply with quote

I just received this from one of my "Spammers" - I can't argue with the content though and I wonder whether anyone would like to discuss ?


Greek Tragedy
The question for the markets this month - will Greece default? In the media we hear a morally righteous tale that Greeks should shape up and pay back what they owe. We don't often hear the rationalizations of the Greek side - that other European banks were foolish to lend to a country with such a long history of default and unsustainable deficits.

Ultimately, the Greek situation is beyond repair. It has boiled down to a crisis of trust, and for that reason, it presents tremendous opportunity. With the mandate from Greek voters to spurn the austerity program, and the reticence of creditors to bend due to moral hazard, the only sensible way forward is default. Greece simply cannot pay what it owes. If default happens this month, would all be lost in "Europe's Lehman moment?" Would that shattered trust lead to plummeting stock markets and interest rates and a massive global flight to safety?....."

john of wessex

Joined: 18 Jun 2007
Posts: 2130

PostPosted: Mon Jun 15, 15 7:26 pm    Post subject: Reply with quote




Joined: 02 Jul 2005
Posts: 42957
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PostPosted: Tue Jun 16, 15 5:53 pm    Post subject: Reply with quote

a very good analysis imho.

perhaps it is time to stock up on arrow shafts and jerky

if i had cash i might convert it from the empires old clothes into something useful and tangible.


Joined: 27 May 2009
Posts: 1014

PostPosted: Fri Jun 19, 15 8:00 pm    Post subject: Reply with quote

".......Far from tackling the debt bubble, we have compounded it with a capital market bubble. One investor put this very well, saying that, whilst he now understood the concept of QE, he no longer understood the concept of money.

Put very briefly, we have debased the monetary system i
n order to cope with the debt problem.

To complete the analogy with Greece, almost everyone apart, seemingly, from the decision-makers know where this has to end. They also know that, when it does, it will crystallise huge losses of value.........."

It is the monetary system and it's fraudulent basis which is the real problem.

The banks lend money which does not exist - then insist on being repaid ".. with interest.."

This was well recognised by a few prior to the Banking fraud crisis and yet working on the "too big to fail" premise all countries Govts Tried to "bale out the banks.."


There will be some debate as to whether the problems we have encountered are the result of some global conspiracy, or just a natural consequence of the "Nature of money "


The fact remains that Greece cannot pay it's debts and "the Russians" (shades of teh "Cold war" ?) are in the wings waiting to intervene ?

My own hope is that Greece tries to "go it alone" and experiments with the scenario postulated in Rowbotham's book - wherein the Govt replaces the Banks as the the Credit source !

Since they have good wine, good food and good sun, they are pretty well placed to attract foreign currency on a regular basis and if the tell those they owe "money" to to "Take a jump.." It will be an interesting experiment to observe.

However I doubt that will occur and expect they will try in one way or another to fudge along on money borrowed from others.

Time will tell

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