----- Original Message -----
From: Len Cranford
To: apopeeso@comcast.net ; pyrigenes
; Chris
D.
Sent: Sunday, May 24, 2015 6:47 PM
Subject: Denninger; Greece, the Euro, and Truth; plus Hillary
At some point if you drink too much but lie to yourself that you are perfectly fine you either must stop drinking or you will die. Exactly where the line is between death and life is not usually a matter of certainty either; the point at which one knows they will die is of course a certain one, but most of the time your fate is sealed a good amount of time before you become aware of it. [indeed; my next door neighbor! L.]
This same uncertainty applies to governments, debt, and economics in general. It is not difficult to calculate when a particular exponential trend will reach its terminus; for a debt-fueled economic lie it happens when the interest payments exceed nominal income; at this point you cannot make the interest payments.
But markets almost-never actually allow you to get there, because at some point prior to that people in the marketplace suss out that you're going to hit that wall and once that happens the remaining time-to-disaster immediately goes to zero.
There is a paradox, however, with Greece. It simply is this: There have been so many cries of "wolf" when there was no wolf as he was bought off for an afternoon or three that nobody believes the wall -- or the wolf -- is real any more!
But it is.
Perhaps there is some means of playing games that will allow them to make the next IMF payment -- a payment, I remind you, that is basically giving back what they just took out. They took those funds out of their SDR account because they had no other option to make the payment, and now they have to put them back but still don't have any more funds as they're running an operating deficit (that is, they're still spending more than they make in taxes.)
The Greek people, in short, need to grow up and stop pretending, which is utterlynecessary for the government to stop pretending. But the ECB and IMF must stop pretending too. Selling off assets doesn't change the fundamental problem, which is found in the simple fact that Greece is and has been spending more than they take in.
Mr
Schaeuble has said that a Greek plebiscite on continued membership of the euro
would be "helpful" for both the country and its creditors. Mr
Varoufakis, however, stressed that "the Greek people completely support
us".
He
said: "We have a fresh mandate to end this austerity trap, to end this
debt-deflationary spiral, and to say to these institutions that it is not in
their interests as our creditors to say that the cow that produces the milk
should be into into submission."
The
beatings should not continue "to the extent that the milk will not be
enough for them [Greece's creditors] to get their money back", he added.
There is no "austerity trap."
There are, however, many lies that have been told by Varoufakis and others, including our government in the US. One of them is that you can spend more than you take in indefinitely, another is that deficit spending is in fact a deferral (it is not; the devaluation takes place immediately and is exactly identical mathematically to imposing a tax of the same amount!) a third is that someone should "lend" to you when you're bankrupt and the final and arguably worst lie is that somehow lending to a government is "secured."
Remember that the Greek Government, up until things went to Hell, engaged in all sorts of hinky derivative deals with big global banks to intentionally present a false view of their financial health. Those very same big global banks are the ones that are primary dealers and otherwise enjoy privileged status with various central banks and governments. The IMF is subservient to (as it is funded by) those very same governments.
There was no accident involved in any of this; it was in fact all intentional deception.
There are those (Draghi and Lagarde among others-cough-cough!) who claim that Greece's current government cannot abrogate agreements entered into by the previous one. There is a problem with this position, however, in that if you accept it then the IMF and ECB, along with its other members and the banks cannot collect on any Greek debt because they were parties to fraud dating back to Greece's entry into the Euro.
In other words you can't have this both ways, despite what the Eurozone crooks would assert. Either the acts of previous governments and leaders of institutions are binding on present ones or they're not.
If they're not then Greece is under no obligation to pay because the current government did not consent and cannot be compelled to do so.
But if they are then Greece is also under no obligation to pay because the so-called "loans" and sale of "bonds", all of them back to when Greece entered to Euro, were entered into under false presense and active frauds and not only is the Greek government liable for that so are the banks, ECB and Euro governments that issued, handled and marketed the "loans" as they were all part of the fraud and not only actively participated in the frauds in the case of the banks they designed it!
There comes a point at which the common people must simply stand up and tell those who have been robbing them that they're not going to allow it any more -- and mean it. This is not an easy thing to do by any means as one must expect that those who have been engaged in these actions are not going to simply say "oh, ok, we'll make good" when they can't as the value that was stolen has been spent. This in turn means that some sort of conflict is inevitable with the only question remaining being whether those who did the stealing and defrauding, and thus are culpable, will turn to violence.
Unfortunately the problem exhibited is not by any means limited to Greece. If Germans think they have the right to profit from said active frauds committed by their governments and banks they're wrong; nobody has that right. Never mind that Germany as a nation is one of the very few who did profit; virtually the entire Eurozone got screwed instead by a very few rich and powerful people in both government and non-government roles as a result of these acts fraud that are now sought to be perfected into savagery, slavery and subjugation.
It is time to stand up folks, everywhere and anywhere touched by this -- and that includes the lies told to us as Americans by our government and the frauds engaged in with regard to deficit spending, our budgets, so-called "ratings" on government debt and the sequential 30 years of theft from employment taxes used to lie about our fiscal status beginning with Ronald Reagan and continuing with every administration since.
As for Lagarde and the rest of the people in Europe trying to have it both ways, claiming that Greece's people and government are subject to the former government's agreements only when it suits them the correct answer to that claim, just as it is here in America, is found right here:
Hillary has tried to claim that she never sent or received any classified data on her personal email server.
This never passed the sniff test, and now there's a clean question as to whether that is the smoking gun that nails her.
There was a recent small release of these emails via a long-running FOIA that was finally complied with. More will be forthcoming,
and there was one email that was
completely redacted because it was retrospectively classified.
That doesn't break the law, as when Clinton sent or received it there was
no classification on the material (and, by the way, it utterly silly to
"retrospectively" classify something if any of the people
who have already seen it do not hold clearances for all sorts of both logical and
legal reasons) and thus classifying it now doesn't implicate her.
But, if any of the material ultimately
discovered on that server is classified (and was at the time it was
sent or received on that server) then she's cooked.
I wouldn't bet a plugged nickel that this
didn't happen...... and if it it did when it is discovered I'm going to enjoy
the ensuing fireworks.
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