- The simple fact of the matter is: Greece will default sooner or later. It is far better for Greece to default now than later, after the Iluminist banksters have stolen all their hard assets and national treasures. The Illuminist banksters are forcing a fire sale of Greek assets via misnomer like: privatization. Private bankster debts have been shoved upon the public who are not responsible for it. The Illuminist banksters have control of the corrupt Greek politicians. The Greek sheeple are being made to pay for debts not owed by them. They should say: No and HELL NO! Iceland did and they are doing quite well !
Will Germany and France stave off a Greek default?
By Andrew Lilico , http://www.telegraph.co.uk/
In Greece, government debt is forecast to reach about 170pc of GDP. The cheapest debt Greece can acquire comes through the European Union, and will cost some 5 to 6pc.
So, even if the EU were willing to take on all of Greece’s debts, Greece would be paying more than 10pc of GDP in debt interest. Of course, the EU isn’t going to do anything like that. No plausible market interest rate is going to be less than twice that level. So to repay its debts, Greece would have to be willing, for decades, to devote well above 10pc, perhaps closer to 20pc of GDP simply to paying interest.
The economists’ rule of thumb is that if interest payments reach 12pc of GDP, a normal economy will default. But Greece is in no way normal. The Greeks have a long tradition of defaulting, having been in default for about half of the years since the modern Greek state began in 1830.
In the past week, thousands of protestors have occupied a large square in Athens, condemning their politicians as “thieves”and (hopefully jokingly) threatening to eat them. Two orthodox church bishops have called for a revolution. Communists have occupied the finance ministry. Greek cross-party talks on the austerity programme have broken down. And the CIA has warned that additional austerity measures could potentially trigger a coup.
Even if they did, against all the odds, choose to try to pay, it would be futile anyway, for the Greeks are certain to be ejected from the euro by 2013 if they have not chosen to leave beforehand. From 2013, there is to be a new financial architecture in the EU: a new, more formal bail-out mechanism with a new bail-out fund; a formal procedure for private sector holders of sovereign debt to take “haircuts” (i.e. lose some of their money); a new system for bank bondholders to be vulnerable to debt-equity swaps in the event that banks get into trouble; and a revision to the Treaty due to be ratified by the end of 2012, intended to place all this on a more secure footing.
Greece obviously isn’t getting in. German and Finnish and Dutch and Austrian taxpayers aren’t going to agree to putting up funds for a new, more formal bail-out fund that pre-commits them to putting up money if that means sending hundreds of billions to Greece.