Loading ...This is from my good buddy Dave Stockman=
The Germans have an impolite term for what that adds up to—- einen shitschturm!
And it will be a doozy. What the referendum did was to force the troika con job out of the accounting shadows. The Greek people now fully understand that it was not they, but the European banks and bond funds which were bailed out by the troika.
a write-down of Greece’s £270 billion debt mountain was now ‘off the table’ after the referendum.
Next, throw into the mix prime minister Tsipras once again trolling around Putin-land for an alternative source of money; a German government which cannot even discuss a third bailout deal prior to a favorable resolution from a hostile Bundestag, which also happens to be on recess; and an open breach between Angela Merkel and Francois Holland on the core matter of a debt haircut and accommodation of Greece’s demands for relief from the troika memorandum.
The latter shatters the very Franco-German alliance on which the entire rotten troika bailout regime has rested.
And the taxpayers of Europe now understand that it is they who are on the hook, not the Greeks who can’t and won’t pay; and not the Brussels apparatchiks, who committed them to off-budget guarantees that they falsely assured would never come due.
Yes, Germany is liable for 95 billion euros via bilateral loans, the EFSF and its share of the ECB advances to Greece. Then comes France with 72 billion euros of claims against its taxpayers and Italy with 63 billion euros of liabilities.
The latter happens to amount to 4% of Italy’s GDP, which is still 10% smaller than it was in 2007. But when it comes to the debtors dystopia called Europe—who is counting? The Italian state already has public debts of 2.1 trillion euros (130% of GDP) and a government which has been absolutely paralyzed for years.
But here’s the thing. When the Greek due bills come to its parliament, the anti-euro opposition parties, led by Beppe Grillo’s radical Five Star Movement, will have a field day. They will ask, quite appropriately, how was it that the giant, insolvent wards of the French state, otherwise known as universal banks, were able to reduce their exposure to Greece from 78 billion euros in 2009 to only 2 billion euros at present by transferring the cost to, among others, Italian taxpayers!