Greece Will Shut Banks in Fallout From Debt Crisis. Likely to be pushed out of E.U

[krish44]

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Danger to indian economy is more likely due to US action as dollar has strengthened against the euro . Fed may feel confident to raise the interest rates to send india

spinning. Add to it the chinese stance and actions to protect its share market it is dicey scenario .

India normally knows to raise the barriers to protect itself.

but never it does anything fast enough.

its legendary inaction when faced with a crisis is both a blessing and a curse.

but eventually india gets it right after a few hiccups and some losses.

last time indian rupee crashed to 67rs to a dollar before regainig.

when large scale capital outflow takes place due to US actions , what could be indias response.

emerging nations are bound to pay a price due to actions of the developed nations.

that is the price of opening out and trying to integrate with the world economy.

our economic think tanks need to get their act together for a more viable response to global economic crisis.

ultimately it cannot depend on RBI governor alone to take care of 130 cr indian population.

Earlier in 2008 Y V Reddy saved indian banks by refusing dilution of govt stakes in nationalised banks and his wisdom of fiscal control.

Ultimately the future of indian economy is in few hands who put the nation before themselves .

there is a lesson in all this for indians .

chinese have given the lead.

india can close its doors a little more and look inwards and concentrate on domestic production and consumption .

there is a need for more controls on outflow of money and meaningless imports of non essential consumer goods and such items.

we do not require scents from paris, italian marble tiles to be imported.

return to licence quota raj and be peaceful .lol

leave it to smugglers to get us what we want from abroad .may not be such a bad idea huh

 

[vgane]

Now Obama is trying to act Big Brother & resolve the Greece crisis...Is Obama going to negotiate the Chinese melt down of stocks with the Chinese premier?

[h=1]Greek PM calls Obama to discuss debt crisis[/h]July 08, 2015

---

US President Barack Obama has asked the European and Greece leaders to strike a deal on the debt crisis that can benefit the global economy as a whole. Greek Prime Minister Alexis Tsipras phoned President Obama yesterday and briefed him about the crisis.


"The President received an update from Prime Minister Tsipras on his ideas for a path forward between Greece and its creditors," the White House said in a statement.


Obama reiterated that it is in everyone's interest that Greece and its creditors reach a mutually-acceptable agreement, the statement said.


He also spoke with German Chancellor Angela Merkel about Greece debt crisis and the two leaders agreed that it is in everyone's interest to reach a durable agreement that will allow Greece to resume reforms, return to growth, and achieve debt sustainability within the Eurozone, the White House said.


"The leaders noted that their economic teams are monitoring the situation in Greece and remain in close contact," it said. "The conversations reflected the view that all parties continue to acknowledge that it's in their collective and mutual interest for Greece to remain part of the Eurozone," White House Press Secretary Josh Earnest told reporters.


http://news.rediff.com/commentary/2...-debt-crisis/42b06392d914817663840edc38e9ffd0

 

[krish44]

Russian TV put out a news item about greece being keen to join the brics grouping and approaching brics bank for a bail out.

their woes also include entry of 80000 illegal immigrants from syria.

countries like greece ,turkey do not fit into euro zone . they can look east wards instead of europe.

greeks have no plans to offer to EU nations for a bail out.

They might issue IOUs as currency to its people along with electronic transfer of funds .

Bank ATM machines have run out of 10 and 20 dollar bills , so pensionars can get only 50 dollar bill for 60 euro sanctioned to them

export units are unable to ship their products as banks cannot issue the requisite documents.

greeks have basically hung up

their PM has no plan to present to EU . so EU fellows are frustrated. and unable to handle the greece issue.

letus see what obama does

 

[sarang]

It is a trying time for greece. Russia went through a similar catastrophy when the union collapsed. In one day ruble collapsed from Rs 25 per ruble to 25 rubles per rupee. India did not capitalise, but worked out a mutually favourable barter deal during the crisis period. USA did not help india in diluting its surplus pl480 wheat import pool. In many respects russia was better ally than usa both in peace and war periods.

The international community wrote off most of the debt burden of post war germany. With greece, we have to wait and see.

 

[vgane]

Greece debt crisis: Eurozone 'sceptical' of reform pledge

• 12 July 2015

Eurozone finance chiefs are seeking further signs from Greece that it is serious about delivering its promises of reform in return for a debt rescue.


Several ministers arrived for their crunch meeting in Brussels expressing scepticism that Athens would implement the austerity measures it has proposed.


The meeting later adjourned and will reconvene on Sunday morning.


Eurogroup chief Jeroen Dijsselbloem said negotiations were "still very difficult" but work was in progress.


Earlier, Greece's Economy Minister Giorgos Stathakis told the BBC his government is "committed to moving forward".


Greek MPs have voted in favour of the measures proposed by PM Alexis Tsipras - despite the fact that many of the ideas had been rejected by the Greek people in last Sunday's referendum.


How the day unfolded

The meeting between 18 eurozone ministers and Greek Finance Minister Euclid Tsakalotos in Brussels began early afternoon on Saturday and continued late into the evening before breaking up.


Talks are due to resume at 09:00 GMT, Mr Dijsselbloem said.


One unnamed European official, quoted by the Associated Press, said there was a general feeling in the room that the Greek proposals are "too little, too late" and as such "more specific and binding commitments" are needed from the government in Athens.

So a pause for breath overnight before finance ministers resume in the morning. No-one thought this would be easy.

They want more specifics from Greece - more on product and labour market reform, and possibly a commitment to pass specific reforms in the Greek parliament in the coming days.


But there are still much broader issues at stake - countries which think that the numbers being talked about represent far too much money to offer Greece in a third bailout.


And the divisions within the eurozone have become increasingly public.


Finland's government appears to be in open revolt about a third bailout. Italy, on the other hand, is set to demand that a deal must be pushed through on Sunday for the sake of European unity.


On one issue all sides agree - this is not just about the future of Greece, it is about the credibility of the single currency.


http://www.bbc.com/news/world-europe-33491776

 

[vgane]

[h=1]Eurozone clinches bailout deal with Greece after all-night haggle[/h]
Reuters | Jul 13, 2015

BRUSSELS: Eurozone leaders clinched a deal with Greece on Monday to negotiate a third bailout to keep the near-bankrupt country in the euro zone after a whole night of haggling at an emergency summit.

"Euro summit has unanimously reached agreement. All ready to go for ESM programme for Greece with serious reforms and financial support," European Council president Donald Tusk announced on Twitter, referring to the European Stability Mechanism bailout fund.

However the tough conditions imposed by international lenders led by Germany could bring down Prime Minister Alexis Tsipras' leftist government and cause an outcry in Greece. Even before the final terms were known, his labour minister went on state television to denounce the terms.

"We were able to keep the unity on keeping Greece inside the euro zone," Slovenian Prime Minister Miro Cerar said on his Twitter account.

EU officials said Tsipras finally accepted a compromise on German-led demands for the sequestration of Greek state assets to be sold off to pay down debt. The terms of the agreement were not immediately known.

The Greek leader also dropped resistance to a full role for the International Monetary Fund in a proposed 86 billion euro ($95.78 billion) bailout, which German Chancellor Angela Merkel has declared essential to win parliamentary backing in Berlin.

However, in a sign of how hard it may be for Tsipras to convince his own Syriza party to accept the deal, Labour Minister Panos Skourletis said the terms were unviable and would lead to new elections this year.

As the hours ticked away overnight, most of the leaders were forced to cool their heels, playing computer games or taking a nap in their delegation offices while Tusk and the leaders of Germany, France and Greece met several times privately to try to cut through the final knots.

Tsipras will now have to rush swathes of legislation through parliament this week to convince his 18 partners to release bridging funds to avert a state bankruptcy and just to begin negotiations on a three-year loan.

If the summit had failed, Greece would have be staring into an economic abyss with its shuttered banks on the brink of collapse and the prospect of having to print a parallel currency and in time exit the European monetary union.

Six sweeping measures including spending cuts, tax hikes and pension reforms must be enacted by Wednesday night and the entire package endorsed by parliament before talks can start, the leaders decided.

In almost the only concession after imposing a tough set of terms on Tsipras, Germany dropped a proposal to make Greece take a "time-out" from the euro zone that many said resembled a forced ejection if it failed to meet the conditions.

Tsipras said on arrival in Brussels on Sunday he wanted "another honest compromise" to keep Europe united. Instead, he was subjected to a 15-hour humiliation by leaders furious that he had spurned their previous bailout offer on more favourable terms in June and held a referendum last week to reject it.

One senior EU official calculated the cost to the Greek state of the last two weeks of political and economic turmoil at 25 to 30 billion euros.

HARD BARGAIN

Merkel, whose country is the biggest contributor to euro zone bailouts, warned from the start that she would drive a hard bargain against a backdrop of mounting opposition at home to more aid for Greece.

"The most important currency has been lost and that is trust," she told reporters. "That means that we will have tough discussions and there will be no agreement at any price."

If Greece meets the conditions, the German parliament would meet on Thursday to mandate Merkel and Finance Minister Wolfgang Schaeuble to open the talks on a new loan. Then Eurogroup finance ministers could formally launch the negotiations.

Perhaps the toughest condition for Tsipras to swallow was Germany's insistence that Greek state assets worth up to 50 billion euros be placed in a trust fund beyond government reach to be sold off with proceeds going directly to pay down debt.

Berlin initially wanted to use a structure in Luxembourg managed by its own national development bank, KfW, but diplomats said it was flexible on the location.

EU and IMF experts evaluate Greek assets currently earmarked for privatisation at just 7 billion euros.

One diplomat said that was tantamount to turning Greece into a "German protectorate", stripping it of more sovereignty.

But Merkel declared the matter a "red line" for Germany.

For his part, Tsipras demanded a stronger commitment by the creditors to restructure Greek debt to make it sustainable in the medium-term. That could be his only hope of selling such a deeply unpalatable package to his own supporters and the public.

An EU official said several options were under consideration to give Greece bridging funds once it passed the laws, but no final decision was taken.

They included releasing European Central Bank profits on Greek bonds, tapping an emergency fund run by the European Commission, or bilateral loans from friendly countries such as France. Two French sources denied any bridging loan was planned.

Finance ministers said Greece needed 7 billion euros of funding by July 20, when it must make a crucial bond redemption to the European Central Bank, and a total of 12 billion euros by mid-August when another ECB payment falls due.

Some diplomats questioned whether it was feasible to rush the package through the Greek parliament in just three days. Tsipras is set to sack ministers who did not support his negotiating position in a vote last Friday and make dissident lawmakers in his Syriza party resign their seats, people close to the government said.

Greek sources said Tsipras feared a public backlash in Greece when the terms of the bailout become known.

Even while Tsipras was still at the table in Brussels, one of his ministers went on television to say he could not blame lawmakers who would find it hard to say 'Yes' to the emerging cash-for-reforms deal.

"It's clear this deal does not represent us," Skourletis said.

http://timesofindia.indiatimes.com/...ter-all-night-haggle/articleshow/48051210.cms

 

[vgane]

Greece social media erupts

Meanwhile, emotions were raw on social media, as people voiced their opposition to the Europe’s restrictions on Greece as a “coup.” Nobel Prize-winning Economist Paul Krugman, who previously had been vocal in his rejection of further austerity, lent his support to the hashtag, saying the “#ThisIsACoup is exactly right” and that the European finance ministers’ list of demands were "madness" in a New York Times op-ed published on Sunday.
Eric Lohman @erlohman
No need to invade a country, destroy its people, and take all the assets. Politicians and bankers can do it thru austerity #ThisIsACoup
4:13 AM - 13 Jul 2015 · London, Ontario, Canada

• http://www.telesurtv.net/english/ne...s-Twitter-Says-ThisIsACoup-20150712-0012.html.

 

[vgane]

[h=1]Greek civil servants' union calls 24-hour strike for Wednesday[/h]July 14, 2015

---

Greece's public servants are being called to stage a 24-hour strike for today, the day their country's parliament is to vote on reforms needed to unlock a crucial eurozone rescue.


Their union, Adedy, called for the stoppage in a statement issued today, saying it was to show their opposition to the outline agreement with the eurozone.


It will also urge the civil servants to take part in a demonstration against the reforms scheduled to take place in front of parliament late Wednesday.


This will be the first strike to happen under the six-month-old government of Prime Minister Alexis Tsipras, who is head of the radical left coalition Syriza.


Before coming to power, Syriza participated in stoppages and demonstrations against austerity in 2010 and 2014 which previous conservative governments voted for.


Demonstrations were already to take place in Athens late Monday against the latest reform package, which requires parliament to back tax hikes and pension cuts in return for the eurozone bailout worth up to 86 billion euros ($96 billion), and against the euro. Without the loan, Greece's economy is likely to shatter, with exit from the euro a very real possibility.


To secure the rescue, Tsipras is going to have to win parliamentary backing, maybe relying on opposition votes if many of his Syriza MPs rebel.


Syriza and its junior coalition partner, the Independent Greeks, are to hold separate meetings tomorrow to study the reform package.




http://news.rediff.com/commentary/2...or-wednesday/1fea023a700991409fce86578d898a02

 

[krish44]

There was an interesting article today in The HT' how on a smaller scale india faced the issue of increased fiscal deficit and low dollar reserves in 1991 that

chandrasekhar

govt had to pledge gold of several millions and had to go to IMF for loans twice .manmohan singh as finance minister in narasimha raos govt had to open up the indian economy, dilute stakes in

public sector, devalue indian rupee.sometimes IMF prescriptions damage the economy and make them open to foreign govts for further exploitaion . luckily india

stopped with two loans from IMF and built up gold reserves again in 2009. Today has a huge pile of foreign reserves to overcome chinese or greece problems . but

incase US rises interest rates, india can again be in difficulty.

terms set to greece are humiliating. Rich EU countries want to control economically Greece.Agreement is a gross sell out of sovreignity of greece.

Greece should exercise the Grexit option at the earliest. at least they would not be economic slaves of rich EU nations.

Some have compared the situation to Versailles treaty after the world war.

 

[sangom]

There was an interesting article today in The HT' how on a smaller scale india faced the issue of increased fiscal deficit and low dollar reserves in 1991 that

chandrasekhar

govt had to pledge gold of several millions and had to go to IMF for loans twice .manmohan singh as finance minister in narasimha raos govt had to open up the indian economy, dilute stakes in

public sector, devalue indian rupee.sometimes IMF prescriptions damage the economy and make them open to foreign govts for further exploitaion . luckily india

stopped with two loans from IMF and built up gold reserves again in 2009. Today has a huge pile of foreign reserves to overcome chinese or greece problems . but

incase US rises interest rates, india can again be in difficulty.

terms set to greece are humiliating. Rich EU countries want to control economically Greece.Agreement is a gross sell out of sovreignity of greece.

Greece should exercise the Grexit option at the earliest. at least they would not be economic slaves of rich EU nations.

Some have compared the situation to Versailles treaty after the world war.

Is it not true that the abovesaid "opening up of the Indian economy" has made India also as a subservient country to US and other developed countries and we are still not economically a "sovereign nation"?

 

[vgane]

Is it not true that the abovesaid "opening up of the Indian economy" has made India also as a subservient country to US and other developed countries and we are still not economically a "sovereign nation"?

Dear Shri Sangom,

What was the alternative in 1991 when we started the economic iberalization...We did not have any choice..Had you been the Finance Minister (not joking) what would you have done..Our foreign reserves were a pathetic $ 1.2 Billion in Jan 1991 with very serious balance of payments issue

 

[krish44]

My point sangomji is that we have become more vulnerable to global economic events due to opening up of the economy.

now any EU country defaults or china stock market crashes or US raises interest rates , india catches a cold and has to put up barriers so that it is not affected. It is the effect of

opening too much too fast.

RBI governor has to keep having sleepless nights waiting for the US move to raise interest rates. .

We need to keep the barriers up to make capital outflows difficult.

We need to protect our agriculture and industries from foreign onslaught.

What is coming into the country by opening up are only mostly perfumes and other exotic consumer durable we can do without.

We can very well do with indian TVs instead of sony or samsung.

How much of useful technology transfer has taken place?

Our scientists and engineers still have to run out of the country to make a decent living.

Our manpower is either under utilised or unutilised .

Suddenly we realise one third of our rural folk are having neither manual work, land or homes.

has opening up of economy helped them anyway?

what is the point in talking sovereignity when in economic terms conditions of our poor are pathetic


. only the differences between the rich and the poor has increased

 

[vgane]

Tough task for Greece PM...Looks Greece is heading for Parliamentary elections!

Greek parliament approves tough creditor reforms bill


AFP Jul 16, 2015, 05.23AM IST

ATHENS: Greece's parliament early on Thursday strongly approved a bill of tough reforms demanded by the country's creditors in return for a new bailout, according to official results.

A final count showed 229 lawmakers voted in favour of the measures, with 64 voting against and six abstaining.

The ruling radical Syriza party passed the bill thanks to support from pro-European opposition parties as a large group of government lawmakers - including former finance minister Yanis Varoufakis, the head of parliament Zoe Constantopoulou and energy minister Panagiotis Lafazanis - voted against the measures.

Prime Minister Alexis Tsipras, who has nearly split his party in the process, insisted he did not agree with the bulk of the draconian deal, that demands tax hikes, a pensions overhaul and privatization pledges.

But he said the country had no other choice if it wanted to stay in the euro.

"We will not back down from our pledge to fight to the end for the right of the working people," he told the chamber ahead of the vote.

http://timesofindia.indiatimes.com/...reditor-reforms-bill/articleshow/48092634.cms

 

[sangom]

My point sangomji is that we have become more vulnerable to global economic events due to opening up of the economy.

now any EU country defaults or china stock market crashes or US raises interest rates , india catches a cold and has to put up barriers so that it is not affected. It is the effect of

opening too much too fast.

RBI governor has to keep having sleepless nights waiting for the US move to raise interest rates. .

We need to keep the barriers up to make capital outflows difficult.

We need to protect our agriculture and industries from foreign onslaught.

What is coming into the country by opening up are only mostly perfumes and other exotic consumer durable we can do without.

We can very well do with indian TVs instead of sony or samsung.

How much of useful technology transfer has taken place?

Our scientists and engineers still have to run out of the country to make a decent living.

Our manpower is either under utilised or unutilised .

Suddenly we realise one third of our rural folk are having neither manual work, land or homes.

has opening up of economy helped them anyway?

what is the point in talking sovereignity when in economic terms conditions of our poor are pathetic


. only the differences between the rich and the poor has increased

I fully agree with you krishji.