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120 billion on top of 110 billion last year.

Holy cow, where was Greece's debt again last year?

Less than 300 billion. 110% debt to GDP.

And they are throwing 230 billion in 3 or 4 years at Greece?

Varoufakis' plan looks like the right one--especially if it had been adopted last year.

by Upstate NY on Sun Jun 12th, 2011 at 10:24:34 PM EST
ECB loan the freaking money at 0%!! All standing debt.. even better, do not loan, just PRINT it. State " We prefer inflation at 4% in Europe than Greece down the memory hole" and request for a plan against tax evasion and capital flight for Greece in exchange...

And Greece.. request this inmediately to the ECB and Germany..and if they do not "surrender".. get THE FREAKING OUT of the euro!!! Capital control, create the ND coin, let it float in the international currency market and fix all the debt in your new unit of account... and default at will.

You will doing Spain the best gift of my lifetime.

A pleasure

I therefore claim to show, not how men think in myths, but how myths operate in men's minds without their being aware of the fact. Levi-Strauss, Claude

by kcurie on Mon Jun 13th, 2011 at 11:13:41 AM EST
[ Parent ]
In fact the ECB, I would imagine, is in excellent position to really help with "tax evasion and capital flight for Greece" if they want to. Yet I never heard of any such offer...

The road of excess leads to the palace of wisdom - William Blake
by talos (mihalis at gmail dot com) on Mon Jun 13th, 2011 at 11:20:36 AM EST
[ Parent ]
They could lend a hand indeed.. but the Greek Central Bank (the former structure) is the key player you have to cure/develop. They are the one who should have enough manpower to do it.

A pleasure

I therefore claim to show, not how men think in myths, but how myths operate in men's minds without their being aware of the fact. Levi-Strauss, Claude

by kcurie on Mon Jun 13th, 2011 at 11:23:13 AM EST
[ Parent ]
There is an ongoing run on Greece which entails capital flight. The Bundesbank is open to capital controls but the time to apply them would have been a long time ago. Now the horse has left the barn.

Economics is politics by other means
by Migeru (migeru at eurotrib dot com) on Mon Jun 13th, 2011 at 11:41:06 AM EST
[ Parent ]
Bloomberg: Portuguese, Irish Government Bonds Lead Decline on Greek Bailout Concern
German debt advanced on demand for the euro-region's safest assets, driving 10-year yields to a five-month low. Two-year German yields reached the lowest since March 17, while the spread between Portuguese 10-year bonds and German bunds widened to a record. Luxembourg Prime Minister Jean-Claude Juncker said a bailout for Greece must include "voluntary" investor participation. Costs to insure Greece, Ireland and Portugal's debt against default reached all-time highs.

...

Juncker is trying to bridge the gap between German Finance Minister Wolfgang Schaeuble, who has called for Greek bondholders to extend the maturities of their debt by seven years, and European Central Bank President Jean-Claude Trichet, who says imposing losses on creditors would be akin to a default. Trichet is scheduled to speak today in London.

...

[Bundesbank President Jens] Weidmann said the ECB was unwilling to turn its emergency bond-buying program into a "lasting institution" and that Greece's implementation of austerity measures and asset sales was crucial to securing the handout. He spoke yesterday in an interview with German newspaper Welt am Sonntag.



Economics is politics by other means
by Migeru (migeru at eurotrib dot com) on Mon Jun 13th, 2011 at 12:13:40 PM EST
[ Parent ]
Were Papandreau and his cabinet not totally in the grip of Athens Syndrome, (move over, Stockholm Syndrome), they should counter-offer the right to the ECB to collect the last 10 years worth of avoided taxes on high net worth Greeks, especially those with assets abroad or on the high seas. The cabinet could pledge full cooperation in identifying these individuals and the ECB would have the choice of seizing part or all of the expatriated assets or taking the tax due on imputed incomes. While that might be a slight push on the laws involving tax collection, it would pale in comparison to the actions now proposed.

Going after those avoided taxes first would allow those who are significantly responsible for the revenue shortfall to do their part in helping Greece in its time of need. Were the Troika to demur, they should default, institute their own currency, etc. -- IMMEDIATELY!

As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."

by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Mon Jun 13th, 2011 at 03:38:27 PM EST
[ Parent ]

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