Greece Fails To Reassure Markets With €76Bn Debt 'road-Map'

[interestrateripoff]

http://www.telegraph.co.uk/finance/economics/gilts/8454792/Greece-fails-to-reassure-markets-with-76bn-debt-road-map.html

Meanwhile the pressure intensified for Ireland, as credit rating agency Moody's downgraded its view of its government debt to just above "junk" status.

Politicians are fighting to contain the ongoing debt crisis in the eurozone which has seen Greece, Ireland and Portugal request bail-outs.

The Greek government on Friday laid out a "roadmap" targeting €26bn (£23bn) of savings and €50bn of asset sales by 2015, as it tried to reassure investors it will not default on its debts, expected to total more than €340bn this year.

"Greece's problems won't be solved by restructuring its debt but by restructuring the country," said George Papandreou, the prime minister.

However, many said the plans lacked detail and suggested the €50bn figure for potential privatisations was too optimistic.

"Announcing such targets does not serve any purpose at all," said Kornelius Purps, a bond analyst at Unicredit. "I'm also telling my wife all the time we should cut spending. There is no specific information on how the Greek government will achieve this."

The yield, or return, on 10-year Greek government debt hit a new euro lifetime high of over 14pc on a second day of heavy selling, triggered on Thursday by the German finance minister, Wolfgang Schaeuble.

It would appear the Greeks are following the Liebour strategy of just making really big announcements, mention a really big figure and hope no one asks too many questions as they are too impressed with the really big figure....

Wow 14pc, petty soon Greece will have to use Wonga.com to get funds.

[mattyfc]

http://www.bloomberg.com/news/2011-04-15/germany-floats-greek-restructuring-as-papandreou-pushes-cuts.html

Restructuring is inevitable and Germany seems to have partially woken up. Greece is meant to return to market in 2012 for €33bn as part of the original plan. This looks very unlikely at present.

If Greece can't get the funds from the markets the only option would another bailout or default / restructuring. Germany appear to have ruled out the first option.

The real problem with the PIGS is trying to generate enough growth to pay back creditors whilst being forced in to massive austerity programs and no monetary policy levers. IR increasing making the problem much worse.

The next stage for Germany will be to realise that even if Greece does restructure so it has zero debt more will keep building up. The same misery is being forced on Portugal, Ireland and Spain.

The debt levels will keep on increasing until a plan to get these economies growing and creating jobs is formulated. Huge austerity in an already shrinking economy will likely cause a downward spiral and the evidence is already being seen in Greece, Ireland and Spain. An EU version of the New Deal is required.

If not they will all default eventually and cause a second economic Sovereign / Banking crisis across the EU.

[interestrateripoff]

The next stage for Germany will be to realise that even if Greece does restructure so it has zero debt more will keep building up. The same misery is being forced on Portugal, Ireland and Spain.

The debt levels will keep on increasing until a plan to get these economies growing and creating jobs is formulated. Huge austerity in an already shrinking economy will likely cause a downward spiral and the evidence is already being seen in Greece, Ireland and Spain. An EU version of the New Deal is required.

If not they will all default eventually and cause a second economic Sovereign / Banking crisis across the EU.

The problem is creating an economy that can create jobs to pay off the debt. That could mean taking some of Germany's market share, I can't see that happening.

Of course they are going to default and it will cause another banking crisis across Europe. The plan is to push this far enough into the future for it to be someone else's problem.

[interestrateripoff]

http://www.independent.co.uk/news/world/europe/violence-spikes-in-greek-rebel-town-2268791.html

As explosions boom, the town's loudspeakers blare: "Attention! Attention! We are under attack!" Air raid sirens wail through the streets, mingling with the frantic clanging of church bells. Clouds of tear gas waft between houses as helmeted riot police move in to push back the rebels.

This isn't a war zone, but a small town just outside Athens. And while its fight is about a garbage dump, it captures Greece's angry mood over its devastated economy.

As unemployment rises and austerity bites ever harder, tempers seem to fray faster than ever these days in Greece, with citizens of all stripes increasingly thumbing their noses at authority. Some refuse to pay increased highway tolls and public transport tickets, and there has been a rise in politicians being heckled — even assaulted — by constituents.

The anger is most palpable in Keratea, a town of about 15,000 people some 30 miles south of Athens that appears to have spun completely out of control. The state's attempt to start work on a planned garbage dump on a nearby hillside in December caused locals to set fire to construction vehicles and erect massive roadblocks on a highway that bypasses the town and runs to the capital.

It's a fight that has galvanized the town, from the mayor and the local priest to shopkeepers, farmers, schoolteachers and teenagers.

"We live and breathe to finish our jobs for the day, to go to the blockades, to participate, to sacrifice ourselves in preventing the landfill from happening," said Nikos Manolis, a local resident and bus owner.

......

Their latest move was a nighttime expedition to dig a shoulder-high trench across both lanes of the highway. That was one step too far for authorities, who on Thursday sent in road crews — protected by police — to repair the damage.

Within hours the confrontation had degenerated. Masked youths hurled firebombs and rocks at riot police who responded with rubber baton rounds and repeated volleys of tear gas. A police helicopter circled overhead.

"The town is out of control. Business activity has stopped," said Yannis Adamis, a local resident and mechanical engineer. "The stores are closed. The sirens are blaring, the (church) bells are ringing, people are on the streets. This cannot continue."

......

Residents argue the landfill will devalue the region and pose a health hazard. The town's mayor says local authorities have made a counterproposal for waste management, but that government officials refuse to listen.

More at the link.

This gives the authorities a huge problem when a whole town is in open revolt.

Maybe Europeans aren't quite subdued as the political elite hope. Perhaps they should broadcast Britain's got talent to quell the unrest?

[Errol]

"The world will soon wake up to the reality that everyone is broke and can collect nothing from the bankrupt, who are owed unlimited amounts by the insolvent, who are attempting to make late payments on a bank holiday in the wrong country, with an unacceptable currency, against defaulted collateral, of which nobody is sure who holds title."

- Anonymous

[Ulfar]

When the populace has nothing to loose this is the inevitable consequence. The Government and Police cannot control the whole populace, they can only control things when the majority are silent.

When it kicks off in the USA things will be much worse as a large proportion of the populace are armed.

I would not want to be a politician or banker.

[izzy]

When the populace has nothing to loose this is the inevitable consequence. The Government and Police cannot control the whole populace, they can only control things when the majority are silent.

When it kicks off in the USA things will be much worse as a large proportion of the populace are armed.

I would not want to be a politician or banker.

A large percentage of the Greek population is also armed. Weapons include everything from ordinary shotguns to pistols and automatic weapons. When the Albanian government fell in the early 90s most of the military's weapons ending up being smuggled into Greece and sold on the black market.

[Errol]

A good revolution in Greece would really put the wind up the Bankers.

[interestrateripoff]

A large percentage of the Greek population is also armed. Weapons include everything from ordinary shotguns to pistols and automatic weapons. When the Albanian government fell in the early 90s most of the military's weapons ending up being smuggled into Greece and sold on the black market.

Thank god there aren't armed Irish groups with a history for killing.

Still at least some bankers are doing Gods work.

The tipping point seems to be getting closer.

[interestrateripoff]

http://uk.reuters.com/article/2011/04/16/uk-germany-greece-debt-idUKTRE73F19L20110416

The German finance ministry on Saturday denied it was drawing up contingency plans for a Greek debt restructuring after the Financial Times reported the ministry was studying various options if Athens fails to meet its fiscal targets.

"There have been media reports today regarding German plans for Greek sovereign debt restructuring. These plans have no basis in reality," said Martin Kotthaus, spokesman for Finance Minister Wolfgang Schaeuble, in a written statement sent on Saturday.

Citing people briefed about Berlin's thinking, the FT wrote on Saturday that one plan involved swapping Greek debt at market prices for paper guaranteed by the eurozone, similar to "Brady Bonds" issued by South American countries in the late 1980s.

Incredible we have yet more denials, in the current climate you can only assume the Germans aren't drawing up plans they've already drawn up plans.

[EvilEdna]

The problem is creating an economy that can create jobs to pay off the debt. That could mean taking some of Germany's market share, I can't see that happening.

Of course they are going to default and it will cause another banking crisis across Europe. The plan is to push this far enough into the future for it to be someone else's problem.

Can't agree. The plan is to avoid default and another banking crisis by printing money.

[council dweller]

Thank god there aren't armed Irish groups with a history for killing.

Strangely they have more of a history of killing soldiers and police (total waste of time) than of killing politicos and bankers.

[council dweller]

Can't agree. The plan is to avoid default and another banking crisis by printing money.

....and up steps Gordon Brown a man who can unite us behind his plan for a New World Order.

Maybe the main problem is that China won't play ball.....plus it wouldn't work for the same kind of reasons that the Euro doesn't work.

[sharper]

http://www.telegraph.co.uk/finance/economics/gilts/8454792/Greece-fails-to-reassure-markets-with-76bn-debt-road-map.html

It would appear the Greeks are following the Liebour strategy of just making really big announcements, mention a really big figure and hope no one asks too many questions as they are too impressed with the really big figure....

Wow 14pc, petty soon Greece will have to use Wonga.com to get funds.

"road map" is the right term to use. it has been used in the Israeli-Palestinian crisis for a long time; it is essentially PR spin for trying to demonstrate to the public progress is being made in a reasonable direction; whilst actually trying to keep things as they are or move them in a publicly unacceptable direction.

[interestrateripoff]

http://uk.reuters.com/article/2011/04/17/uk-eu-rompuy-idUKTRE73G1T320110417

The consequences of a Greek debt restructuring could be "catastrophic", European Council President Herman van Rompuy said in an interview, again ruling out such a move.

His comments are the latest in a series of denials by senior Greek and European economic officials that a debt restructuring could be in the offing as Greece has struggled to right its public finances.

"The result of a restructuring could really be catastrophic," van Rompuy told France's TV5 Le Monde. "A restructuring of Greece's debt is not on the table."

"The negative consequences (of a restructuring) are much more significant than the positive ones," he added.

The comments are in line with what van Rompuy said on a visit to Greece earlier this month, when he said a debt restructuring was "out of the question".

Yet more denials about the inevitable debt restructuring. The Greeks can't afford the repayments, reality will show that it's not out of question and van Rompuy is in denial about the maths of the situation.

[interestrateripoff]

Can't agree. The plan is to avoid default and another banking crisis by printing money.

ie push the problem into the future for someone else to deal with. Printing money will not solve the problem, it might sweep it under the carpet for a bit, but it most certainly won't solve it.