This is a pretty extreme law, particularly for Spain. Did Franco rise from the dead or something?
Napoleon tried to do it. Hitler tried to do it. Both failed. Europe in the post medieval era has never been fully conquered. Europe has remained multiple states. Given that it is a continent defined by mountain ranges, peninsulas, and islands this makes sense. It is a landmass of cul-de-sacs. It is not a vast plain which is easily overrun. But now the eurocrats (many unelected) are trying to take over Europe via administrative means.
The goal is a “United States of Europe,” but don’t be fooled. This USE is not a democratic endeavor, as the recent subjugation of Greece shows. It is about domination and coercion.
As Nigel Farage head of the United Kingdom Independence Party said recently a USE would be more like the USSR than the USA.*
Tough decisions in Greece. Huge pressures.
I was watching Bloomberg last night just before midnight and they were reporting that the hashtag #thisisacoup was the highest trending hashtag on Twitter for a while yesterday. So what does that tell you?
The Germans (and others) wanted to crush Greece. And it looks like Deutschland may have succeeded.
Farage addresses Greek Prime Minister Alexis Tsipras personally on the floor of the European Parliament and encourages the leader, and it appears that Tsipras is a leader, to exit the Eurozone “with (his) head held high.”
Indeed there are many “friends of Greece” around the world. More friends than Goldman Sachs, that’s for sure. Though Goldman’s friends tend to be more powerful.
Greece, pull an Iceland.
See, now that we know what the problems are, getting the whole Greek economic crisis thing under control should be pretty easy.
Mohamed El-Erian says the Greek “no” vote is like this scene from the classic movie Network.
Armageddon? Probably not. End of the euro? Probably not. End of the United States of Europe? Probably not. A moment of reality for world markets which have existed for too long in a fairy land? Very possible.
If nothing else this vote is refreshing. (Easy for us to use such terms.)
“You can run on for a long time…Sooner or later God’ll cut you down…” – Johnny Cash
Greece got “subprimed” into the EU. It didn’t have the credit rating to be part of the euro experiment but Goldman Sachs found a way to make Greek numbers palatable to Brussels (Brussels wanted Greece anyway) in 2000. Now reality has come and Europe’s southern economic headland is disintegrating.
As the author of the attached article correctly notes the most recent Greek crisis represents a transition in the economic narrative. (It’s not just Greece though. What’s happening in China and in South America is also a big part of it.) Of course the Austrian economists have known that this day would come sooner or later. Yes, one can print. Yes, one can paper over an economy for a while. But sooner or later the cracks in the paper mache appear.
Greece is a big crack.
How does the Fed get dollars to European banks when said banks run out of dollars in which to do dollar denominated business? Print some new ones, then have the euro banks swap euros for the new dollars. A little of this. A little of that. And presto, mini euro-bailout. (Or maybe not so mini depending on the circumstances.)
OK, so Greece is messed up. We know that. It’s not a surprise. The call for a referendum from Athens was a surprise but not the end of the world.
The periphery of Europe has been eroding for a long time but things are speeding up. Think of Greece as a headland crumbling into an unrelenting and angry financial sea.
So the people will decide. That’s good I suppose. Is the EU about to retreat from its frontiers? Will the Greek people capitulate? What will equity and debt markets do? Which country is next? If you have the answer to any of these questions please feel free to contact me in short order.
At this point if you still have a pile of euros in a Greek bank you almost deserve to be taxed in such a terrible way. Of course most of the accounts in play here aren’t stuffed to the gills with money but are everyday accounts used for paying rent and buying groceries.
But not to worry, rich folks may soon see capital controls on transfers of over a million euros. And if you have a million euros in a Greek bank at this point, after all that has happened, I don’t have all that much sympathy.
Both the withdrawal tax and the capital controls still have to be approved by authorities. One can only assume that queues are wrapping around the Athens Wells Fargo as I write this.
Call it the new abnormal.
Since 2008 the world has been turned upside down. In our collective panic we have disrupted whatever used to pass for economic homeostasis. Now the globe is moving (moved) toward a negative interest rate environment for government bonds.
Please, take my money. I’ll pay you to take my money! Why am I paying a government to hold my money? Well, because the economy is so healthy of course.
Indeed don’t. That would not be wise.