greek default Archive

Mosler Bonds for the ECB, and reasons why Greece will not be allowed to default

First, The ECB should turn the bonds it buys into Mosler bonds, by requiring the govt of issue to legally state that in the case of non payment, the bearer on demand can use those bonds for payment of taxes to the govt of issue. The ECB holding Mosler bonds will shift ...Read More

Soft spot softening?

And if the US debt ceiling is not extended the drop in aggregate demand (spending) will take down most of the world economy: Headlines: Swiss Investor Sentiment Falls to Lowest in More Than 2 Years Euro-Area Services, Manufacturing Gauge at Lowest Since 2009 Juncker Says Selective Default for Greece Is a Possibility ...Read More

EU stance shifts on Greece default

Mosler bonds issued to both address current funding requirements and buy back discounted Greek govt debt would further enhance the credit worthiness of those bonds by further and substantially reducing Greek govt interest expense. Interesting how the word now coming out on the French plan, which initially was greeted with a near ...Read More

The Mosler Plan for Greece

The Mosler Plan, as previously posted on this website, is now making the rounds in Europe as an alternative to the French Plan that is currently under serious consideration: Abstract The following is an outline for a proposed new Greek government bond issue to provide all required medium term euro funding for ...Read More

Greece on the slippery slope

First, I think there isn’t enough political or popular support to leave the euro and go back to the drachma. As previously discussed, it’s not obvious to the population or the political leadership that there is anything wrong with the euro itself. Instead, it probably seems obvious the problem is the result ...Read More

Greece has another option

There is another option I’ve discussed that Greece could take unilaterally. For new issues, Greece could announce that in the case of default, its bonds would be accepted at maturity value for payment of Greek taxes. ...Read More

Euro Central Banks Step Up Bond Buying, Traders Say

Euro Central Banks Step Up Bond Buying, Traders Say By Paul Dobson June 29 (Bloomberg) — Euro-region central banks stepped up purchases of Greek, Portuguese and Irish government securities today, traders said, deepening efforts to support the region’s bond market in the wake of the sovereign-debt crisis. The purchases focused on maturities ...Read More

ECB Purchases

ECB purchases of govt bonds for last week amounted to EUR 4 billion, matching previous week and bringing total to EUR 55 billion: Week     Purchases    Total 1           16.5            16.5 2           10.0            26.5 3           8.5              35.0 4           5.5              40.5 5           6.5              47.0 6           4.0              51.0 7           4.0              55.0 That’s a lot of greek ...Read More