ditto…….

Tragically true — and Tsipras undermined the leader of the Greek Parliament, too, who had come out with the completed legal case to take to the WORLD as to why the majority of Greece’s debt load is fraudulent

it appears so.

Big Al in Gary’s segment said that fundamentals don’t make much sense at the moment.
I believe that “fundamentals” are always of paramount importance. If what is currently happening does not appear to be the logical consequence of “fundamentals”, I have always found it to arise from incomplete knowledge, rather than an illogical consequence of the fundamentals.
For example with regard to the Greek situation, the news report are incredibly superficial; none of the reporters seem to have actually read either the Greek proposal or the EU proposal.

Are you referring to:
http://sgtreport.com/2015/03/catherine-austin-fitts-the-secret-space-program-conference-2014-san-mateo-ca/

More debt, ……..structured by collateralized assets…(port, airports ,roads) …assets that will give a extra profit back to the carbal,banksters directly or indirectly. They are trying to steal the hard assets of the govt/people, the people will be forced to pay more in the way of services, directly or indirectly. The ownership will be transferred to the carbal after default occurs………

New money is created when debt is create(ie when a loan is created).

Sorry, I did not get back to you sooner,…….just saw the request…………..ootb

Interesting Chartster – I didn’t know they were backing it with collateral. Honestly, I haven’t been pouring over the details of the Greek situation, because it is all global pop theater to me. The implications are important, but personally I can’t stand listening to politicians or bankers do their double-speak.

Interesting developments for sure.

Hey, I said collateral backed……I should get an “A” on the quiz………… 🙂

Good points Chartster. These kind of policies could start a new paradigm.

Chartster! That’s a really good point you made. I just read your comments a few minutes ago and thought the observations were excellent. The new lending is partially collateral backed as you noted. The total loan is in excess of 80 billion but as before a considerable portion will be diverted outside Greece whereas the lions share of the debt is against pledged hard assets.

This has been done before by the way. There is at least one precedent that I know of and you might be interested to hear how that story turned out.

The Province of Newfoundland, (prior to entering Confederation and becoming the last region of Canada to become a province) had been a Dominion of the British Empire. That means in other words it was a self governing state within the commonwealth but was run under what was termed “Responsible Government”

Anyway, getting on with the story; Newfoundland ran aground on the shoals of massive debts and was burdened by unrepayable obligations brought on by a combination of their involvement in the First World War, falling commodity prices and the expenses of a major railway building program.

Under pressure from London and unable to make good to its creditors, the legislature voted itself out of existence and the government resigned. An non-elected administrative body called “The Commission of Government” was appointed in its place to oversee the States public affairs and subsequently debt relief and guarantees by the Crown were offered.

So that state of affairs went on for 15 years until the British eventually pressured Newfoundland to join Canada even as Newfoundlander’s were clamoring for a return to Responsible Government. Ostensibly the British reason for pressure was to gain forgiveness of some of Londons wartime debts by pawning off the territory to Canadian Government.

Finally a vote was held and Newfoundland narrowly voted in favour of joining Canada and thus becoming the 10th province. In the exchange, a large number of resources, the Fisheries, airports and the Railway that had caused them to bankrupt in the first place were shifted to Federal Canadian control. The railway eventually became part of Canadian National Railway (CNR).

So that was a case where assets of the State (and the State itself!) were used as collateral against British wartime debts and it is also how Newfoundland got off the hook for bills that could not be paid.

Sorry if I have not done this story justice in this post but you can always dig into it more if you are curious. What is interesting to me is how Greece gave up some Sovereignty in order to remain within the Euro.

I also suspect it is just a matter of time before the Greek government resigns and Greece is placed under the administrative rule of technocrats from Brussels much as happened in Canada back in 1933 when London exerted its will over one of its bankrupt states.

Agreed on the BRICS and AIIB.

It also indicates that the days of easy credit are coming to an end. Not just in Greece but around the globe. Assets matter again. Collateral matters again too. The credit bubble itself must deflate even as interest rates rise and again that is an outcome of credit tightening. So it is advisable to take the longest duration mortgages you can now as once the real troubles begin (and bank capital and reserves are at risk) it will become damnably hard to get loans of any kind unless you are well capitalized or you can post solid backing. Nobody should expect dollar for dollar loans to collateral either. Even as it stands most banks are unwilling to extend more than 50% against bullion and gold coins. Falling asset prices present a pickle for lenders. They cannot assign full value during a deflationary rout or asset price collapse. In fact, some types of real estate and other assets will be as good as worthless for those attempting to borrow as only the highest quality collateral will qualify. We must all be cognizant of this aspect of the lending cycle. Most particularly if you do indeed believe we will see a serious deflation (of bonds, homes, autos, securities etc) as the debt burdens come home to roost. And that is why Treasuries and similar paper are considered high powered during a bust. It is because they are cash equivalents and against those you can borrow even during down times.