Greece Has Defaulted: Here Is Where We Stand

This weekend should be interesting.  From Zero Hedge.  Excerpts:
1) Greece was able to write off 100 billion euros worth of debt in exchange for a 130 billion rescue package of new debt, of which Greece itself will receive 19%, or about 25 billion, so that it can continue to operate as an ongoing concern. Somehow Greece is in a better position than before, with more debt and less sovereignty and still---by virtue of sharing a common currency---trying to compete toe-to-toe with the likes of Germany and the Netherlands, kind of like being the Yemeni National Basketball team in an Olympic bracket that includes the US, Spain and Germany. At least a "within the euro" default prevented bank runs in Portugal, Spain, Italy et al.



2) As a result of the bond haircuts, Greece has many pension plans that can no longer even pretend to be viable, at least according to the original contracted scheme, but pensionholders still working can take heart in the fact that their current wages will be cut, too.
And:
8) Given how much angst was caused by the drawn out Greek affair, the Spanish leader knows he has enormous leverage with EU leadership and he can continue to do what he has been doing with regard to ignoring the deficit targets demanded/suggested by the EU. The EU might well bark at him, but they cannot afford to bite at this time. Muchos gracias, Greece.

Greek Parliment Votes Austerity. Greek Citizens Vote Chaos..

Here we go..  Greek financial and political discourse is about to get really rocky..  With real rocks.  The Roundup begins now..  The Extinction Protocol, via Reuters..  Excerpts:

Historic cinemas, cafes, shops and banks were set ablaze in central Athens on Sunday as black-masked protesters fought Greek police outside parliament, while inside lawmakers looked set to defy the rage by endorsing a new EU/IMF austerity deal. State television reported violence spread to the islands of Corfu and Crete, the northern city of Thessaloniki and towns in central Greece. Shops were being looted in the capital in the worst breakdown of order since 2008 when violence gripped Greece for weeks after police shot a 15-year-old schoolboy. As parliament prepared to vote on a new 130 billion euro bailout to save Greece from a messy bankruptcy, a Reuters photographer saw buildings in Athens engulfed in flames and huge plumes of smoke rose in the night sky.

Yeah, it's burning..

So, what does this all mean?  Tyler Durden from ZeroHedge 'splains and sums up..

The Greek parliament just passed the latest proposed austerity plan with a majority voting Yes. Judging by the reaction of the EURUSD, which experienced a modest 40 pip short covering squeeze in the last few minutes, one would imagine that today's Greek vote outcome is surprising. It isn't: after all, all Greece has done is promise to do something it won't do in hope it can get another bailout package, this time amounting to €210 billion (of which its people will pocket a de minimis 19%). As we said earlier: "The only real questions are i) what the Greek population may do in response to this latest selling out of a population "led" by an unelected banker, which if history is any precedent, the answer is not much, and ii) how Germany will subvert this latest event, and put the bail [sic] back in Greece's court once again."
Plus, a little funny for you..
..everyone knows revolutions in heavily socialist countries only start between 9 am and 5 pm, with a 2 hour break for siesta.

Not funny, though, is how the Greek people will respond to these financial shenanigans.  Not well is the answer; Not well at all..

I fear for a social explosion: Greeks can't take any more punishment The Guardian.  Excerpts:

Despair has enveloped Greece. This weekend the bankrupt nation, for that is what it is, began negotiating the latest act of a drama that many fear will end in catastrophe – financially, socially and politically.


In an electric atmosphere, with thousands demonstrating outside parliament, MPs began debating the arduous terms of a €130bn (£110bn) rescue package that the interim prime minister, Lucas Papademos



"A disorderly default," he said, referring to the 20 March deadline that Greece faces of repaying €14.5bn in maturing debt, "would plunge our country in a disastrous adventure. It would create conditions of uncontrolled economic chaos and social explosion."
..
But in both parties MPs are far from convinced. The country has reached a crossroads, of that there can be no doubt. But almost two years since it was first "rescued" with €110bn, the nation's acceptance of this latest lifeline puts it in a perilous place. Politicians, almost without exception, believe they are "damned if they do and damned if they don't".


After more than two decades reporting from Athens, I can only concur. For the truth – as unpalatable as it may be for the IMF, EU and European Central Bank, Greece's "troika" of creditors – is that, far from plugging the country's budget black holes, the harsh austerity pursued in the name of deficit-reducing goals has pushed it towards economic and social collapse. Relentless wage and pension cuts, tax rises and cost-cutting reforms have left the country a shadow of itself. In its fifth successive year of recession, Greece is a hollowed-out version of what it once was, coming apart at the seams a little more with each day. Men and women forage through rubbish bins late at night. More sleep on the streets. Last week as Eurostat, the European statistic agency, announced that poverty had engulfed more than a third of the nation, it was revealed that unemployment had also exceeded one million people, from a record 19% to 20.9% in one month.


"Nothing functions. Nobody pays anybody any more and the state is not just crumbling but in complete stasis," said Giorgos Kyrtsos, a prominent political commentator. "These guys," he said of officials in the troika of European agencies negotiating the bailout, "should really lose their jobs. They've miscalculated everything. I understand on Friday the police trade union called for their arrests. Well, maybe they are right!"

..
A series of resignations by ministers on Friday, unwilling to support the latest measures, not only underlined the panic of the political class – in a country where MPs no longer feel safe walking in the streets – but proved how tenuous public support is for the bailout. If there is to be a social explosion, many said that it would come because Greeks had been pushed too far. The loan agreement not only will lead to job losses and more cuts in salaries and pensions but a 22% reduction in the minimum wage.



Ferment on the street is back. The clashes during last week's second general strike are generally expected to be a prelude to something much more ominous. "There is going to be a huge social eruption," said Apostalia Kiroudi, an unemployed jeweller shouting herself hoarse in front of parliament.

"Our politicians lied to us. They never told us the truth, and now they want to pass policies that they have no mandate to do. As that sign says over there," she said, pointing to a friend holding a placard, "We choose to be free. Keep your money."

Things are going to devolve rapidly.  The bankster gangsters won't take The People's shit, and vice versa.  And the Greeks have proven time and again they're always up for a fight, and a fight they shall have.  I sure hope Riot Dog has been resting up--In the coming days, he's going to be busy!

Greece Is Now "On.."

Greece passes steep cuts as riots seize capital  AOL News.  Day One of Everything's Different Now.  Excerpts:

The cuts and tax increases passed 155-138, with five voting "present" and backing neither side. During the vote, stun grenades echoed across a square outside Parliament. Acrid clouds of tear gas and orange and green smoke-bomb mist hung in the air.

Several banks and storefronts were smashed, while a Socialist dissenter who backed the government at the last minute, Alexandros Athanassiadis, was briefly assaulted by protesters after leaving Parliament on foot.
Violence continued throughout the afternoon, and smoke billowed from a post office beneath the finance ministry before a fire was put out. Rioters set up burning barricades along Syntagma Square, where demonstrators have staged a sit-in for the past month. Nearby streets were littered with chunks of smashed marble and ripped-up paving stones that had been thrown at police.
A general strike that began Tuesday paralyzed the country, grounding planes, leaving ferries docked and stranding tourists during the busy summer season.

Greece Implodes and War Declared…over 5,000 Police overwhelmed  This was the day before the Austerity Budget was approved.  The Ante is now Upped.

Violent Scenes In Athens As Bloody Greek Riots Keep On Raging  Video from the 29th courtesy of Russia Today, the most trusted name for American News..

And yeah Riot Dog IS Fucking Awesome.  Riot Dog stands with The People.  Riot Dog is coming for ya..

That Loud Boom You'll Hear Is Greece Exploding..

The Real Deal begins later today.  My gut says Austerity measures pass, and Athens begins to ROCK shortly afterward..  If Austerity fails..  The Greek economy goes into collapse, and Athens begins to ROCK shortly afterward.  Maybe, maybe not.  But the Greeks do like to riot, and they're really good at it..  (By no means is this an insult, either.  The No Bullshit political will of the Greek people is inspiring to others living in more complacent regions of the world.  It's good to see that spirit alive and well..  Somewhere..)

Greece and Europe brace for austerity measures vote  The Sofia Echo.  Excerpts:

Greek lawmakers, under the watchful eyes of the rest of the world, are due to vote on a second round of austerity measures that sparked nationwide strikes and violent riots on June 28.

The vote will be held later on June 29.
The outcome of the vote will be vital for the stability of the European economy and for the future stability of Greece which is facing bankruptcy. Resembling a typical Greek drama, the voting process itself has become rife with accusations of betrayal and treachery following revelations in Greek media that there are mavericks in both camps who could sway the result unexpectedly.
..
If the government fails to pass the austerity measures, Greece will go bankrupt. The proposed measures will affect the public sector and will consist of the sale of assets as well as higher taxes and more spending cuts.

Massive protests are expected on the streets of central Athens and outside Syntagma Square in front of the parliament building, protests which have the potential to turn violent judging from the past.

WRAPUP 2-Greek lawmakers seen backing austerity, future unsure  Reuters.

Greece's parliament looked increasingly likely to approve unpopular austerity measures on Wednesday, despite violent protests, to secure international funds to prevent the euro zone's first sovereign default.

But with the country on the brink of bankruptcy, it remains uncertain whether a weakened Socialist government can push through laws to implement structural reforms and privatisations in a second series of votes on Thursday, and then stick to a tight EU/IMF-imposed schedule for implementation.
Many economists and investors still expect Greece to default in the medium-term.

Greek leader 'dead man walking', Greek bailout 'collective punishment'  Video courtesy Russia Today, via You Tube.

If Greece Defaults, What Happens to Portugal and Ireland—and Spain?

From Gonzalo Lira.  Yet another Catastrophe befalling mankind in the beginning days of its expansion.  Excerpts:

So if Greece goes down the tubes, Ireland and Portugal would almost immediately need a bailout: They would not be able to borrow on the open markets the money they need in order to continue funding their governments.

That is, if Greece defaults, the Irish and the Portuguese would suddenly find themselves without the money to fund elementary schools, ambulances, sewer systems, power grids, etc.

So! What is the European leadership doing?

Dithering! They are not approving a Greek bailout—and they are not giving a clear signal that Greece will be booted out of the eurozone, but Ireland and Portugal will be protected. In other words, the European finance ministers who are supposed to “stabilize the markets” are creating the conditions of uncertainty in the markets—

—which only hurts Ireland and Portugal.

Now, why is defending (financially speaking) Ireland and Portugla essential?

In a word, Spain.
And:
It’s as simple as that. Spain is too big—roughly half the size of Germany. If Spain goes, it will drag down all of the European continent with it—that is, bank failures (on both sides of the pond), a crash of the eurozone as a currency, massive unemployment, a European economy that would grind to a halt—

—basically, the worst parts of the Great Depression.

It doesn't look like Greece as-it-is-now will remain much longer.  The inevitability of financial "obligations" versus the needs of the populace will continue to escalate towards violence towards whatever outcome eventually occurs.  It's like watching an Impact in slooow motion.  Greece is Happening, and the implications of Greece Happening have already begun, too.

And now they're protesting in Spain, while the crisis continues to deepen.

If You Said "Greece," Congratulations! You Win The Global Economic Dead Pool!

Greek PM warns against 'catastrophic' default  Video and article from Al Jazeera.

Al Jazeera's Tim Friend, reporting from the capital, Athens, said: "The anger is deep and (protesters) resent having to pay the price for the mistakes of others as they see it, the mistakes of banks and financiers."

"The problem for the politicians here is they're being dictated to by the International Monetary Fund and events now taking place elsewhere in Europe with the euro zone finance ministers," our correspondent said.


"They are the ones now calling the shots. The Greeks really are having to simply comply and do what they say."

Crisis point for Greece as it gets loan to stave off default  What will the people do when the banks and government openly defy their wishes?  Well, they're Greek, so the logical answer "Take to the streets!."  Will this event devolve into riots, fighting, insurrection, or worse?  At the moment, Greece's situation looks inevitable, and looks like a Worst Case Scenario no matter the direction.

Everything's getting hotter; everywhere.  Greece is just the opening song of the opening act.

In Related EU Meltdown Madness..

Spanish economy again showing cracks  Americablog.  Excerpts:

This sounds like another "not if, but when" problem for the Spanish economy. The immediate focus today is on Greece but if this bond sale is any indication, Spain may be the next concern. The problems in Greece, Ireland and Portugal will be minor compared to Spain due to the size of the economy.

Greenspan: The 'almost certain' Greece default could cause US double-dip  And he oughta know, considering the major part he's played creating this global financial Apocalypse.  Excerpts:

Some of the most important debate over responsibility for the economic and financial market mess we now find ourselves in comes in the treatment of former Fed chief Alan Greenspan who, surprisingly, keeps popping up in the news after offering opinions to captive audiences as part of a quite lucrative post-Fed career as a public speaker.



What is most surprising about these accounts is that they no longer routinely carry the disclaimers that once adorned nearly every story about the former Fed chairman back in 2007 and 2008 - about how Alan Greenspan is thought to be largely responsible for our current predicament.

Typical of the lot is this report in Bloomberg by Joshua Zumbrun that treats yesterday's speech before a gathering of Credit Union representatives in Washington as the observations of an interested bystander rather than someone who was controlling the most important interest rate levers and directing the nation's regulatory bodies during the gestation period of the monstrous bubble.
And:
By a fairly wide margin, Alan Greenspan was judged "the economist most responsible for causing the Global Financial Crisis" with Milton Friedman and Larry Summers finishing a distant second and third, respectively.

I wonder if Greenspan ever wonders if he'll live long enough to stand trial.

What is this; Day 2?  Video of the Riots in Athens.

The entire Eurozone is under pressure.  How will that intensity manifest?

Greece is fast approaching the point of no return

From The Guardian UK via Rense.  Excerpts:

An uncontrolled debt default by Athens is suddenly starting to seem a horrible possibility.
..
A unity administration in Athens might allow bailout talks to resume, but by then investors might have zero faith that the next package of loans could succeed where the last one failed. More austerity, even if the Greeks could be coerced into accepting more pay cuts and more state sell-offs, might simply damage the economy further.

Default, then, seems to be looming one way or another. The best policy would be to try control the damage by ensuring the impact of the rest of the eurozone banking system is as soft as possible. That assumes, of course, that damage-control is still an option. The point of no return is fast approaching.

Greenspan Tells Charlie Rose Default by Greece 'Almost Certain'

Alan Greenspan, former Federal Reserve chairman, said a default by Greece is "almost certain" and could help drive the U.S. economy into recession.

"The problem you have is that it's extremely unlikely the political system will work" in a way that solves Greece's crisis, Greenspan, 85, said in an interview today with Charlie Rose in New York. "The chances of Greece not defaulting are very small."

Journalist:"It Is A War In Greece"  Video from Russia Today via Before It's News/  Watch this.
Greece riots: RT film crew get caught in Athens street protests  More from Russia Today via Metro/UK

This is barely The Beginning.  It's going to be a long, hot summer.

Breaking: Greece Threatens To Leave Eurozone, Reintroduce Own Currency

If this is true?  Then, Wow..  Here it comes.  From Zero Hedge.  Excerpts:

The debt crisis in Greece has taken on a dramatic new twist. Sources with information about the government's actions have informed SPIEGEL ONLINE that Athens is considering withdrawing from the euro zone. The common currency area's finance ministers and representatives of the European Commission are holding a secret crisis meeting in Luxembourg on Friday night.

Greece's economic problems are massive, with protests against the government being held almost daily. Now Prime Minister George Papandreou apparently feels he has no other option: SPIEGEL ONLINE has obtained information from German government sources knowledgeable of the situation in Athens indicating that Papandreou's government is considering abandoning the euro and reintroducing its own currency.

Alarmed by Athens' intentions, the European Commission has called a crisis meeting in Luxembourg on Friday night. In addition to Greece's possible exit from the currency union, a speedy restructuring of the country's debt also features on the agenda. One year after the Greek crisis broke out, the development represents a potentially existential turning point for the European monetary union -- regardless which variant is ultimately decided upon for dealing with Greece's massive troubles.

Will Greece indeed be the first to leave?  The Euro Zone crisis is already in motion - The question is:  Who topples the domino, how disastrous and complicated is the resulting chain reaction, and how and where will it end?  But the free fall hasn't even started yet, and wondering about the future is pointless when the near term present will be crazy enough.

A failing nation state attempting to decouple from a failing Union.  Again, if true:  This is a big deal.

Global Events: File Under: What You Might Have Missed..

Double volcanic eruption in Kamchatka

Markets get jitters as oil price heads for the sky

Fears that the unrest in North Africa and the Middle East could seriously disrupt oil supplies and throttle the world economy turned to reality yesterday and propelled the price of oil to more than $108 a barrel during trading, the highest since September 2008. It was $85 at the start of the year. The region supplies a third of the world's oil needs.



Analysts said that if the unrest in Libya, a major oil exporter, spread to more important powers such as Iran and Saudi Arabia then "the sky's the limit" for oil prices and $150 a barrel could be reached "without breaking a sweat", with grim implications for economic recovery, inflation and living standards worldwide.

Supposedly quake-proof buildings collapsed

Technically any new structure built in New Zealand has to be able to withstand intense quakes but footage has shown that, although older buildings in Christchurch seem to have been hit the hardest, plenty of newer ones that should have been able to survive a 6.3 quake have also collapsed.

Earthquake Shakes Up Suez Canal as Iran Warships Approach

An earthquake measuring 5.9 on the Richter scale shook up residents at the entrance to the Suez Canal early Monday morning, 48 hours before two Iranian ships, a frigate and a supply vessel, are expected to enter the canal.

The National Institute for Astronomical and Geophysical Research reported that tremors from the 3 a.m. quake lasted for 27 minutes, but caused no damage.

The ships had originally been expected to enter the Suez today (Monday), but Egyptian officials announced the delay this morning, without explanation.
And:
Egypt’s agreeing to allow Iranian ships to pass through the Suez is seen by many analysts as a signal that the new regime in Egypt is leaning towards ties with Iran, but Suez Canal officials have pointed out that an international convention requires it allow passage to all ships.  Egypt has reportedly agreed to allow the Iranian boats to pass through the canal en route to Syria. The Obama administration is concerned about “what’s the cargo on board, where is it going, to whom, for what benefit," U.S. State Department spokesman Philip Crowley told reporters. Iran has said that the ships are headed for Syria for training, Crowley commented, as laughter was heard in the audience: “My initial response to that would be that we’re highly skeptical of that claim.”

Does a cat's purr hold holistic powers?

Which brings me back to that mystical side of a cat’s purr: it’s been suggested that one of the function of the purr is to enable natural healing of the cat’s own body. Cats purr during both inhalation and exhalation with a consistent pattern and frequency between 25 and 150 Hertz. Various investigators have suggested that sound frequencies in this range can improve bone density and promote healing.

THE DUBAI WASTELAND: 40% Of Buildings Are Vacant And Prices Keep Falling

Forty percent of the buildings in Dubai are vacant, according to Arabian Business.

For comparison only 28 percent of homes are vacant in America's ghost town, Detroit.

Now here's the scary part. Dubai hasn't stopped building:
And:
Real estate values have already fallen by over 60 percent

10 American Cities That Are Dead Forever

A city does not die when its last resident moves away.  Death happens when municipalities lose the industries and vital populations that made them important cities.

The economy has evolved so much since the middle of the 20th Century that many cities that were among the largest and most vibrant in America have  collapsed. Some have lost more than half of their residents. Others have lost the businesses that made them important centers of finance, manufacturing, and commerce.

Global community isolates Gaddafi

EU calls for investigation into possible crimes against humanity while US says "all options" are on the table.

Police, protesters clash again in Greece amid budget strike

Police fired tear gas near the Greek parliament on Wednesday as clashes broke out with protesters throwing stones and firebombs during a demonstration against austerity measures, an AFP reporter said.

The confrontation occurred near the finance ministry on central Syntagma Square with police seeking to block protesters from approaching the building as thousands marched in Athens and other major cities in this year's first general strike against wage and pension cuts.
..
At least 36,000 people according to police demonstrated on Wednesday in Athens, Thessaloniki and the port of Piraeus ..  Union sources put the Athens turnout at over 60,000 people.

Baby dolphins dying along oil-soaked US Gulf Coast

GULFPORT, Mississippi – Baby dolphins are washing up dead along the oil-soaked US Gulf Coast at more than 10 times the normal rate in the first birthing season since the BP disaster, researchers said.

Some 17 baby dolphin corpses have been found along the shorelines of Alabama and Mississippi in the past two weeks, The Institute for Marine Mammal Studies said.

"The average is one or two a month. This year we have 17, and February isn't even over yet," said Moby Solangi, director of the Gulfport, Mississippi-based institute.

"For some reason, they've started aborting or they were dead before they were born."
And:
Adult dolphin deaths tripled last year to 89 from a norm of about 30.

CIA Agent Caught Red-Handed Aiding Pakistani Terrorism?

The U.S. at first falsely claimed that Davis was a diplomat with the State Department and should therefore be granted diplomatic immunity:

But the deeper story is that Davis allegedly actively aided and abetted terrorism.

Oh, By The Way, The Country Of Greece Is On Strike..

Greek strike disrupts flights, cripples services.  Excerpts:

A general strike halted public transportation across Greece on Wednesday and led to the cancellation of more than 100 flights at Athens International Airport, as unions stepped up opposition to the country's austerity measures.


State hospital doctors, ambulance drivers, pharmacists, lawyers and tax collectors also joined school teachers, journalists and thousands of small businesses in the 24-hour strike as more middle-class groups took part in the protest than have in the past. Athens' main shopping district was mostly empty, as many small business owners shuttered their stores.
..
The strike halted trains, ferries and most public transport across the country, and idled many airlines at the international airport.
And:
The IMF has said some of the frequent demonstrations against the Greek government's reforms were being carried out by groups angry at losing their "unfair advantages and privileges."  (Can you believe someone from the IMF said that, without a trace of irony?  C'mon..  The group controlling All The Money calling the "have nots"/everyone else on anger for losing privileges? Wow..  Wow..)

Global Revolution, meet Greece;  Greece?  Global Revolution..  But you have met before, right?

Greece As 6 Million Dollar Man..

"She's breaking up! She's breaking up!"(heh..) The question remains: Can we rebuild him?? Suddeutsche Zeitung: EU prepares for Greece to declare bankruptcy Short, and not sweet excerpts:

According to EU sources in the European capitals it is already running the preparation on Greece to declare bankruptcy, German newspaper Suddeutsche Zeitung announced.
..
Meanwhile, the Ministry of Finance denied preparing an emergency plan for Greece.

Not that Greece isn't going bankrupt, mind you, it's just that France doesn't have an emergency plan in place. Already gone (and probably not ever coming back) is Greece's refugee/asylum system, at least from the German perspective.. Excerpts:

Berlin announced this week that it is halting deportations to Greece for a year, despite European Union rules stating that the first country a refugee arrives in is responsible for processing any asylum request.

Germany's Interior Ministry announced on Wednesday that the new measure is aimed at reducing the burden on Greek authorities, who are struggling to deal with the volume of refugees reaching the country's shores and borders.
And:
Humanitarian organizations, including the United Nations Refugee Agency (UNHCR), have voiced concern about the conditions that asylum seekers and illegal immigrants are forced to endure in Greece, with overcrowded detention facilities and a dysfunctional and overstretched system of assessing asylum claims.

Kind of like their banking system! Speaking of which, the Finance Minister says that Greece won't try debt re-structuring(read; anything new) as it might worsen the country's financial situation. Instead, they'll continue to follow the EU/IMF approved directives for their bailout. Although they wouldn't mind to(unofficially) stretch those payments out a little..

Hell, it's worked really well so far!

Just In Case You'd Forgotten Greece Was In Meltdown..

2,000 locals attack riot police with Molotov's, sticks, stones and gun shots in Keratea, Attica; Athens gears up for long week of anti-cuts mobilisations and General Strike

In the past two days, local residents of the area of Keratea in Attica (Greater Athens) have been engaged in a fierce battle with riot police (MAT). The riot police are there to protect the construction of a waste burial site (HITA). Such burial sites have not only been judged to be illegal by European courts but additionally, the site in Keratea is of archaeological significance.

On Saturday, riot police arrived at the site to protect the ongoing construction works from the enraged locals. Clashes quickly erupted, with locals attacking the police with sticks, stones and scores of Molotov cocktails. The police responded with tear gas while for the first time ever in Greece, water cannons also made their appearance. On Sunday evening, gunshots were aimed in the direction of the police from nearby hills.

And there's a General Strike scheduled for Wednesday. As Greece's economy deteriorates, so does Grecian society. Don't look for an improvement in Greece's overall situation, either. No one seems to be getting anything right that might prevent catastrophe.

And, please don't forget who caused this crisis in the first place.. (Short answer: Creation of the Euro, Bankers gone wild, and Governments guaranteeing banker's gone wild bad debt.)