"Where are the 130 billion euros of aid to Greece going?" The response by Die Gazette is unequivocal: financial institutions outside of Greece will get 40 percent of the rescue package, Greek banks 23 percent, and the European Central Bank 18 percent. The remaining 19 percent are earmarked for financing needs in Greece itself. In other words, more than 80 percent of the rescue package is going to creditors – that is to say, to banks outside of Greece and to the ECB. The billions of taxpayer euros are not saving Greece. They’re saving the banks. For the German quarterly, the ambition to reduce the country's debt from 160 percent to 120 percent of GDP by 2020 is an “illusion”.... In Douglas Adams' novel “The Hitchhiker's Guide to the Galaxy”, the Earth is a kind of gigantic computer built by a higher intelligence to ponder the eternal questions of the universe. This higher, extra-terrestrial intelligence is therefore constantly setting up tricky and complex experiments to test mankind’s skills and level of development. If this conjecture by Douglas Adams were true – that is, that this is the deeper meaning of human existence – then our handling of the euro crisis would probably be setting us back many, many places in the interplanetary IQ rankings. For months now the eurozone has been stepping again and again through the same hoops of the experiment at ever increasing speed and rising panic.
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Saturday, March 10, 2012
The resolution of the Greek financial crisis
"Where are the 130 billion euros of aid to Greece going?" The response by Die Gazette is unequivocal: financial institutions outside of Greece will get 40 percent of the rescue package, Greek banks 23 percent, and the European Central Bank 18 percent. The remaining 19 percent are earmarked for financing needs in Greece itself. In other words, more than 80 percent of the rescue package is going to creditors – that is to say, to banks outside of Greece and to the ECB. The billions of taxpayer euros are not saving Greece. They’re saving the banks. For the German quarterly, the ambition to reduce the country's debt from 160 percent to 120 percent of GDP by 2020 is an “illusion”.... In Douglas Adams' novel “The Hitchhiker's Guide to the Galaxy”, the Earth is a kind of gigantic computer built by a higher intelligence to ponder the eternal questions of the universe. This higher, extra-terrestrial intelligence is therefore constantly setting up tricky and complex experiments to test mankind’s skills and level of development. If this conjecture by Douglas Adams were true – that is, that this is the deeper meaning of human existence – then our handling of the euro crisis would probably be setting us back many, many places in the interplanetary IQ rankings. For months now the eurozone has been stepping again and again through the same hoops of the experiment at ever increasing speed and rising panic.
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After a marathon seven-hour meeting, the International Swaps & Derivatives Association (ISDA) declared a “credit event had occurred” and billions of euros of credit default insurance will have to be paid out. The credit default swap (CDS) market is opaque, but analysts estimate the ruling will cost European banks around €3.5bn.
Before the ISDA announcement, Greece was declared to have technically defaulted. A total of 85.8pc of Greece’s international creditors approved the restructuring deal, which will reduce the value of their investments by 75pc. But the government said it would activate the controversial Collective Action Clauses (CACs) to impose the losses on bondholders who had not voted for the deal. Rating agencies had warned the use of the CACs would constitute a default.
The sentiment "I am very cross with these people wasting my taxes and as a result, I have decided to make a concerted effort into EVADING as much of it as I can" is building across the UK.
The moral argument against tax evasion seems to be building also. We pay taxes to retain a degree of civilisation, which is what the government are for. Not for them to literally hose on pet projects and eutopian experiments, as well as themselves, of course!
In my opinion, the black market is building hugely and tax evasion is rife everywhere. I have an eye out for the resulting backlash from HMRC.
What I really would like to know is the consequences of the UK living Europ. Will it be a disaster as some say ? The UKIP does a lot of criticism but not much in explaining. Can anybody, please, help. I know that here we are talking about the IMF. Why , is the UK liable to 14 pc of the IMF funding. I have just read yesterday that Brazil had overtaken us as the sixth richest country.in yhe world. If the 7 country( and some, being richer should pay more) paid 14pc it would be 98 pc. What about Switzerland, Saudi Arabia, Quatar and others ? May be they do not belong to the IMF ? Could anybody help, please ? Thank you in anticipation
The UK quota at the IMF is 4.51%, not 14%. If the IMF contributes euros 28 billion to the "bail-out", Britain's contribution is therefore euros 1.26 billion, not euros 4 billion. And this has already been paid into the IMF anyway.
What is more, although I think it is certain that Greece will have to default at least once more, and the EZ official contributors will eventually have to reconcile themselves to not getting all their money back, it is unlikely that this will happen to IMF loans, which automatically take seniority over all other ones
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