Chance to learn proper Economics & Politics from Greek lecturers

Opening soon:
The Internet Greek Crisis University,
where regular lectures, in print form, will be posted
here, only from Greek lecturers. They are quite popular
these days because only they understand Greece, and
colonialisation, having been the doormat of so many
powerful nations.

Stay tuned

GFL and the rebirth of the Classics, like a phoenix

With classics waning these days, and departments closing
in many Western univerisities, the very crisis which is
killing Greece is bringing back all the great stories of
ancient Greece and its mythology.

This crisis is the way to teach the world of ancient greek
culture.
Just in the last 2 days, I've heard of:
Sisyphus.
2 metaphors for the Greek disaster from Zeus Yiamouyiannis
(from oftwominds blog)
and the assorted "Greek tragedy and Greek comedy" quips,
and the "marathon" 14-hour discussions, for what purpose?
to save Greece. Ollie Rehn, that impudent pig, mentioned it
in the same breath as the subjugation of the country
that he grew up idolising.

School is opening here soon. Stay tuned.

[Trojan horse- we're from the Troika and we're here to help]

no growth and no oil, but wait a minute

As we know, Greece is being squeezed from all sides.
It's not enough that the country will be enslaved
for the foreseeable future, unless a default becomes
necessary, but the EU has decided to pick a fight
with Iran.

Why does that matter? The deeper story is that oil
companies want a credit note in order to send
anybody some oil. Greece's banks have been emptied
of original money, are now zombies, and are being
fed money through the back door, to keep this EU
charade going. As a result, Greece's banks cannot
raise a proper credit note without causing laughter
in the halls of other banks. No note, no oil.
Bye-bye all the big dealers, and welcome to Iranian
oil. Iran is willing to give oil on credit.

But now, Iran is country-non-grata in the EU.
So, by July the refineries will run dry.

Unless.... a miracle happens. Greece is thankfully full of those.
Now that diesel cars can run on vegetable oil, then Greece can
make a lot of its own "motion lotion" from its own crop of olive oil.

And while veg oil, if given to a human, is a dangerous substance,
olive oil will make you and your car last longer.

And that's not the best part. The clincher is the financialisation
of this new market.

olive oil derivatives

that's how we'll get in the big leagues.
We can use derivatives to screw other countries out of their money,
like they're doing to us.

the first mnimosino was so good we got another

That's right, it's a mnimosino.
The death of Greece as a free country.
It lasted about 36 years this time.

I'd say that's pretty good, on average.

And guess who paid for the party?
The troika 80 billion euros.

The first one was not voted on properly, in 2010
but the government passed it with a lower than
required majority just to f*ck with the
xenoi.
Greek debt is agreed to be taken under English law.
That means no bankrupcy allowed.

In Greece, when a person dies, they get the funeral,
and mnimosino at 40 days, 6 months and one year.
These are sometimes big public events with politicians
("hiss" "where's my youghurt") and priests.


Well, Greece got a second Mnimosino that's being worked
on right now. I wish them all that an anti-democratic
banker's wet dream, written on the back of a napkin,
deserves.

the famous recording of the 2012 mnimosino,
in Syntagma Square. They burned the Constitution
since the politicians had no use of it.



IshitUnot: front page of mnimosino 1
EΥΡΩ [80 000 000 000]
ΣYΜΒΑΣΗ ΔΑΝΕΙΑΚΗΣ ΔΙΕΥΚΟΛΥΝΣΗΣ
μεταξύ
ΤΩΝ ΑΚΟΛΟΥΘΩΝ ΚΡΑΤΩΝ ΜΕΛΩΝ ΤΩΝ ΟΠΟΙΩΝ ΝΟΜΙΣΜΑ ΕΙΝΑΙ ΤΟ ΕΥΡΩ: ΒΑΣΙΛΕΙΟ ΤΟΥ ΒΕΛΓΙΟΥ , ΙΡΛΑΝΔΙΑ , ΒΑΣΙΛΕΙΟ ΤΗΣ ΙΣΠΑΝΙΑΣ , ΓΑΛΛΙΚΗ ΔΗΜΟΚΡΑΤΙΑ , ΙΤΑΛΙΚΗ ΔΗΜΟΚΡΑΤΙΑ , ΚΥΠΡΙΑΚΗ ΔΗΜΟΚΡΑΤΙΑ , ΜΕΓΑΛΟ ΔΟΥΚΑΤΟ ΤΟΥ ΛΟΥΞΕΜΒΟΥΡΓΟΥ , ΔΗΜΟΚΡΑΤΙΑ ΤΗΣ ΜΑΛΤΑΣ , ΒΑΣΙΛΕΙΟ ΤΩΝ ΚΑΤΩ ΧΩΡΩΝ , ΔΗΜΟΚΡΑΤΙΑ ΤΗΣ ΑΥΣΤΡΙΑΣ , ΠΟΡΤΟΓΑΛΙΚΗ ΔΗΜΟΚΡΑΤΙΑ , ΔΗΜΟΚΡΑΤΙΑ ΤΗΣ ΣΛΟΒΕ ΝΙΑΣ , ΣΛΟΒΑΚΙΚΗ ΔΗΜΟΚΡΑΤΙΑ και ΔΗΜΟΚΡΑΤΙΑ ΤΗΣ ΦΙΝΛΑΝΔΙΑΣ και τουKfW,που υπόκειται στις οδηγίες ,τελεί υπό την εγγύηση και ενεργεί προς το δημόσιο συμφέρον της Ομοσπονδιακής Δημοκρατίας της Γερμανίας ,ως Δανειστών και ΤΗΣ ΕΛΛΗΝΙΚΗΣ ΔΗΜΟΚΡΑΤΙΑΣ ως Δανειολήπτη ΤΗΣ ΤΡΑΠΕΖΑΣ ΤΗΣ ΕΛΛΑΔΟΣ

So capitalist that it's communist

In this day and age of Chinese communist capitalism, it's not
difficult to accept the fact that capitalist economies with
centralised oligarchic planning, are actually communist in
their economic real politik.
The US, UK, Germany, the whole EU.
It used to be that the GATT was designed to get
rid of any and all communistic government ideas by
stressing that

NOBODY WAS ALLOWED TO SUPPORT THEIR COUNTRY'S BUSINESSES

EVER AGAIN, with threats of big penalties

Well, since 2008,

who's been helping their banks with public money?

the very countries that dreamt up the GATT
to screw the rest of the world.

I've been saying for a long time that Greece has


the worst aspects of capitalism


and the worst aspects of communism


all rolled into one.

The first one has been proved conclusively,

and the second too, because it's

a research-driven fact that Greece's

oligarchy is stifling the economy.

Well, now it can't , because there is none.
I wonder why the Troicycle isn't beating up on them
instead of their lowly employees. @sarc

Michael Porter, of Harvard
Key results:

-"one of the very worst macroeconomic environments in the world
-"the worst public institutions in the developed world
-"only 16 out of 142 countries with a less efficient labor market.

-"GDP per capita was more than 50% above
where it ought to have been judging
by its ranking for business competitiveness

And then people wonder why Greeks cheat. You have to, just to survive
in such a situation. With all public officials looking for bribes,
what do you do?
and then they wonder why it is that Greeks are so successful, outside
of Greece. Because life is easy out there. It's not Greece. Non-Greeks
live the easy life. Pay taxes and get public services.
You want to see how that works best, see Canada.

Why did he waste his money and time. He could've asked me.

IshitUnot:
Wall Street Journal
Alen Mattich
Greece’s Uncompetitiveness: Discuss
Whatever agreements are struck on Greek debt, whatever austerity measures the country’s politicians promise, whatever loans or aid is extended to the country, there’s one problem Greece can’t easily escape.
It is deeply, deeply, uncompetitive.
In the World Economic Forum’s latest competitiveness report, Greece is the lowest ranked European country, barring Serbia and Bosnia and Herzegovina. Indeed, it is the lowest ranked country in the developed world. The country has one of the very worst macroeconomic environments in the world, has the worst public institutions in the developed world, and there only 16 out of 142 countries with a less efficient labor market.
A 2008 study on competitiveness by Michael Porter for the Harvard Business School (its focus was on Saudi Arabia, but the cross-country data is very useful, hat tip to the LOL Greece blog) shows just how far out of whack the Greek economy was in 2007.
Mr. Porter charted GDP per capita on a purchasing power basis against business competitiveness. Greece, he found, was a considerable outlier, its GDP per capita was more than 50% above where it ought to have been judging by its ranking for business competitiveness.
Since then, Greece’s GDP per capita has fallen, but so too has its competitiveness ranking. Assuming that structural changes will make it more competitive in future, including ridding itself of anti-business laws, reducing the role in the economy of its bloated bureaucracy — all of which will be hard, but easier than improving infrastructure and human capital which can take decades — its competitive ranking should improve, say to the level of Spain or the Czech Republic or Estonia, all of which cluster at around the same level, somewhere around the third quartile for European countries.
Should this happen Greece would still need to see a fall of around 20% in its GDP per capita to reach trend. Which means substantially more suffering for the Greek population — erosions of living standards are never fun.
For too long, Greeks were made to believe they were richer than they were. The process of returning their apparent wealth to levels that can be justified by the economy’s productivity is a slow one, especially since the normal route to quick adjustment, through a currency devaluation, is closed to Greece.
Will the Greeks be able to manage before they finally decide that the euro experiment isn’t worth the pain? Unlikely, because the adjustment won’t need just a few changes in laws and wage cuts, but a more profound change in the country’s political culture. These changes take years, and it’s unlikely Greek politicians have the time they need.

Merry Xmas from Goldman Sachs

As we speak, it is the toxic debt to Goldman Sachs,
which was used by Greece (with the EU watching)
to get into the Euro (the neo-colonial currency),
is the reason why Greece's debt continues to climb.

Now, lots of wise-arse bastards have told me that
"hiding your debts in this way was not illegal, in the EU,
at that time"
Of course it was legal, I tell those sh*theads.
It was legal so that the indebted south could be brought
into the neo-colonial pact. D-uuh

There is an end in sight.
Goldman Sachs, one of our jailers, said so.
in 2026!

checkitout:
Το 2026 θα ορθοποδήσει η Ελλάδα
Η Goldman Sachs εκτιμά ότι η Ελλάδα θα ορθοποδήσει σε δεκαπέντε χρόνια. Καμπανάκι στο μεταξύ από τη Royal Bank of Scotland για έξοδο μικρής χώρας από το ευρώ
Δημοσιεύτηκε: Δεκέμβριος 23 2011

Banking god, Papademos, threatens banks with rubber chicken

Unfortunately, he has no power to do anything.
He wants the banks holding Greece's debt,
the part that's not owned by the troika,
under English law (i.e. default and we get the Acropolis),
but those same debt-holders are also waiting
to cash in on CDS contracts if Greece defaults. It sounds
like conflict of interest, but bankers and hedgers
don't go to jail, so it down to a mafia fight.

Who's the biggest capo?
the guy who wants Greece to keep going so that a CDS
event doesn't happen, thus NOT bringing an end to all
banking, worldwide.
OR
the guy who wants to crash Greece to get a CDS payoff.

There may be blood spilt yet. But it's not Papademos who
will draw the knife.

checkitout: Mish Shedlock

Absurd Threat by Greek Prime Minister: "Hand Over Your Wallet or I Will Give You a Million Dollars"
Hedge funds holding credit default swaps on Greek bonds are probably laughing out loud over statements made today by Greek Prime Minister Lucas Papademos.
The New York Times reports Greek Premier Says Creditors May Be Forced to Take Losses
Taking direct aim at hedge funds and other private holders of Greece’s debt, Prime Minister Lucas Papademos says he will consider legislation forcing the creditors to take losses on their holdings if no agreement can be reached in critical negotiations scheduled to resume Wednesday.

Mr. Papademos said that if Greece did not receive 100 percent participation in a program in which bondholders would voluntarily write down $130 billion from Greece’s unwieldy $450 billion debt, the country would consider passing a law to require holdouts to take losses.
“It is something that has to be considered in the light of expectations about the degree of the participation to be achieved,” Mr. Papademos said. “It cannot be excluded. It is contingent on the percentage.”
Laughable Bluff
I will post another snip below, but that is all you need to read to be laughing your head off. If you "force" creditors to take losses, the writedowns can hardly be considered "voluntary" can they?

In short, the moment Greece does what Papademos illogically threatens to do, there would be a "credit event" on Greek bonds, exactly what Papademos does not want, and exactly what hedge funds with CDS on Greek bonds do want.
Ideally a bluff should carry some measure of risk. Instead, hedge funds are praying Papademos does what he threatens to do. Thus, the Papademos threat is like a robber pointing a gun at you saying "hand over your wallet or I will give you a million dollars".
Absurd Statement of the Day
Papademos asked Greeks to put their sacrifices in perspective. If all goes well, he said, they could expect “an end to austerity” next year.
The only way austerity in Greece will end next year is if Greece defaults.
Mike "Mish" Shedlock

Thanks, Hungary

for getting Greece off the front pages. It was nice for a while,
but being on the receiving end of so much negative publicity
is not good for our tourism sector, and that's all we've got left.

So, thank you to Hungary, and it's new fascist PM.
I'll tell you why he's clamping down on everybody
in Hungary. It's because they're horribly in debt
and the media will be roasting him as he tries
to wiggle out of the mess he's in.
As Karl Denninger says below, the guy's wise to
ignore the EU who are complaining about his
new laws. Well, if the EU doesn't like it,
Hungary can just default, unlike Greece, a country
kept alive only as a freak show.

checkitout:
Denninger Hungary: Erect The Finger
You know you want to....
The European Commission has launched legal action against Hungary's Fidesz government for violations of European Union treaty law and erosion of democracy, marking a dramatic escalation in the war of words with the EU's enfant terrible.
Capital Economics said Hungary must repay €5.9bn (£4.9bn) in EU-IMF loans and raise external funds equal to 18pc of GDP this year, the highest in Eastern Europe. Two-thirds of household debt is in Swiss francs, leading to a lethal currency mismatch as capital flight weakens the forint.
"Hungary is playing with fire," said Lars Christensen from Danske Bank. "The EU is not bluffing. It will let Hungary go over the edge to make the point that EU countries must play by the rules. Our worry is that Hungary's government has not yet got the message."
Whah whah whah whah.
Ambrose: Wake the hell up you idiot!
ALL lending to a sovereign is unsecured. You're lending to a government predicated on one -- and only one -- premise: Their willingness and ability to extract from the economy, via taxes, the money you loan them.
Note the two parts: Willingness and ability.
If either is missing you don't get paid. Period.
Also note that the lender has complete control in this regard when they make the loan. The lender is capable of saying no. And the borrower can, if they choose to default, restrict their spending to that which they are willing and able to tax, immediately balancing their budget and eliminating their need to borrow at the same time!
This makes threats to cut off continued lending rather hollow provided that the government in question is willing to restrict their budget to that which they can tax.
Not-incidentally, restricting the budget to that which you can tax is the definition of fiscal prudence. So a nation that tells the EU to get stuffed does two things at once -- it tells the jackbooted jackasses to get lost and at the same time fixes its fiscal problems.
Let's see it -- and may those that Ambrose believes should be "protected" from the price of their follies find out that they're both wrong and broke.

welcome to the junk heap

Portugal joins us in the bush leagues. Bomjia! or Bom dia.
Their debt is now junk.

You'd think that Brazil would save the home country.
Greece doesn't really have any colonies, except Astoria and Melbourne
and Danforth in Toronto and Levesque in Montreal, and Laval.
and it's navy is the merchant marine. 30% of world sea transport.

too bad that they don't pay any taxes, otherwise we'd be alright.

Junk is our debt.

The next level is Haircut City.

That's when our debts will be cancelled. I hate to cheat,
but the way the banking system is run, with government goons
covering for the bank capos,

I'd rather cheat than be a fool.
The whole world will sooner or later
come this same realisation,
thus greekifying the world economy.