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If You Tire Of Hearing Me Say “I Told You So” Re: Greece Default/ReDefault/ReDefault Again, Then Grexit!
ZeroHedge reports: EURUSD Soars As Eurogroup Calls IMF Bluff
Whether it is a pure low volume technical run for the 200DMA, or fundamental bias as ‘officials’ comment that the release of a EUR44bn aid tranche to Greece is expected by December 5th, is unclear. One thing is certain, the Eurogroup is placing the decision squarely back in Madame Lagarde’s lap as it appears to be behaving as if the IMF’s threat not to disburse funds (due to Greece’s unsustainable debt load) does not exist. While Lagarde is unlikely to want to be the trigger for GRExit, the non-European members may have differing perspectives or will they all just continue kicking the can down the road – proving once and for all that all the power lies with the Greeks as their supposed overlords “can’t handle the truth”.
Yeah, I know no one wants to hear it, but I told you so. This situation was clear from the start, the very day that Greece defaulted the FIRST time. Until the 3rd default, I can simply keep cutting and pasting the following, for a negative Primary Balance simply prevents anyone from sinking money into Greece from getting it back – PERIOD!!!
As The Year Comes An End The Ability Of Greece To Kick The Can Mirrors The Chances Of A Man With No Feet
Despite extensive, self-defeating, harsh and punitive austerity measures that have combined with a lack of true economic stimulus, Greece has (to date) failed to achieve Primary Balance. For the non-economists in the audience, primary balance is the elimination of a primary deficit, yet the absence of a primary surplus, ex. the midpoint between deficit and surplus before taking into consideration interest payments.
Greece_Primary_balanceGreece_Primary_balanceGreece_Primary_balance
The primary balance looks at the structural issues a country may have.
Government expenditures have outstripped revenues ever since 2007 and have gotten worse nearly every year since, despite 3 bailouts a restructuring, austerity and a default!
Greece_Primary_deficit_copy
2012-11-19 18:40:28
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