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Greek PM To Tour EU, Looking For Allies

Greece Prime Minister George Papandreou is due to tour European capital -cities- and have contacts with Leaders of European countries in order to push towards a fast track lasting solution for the Greek debt. The initiative of the Greek PM is considered necessary after delays in the Eurogroup to finalize the package of aid to Greece. According to government spokesman Ilias Mossialos, the Greek government is satisfied in principle by the decision oft he Eurogroup but it does not triumphs. What is for importance for Athens is that the ‘selective default’ or the Eurozone exit are not included in the discussions of the Troika.

It has not been revealed who will stand on Papandreou’s meetings list, and according to latest developments it’s not even clear whether the meetings will ever take place. After Tuesday’s red alert on Stock Exchanges and a hesitant Eurogroup to find a solution to greek debt before the euro falls apart, the EU leaders are calling an emergency meeting, most likely for Friday, July 15, 2011. Thank God, it’s not Friday, the 13th…

Here is what REUTERS  reported on the upcoming meeting:

European Union leaders are poised to hold an emergency summit after finance ministers acknowledged for the first time that some form of Greek default may be needed to cut Athens’ debts and stop contagion to Italy and Spain.

 “There will be an extra summit this Friday,” a senior eurozone diplomat told Reuters, suggesting policymakers have been seized with a new sense of urgency after markets started targeting Italian assets.
 
A French government source said Paris was in favour, although the timing was not yet fixed, and in Spain, European Council President Herman Van Rompuy said he had not ruled out a meeting.
 
Earlier, Germany’s finance minister had said a second Greek rescue package could wait until September after eurozone finance ministers effectively accepted that private sector involvement meant a selective debt default was likely, despite the European Central Bank’s vehement opposition to such a move.
 
Will Greece be sacrificed for the shake saving the euro?

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4 comments

  1. Will Greece be sacrificed for the shake saving the euro?

    Yes. History repeats itself over and over again. Just a little bit nastier every time. Consider this. GDP of Greece is just 1.9% of EU-GDP. That’s just a blip in history.
    One mistake everybody is making though. History also teaches us that what happens here in Greece, how uneventful it looked at the time, had always disproportionate effects on the history of the world. And this time it won’t be different.

    Thank God, it’s not Friday, the 13th…

    Yes, but it is Full Moon…

  2. From my vantage point it looks like most of europe will be sacrificed in an attempt to save the euro. But it all keeps coming back to one thing: The WHOLE GLOBAL FINANCIAL SYSTEM is insolvent, so it doesn’t matter how much extra debt they load on, it can never be paid and so it won’t be paid, and so eventually we’ll get our soviet style collapse.

    If Greece was an isolated circumstance I would really fear for a long period of crushing foreign rule, but the reality is as greece goes so goes the EU. It may only be 1.9% of EU GDP, but the extroardinary amount of credit default swaps issued against greek government debt has removed almost all options for everyone involved – Even a selective default will trigger the CDOs which will bankrupt greece all over again and in the process put most of the big world banks formally into insolvency… again….

    First they ignore you, then they laugh at you, then they fight you, then you win.
    Mohandas Gandhi

    We’re with you.

    • Yes, CDS should have been outlawed long ago. Because you get interest for the risk you take. With the CDS it became just one big gambling game.
      I wonder, if it still could be outlawed??? That would solve a lot of problems.

      • The only way we get out of this without a whole lot of people dying is a “Debt Jubilee” which is when everybody forgives everyone elses debt at the same time, it resets the system.

        If you did that, you could then re-write the rules and outlaw all of the financial nonsense. The only reason things can get like this is because the regulators are bought and paid by the very entities they regulate. Money needs to be a tool, not an industry.

        Hey, I was listening to a show about bitcoin and their last episode was called “The Greek Bitcoin”, and they say that the greek people should give up the euro and just use bitcoins, since the government can’t tax them without the people’s consent, and it can’t be devalued since no government can print it. That show is at http://www.bittalk.tv