Debt Rattle June 27 2015: OXI
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Lewis Wickes Hine Workshop of Sanitary Ice Cream Cone Co., OK City 1917 • A Gay-Rights Decision for the Ages (Bloomberg) • An End to the Blackmail (Al
[See the full post at: Debt Rattle June 27 2015: OXI]Paul Mason has a good look at the strategy behind the Greek Referendum set for 7/5/15.
https://medium.com/@paulmasonnews/tsipras-goes-for-referendum-on-5-july-bf4c58d02534
(Now, what will the wording be? As clear and decisive and unassailable as possible, would be about right. Also, revealed late adds to suspense, and strength of Greek position.)“Unofficially, it has done nothing else.”
“• For The First Time Ever, QE Has Officially Failed (Zero Hedge)”
Well. It depends which goals you’re looking at. Regarding the “For Public Media” goal of “growth” and “jobs” – yes, it never worked. For the actual, and I think intended from the outset, goals of the Owners; it has been stunningly successful; enabling them to buy more and more of the actual physical assets of the world. Might be nice to see an analyst providing graphs on the progress of both agendas; the Public Mythology and the Private Grabs, side by side.
Incidentally; if I were China… 🙂
I might casually offer Greece an interest free “bridge loan” – to prevent all the potential harm of a default. Due for repayment – or renewal – in say, 10 years.
So many reasons; and no real skin off their noses. Now that would be an interesting move on the world chess board.
absolutely. Greenpa
China can print monopoly money up the wazoo, who’s going to protest? not western CBs who do the same only to a far lesser extent.
Something tells me Syriza has known this all along.
The Eurogroup also says “OXI”, that everything expires June 30. That’s Tuesday. The ELA might not even continue that long.
This may be painted by the Troika as “Greece went too far and fell off the cliff”, and can be painted as “Greeks were thrown off the cliff”. (What was the proximal cause of the American civil war? Informed opinions have always varied.)
https://www.zerohedge.com/news/2015-06-27/eurozone-rejects-greek-bailout-extension
(Oooh, I just thought of it. What if the Greek citizens are given an option to repudiate all debt on July 5? Really.)Re headline “Euro-Area Bank Lending Grows at Fastest Pace Since February 2012,” Ilargi said: “The new normal doesn’t look very solid. If the recovery must be borrowed, then where are we?”
We’re here (from Jim Quinn):
“This is the headline on Marketwatch this morning: ‘Consumers boost spending by most in six years.’
The article then goes on to make the false case that all those new Obama jobs are allowing consumers to spend like there is no tomorrow, again. One problem. It is complete and utter bullshit. The government propaganda release buries the FACT that half of the entire increase is due to auto “sales”. Now that is funny. They actually call the rental of autos for 7 years at 0% interest a sale. Over one-third of these “sales” are going to subprime deadbeats. Another third are actually leases. And the last third are the 7 year loan “sales”. Nothing like some more mal-investment created by the Fed and their ZIRP/QE fiasco. So jobs have nothing to do with this surge – low payments and high risk borrowers are the reason.
Then we get to the FACT that the rest of the spending was driven mainly by a 4.72% surge in spending on Energy goods & services. Yep. Gasoline prices have surged by 40% in the last 5 months, so you are spending a lot more for gas. That has a lot to do with those new Obama jobs, right? In reality, spending excluding energy spending was the lowest since 2011. Sounds a little different than the Marketwatch headline, doesn’t it?”
If the recovery must be borrowed, then we are nowhere.
Raul,
I am surprised that you would consider the US Supreme Court’s decision to be a positive development. My initial reaction was “This is par for the course. Another nail in democracy’s coffin.” Regardless of whether one believes in gay marriage or not, the conservative Justices are right that this should be decided by the legislative branches. This is one issue over the last 20 years that led to a lot of political engagement. The effect of this decision is to signal to the masses that it does not matter what you think or how you vote. You have no direct input on policy. Your masters will decide for you. In that sense this decision is no different from the narrative about the unstoppable NSA, about the FED, about the TPP, about an unregulated Wall Street, about fracking up our groundwater, about anti-Russia NATO propaganda, about the sale of the political process after Citizens United, about the destruction of the planet to suit the agenda of big oil, about all the related narratives where the underlying theme in the centralization of power. The lesson of this case is this: Just when you get people interested in politics, we will take the decision out of the hands of the voters. How can that be something to celebrate?What has been exposed in the last fortnight is how completely controlled the core of the European Union, the European Monetary Union in particular, is by neofascist economic forces. Only one party was prepared to negotiate means to an agreed end, that of servicing, within capabilities, a standing debt. That was met with intransigence, intractable arrogance and jejune capacity to understand the events before themselves, a cohort of wilful ignorance, living in a economic cartoon fairytale of Disney-like construction. To see how totally unprepared these ‘negotiators’ were for the obvious consequences of their position is a classic lesson, on par with the classic lessons bequeathed by the ancient Greeks themselves. The Greeks are still giving the world an education, this time in economic realities.
Pandora’s box has been opened again. What shall escape to beset the world is beyond the capacity of economic theology to imagine, the political landscape is altered beyond recognition, old borders are no longer where they once were known to be, the lay of economic rivers of commerce have left their traditional banks and are now elsewhere, mountains of assets have been levelled, their useful minerals sold off to foreign interests for a handful of glister and a desolation remains to sustain the population shackled to multi-generational debt penury.
Mindful that independent countries today are the result of the existence of a functioning economic entity that has survived the tests of time, it is there the available answers guiding the path to the future lay. To recognise and revitalise those factors enabling the state and population to maintain their livelihood, for that is all that economics is about at its core, not the manipulations of financiers or their wet dreams of unlimited wealth and power. In crisis, Greece must reforge those tools to plant and maintain their economic gardens and put their efforts beyond the reach of thieves.
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