Upcoming Events

International | EU

no events match your query!

User Preferences

  • Language - en | ga
  • text size >>
  • make this your indymedia front page make this your indymedia front page

Blog Feeds

Irish Left Review
Joined up thinking for the Irish Left

offsite link Hardship never lasts forever? Wed May 04, 2016 15:50 | Raymond Deane

offsite link DDCI calls on New Government to Strictly Regulate Vulture Fund Acquisitions Wed May 04, 2016 15:22 | Irish Left Review

offsite link Warning: Ultra-Low Spend Economy Ahead Wed May 04, 2016 11:59 | Michael Taft

offsite link May Issue of Socialist Voice Out Now Wed May 04, 2016 10:56 | Communist Party of Ireland

offsite link Time to Get Real Fri Apr 29, 2016 13:45 | Michael Taft

Irish Left Review >>

Cedar Lounge
For lefties too stubborn to quit

offsite link Sunday Independent Stupid Statement of the Week: DIY 09:28 Sun May 29, 2016 | Garibaldy

offsite link Latest poll. Same old same old. 19:35 Sat May 28, 2016 | WorldbyStorm

offsite link Moonbase 3 15:00 Sat May 28, 2016 | WorldbyStorm

offsite link 1979 Iran game 13:50 Sat May 28, 2016 | WorldbyStorm

offsite link Far right fans? 12:49 Sat May 28, 2016 | WorldbyStorm

Cedar Lounge >>

Dublin Opinion
Life should be full of strangeness, like a rich painting

offsite link Notes for a Book on Money and the Irish State - The Marshall Aid Program 15:10 Sat Apr 02, 2016

offsite link The Financial Crisis:What Have We Learnt? 19:58 Sat Aug 29, 2015

offsite link Money in 35,000 Words or Less 21:34 Sat Aug 22, 2015

offsite link THE WRATH OF KANE: BANKING CRISES AND POLITICAL POWER 09:32 Fri Jan 30, 2015

offsite link ALWAYS THE ARTISTS: WEEK THREE OF THE BANK INQUIRY 23:11 Thu Jan 22, 2015

Dublin Opinion >>

NAMA Wine Lake

offsite link Farewell from NWL Sun May 19, 2013 14:00 | namawinelake

offsite link Happy 70th Birthday, Michael Sun May 19, 2013 14:00 | namawinelake

offsite link Of the Week? Sat May 18, 2013 00:02 | namawinelake

offsite link Noonan denies IBRC legal fees loan approval to Paddy McKillen was in breach of E... Fri May 17, 2013 14:23 | namawinelake

offsite link Gayle Killilea Dunne asks to be added as notice party in Sean Dunne?s bankruptcy Fri May 17, 2013 12:30 | namawinelake

NAMA Wine Lake >>

Der Spiegel bombshell: The IMF plans to dump Greece

category international | eu | other press author Monday July 23, 2012 00:04author by T Report this post to the editors

Whats in store for Ireland

As reported by the financial blog The Automatic Earth written by Nicole Foss, she has reported that the German magazine Der Spiegel dropped a bombshell this morning in an article that the IMF plans to dump Greece in September. So far the Der Spiegel article is in German. Normally they will eventually publish articles in English.

"Griechenland könnte schon im September pleitegehen. Der Internationale Währungsfonds hat nach Informationen des SPIEGEL der Brüsseler EU-Spitze signalisiert, dass er sich nicht an weiteren Hilfen für das Land beteiligen werde."

Greece could go bankrupt as early as September. Spiegel has obtained information that the IMF told the Brussels leadership it would not make more money available for help to Greece.

The rest of the article goes on to point out that the IMF doesn't think that the Athens government will be able to bring down Greece's debt to 120% of GDP by 2020 and the troika estimates that giving Greece more time to achieve its goals would cost an additional €10 billion-€50 billion. Many eurozone governments, however, are no longer prepared to shoulder new Greek burdens. Moreover, countries like Holland and Finland have made their help contingent on IMF participation.

Another part she has translated is as follows:
Meanwhile, a Greek departure from the eurozone is seen as manageable in eurozone countries. In order to limit the risk of contagion, governments want to wait for the new ESM emergency fund to start. Which can't happen before the German constitutional court delivers its verdict on September 12.

The Der Spielel article is at: http://www.spiegel.de/wirtschaft/unternehmen/euro-krise....html

The reason for holding out till September is that they want to wait until the ESM is in place which is supposed to have a fund of €700 billion. Strangely this fund is supposed to be for bailing out Span and Italy should the need arise. One wonders why for Greece it isn't enough.

According to (blog author) Nicole Foss, this clearly has big implications. For one other smaller countries like Ireland and Portugal should be now much more nervous about what might happen next for them.

To quote she says:

The message might become that any and all reform and austerity measures demanded must be adhered to very strictly or else. Politicians in these other "borderline" countries might go along with it all, but will the people? Do the Irish really enjoy the idea of being strangled into submission? And will Spain really be "saved" once real debt numbers are known?

It seems far more likely that getting rid of Greece will be merely the first step in dissolving the entire eurozone. The rest of the dominos can then fall in rapid succession.


For those you are not familiar with The Automatic Earth blog and Nicole Foss, she has a good track record and is one of the few people who has managed to integrate their understandings of how Peak Oil and the Financial Crisis are interacting. She has consistently warned over the past few years that we are entering a major Depression because the current crisis is essentially the bursting of a 30 year bubble which is far bigger than the one during the 1930s and consequently the effects will be bigger. She has also consistently been of the opinion that we are in a deflationary environment and not likely to enter a hyperinflation as many other economists are predicting the eventual outcome to be. On how this relates to Peak Oil, she says that for the moment, the financial issues are the main drivers of action in the economy at the moment, and the depression, deflation and reduction in demand over the next few years will mask the effects of Peak Oil for a while.

You can find the full article at the link below.

Related Link: http://theautomaticearth.org/Finance/the-imf-plans-to-d....html
author by rianorr - napublication date Thu Dec 26, 2013 23:13Report this post to the editors

Foss is one of the more pessimistic writers re the global financial crisis. I think she argues
that inially there will be a deflationary depression for a number of years and then the governments
will start trying to print their way out of it.

She advises taking on no debt and having local networks of self-sufficiency to fall back on.
She has said she does not think the EU will survive the crisis intact. The future she describes is
dystopian, I sure hope she's wrong.

 
© 2001-2016 Independent Media Centre Ireland. Unless otherwise stated by the author, all content is free for non-commercial reuse, reprint, and rebroadcast, on the net and elsewhere. Opinions are those of the contributors and are not necessarily endorsed by Independent Media Centre Ireland. Disclaimer | Privacy