greek debt Archive
China to the Rescue! Wen Offers to Buy Greek Bonds
Subtitle: “Ticker Tape Parade for Trojan Horse” Ordinarily China’s policy of driving exports to a nation with purchases of their currency is met with resistance. The US, for example, has been chastising nations buying $US, like Japan and China, calling them currency manipulators, outlaws, etc. But China is getting very clever about
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Hanke on Greece
Hate to criticize someone proposing a payroll tax holiday- darn that Lerner’s law! A Big Bang for Greece There is a way out of the debt trap for Athens. By Stece H. Hanke June 30 (WSJ) — How did Greece get into the death spiral that it’s in? Unfunded entitlements. In other
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Q2
Q2 ended ECB rolled it all over Greece weathered the quarter end storm without going parabolic as in previous spikes, as ECB buying continues to provide the secondary market liquidity that enables dealers to buy the auctions. Euro back up towards 1.24 This would be the time for equity markets to bottom
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corrected post on IMF operations
I now understand it this way: The IMF creates and allocates new SDR’s to its members. There is no other source of SDR’s. SDR’s exist only in accounts on the IMF’s books. SDR’s have value only because there is an informal agreement between members that they will use their own currency to
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Merkel’s Coalition Steps Up Calls for EU ‘Orderly Insolvencies’
It doesn’t get any more ominous than this. This would insure an orderly default of the entire currency union. Which is already in progress. Germany is concerned that the Greek situation resulted in larger deficits for the other members, and wants something in place so defaults don’t result in this type of
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Greece Bailout Plan Will Include Support Fund for Domestic Banks, EU Says…
Currencies, Deficit, ECB, EU, Greece
May 03, 2010
The size Greece ‘needed’ implies the others will need numbers beyond euro zone capacity, especially as the Greek deal used up euro zone capacity. So this means Greece is the last rescue possible- the rest are on there own. They wanted to stop the contagion, but that would have had to be
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Greece CAN go it alone
Banking, CBs, Currencies, ECB, Government Spending, Greece, Inflation, Italy, Spain
May 03, 2010
Greece CAN Go it Alone Yesterday at 5:00pm By Marshall Auerback and Warren Mosler Greece can successfully issue and place new debt at low interest rates. The trick is to insert a provision stating that in the event of default, the bearer on demand can use those defaulted securities to pay Greek
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It’s not too late for Greece
ECB, EU, Government Spending, Greece, Inflation
Apr 30, 2010
It remains my contention that Greece can dramatically upgrade its new securities simply by putting a provision in the default section that states that in the case of default the bearer, on demand, can use the securities at maturity value plus accrued interest to pay Greek government taxes. This makes the debt
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Run on the European banks?
When/if word gets out that depositors can lose, that contagion spreads across the euro zone with a general run on the banking system to actual cash, gold, and other currencies, which doesn’t create a cash shortage but drives the euro down further, and further weakens the credit worthiness of all the national
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US States vs EU Nations
ECB, EU, Government Spending
Apr 20, 2010
Good chart- shows how far the euro zone debt is out of bounds for their currency arrangements: Sovereigns vs States
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