What Does a Collapsing Country Look Like? Buying Spree

Since Americans are headed toward the same fate, a collapsing country like Greece can provide a hint of what’s to come. The Greeks want to buy stuff. They are scrambling to do so. The reason is rather simple: they trust the right of possession more than they trust the banks. As the New York Times headline put it, “Greeks Spend in Droves, Afraid of Losing Savings to a Bailout.” Business has been so brisk in the giant Kotsovolos appliance and electronics store in this upper-middle-class Read more […]

Before the Greek Debt Crisis Did Audiences Love the Movie “300”?

Does the Greek debt crisis show us how “bread and circuses” is still as accurate a description of how empires pacify the masses as ever? You remember the movie, “300,” right? It was an R-rated action movie celebrating a historic victory of 300 Spartans over the Persians. It was pretty gruesomely violent, so I’m not recommending it. A thought occurred to me yesterday as I read this NPR story: I’ll bet “300” was a popular movie in Greece. Even if not always as completely subsidized, Read more […]

The IMF Has Arranged Financial Doom for the EU

The financial doom will be when every insolvent nation demands the same bailouts that Greece is getting, even though they are too big to bail. “Tyler Durden” at Zero Hedge asks, “Did The IMF Just Open Pandora’s Box?” By now it should be clear to all that the only reason why Germany has been so steadfast in its negotiating stance with Greece is because it knows very well that if it concedes to a public debt reduction (as opposed to haircut on debt held mostly by private entities such as Read more […]

Greek Debt Implosion Starting to Ripple Outward

The Greek debt crisis is affecting global markets; things are just getting started. It seems like the event that Bob Allen has often warned us about is finally beginning. The New York Times reported yesterday, “Greece’s Debt Crisis Sends Stocks Falling Around the Globe.” Global markets shuddered on Monday after Greece closed its banks amid fears that the country was headed toward default. Stocks slumped on Wall Street, after markets in Europe were buffeted by worries that the Greek debt Read more […]

An Open Letter to the Greek Prime Minister

The Greek Prime Minister thinks Russia might be able to save them from the EU and their debt. From the Guardian: “Greek prime minister reaches out to Vladimir Putin for help in financial crisis.” Alexis Tsipras, the Greek prime minister, has made a broad overture to Russia as he seeks a way out of his country’s debt and currency impasse, telling Vladimir Putin that Greece wants new partners to help it out of the crisis. In a speech delivered in front of Putin in Russia, Tsipras said Read more […]

EU Regulators Tightening Noose on Depositors

EU regulators are getting ready to shaft people to keep banks afloat. Do you have any firm idea how safe your bank is? Are you specifically aware of their exposure to derivatives-risk based on interest rates, and bets on European banks, companies, and debt? Are you aware banks invest your deposits in such risky ventures in order to profit from your cash? Yep, it’s in the fine-print virtually none of us reads when we open an account, hidden behind obscure words like “rehypothecation.” From Reuters: Read more […]

Greece Getting Ready to Dump the Euro

It looks like Greece may dump the Euro and re-institute the Drachma! I just wrote about Greece, but here is another important story from the Telegraph: “Greece draws up drachma plans, prepares to miss IMF payment.” Greece is drawing up drastic plans to nationalise the country’s banking system and introduce a parallel currency to pay bills unless the eurozone takes steps to defuse the simmering crisis and soften its demands. Sources close to the ruling Syriza party said the government is Read more […]

End of April is Another Crisis Point for Greece and the Banks

Greece and the banks are about to have a day of reckoning. Greece faces yet another reckoning before April ends—and it is the big banks of Germany and France, and the European Central Bank itself who are first in line for a noose. Of course, don’t forget that a ton of the “insurance” for Greek debts (the insurance is known as CDS—Credit Default Swaps) is held by our big gamblers… er, bankers. Bill Holter wrote about this the day before yesterday at the Miles Franklin blog: Greece has Read more […]

France Tightens the Noose on the Populace because Terrorism

When France tightens the noose through controls and restrictions on the use of money, it is hurting ordinary citizens, not terrorists. A friend of the blog sent me this excellent newsletter article about new restrictions that the French government is imposing on the French. Nathan McDonald writes for Sprott Money under the headline, “France Moves in the Direction of Banning Cash.” One of his sources is a Reuter’s article, “France steps up monitoring of cash payments to fight ‘low-cost Read more […]

Greece Will Never Repay Money but Germans Won’t Admit It

It is simply a fact that Greece will never repay its debts because it cannot do so. But the Germans are angry at anyone who tells the truth. Such a great laugh—the game is up! From ZeroHedge.com: “Germans Furious After Varoufakis/Tsipras Admit ‘Greece Will Never Repay Its Debts’” The Greco-Germanic war of words continues… Having [ticked] off The Greeks with his “Troika” remarks, Germany’s Schaeuble went on today to more ad hominum attacks by reportedly calling the Greek FinMin Read more […]

Greek People Expect Greek Government to Represent Them

What happens when the Greek government sets policy according to the dictates of foreign creditors, not the wishes of Greek voters? The new left-wing government now has power in Greece for one reason only: they promised to end austerity. The entire point of democracy is that a nation’s people are sovereign. They vote for people who are supposed to represent their interests and make laws accordingly. But that is not what is happening in Greece because the concept of national sovereignty Read more […]

Russia about to Send Europe into Chaos?

The interest of Russia in Ukraine and the Baltic States, along with Greece’s financial crisis, could send the EU spiraling downward. Only the eldest among us have lived in a time when the dangers were so palpably high. My generation, and those younger, live with a sense that major world conflicts are but a foggy memory of the distant past. Such things don’t happen anymore. That is a dangerous assumption. Reports out of Russia are very troubling, as the Putin administration is clamping Read more […]