The government is facing the possibility of not being able to pay wages and salaries in October if its international creditors do not approve the pending 8-billion-euro sixth installment immediately.
The country’s foreign lenders have made disbursement conditional on the government’s adoption of new measures that will target the collection of at least 1.7 billion euros. Without the sixth tranche, the public purse will be 1.5 billion euros short on October 17.
The prospect of a freeze in payments appeared even more serious on Thursday, after Greek commercial banks failed to cover the sum of 300 million euros of supplementary, noncompetitive bids for Tuesday’s auction of T-bills, providing only 155 million. The shortfall is interpreted as a clear message by banks to the government that they are unwilling to fund future issues of T-bills…
Greek one year bonds are approaching 100% as the financial world fully expects a Greek default some time in the next 12 months – which means that Money is figuring there is nothing the European Union can do to avoid default. Money is right – there isn’t anything. Oh, they could maybe put it off for a while, but they can’t stop it. Greece owes too much money and no elective government of Greece would ever have popular support for bankrupting the people of Greece so that banksters can be bailed out (a dictatorship could do it…and one does wonder if the Euroweenies are considering that?).
And once Greece does default, look out! The financial world will be in for a crash like no one has ever seen before.
HAT TIP: Mish’s
UPDATE: More on the Eurocalypse.
we are in deep do do and what do the donks want to do?
spend more, print more, more debt.
That lil Cloward–Piven strategy sure looks good eh?? NOT!!
Don’t worry. The Germans will keep bailing out the sunshine eurotards. They have to. How much would that new Audi cost in drachmas?
The German government seems to be willing…but the way the votes are going, the German people want no part of it…but Merkel does seem to be a typical, Ruling Class politician…in the end, she’ll do what she’s told.
Mark, as far as my understanding of the German position on all this is that if the the eurozone collapses, German exports will bite the dust.
Germany seems to have the most to lose if this happens.
It all depends on how long the german taxpayer will put up with it.
Having spent 12 years of my life there, my opinion is that they will put up with paying for it for as long as possible. Maybe to the point of breaking out the wheel barrels again and enveying the Weimar Republic.
BoA looks to slash 40,000 jobs…
Hundreds of union workers storm port, hold guards hostage…
Trumka to Obama: ‘Go to the mat’ for labor…
FLASHBACK: ‘Take these son of a bitches out’…
According to the latest scoop on Greek credit default swaps, the odds of a Greek default are 90%. Good deals abound on Greek bonds, however.