NP - Greeking Greece

[David Morris]

http://blogs.channel4.com/paul-mason-blog/greece-crisis-austerity-deal-pointless/4197

Decoding the IMF: Greek deal doomed, exit likely

Step back further and take in the implications of the IMF’s secret report,
leaked yesterday, into the dynamics of Greece’s debt. The IMF says – after
the weeks of dislocation caused by the relentless bank run and the capital
controls – that the austerity deal is pointless. Greece needs a massive
debt write-off or large upfront transfers of taxpayers money from the rest
of Europe. It needs a 30 year grace period in which it will stop repaying
the loans.

Yet the entire deal done on Sunday night was premised on not a single cent
worth of debt relief. Vague commitments to “reprofile” debt – pushing
repayment times backwards and lowering the interest rates – were all Angela
Merkel could be persuaded to do.

What this means is very simple: the third bailout agreed in principle on
Sunday night is doomed to fail. First because the IMF cannot sign up to it
without debt relief; second because, without debt relief it will collapse
the Greek economy. This is even before you factor in issues like mass
resistance to its details, or the total lack of enthusiasm for execution of
the deal by the Syriza ministers who will have to do it.
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://waste.org/pipermail/pynchon-l/attachments/20150715/666cfea9/attachment.html>