Interestingly today the EU Commission - the hotbed of fundamentalists who put the EU before everything (except their wallets which are supported by it) is making all sorts of soothing noises in the EU media about how Greece's new proposals are just great and a deal can be sealed.
On the other hand the IMF is in a quandary - the IMF supports real basket case countries on the rule that it must not actively support bust countries and piss away the wealth of the world's poorest countries into basket case situations. Unfortunately for Greece, it current falls foul of this basic criteria.
As such the IMF should technically force a default here is Greece fails to pay. That means the EU will have to find the money to pay the IMF at the end of the week. They will do this via the ECB and possibly by the European Stability Mechanism which was sort of designed to enforce the will of Eurofudge.
I don't know whether the Greek plan is in fact new or just the latest in the bizarre rantings of the mental communists the Greeks elected to run their show.
I guess we will find out today whether the mother of all Euro Fudge is being baked or if even the EU Commission has lost its power over Germany and the will of the majority of EU citizens to stop throwing good money after bad.
if they were really serious about paying of their debt, they could have sold the uk the rest of the marbles
ReplyDelete(ducks)
... which we could have raised a loan to pay for
Are the EU negotiators just flabby-faced cowards, or is there some rational but dirty and unmentionable motive behind their antics?
ReplyDelete@ Andrew: Marble ducks?
ReplyDeleteI remember the heady days of British wishful thinking when an "imminent collapse of the euro" was predicted 5 years ago. It didn't happen then, as I said then, and it won't happen now. The euro elites will not allow a break up of their project. Greece may default, there will be all manner of schemes and cover-ups, but there will be no Grexit from the euro.
ReplyDeleteTsiparas is like the proverbial bloke in the office who takes days off work citing funerals for relatives who don't exist.
ReplyDeleteIt isn't about humiliating grandmothers, it's about being seen to be intolerant of backsliding (EU/ECB) and not letting far poorer countries subsidise the welfare state of a more developed country (IMF).
I'm with Budgie.
ReplyDeleteLet's not forget that when the ECB was set up, what it's doing now was ultra vires. They've rewritten the rules to allow endless amounts of money to be poured into poor (!) countries.
The well is nowhere near dry...
Budgie has been 100% consistent on this and I have taken his line to heart
ReplyDeletehowever I was with a very well-placed German last week who said Merkel's vibe (which pretty much sets the weather there, and elsewhere) has changed noticeably in the past fortnight, from 'just get it done' to 'exit is inevitable'
I just chuck that in for what it is worth: and normally one might go on to say 'we'll find out soon enough' but with these bloody can-kickers ...
'the IMF supports real basket case countries on the rule that it must not actively support bust countries and piss away the wealth of the world's poorest countries into basket case situations'
ReplyDeleteJust on this point - did anyone see the IMF say there were willing to prop up Ukraine come what may?
Actions speak louder than words RoyM - besides they are watertight, credit risk? - no siree - besides how else will the Ukraine buy all those American weapons being funneled via the Gulf States?
ReplyDeleteI suspect there is no limit to can kicking. Sometimes a big kick. Sometimes a small kick. But always a kick.
ReplyDeleteMmmmm
ReplyDeleteFUDGE!
Acropolis Fudge
ReplyDeletesounds like a character from a lemony snicket book.