Home > Uncategorized > ΡΑΝΤΕΒΟΥ ΣΤΟ ΛΟΥΞΕΜΒΟΥΡΓΟ : PART 2

ΡΑΝΤΕΒΟΥ ΣΤΟ ΛΟΥΞΕΜΒΟΥΡΓΟ : PART 2




“When it becomes serious, you have to 

lie”


Jean-Claude Juncker,

 Luxembourg PM and Head Euro-Zone Finance Minister


…untruths, Trojan Lies, once they become established and accepted in an -alleged- democratic society, that society is lost and bound to die. Prosperity can hide that fact temporarily, but prosperity never lasts forever. I’ve said it before, and I’ll say it again: this is not a financial crisis, it’s a political one. 

article below reposted from here


Ποιος λέει αλήθεια για τη δραχμή; Το SPIEGEL, ο Σόιμπλε ή η κυβέρνηση;;;;


Στην σημερινή έκδοση της εφημερίδας «ΠΡΩΤΟ ΘΕΜΑ», ο αρθρογράφος του συγκεκριμένου άρθρου στο SPIEGEL, κ. Κρίστιαν Ράιερμαν, επαναλαμβάνει ρητά και κατηγορηματικά ότι «Είδα την απάντηση του Σόϊμπλε με τα μάτια μου» και επιπλέον σημειώνει «Η δική σας κυβέρνηση έστειλε το ερώτημα για τη δραχμή».
Έπειτα από αυτή τη δήλωση του Γερμανού αρθρογράφου, τρεις εμπλέκονται στο θέμα αυτό (ο πιο πάνω αρθρογράφος, ο κ. Σόϊμπλε και η ελληνική κυβέρνηση) και ένας από τους τρεις λέει ψέματα. Σας παρακαλούμε να απαντήσετε, εσείς τι πιστεύετε;
Είτε λέει ψέματα ο Γερμανός αρθρογράφος και τίποτα δεν είδε ως δήθεν απάντηση του κ. Σόϊμπλε, είτε ο κ. Σόϊμπλε έκανε μια απάντηση πάνω σε ανύπαρκτο ελληνικό αίτημα, είτε πράγματι η ελληνική κυβέρνηση υπέβαλε αίτημα διερεύνησης των επιπτώσεων σε περίπτωση τυχόν αποχώρησης από το ευρώ.
Ποιος λέει αλήθεια;
Ο κ. Παπανδρέου δήλωσε πως αυτή η φημολογία αγγίζει τα όρια του εγκλήματος. Οφείλει λοιπόν,…. ως πρωθυπουργός μιας σοβαρής χώρας και ενός σοβαρού λαού να υποβάλει αμέσως μήνυση στον συντάκτη του άρθρου και αγωγή πολλών εκατομμυρίων στο περιοδικό SPIEGEL, για προσβολή της κυβέρνησης και της χώρας, για βλάβη των ελληνικών συμφερόντων και για ηθική βλάβη του ελληνικού λαού. Έτσι κάνουν οι σοβαρές κυβερνήσεις και δεν κυνηγάνε μόνο μικροκάναλα και blogs.
Θα το κάνει ή όχι;
Μας έχουν καταντήσει λαό για τα μπάζα. Όποιος γουστάρει παίζει παιχνίδια σε βάρος μας και με τις αγωνίες μας. Μας έχουν κάνει να τρέχουμε δεξιά και αριστερά σαν πανικόβλητη αγέλη, σύμφωνα με τις φήμες που εξυπηρετούν διάφορα συμφέροντα ή ακόμα έπειτα από την όποια φάρσα, είτε αυτή είναι ένα απλό email από οποιονδήποτε που θέλει να κάνει πλάκα είτε είναι κάποιο τηλεφώνημα φάρσα για δήθεν βόμβα, που αναστατώνει καθημερινά τις ζωές μας. Εκεί έχουμε καταντήσει. Κρίμα. Γίναμε λαός ασόβαρος, που δεν τον παίρνει κανείς στα σοβαρά. Και αυτό γιατί εμείς πρώτοι έχουμε παραδώσει τις τύχες μας και τις εξουσίες μας, να τις διαχειρίζεται εν λευκώ ένα σάπιο και διεφθαρμένο καθεστώς. Επόμενο ήταν.
Την Παρασκευή το βράδυ αναστατώθηκε ολόκληρος ο ελληνικός λαός με την βόμβα που εξαπέλυσε το SPIEGEL, σε σημείο που αν κάτι τέτοιο γινόταν σε ώρα που ήταν ανοιχτές οι τράπεζες, θα σημειωνόταν αγελαίος πανικός.
Κρίμα, κρίμα, κρίμα. Ποιος θα μας προστατέψει άραγε;;

more greek posting on the issue here 

article below reposted from here


EU Seeks Collateral for More Greek Aid; Trichet Reiterates Restructuring “Not on the Agenda”, Market Reiterates “Trichet is a Pompous Fool”

Once again ECB president Jean-Claude Trichet thinks he can tell the market what is going to happen. And once again the bond market says Trichet is a stubborn, arrogant fool.

Trichet Says No Greek Debt Restructuring

Please consider Trichet: Restructuring of Greek debt is “not on the agenda”

Greek debt restructuring, anticipated by markets, is “not on the agenda,” insisted Thursday the president of the European Central Bank Jean-Claude Trichet in Helsinki. Greece has adopted a plan of budget cuts, said Jean-Claude Trichet. “The important thing is to fill point,” he added, saying that it is the only way for this country to regain its “credibility” in the markets.

Trichet Says No Irish Debt Restructuring

The ECB sings the same tune for Ireland as noted in Trichet reiterates opposition to Irish debt restructuring

EUROPEAN CENTRAL Bank (ECB) chief Jean-Claude Trichet has reiterated his opposition to any debt restructuring by Ireland, saying the terms of the EU-IMF bailout plan for the State have been approved by “the entire world”.

Mr Trichet’s remarks before a committee of the European Parliament come against the backdrop of demands for the renegotiation of key elements of the deal by Fine Gael and Labour, which hope to be in government within weeks.

“We have plans. The plans have to be executed, have to be implemented in the best fashion possible as has been the case the world over and it is very, very important in my opinion not to confuse things,” he said.

“We have a programme, approved by the international community, approved by the IMF board, the entire world, approved by the European [Union], approved and financed by the IMF and the European [Union].

Complete Nonsense

The world did not approve these bailouts. Instead, the bailouts were approved by the creditor nations at the expense of the debtor nations for the sole benefit of creditor nation banks.

Greece, Ireland, and Portugal cannot possibly pay back debts on the terms “agreed to” and Trichet is an arrogant fool if he thinks he can dictate his will on the markets.

Greek 2-Year Government Bonds

Ireland 2-Year Government Bonds

Portugal 2-Year Government Bonds

Collateral for Extra Greek Aid

Bloomberg reports EU Said to Consider Requiring Collateral for Extra Greek Aid

European Union officials may require Greece to provide collateral for aid as policy makers struggle to prevent the euro area’s first sovereign debt restructuring, said a person with direct knowledge of the situation.

Expanding the 110 billion-euro ($158 billion) lifeline Greece received last year may mean that assets or revenue from asset sales are used to secure extra funds, the person said. Demanding collateral, an idea floated last year by Finland, may help avoid a political backlash against bailouts.

European Union finance officials, who held an unannounced meeting last night in Luxembourg, are preparing the help to ease a debt burden that some investors say will lead to a restructuring. Other steps may include lower interest rates or longer maturities on bailout loans, said Norbert Barthle, budget spokesman for German Chancellor Angela Merkel’s ruling party.

“We think that Greece does need a further adjustment program,” Luxembourg Prime Minister Jean-Claude Juncker, who chairs the group of euro-area finance ministers, said after yesterday’s gathering. “We’re not discussing the exit of Greece from the euro area. This is a stupid idea — no way.”

Greece has already received an extension on bailout loans this year and policy makers in Athens say another lengthening would help avoid a broader restructuring.

Increasing aid may run into opposition in Germany and Finland, where bailouts have sparked a backlash. Finnish Finance Minister Jyrki Katainen, who suggested seeking collateral for Ireland for its November bailout, is leading talks to form a government that may include the euro-skeptic True Finns party.

The True Finns oppose the bailout for Portugal and see a Greek default as inevitable.

“It’s a question of time before a default will happen,” Party leader Timo Soini told Bloomberg Television May 5. “The bailout doesn’t work; we have seen that in Greece.”

Whole World Except ECB Thinks Default is Coming

If Trichet wants to address the world he would be advised to ponder what the world minus the ECB thinks of his statements. With the ECB emergency bailout fund nearly used up, and with Germany and Finland in opposition to more bailouts, it has now come down to “margin maintenance”, which is to say, no more loans without collateral.

What if Greece tells the ECB to “go to hell”? What if Ireland does the same? What happens as soon as Spain needs a bailout?

I will tell you what happens: This whole mess will quickly go spinning totally and completely out of control. Thus, all this posturing and grandstanding by Trichet is not doing him or the ECB any good. The sooner Trichet accepts the obvious, the better off Europe will be.

The idea that sovereign debt cannot be defaulted on is preposterous. If it wasn’t preposterous, Greek bonds would be trading at the same yield as German bonds.

If the bond market consistently and persistently insists haircuts are coming, I am not going to argue.

Perhaps at the emergency meeting this weekend, they manage to put another Band-Aid on the wound. Unfortunately, what’s needed is an amputation.

Greece Denies Discussing Abandoning the Euro

The Telegraph reports Greek prime minister denies talking about plan to leave the euro 

A German news magazine set off a flurry of speculation among markets and caused the euro to fall sharply against the dollar after it reported discussions of a plan for Greece to leave the euro and return to the drachma – a move which would trigger a financial and political earthquake.

George Papandreou, the Greek prime minister, who also attended the clandestine gathering, said: “The meeting in Luxembourg was aimed at discussing various logical steps. But these wild scenarios are very negative for everyone, for the Greek public, for foreign interests who want to invest in Greece.

“These are groundless reports, provocations put out by irresponsible people aimed at speculation, at profiteering.”

Jean-Claude Juncker, head of the group of euro zone finance ministers who attended the meeting, also scrambled to deny that Greece was considering a secret plan to withdraw. “We have not been discussing the exit of Greece from the euro area,” he said. “This is a stupid idea. It is an avenue we would never take.”

Arrogance of Jean-Claude Junker

Jean-Claude Juncker, head of euro zone finance ministers (not to be confused with ECB head Jean-Claude Trichet), is also an arrogant fool. It is not up to the EU finance ministers to tell countries what they can or cannot do. If Greece decided to abandon the Euro, there is not a damn thing Junker can do about it.

Greece in Nasty Bind

Note that Greece is in a particularly nasty bind because its pension plans are loaded up with Greek sovereign debt garbage. Imagine what a default would do to the value of those bonds and the value of those pensions.

That pension debt, which Greece should have dumped long ago is the only reason Greece is so adamant there will not be a default. For the same reason it may be stuck with the Euro.

Perhaps Greece foolishly does pledge collateral. If so, it will be interesting which islands it is prepared to lose because the bond market says default is coming regardless of what Trichet thinks or what Greek Prime Minister George Papandreou thinks or says.


article below reposted from here 


Jean-Claude Juncker, Luxembourg PM and Head Euro-Zone Finance Minister says “When it becomes serious, you have to lie”


Earlier today in EU Seeks Collateral for More Greek Aid; Trichet Reiterates Restructuring “Not on the Agenda”, Market Reiterates “Trichet is a Pompous Fool” I Called ECB President Jean-Claude Trichet and Luxembourg Prime Minister Jean-Claude Junker, a pair of arrogant, pompous fools.


I failed to mention that Jean-Claude Junker readily admits something we should all know anyway, that he is a blatant liar.


Please consider Market jitters bring difficult choice between truth and lies for politicians, spokespeople
On March 29, when speculation swirled that Portugal needed a bailout, Prime Minister Jose Socrates denied — again — that that would happen despite clearly unsustainable market pressures.

“I’m sick of saying we won’t” be requesting help, he told journalists.

Just eight days later, in a chastened appearance on national television, Socrates did just that.

For Jean-Claude Juncker, the prime minister of Luxembourg, the threat of immediate market turbulence means the usual norms of transparency don’t apply.

“When it becomes serious, you have to lie,” Juncker, who as the chairman of the regular meetings of eurozone finance ministers is one of the currency union’s key spokesmen, said in recent remarks.

When you readily admit you are a liar, why should anyone ever believe you?

Note that “serious” is subject to a huge variance interpretation. Also note that any time someone does think “things are serious”, the only reasonable course of action is to assume an admitted liar is indeed lying.

If the market presumes you are lying, what good does it do to lie? Indeed, the market might over-react not understanding the seriousness of the lie, or even if it is a lie.

Now, given that Junker is a liar, precisely why should anyone possibly believe him when he says there was no discussion of Greece leaving the Euro? In fact, given that things are clearly “serious”, why should we believe a single thing he says.

I had missed this admission by Junker and I thank Ilargi at Automatic Earth for pointing it out in Trojan Lies . (ed- an excellent link)
article below reposted from here


EU Said to Consider Requiring Collateral for Extra Greek Aid

European Union officials may require Greece to provide collateral for aid as policy makers struggle to prevent the euro area’s first sovereign debt restructuring, said a person with direct knowledge of the situation.
Expanding the 110 billion-euro ($158 billion) lifeline Greece received last year may mean that assets or revenue from asset sales are used to secure extra funds, the person said. Demanding collateral, an idea floated last year by Finland, may help avoid a political backlash against bailouts.
European Union finance officials, who held an unannounced meeting May 6 in Luxembourg, are preparing the help to ease a debt burden that some investors say will lead to a restructuring. Other steps may include lower interest rates or longer maturities on bailout loans, said Norbert Barthle, budget spokesman for German Chancellor Angela Merkels ruling party.
“We’ll just have to bite the bullet,” Barthle said in an interview yesterday from his district in the state of Baden- Wuerttemberg. “We need to help Greece help itself. What’s the alternative? We don’t want to be pushed over the edge into restructuring.”
Greek bonds have tumbled since mid-April when German officials indicated they wouldn’t oppose a restructuring. Greece denied a report in Germanys Spiegel magazine May 6 that said it threatened to withdraw from the euro.

‘Further Adjustment’

“We think that Greece does need a further adjustment program,” Luxembourg Prime Minister Jean-Claude Juncker, who chairs the group of euro-area finance ministers, said after the May 6 gathering. “We’re not discussing the exit of Greece from the euro area. This is a stupid idea — no way.”
Greece has already received an extension on bailout loans this year and policy makers in Athens say another lengthening would help avoid a broader restructuring.
Increasing aid may run into opposition in Germany and Finland, where bailouts have sparked a backlash. Finnish Finance Minister Jyrki Katainen, who suggested seeking collateral for Ireland for its November bailout, is leading talks to form a government that may include the euro-skeptic True Finns party.
The True Finns oppose the bailout for Portugal and see a Greek default as inevitable.
“It’s a question of time before a default will happen,” Party leader Timo Soini told Bloomberg Television May 5. “The bailout doesn’t work; we have seen that in Greece.”

Speculation Dismissed

European finance chiefs and the Greek government dismiss restructuring as a possibility. “We were excluding the restructuring option which is discussed heavily in certain quarters of the financial markets,” Juncker said.
The euro slid after the Spiegel report, declining 1.5 percent in New York trading May 6 to $1.4316. U.S. stocks pared gains and Treasuries rose as reports of the meeting stoked speculation that a restructuring may be in the works.
Greek Prime Minister George Papandreou said the report of a possible euro exit was made up and the government was handling the country’s debt in the best way possible, Kathimerini newspaper reported.
Abandoning the euro would have “catastrophic” consequences, Greek Finance Minister George Papaconstantinou told Italian newspaper La Stampa. Public debt would double, consumer spending power would be “shattered” and the country would sink into a “war-like recession,” he said.
Speaking to reporters in Athens yesterday, Papaconstantinou said the government is determined to implement the bailout plan to overhaul the economy. “Markets are still jittery and we will do all that’s necessary to calm them.”

EU Agenda

Finance chiefs from France, Germany, Italy and Spain and European Union Economic and Monetary Affairs Commissioner Olli Rehn also attended the May 6 session in Luxembourg.
Beyond Greece, the agenda included the Portugal bailout, a successor to European Central Bank President Jean-Claude Trichet, whose term ends in October, and details of the crisis- fighting program to take effect in 2013, a separate European official said.
Papaconstantinou attended and briefed on the state of the Greek economy, the Athens-basedFinance Ministry said in a statement, adding there was no discussion of Greece’s status as a member of the euro area.
The meeting came a year after the EU put together an unprecedented 750 billion-euro backstop on a Sunday night in Brussels to end the debt contagion that began in Greece. It hasn’t worked so far. Ireland and Portugal have since been bailed out and Greece has been forced to fend off suggestions that it was headed to default.

Restructuring More Likely

The Wall Street Journal, citing an unidentified senior euro-zone government official, reported yesterday that Greece has asked its euro-zone partners to ease the country’s deficit targets. Separately Kathimerini said the Greek government requested at the May 6 meeting an extension of the bailout program by two to four years, without saying how it got the information.
“The likelihood of a restructuring of Greek market debt this year has gone up,” David Mackie, London-based chief European economist at JPMorgan Chase & Co., said in a note May 6.
Greece has about 330 billion euros in outstanding bonds, according to a May 5 report by UBS AG. The Swiss bank estimates that 22 percent is held by Greeks and Cypriots, the ECB has 19 percent and the EU and International Monetary Fund together have about 11 percent.
About 22 billion euros will mature this year and 33 billion euros next year, according to an April 29 ING Groep NV report.
Greek bonds have declined since the 2010 bailout, with yields on two-year notes reaching a euro-era record of 26.27 percent on April 28. The extra yield investors demand to hold Greek 10-year debt over comparable German bonds widened 4 basis points to 1,233. Greece was supposed to return to markets next year even as its debt peaks at 159 percent of gross domestic product.
To contact the reporter on this story: James Neuger in Brussels at jneuger@bloomberg.net; Brian Parkin in Berlin at bparkin@bloomberg.net

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