There is a serious political and economic clash going on deep inside the EU chambers. The newly elected Tsipras government has triggered a tsunami that may not be so easily contained. The northern states dominated by Germany and braced by the ECB have now also regressed to blackmailing tactics. What they feared the most is about to happen; a battle has ensued between David and the mighty Goliath – everyone knows the end result! It may also cause a domino effect over other member-states and that’s the worst nightmare facing the EU institution. All eyes are on the new, charismatic, young Prime Minister Alexis Tsipras and his unorthodox Finance Minster Yanis Varoufakis. A Greek Revolution of the Mind has sprung into action. Immediately after taking office, the Greek government has forbidden the Troika to return to Greece and canceled the selling-off of the Piraeus Port to private investors. That shocked the Eurogroup. The Greek nation has had enough of Troika’s failed austerity measures and Athens decided that economic colonization through the suffering of the Greek people could no longer be tolerated under any terms. Unless Greece renegotiates and restructures the unsustainable Troika loans, it will be impossible to repay it and the nation will remain in debt for generations to come. Greece’s request to renegotiate Troika’s terms was a wise move but was rejected by the Eurogroup. Exacerbating tension between the two camps, the Greek government also decided not to adopt further EU sanctions against Russia. That did not go down well either. But one thing is for certain; the government of Greece is no longer prepared to play ball and be dictated by a group of unaccountable and unelected EU/Troika bankers at the expense of the people and its integrity as a free democratic nation. Knowing its limitations and economic strength, Tsipras’ government behaved responsibly in wanting to restructure the country’s debt within the EU boundaries. The refusal of assistance by the Eurogroup, but especially by Germany, came of no surprise. Actually Germany should have behaved much better because after WWII, it also faced a similar situation. Instead, it chose to behave appallingly against Greece. In fact Germany faced total bankruptcy from the strains of the Second World War but the Allied nations came to its rescue with a grand master plan; a plan that was based on a different school of thought on how to help a country out of debt. The London Agreement on German External Debts known as the 1953 London Debt Agreement was established as an Agreement that set a precedent for debt relief for poorer economies. This Debt Relief Agreement negotiated by the Western allies (Britain, USA, France and bankers) provided an inspired master plan to help Germany recover financially rather than destroy it completely. The idea behind the prescribed plan was that a country is more likely to repay its debt through economic recovery rather than economic suppression and stagnation. For Greece (and Cyprus for that matter), the EU/Troika did precisely the opposite. It destroyed its economy; robbed people’s bank accounts (bail-in); caused massive recession; suppression; shut down banks; raised taxation and triggered massive unemployment. Troika’s economic rescue plan was actually based on economic colonization and its success for ultimate control depended on destroying all hope of recovery. Compare what the Allied Debt Relief Agreement did for Germany with what Troika’s Memorandum rescue plan for Greece (and Cyprus) has done, and a contrasting picture emerges; one that shows double standards and sinister motives. Germany’s debt after the war amounted to 38.8 billion marks and the Agreement signed on February 27, 1953, reduced the debt to 14.5 billion, which amounts to a 62.6% reduction. The repayment period was also stretched out over 30 years and allowed Germany to postpone some payments until such time as a re-unification. It was decided that the burden of servicing the entire debt, if not reduced, meant that the German economy stood: little chance of a recovery. The philosophy behind the Agreement was a masterpiece of the road to recovery, and it worked wonders. First and foremost, the Agreement provided that Germany was able to pay its external debt while maintaining a high level of growth and improving living standards for its population. In fact, it meant that they were allowed to pay back the loan without getting poorer. That was a superb piece of economic strategy that could only benefit both parties! To achieve this, creditors agreed to help Germany in a number of positive ways such as but not limited to: Reduce importation to assist and manufacture at home those goods that were formerly imported (equally helping with job creation); creditors agreed to reduce their own exports to Germany; supported and purchased German exports to restore a positive trade balance; the debt service/export revenue ratio was not to exceed 5% and depended on how much the economy could afford; debt repayment would derive directly from export revenue income; the Agreement also contained the possibility of suspending payments while conditions were renegotiated in the event of reduced available resources. On October 3, 2010, the last payment was made with 69,9 million euros. This payment was considered to be the last one to its creditors. This is the kind of formula necessary for economic recovery and not Troika’s austerity, which destroys nations and reduces citizens to poverty. With the help of a hard-working population, Germany has become one of the most economically powerful and influential countries in Europe. Compare what Troika’s rescue plan did for Greece, and it becomes obvious that the Memoranda introduced were never meant to restore economic recovery and growth like the 1953 London Debt Agreement did for Germany; they were geared to dominate through debt dependency. In fact, under the terms of the 1953 London Agreement on German External Debts, Germany owes the Greek people 476 million reichmarks ($14 billion) that Greece was forced to give Nazi Germany during its occupation. If 3% interest had been accrued over 66 years, the loan corresponds to $93 billion in today’s terms. The Tsipras government is now demanding that money back and, if successful, would certainly open up Pandora’s box for Germany. If things remain unchanged, Greece will never be in a position to repay its crippling debt but will only enter into a deeper crisis. The annual interest payments alone (in billions) on a 350 billion debt would keep the nation in utter poverty and that’s precisely what the new government wants to avoid. Equally, one can reasonably ask: what happened to all those billions borrowed? Where did it all go? Certainly it did not go to improving public services, infrastructure and hospitals or making people affluent and living with dignity. The majority of those funds borrowed went straight back into the coffers of German and EU banks to bail themselves out at the expense of citizens. It is reported that less than 10% of the bailout money borrowed ever reached the people; that is what modern economic colonization does to poorer nations. The new government recognized this and, for the first time ever, an elected government decided not to follow the footsteps of its predecessors who failed the people of Greece, miserably. A well-organized exit from the Euro currency and return to the Greek drachma cannot be discounted. In fact, it would be a wise decision because Greece will then determine its own exchange rate to help its economy grow free from EU constraints. As an EU member-state, the UK did not adopt the Euro currency so why not Greece or Cyprus for that matter. Actually, an exit from the Euro may be more beneficial in the long run. However, there are various conflicting theories made by economists regarding a Euro exit but they all agree on one thing: that an exit from the Euro would not be easy, but not impossible. The final word however, whether to retain the Euro or not, rests with the Greek people under the terms of a referendum. With transparency, well-informed citizens can make well-informed decisions, and the decision whether to retain the Euro or not belongs to the people and not to a temporary government. Out of the ashes of despair, Greece will rise up again and will succeed. It will do so because the nation’s dignity has been restored with thousands of people flooding the streets of Athens, Thessaloniki and major cities to endorse their support for the new government. Unquestionably, a nation that has the full support of its people will never fail. However, there are certainly clouds looming on the horizon for both nations but on the positive side, Greece may be the catalyst to bring about changes for the better, and hope may also spread to Cyprus – I sure hope so for Cyprus’ sake.
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Friday, February 13, 2015
What The Foreign Press Thinks About Greek Fiscal Crisis
Greece is back as big news around the world, the little country with a big impact on economic markets, and the foreign media is paying keen attention. The post What The Foreign Press Thinks About Greek Fiscal Crisis appeared first on The National Herald.
Harry Wilson Seeks to Shake up GM
NEW YORK – Greek-American Harry J. Wilson, former Goldman Sachs financier and candidate for New York State Comptroller, has placed himself in nomination for a seat on the Board of Directors of General Motors. A Republican, Wilson was recruited six years ago by President Barack Obama to help overhaul General Motors as part of a government bailout of […] The post Harry Wilson Seeks to Shake up GM appeared first on The National Herald.
Greece, Troika Talking But Debt Deal Still Far Off
Signs that Greece and its European creditors are open to compromise boosted market hopes the two can come to terms to stave off bankruptcy. The post Greece, Troika Talking But Debt Deal Still Far Off appeared first on The National Herald.
Greek Archaeologists Find Couple Locked in Millennia-old Hug
ATHENS — Death did not part them. Archaeologists in southern Greece have discovered the grave of a man and woman buried as they died some 5,800 years ago — still tightly embracing. A senior member of the excavation team, Anastassia Papathanassiou, says the discovery — made in 2013 and publicized this week after DNA testing […] The post Greek Archaeologists Find Couple Locked in Millennia-old Hug appeared first on The National Herald.
Daily chart
Wolfgang Schäuble, Germany's finance minister, said on February 10th that if Greece's new Syriza-led government did not seek an extension of its ...
Greek Government Non-Paper on the Negotiations with the Country’s Creditors
Ten points of political and technical content were outlined in a Greek government non-paper on Friday that assessed the latest negotiations with the country’s creditors as positive and defined the direction of the work that will be carried out before ...
Final showdown approaches for EU and Greece
After two weeks of public sniping and closed-door debating, it comes down to this: on Monday, eurozone finance ministers gather in Brussels for a final ...
Prehistoric hug: Greek archaeologists find couple locked in 5,800-year-old embrace in grave
by Associated Press Greek archaeologists find couple locked in millennia-old hug Associated Press - 13 February 2015 15:55-05:00 ATHENS, Greece (AP) — Death did not part them. Archaeologists in southern Greece have discovered the grave of a man and woman buried as they died some 5,800 years ago — still tightly embracing. A senior member of the excavation team, Anastassia Papathanassiou, says the discovery — made in 2013 and publicized this week after DNA testing determined each skeleton's sex — is the oldest of its kind in Greece. She says the couple most likely died holding each other. Papathanassiou told The Associated Press on Friday that the remains of the couple, estimated to be in their 20s, were found near the Alepotrypa Cave, an important prehistoric site. It's unclear how they died and whether they were related, but Papathanassiou says further DNA testing should answer the latter question. News Topics: General news People, Places and Companies: Greece, Western Europe, Europe Copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Weekend project: Homemade and Greek-style yogurt
Love Greek-style yogurt? Although it has that great tang you find with standard yogurt, what sets Greek yogurt apart is its wonderfully rich texture, ...
Growth in 2014 but concern for 2015
The Greek economy came out of a six-year recession in 2014, growing by an annual rate of 0.82 percent last year, according to provisional estimates by the Hellenic Statistical Authority (ELSTAT) published on Friday.
Majority of Germans want Greece to remain in eurozone, poll finds
Support among Germans for Greece staying in the eurozone has grown over the past three years despite the new government in Athens rejecting its international bailout deal, a poll for German television ARD showed on Friday.
Widespread optimism boosts stocks, turnover in ATHEX
Growth in stock prices and trading volume on Friday confirmed widespread optimism about a deal will be achieved now that the government has restored contacts with the troika of Greece’s international creditors.
Most of deposit outpour to return if a deal is made
The bulk of deposits withdrawn from Greek bank accounts in the last two-and-a-half months due to political and financial uncertainty has stayed inside the country, stashed away in safe deposit boxes, mattresses and investment products.
German growth spurt raises hopes of eurozone recovery
Export powerhouse poised to ‘surf wave of economic wellbeing’ as GDP figures reveal mixed fortunes across eurozone statesStronger-than-expected German growth has signalled a winter recovery for the eurozone economies – though some members, including crisis-hit Greece, were left trailing behind.Official figures showed that GDP across the 19 members of the single currency expanded by 0.3% in the last three months of 2014, led by the export powerhouse Germany, which expanded 0.7%. Germany’s statistics office, Destatis, said domestic demand and exports were strong, helping the economy gather momentum at the end of 2014. Related: Eurozone economy grew by 0.3% in the last quarter Continue reading...
It is the hour for real talks with Greece
The Syriza government and the eurogroup must get down to details
5 things you need to know abut the Greek debt showdown
Greek finance minister Yanis Varoufakis has said the government is willing to accept about 70% of the measures specified in the existing bailout ...
6000-year-old skeletons found locked in an embrace inside Greek Alepotrypa caves
It has previously been linked with sparking myths about the Greek underworld god Hades, and has been referred to as the 'Hell' caves.
Showdown looms for EU and Greece
Eurozone finance ministers seek to narrow differences before Monday’s crunch talks
Juncker: Greece, Eurogroup ‘far away from deal’
New government can proceed with internal changes as long as they don't cost more money to eurozone members
Berlin livid with pro-SYRIZA paper’s caricature of Schaeuble in WWII uniform
Central Board of Jewish Communities in Greece (KIS) refers to 'unacceptable decision and insulting'
The Greek people deserve a breathing space
Negotiations between the EU and the Greek government concern more the very essence of what the notion of Europe represents than the financial considerations that many of Greece’s creditors wish to focus solely upon (Report, 13 February). The fact that Greece’s debt repayments are unsustainable has been well argued in your pages. But the depth of the humanitarian crisis that the debt repayment arrangements have generated may be difficult to comprehend by anyone who has not seen impoverished people in Greece rummaging through dustbins in search of something to eat or hanging around street markets at closing time to collect discarded foodstuffs.The Greek people have sent a clear message that they do not trust those who brought this crisis upon them Continue reading...
The Greek people deserve a breathing space
Negotiations between the EU and the Greek government concern more the very essence of what the notion of Europe represents than the financial considerations that many of Greece’s creditors wish to focus solely upon (Report, 13 February). The fact that Greece’s debt repayments are unsustainable has been well argued in your pages. But the depth of the humanitarian crisis that the debt repayment arrangements have generated may be difficult to comprehend by anyone who has not seen impoverished people in Greece rummaging through dustbins in search of something to eat or hanging around street markets at closing time to collect discarded foodstuffs.The Greek people have sent a clear message that they do not trust those who brought this crisis upon them Continue reading...
Guest Post: German economy inefficient through Schaeuble’s Macho-Economics & frenzy Trade Surpluses
What is the real problem of Greece in particular and the eurozone in general? What is the purpose of piling up debts and more debts -call me: bailout – to Greece and the other indebted countries of the European South and strictest austerity program that end up in recession, deflation […]
Wall Street rises on overseas optimism; S&P touches record
NEW YORK (Reuters) - U.S. stocks advanced modestly on Friday, as the S&P 500 scaled a new intraday record, helped by investor optimism regarding Greece and Ukraine and upbeat German growth data.
A Wind of Change in Europe? Greece Takes Anti-Austerity Fight to Brussels, but Deal Remains ...
Greece, Portugal, Italy, and Spain ?• economic stagnation is increasingly spreading to some of the more prosperous northern member states.
National Bank of Greece (ADR) (NBG) Up 25% After ECB Announces Loan
After suffering a bleak start to the year, National Bank of Greece (NYSE:NBG) saw its share price escalate to almost 25% in early trading. The boost ...
Pink Flamingo Choreography Over Euboea
A series of beautiful photographs have been circulating the media over the last few hours. A group of flamingos with their characteristic pink plumage enjoyed the open sea in Euboea, Greece, before continuing their long migration journey to the South. The beautiful and photographs were taken by Greek photographer Dimitris Theodorou, creating a unique composition that includes the area’s industrial zone and snowy mountains. The beautiful exotic birds, also known as the “birds of love,” are actually born white. After consuming their food, which consists mostly of Spirulina algae, they gradually acquire their unique pink color over the course of three years. Flamingos are very social birds; they live in colonies whose population can number in the thousands. They build their nests in a conical shape, in places where there is no mud, so they can lay their eggs. Their beaks are specially adapted to separate mud and silt from their food, and are uniquely used upside-down. Flamingos usually lay their eggs in France and Spain but during the winter they migrate to Africa, while some 7,000 flamingos fly to Greece every year.
Greek FinMin: ‘Troika’s Methods Resemble CIA’s Waterboarding’
Greek Finance Minister Yanis Varoufakis insists that a debt haircut is the best option for Greece. In an interview with German news magazine “Der Spiegel” he attacked the Troika using harsh words and even went as far as comparing it with the CIA. Varoufakis compared Troika’s methods to the torture method of waterboarding, which has been allegedly used by the CIA for the interrogation of known terrorists. “There were also very good people at the CIA when waterboarding was used against their will and therefore were in a terrible moral dilemma,” said the Greek Minister, adding that “shortly before the cardiac arrest, we are granted a few breaths of air. Then we are put under water again, and the cycle starts anew.” In regards to the country’s public debt, the Greek Finance Minister stressed that everyone knows that Greece’s debt is not sustainable without a new contract, however, he noted that he understands that the government would like to avoid using the word “haircut.” In the end, he concluded, a debt haircut would be beneficial for both sides, even for the country’s creditors, since it will be cheaper than a bailout program extension.
Ukraine crisis: Merkel must keep up tireless work rate or risk losing goal of a 'united Europe'
As if her stock was not already high enough, Chancellor Angela Merkel’s domestic popularity soared to near euphoric levels in Germany yesterday after her apparent success in brokering a Ukraine ceasefire, and signs that she is poised for a compromise with the Greek government over its debt problems.
A New Credit Rating Agency for BRICS
BRICs_logo_850_468_s_c1.jpg Home Page News Page BRICS and their Own Credit Scores Credit Rating Agencies have been a lot in news ever since the US Subprime Mortgage Crisis 2007. Later, Europe blamed them for making matters worse for individual countries by downgrading Greece and Cyprus to ‘junk’ status. Over a period of time, over-reliance on ratings has been a cause of worry to many. The biggest players in the credit rating market are known as the Big Three: Standard & Poor’s, Moody’s and Fitch. They form a large share in the global credit rating market (roughly 95% in 2013) Credit Rating Agencies have been a lot in news ever since the US Subprime Mortgage Crisis 2007. Later, Europe blamed them for making matters worse for individual countries by downgrading Greece and Cyprus to ‘junk’ status. See Also links url: http://www.economywatch.com/features/A-2014-Health-Report-on-BRICS.12-10-14.html Title: A 2014 Health Report on BRICS See Also type: Reference read more
Gold Climbs on Greece Debt Jitters
Greece and the European Union are working to address the country's debt problems. Eurozone finance ministers are due to meet Monday to decide ...
Deposit outflows, precaution behind Greece's extra ELA access, say sources
The European Central Bank allowed Greek banks access to extra emergency financing from the Bank of Greece because deposit outflows have picked up and to make sure they have liquidity while tense talks take place in Brussels next week, Greek banking sources said on Friday.
Greece Locked in Talks With Creditors in Search for Compromise
(Bloomberg) -- Greece and its official creditors are extending talks over the weekend aimed at reaching a deal at a Monday meeting of finance ...
Greece Is Cutting Line For Debt Relief
As the European Union and Greece wrangle over the future of the latter's bailout, it's useful to put the Greek demands for debt relief in perspective.
FTSE 100 hits five-month high on Greek hopes and oil price rise
Market also supported by better than expected eurozone GDP figures, with Dax at new highA rise in oil and mining companies pushed leading shares to a five-month high after another volatile week.A ceasefire agreement in Ukraine and the hope that Greece can agree a deal with its creditors at a key meeting on Monday combined to lift the FTSE 100 45.41 points higher to 6873.52, its best level since 4 September.Since we established our thesis on Tullow in September 2014, the company has taken most measures that we felt were necessary in the current environment, including cutting exploration costs and the dividend. Given our belief that it is the assets that differentiate the company, we would expect these measures to eventually result in value recognition by the market.At the analyst presentation, management was very clear that at present it does not intend to raise equity. While we believe that Tullow is one of few companies that in the current environment could actually execute a rights issue, we see the cuts in exploration, general and administrative expense and dividend as much more sensible initial steps in protecting the balance sheet.Virgin Media’s increased ambition is a material threat to BT which is presently the only broadband infrastructure provider to around 50% of UK homes. We have recently been concerned that other operators may also be tempted to roll-out fibre (eg, Vodafone and TalkTalk) but perhaps this news makes them less likely to do so or alternatively, could trigger a rush to invest in areas not being considered by Virgin Media. BT in turn may feel pressured to accelerate the roll-out of its own fibre network (i.e. g.fast) with the risk of rising capex/weaker free cashflows...Though there is no immediate financial impact as a result of this news, the risk of rising medium term capex, and market share loss, perhaps equivalent to around 5% of BT’s consumer base (plus business customers) is unhelpful for estimates. In the near-term, the merger between BT and EE will create a hiatus (up to one year) which competition will use as an opportunity to make gains in UK fixed/mobile, partly at BT’s expense. Escalating sports content costs make it more difficult for cost cuts at BT to offset any competitive impact. We see better value elsewhere in a more broadly recovering European telco sector at this time. Hold.The company is continuing discussions with the advisers to the ad hoc committee of its largest bond holders regarding the immediate liquidity and funding needs of the business. The company is also having discussions with its existing stakeholders and new third party investors regarding recapitalising the company. Continue reading...
Greek cartoon depicts German finance minister as Nazi
The Greek newspaper, which has a daily circulation of only about 1,800, published another cartoon of Schaeuble in its Friday edition, also wearing a ...
RPT-Greek economy shrinks 0.2 pct q/q in fourth quarter of 2014
(Repeats to link to alerts) ATHENS, Feb 13 (Reuters) - Greece's economy contracted slightly in the last quarter of 2014 compared to the previous ...
EMERGING MARKETS-Latam up on Greek debt hopes, German growth; Brazil's real dips
RIO DE JANEIRO, Feb 13 (Reuters) - Latin American financial markets were steady to higher on Friday as hopes of a Greek debt deal and ...
Greek economy's numbers still worrying
Is the Greek economy growing or shrinking? The answer depends on what statistics are compared. Many of Greece's key numbers are still in negative ...
MarketsGreek bond yields rally ahead of further talks
Greece's economy may have shrunk unexpectedly in the fourth quarter of last year but investors in Greek bonds are clearly growing more optimistic ...
Rex appeal: the literary attraction of dinosaur erotica
From girl-on-centaur to guy-on-pterodactyl action, the fiction genre of monster porn is more sex-positive than Fifty Shades – and pervier, tooForget Anastasia and Christian. Nothing says Valentine’s Day like dinosaur porn. What’s not to like? It’s so much more fun than Fifty Shades, more sex-positive – and much pervier. With short stories including Taken by the T-Rex, Ravished by Triceratops and In the Velociraptor’s Nest, it takes dinomania to a whole new level, while also possibly answering the question “why did dinosaurs become extinct”? (Interspecies confusion.)Why go to all the bother of taming the monster inside Christian Grey when – since it’s all imaginary anyway – you could get it on with an actual monster? It’s part of a larger genre of “monster erotica”, which also includes girl-on-centaur, girl-on-satyr and guy-on-pterodactyl action (in Pterodactyl Turned Me Gay, a title surely beloved of the Christian right and containing the immortal line: “I was covered from head to toe with the pterodactyl cum”). Dino erotica sits comfortably in the context of Greek mythology, where interspecies mingling was quite the thing. And don’t forget that EL James’s work began its life as fan fiction for Twilight, which was girl-on-vampire. Monsters, all. Related: Signior Dildo – and other perfect poems for Valentine’s Day Continue reading...
GLOBAL MARKETS-Shares rise on German growth, Greece optimism; oil rises
"The big factor in the market is that hopes are building that we are probably looking at some agreement between the euro group and Greece, possibly ...
Grim economic news piles pressure on Greece
… failure Wednesday night. Europe insisted Greece honor its commitments under the … Thursday. Tsipras has also authorized Greek officials to prepare the ground … might be possible. Related: How Greece could accidentally stumble out of …
Germans condemn 'vile' Greek Schaeuble cartoon
A spokesman for Germany's finance minister Friday condemned as "vile" a Greek newspaper caricature that showed Wolfgang Schaeuble in a Nazi-era army uniform, alluding to the Holocaust. The artist of the cartoon in Sunday's Avgi newspaper, a pro-Syriza party daily, should ...
White House warns Europe on Greek showdown
… of the Greek people and Europe more generally that Greece and its creditors work out a compromise for Greece to … off liquidity support for the Greek banking system and forces the … Obama has seized on the Greek crisis to push for a …
Varoufakis inveighs against the troika and equates it with the CIA
Greek Minister of Finance insists on Greek debt “haircut” while he argues that it would be the best solution for lenders as well
Tourism on the agenda in meeting between Greek, Serbian officials
Discussing the possibility for development of additional cooperation between Greece and Serbia
Govt: Reaching deal still a long way ahead
The Greek side stands by its decision not to sign the joint statement on Wednesdays Eurogroup – Also admits that there is no common perception on many issues, such as health reforms, layoffs of public employees and pensions
Rajoy's cropped pic — leaving out Greek PM — irks some on Twitter
Some users took offence to the fact that leftist Greek PM Tsipras was “cropped out” of the EU Summit's "family portrait"