The irony cannot be missed.
As Greeks all over the world celebrated their 25th of March Independence Day from Turkish Ottoman rule, the Hellenic Republic is about to be further enslaved by the Brussels oligarchs, in what is shaping up to be a massive bail in, the likes of which will rock Greek society for decades to come.
One thing appears certain, the European sultans in Brussels are sure having their fun grabbing money from hellenic citizens. Cyprus in 2013, and now Greece is on the horizon for 2015.
With The ECB banning Greek banks from continuing the GGB-buying ponzi scheme, the banking system in deposit outflow panic, cash running extremely dry, food shortages building, and bond/loan payments looming, Greek celebrations of Independence Day today are likely tempered by European officials coin-tossing over the nation’s future (in or out of the EU).
Things appear to be getting desperate as it is becoming increasingly clear there is very little cash in the Greek Banking system… ECB funding lines in February Here’s a timeline showing how the cap has gradually increased since Feb 5th when it was set at ~EU60b:
- Feb 5 Set at EU59.5b
- Feb 12 Raised to EU65b
- Feb 18 Raised to EU68.3b
- Mar 5 Raised to EU68.8b
- Mar 12 Raised by EU600m
- Mar 18 Raised by EU400m
- Mar 25 Raised to just over EU71b
All of which will be “Bailed In” courtesy of whatever depositors (and bondholders) are left after this ends and Th ECB grabs its cash back…
Perhaps, in the future, The Greeks will mourn “In Dependence” Day as opposed to celebrating “Independence” Day…
Greeks celebrate their independence Wednesday with a military parade and a folk-music festival sponsored by the Ministry of Defense, as European officials more than 1,000 miles away review the financial aid that will shape their future.
Euro-area finance ministry officials will have a discussion on the progress of the country’s economic policy program. Without access to capital markets, or the ECB’s normal financing operations, Greek banks rely on almost 70 billion euros ($76 billion) of ELA to cover a financing shortfall exacerbated by steep deposit withdrawals… which The ECB just upped to EUR71bn.
The government of George Papandreou scaled down military parades to cut costs after the Greek debt crisis erupted in 2010. Fighter jets made a comeback to the skies of Athens last year at a cost of about 500,000 euros, according to a defense ministry official from the previous administration.
With government cash supplies running out and negotiations on financial aid only inching forwards, European officials have said that Greece could default on its obligations within weeks unless there’s a breakthrough.
The government has to pay about 1.5 billion euros of salaries and pensions by the end of March and Prime Minister Alexis Tsipras is at loggerheads with its creditors over the conditions attached to its emergency loans.
Revenue from taxes also missed budget targets by about 1 billion euros in the first two months of the year, the country’s Ministry of Finance said Tuesday, further depleting cash buffers.
The statements, views and opinions expressed in this column are solely those of the author and do not necessarily represent those of The Duran.