FINALLY The Answer on Greek Default and Grexit Coming TODAY

We don’t know the details because “the conversations are private”, but the three biggest mafia gangs in the Eurozone – the European Commission, the European Central Bank, and the International Monetary (Government Bail Out) Fund, AKA the Troika, or Institutions, or Mobsters, or Former Student Council Presidents Suddenly In Charge Of A $#!+load Of Stolen Money, have given the Syriza Welfare Whiners a take it or leave it offer.

If Greece rejects it, a full bank run will begin, and the whole system will begin to buckle.

Yesterday we had another gold flag, by the way. Stocks down, dollar way down, bonds down, gold up.

Three Things I’m Sick of in the Greek Debt Drama: “Experts”, “Save the Country”, and “Talks are Private”

Anyone who reads TJL will know I follow the Greek situation very closely. But there are three things, specifically, that I’m really sick of reading out of the main stream media.

The first is referring to the schmucks involved in negotiating this mess as “experts”. An expert is someone who can demonstrate that he actually knows something with predictive value. Like the guy who discovered General Relativity. Albert Something. Or whatever his name was. He can say that the light of a star next to a solar eclipse would bend a certain amount of degrees which proves that gravity bends light and therefore spacetime and be correct. He’s an expert. QED.

But the pure idiots negotiating a “deal” for a bankrupt government are experts in nothing. Have demonstrated nothing. They are experts in vomiting bullshit that is absolutely nonsensical but sounds like it may mean something profound.

Look, you don’t have to understand General Relativity to understand the concept of the light of a star moving to the left or to the right around a solar eclipse. You can see the before and after pictures and compare them, even if you’re a stupid person. But nobody understands what these negotiations, that are deliberately hidden from view as to their details, because they are inherently nonsense, and there are no experts for God’s sake. There is a congress of average people good at sophistry that are saying nothing and making it sound like general relativity.

Here’s General Relativity: Big things bend space. So if light goes around one of these bends, it will curve, and you’ll see it in a different place. That’s it.

Can ANYONE explain to me what these “experts” are “discussing” for so long that it requires months and months and months of nothing?

No, because of the second thing that pisses me off, “The conversations are private.” My ass they’re private. They’re dealing with public debt, with people’s money they were forced to pay, with future taxes, how much they will be forced to pay in the future, and everything else that has to do with the public’s money, discussed by publicly elected idiots, who ask the public for votes. These conversations should NOT be private. They should be on the air, C-SPAN like, with private backdoor talks absolutely prohibited on pain of a public whipping. Everything these “experts” do should be videotaped and recorded, from when they wake up in the morning to when they go to sleep, and continuing while they snore in their beds. 24-7, recording recording recording. Any minute missed leads to a public whipping by the people who pay their salaries.

“Public” servants, if they are indeed servants and not thieves (they are of course thieves and not servants) should have ZERO right to do ANYTHING private, AT ALL. Not even conversations with their spouses about their sex lives. Yes, the public servants can and should have the option of pushing a button on their mandatory recorders that will alert listeners that they are about to talk about or do something that would normally be considered private like go to the bathroom, warning viewers to stop tuning in to C-SPAN. But this would only be to accommodate the sensibilities of viewers and listeners, so as not to gross them out if they want to tune out, NOT for the “public servants'” rights to have a private life. They have no right to have a private life if they live off of tax money. Zero right, none at all.

But public viewers, who they serve and who pay them for EVERYTHING they do, should still have the right to tune in, to anything whatsoever that they do at any time in any situation with ZERO exceptions.

Third, and the thing that pisses me off the most, is this whole garbage about “saving greece” and “Greece will collapse.” Greece will not collapse. The GOVERNMENT will collapse. They will run out of money. And their only power will be to force the people to accept a new currency which they will have exclusive rights to print, thereby stealing from them even more.

If the government collapses, the Greek people will be free. They won’t all suddenly die. But the government, if it is forced out of the Euro, will then print drachmas and force people to use them. If they refuse, there will be hyperinflation and a black market money. Then the government, which produces zero value, will starve from lack of funds.

Default Day for Greece is Now Either June 5 or June 12

Greece Repayment Schedule

On May 15 Greece has to “roll over” €1.4B in debt, which means sell more debt to pay debt, or borrow money to pay money back. They can do that because the banks keep buying more T-Bills. What they can’t do is pay the IMF anymore. €305M on June 5. €343 a week later. There is no more money left in the IMF monopoly account at the IMF to pay the IMF back with. There’s nothing left.

It looks like it’s June 5th.

Greece Pays IMF Back with IMF Monopoly Money

This is great! I love it. It’s so insane even I didn’t think of this. So apparently, all IMF countries have this account of IMF monopoly money, its own IMF currency, that is actually the IMF’s money that I guess can be exchanged for currency at an agreed exchange rate upon joining the loot ball.

The money can be used in emergencies as effectively an IMF loan, and must be replenished within 30 days (June 11) by the IMF rules. I would guess the funds are supposed to be used for emergency defense, or natural disasters or whatever. But Greece drew down €650M in IMF monopoly money to repay…

the IMF itself.

As Zerohedge puts it:

In sum: the IMF paid itself on behalf of Greece and will now be forced to pay itself back for paying itself later this month. Or, put differently, Greece has prepaid the IMF with IMF money it doesnt have.

This isn’t any more crazy, really, than the idea of the IMF bailing out Greece so Greece can pay the IMF.

Here’s a piece out this morning even more instructive of the Klein Bottle of finance that the Greek State just did:

Earlier today, we learned that, contrary to what Greek government officials had been implying for the better part of a week, Athens did not have enough money to make a €750 million payment to the IMF on Tuesday. Instead, Greece borrowed most of the money (€650 million according to unnamed officials) from its IMF SDR reserves. This money must be paid back within 30 days. This effectively means that the IMF paid itself and it sets up a hilariously absurd scenario wherein assuming Greece manages to convince creditors to disburse a €7.2 billion tranche of aid later this month, the IMF will send money to Greece, who will send it right back to the IMF to replenish an IMF fund, which was drawn down by the IMF to pay itself back for money it loaned to Greece a long time ago. Put simply: Greece has taken circular funding schemes to a whole new level.

But that’s it though. Greece has about €50M in cash left, and after that, it’s game over people. The IMF has said it is not going to participate in another Greek bailout just so it can pay itself for even longer. By the end of the month, the first domino, finally, falls, and the chain reaction begins.

Can Greece Pay Up €750M Tomorrow?

Yanis Varoufakis says it can be paid. Many aren’t too sure about that. But even if it is, there won’t be enough money left to pay Greek bureaucrats, who will have to be issued IOU’s, which will start circulating as a parallel currency, which will be a de facto exit from the Euro. I went over this in my column for  TheStreet.

The Greek government passed a controversial bill on April 24 mandating local governments to transfer idle cash reserves to the Greek Central Bank. From there, the funds can be borrowed by the state to (theoretically) squeak by its upcoming IMF bill, totaling €967 million ($1.05 billion): some €201 million of interest payments, due by May 6, with a €766 million principle payment coming up on May 12.

The problem is, the bill might be far too little to help.

It looks like the Greek State will barely get through May 6, but after that, the numbers are disputed, and time is of the essence. While the government estimates the idle cash seizure move will net anywhere from €1.5 billion to €2.5 billion, secondary reports of local Greek media claim that only €160 million has actually been collected from local authorities, hospitals, universities and municipalities.

Whether the Greek State defaults to the IMF or defaults to its own bureaucrats doesn’t matter. They want to spend more money and the people who print the money don’t want to give it to them. So they’ll have to print their own. That is the meaning of Grexit.

Watch Italian bonds. They’re next.

Six Days Until Greece Defaults

Things are starting to fall into place. We almost have another gold flag today. We may yet if gold turns positive by the end of the day. It is barely down.

Stocks are way down. Bonds are down hard. Dollar is tanking.

Gold is even. But oil is up.

In any case, this will all get much worse come Tuesday May 12, when Greece has to repay €775M to the IMF, but probably does not have the money to do so. According to Zerohedge, there will be no deal by Monday, May 11. Here ZH isn’t just speculating, but quoting a source. So they’re probably right here.

Further evidence for no deal by Monday is that Tsipras and his Syriza socialist wacknutters just reversed a measure passed by the previous government to fire 15,000 useless bureaucrats. They will now be rehired, because putting human robots on the payroll of a European backed bailout is the moral thing to do, I guess.

I’m sure the IMF will be really happy about this. You have no money but you hire 15,000 people to do nothing but shuffle paper and screw up the economy. There’s no way Greece is getting any more money. Forget it.

We’re 6 days away from D-Day, finally, on Greece.

Hasta La Vista, Eurozone.

Greece Raiding Pensions, This is What Will Happen Everywhere

The evil of social security and other government-mandated savings programs is that when the government runs out of money, they will take it all.

All of it will be gone. When the Federal government can no longer sell bonds to pay its existing bonds in its $18,000,000,000,000 Ponzi scheme, everything will be gone. Anyone with any savings in any government program will have nothing.

From The Telegraph:

Greece plans to raid coffers as creditors dash hopes of resolving cash crisis

Athens could force pension funds to transfer assets to the government as desperate Greeks tout possibility of delaying IMF repayments

That’s Newspeak. Here’s what it means, sans Orwellian crap:

The politicians who force pensioners to save money through their programs will force the people who they made save that money to give them that money in order to pay back the megapile of tax loot made up of loot donations from every developed State in the world.

Because God forbid the IMF, an institution that never earned a damn thing for providing something to consumers in the marketplace, should lose money.

Varoufakis to Eurozone: Everyone Should Help Pay Greek Debt Through Eurobonds!

Here’s another edition of “How to Explain Politics/Economics to a 4 Year Old”. I haven’t done this, but I may as well now. Economics really is the most important secular subject for people to understand because when some big politico gets up in front of a crowd and starts spouting finance terms, 999,999 times out of a million he’s trying to confuse you while he steals your money and you sit there and nod saying to yourself that it’s OK you don’t understand what he’s talking about because you don’t have a degree in this stuff.

But first, these little snippets are going well, so here’s another one. Varoufakis claimed 2 days ago that “He never gave the finger to anyone. Ever.” After being caught giving Germany the finger. Well, then he must not have hands.

In any case, Bob Wenzel at EPJ is picking up once again with what I figured out back in 2012. Varoufakis’s grand insane scheme for a United States of Europe. He’s couching it in a bunch of technical language about bonds and yields and coupons and agreements and treaties and trying to baffle everyone with his bullshit. Here’s what he wants, why he’s insane, and why this diarrhea of the mouth will certainly get Greece kicked out of the Euro for good. Now I’m sure of it.

How to explain this to a 4 year old (more or less): Let’s say I’m a central bank in my household because I’m the dictator and I have a monopoly over the money supply in my house. I decide what allowance my kids get. Now, one of them spends too much money and he has a bunch of debt he can’t pay. The other one stays in budget. Now, Varoufakis is saying the solution to this is to equalize the debt so both of my kids are now carrying the same debt burden so both of them can have an equal shot at paying it back. How PISSED is the other kid going to be?

That’s what he’s saying.  Instead of Greek bonds he wants Eurobonds. The Eurobonds will be issued by Eurozone governments, so all of them will have the same yield no matter who sells them. So if one country goes crazy into debt, everyone in the Eurozone has to pay that country’s debt. Yeah, I’m sure that’ll go over great with the frugal states. They’ll love it. It’s bond communism on a continental scale. Gross scary evil stuff.

Wow, talk about tragedy of the commons. That means Germany has to pick up all of Greece’s debt and spread pain throughout the rest of the Eurozone just because Greece decided to spend too much on welfare.

No sovereign European government is going to stand for this crap. Varoufakis is a crazy red Leninist nutcase. In a matter of days, Greece is out. Certainly the Germans see right though this Bolshevik insanity.

The contradictions of these people, it just blows my mind. Now someone on a video at The Guardian is defending him using this gem language:

“His point was related to events in 2010 when he was in favor of a Greek default within the Eurozone, but this was taken out of context in order to make it seem as if he was in favor of not paying the debt owed to Germany and giving Germany the finger.”

Do you see how these sophists use one technical term (default) to hoodwink you? A default means that you do not pay your debt. That’s the definition of the word. So how can he be in favor of a default but still be in favor of paying debt?

Let’s take the technical term out and rephrase this iron defense of Varoufakis:

His point was related to events in 2010 when he was in favor of a Greece not paying the debt within the Eurozone, but this was taken out of context in order to make it seem as if he was in favor of not paying the debt owed to Germany and giving Germany the finger.”

Contradiction. Is anyone alive out there? Can anyone hear me?

I’m on fire with movie quotes these days.

Grexit and the Supermoon Solar Eclipse – Any Meaning Here?

I don’t know. But it certainly is interesting. One of the posts on TheJewishLibertarian that keeps getting traffic week after week is that one I wrote about the four blood moons. In the middle of the those blood moons is the solar eclipse, happening on Friday night, Rosh Chodesh Nissan, 5775.

בניסן נגאלו ובניסן עתידין להיגאל.

I theorized that if we are to assume this means anything, which I never conceded and am not conceding now, then it could mean that Israeli reliance on the West, or the US, will end on that day. It could also mean that the beginning of the domino effect will begin on Friday, during the solar eclipse, that is actually a “supermoon” eclipse (I can’t believe I’m linking to Inforwars, I promise I don’t read or watch Alex Jones, he just showed up on the first page of “supermoon”) because the moon is so close to the Earth during this eclipse that it totally blocks out the sun, which is even rarer than a regular full solar eclipse. And it happening in the middle of 4 total lunar eclipses, I don’t know if that has ever happened before.

Anyway, a lot of headlines have been flying around in the last two days that are very indicative of a Grexit in the next few days. Today there was something about the IMF bitching about how “uncooperative” Greece is, and that the saints at the IMF have never had a more recalcitrant bailout client ever in their 70 year history.

Or actually, “the most unhelpful client ever“. There’s something especially twisted when the world’s largest ball of loot specifically dedicated to bailing out thieves who overspend their tax hordes calls their “clients” “unhelpful”. Be that as it may, it seems everyone’s really pissed off at Greece and they can’t take it anymore.

So just now Zerohedge comes out with this leak, that the ECB is busy calculating how to absorb a 95% loss on Greek bonds over the next few days.

I had an article over at CalvinAyre I wrote yesterday about this Swedish gambling company called Net Ent. It’s a good company, but has (or could have) its bank accounts in an island called Malta off the coast of Italy somewhere. Malta’s banking sector is 800% of its GDP, and the country is 5% exposed to Greek bonds in terms of its GDP. So to give an example of where this domino can spread, if Greek bonds lose 95% face value, that will trigger a bail in of Malta because doubtless its enormous banking sector holds those bonds. Companies like Net Ent, if they hold their accounts in Malta, will be fleeced.

That’s just one minor example.

It would be very fitting, very fitting indeed, and very satisfying personally, if it starts davka now. Let’s see what happens by Friday. Here’s another piece on it I wrote on SeekingAlpha.

While Bibi is building his coalition of jerks, the spark may indeed already be lit.

You may be right. I may be crazy. But it just may be a lunatic you’re looking for.

Or four of them and a superlunatic eclipse. Or maybe not.