What a sovereign default would look like on the ECB’s balance sheet - -> http://globalriskinsights.com/2016/11/s ... nce-sheet/
Central banks’ QE programmes have exposed them to sovereign defaults in an unprecedented way. However, the most likely candidate in Europe is likely to do little damage.
Given the centrality that central banks’ intervention in financial markets and in light of the ongoing demands by the IMF that Greece’s Euro-zone creditors accept a debt haircut as the price of returning the country to debt sustainability, it seems pertinent to consider what such an event would look like.
Starting from the case of Greece, and ignoring whether debt relief is really necessary or not, two partial Greek default scenarios are used to illustrate the effect that such an event would have on the ECB. The resulting containment of such a shock is the result of Greece’s relatively small scale as well as the nature of modern fiat currency monetary systems, which endow central banks with flexibility not available to their predecessors as recently as the first half of the 20th century.there is more
IMF says Greece debt 'explosive' in long term - -> https://www.yahoo.com/news/imf-says-gre ... 52475.html
Greece's best-selling daily to cease publication due to debts - -> https://www.yahoo.com/news/greeces-best ... 05780.html
Creditors turn up pressure, demand legislation of reforms - -> http://www.ekathimerini.com/215645/arti ... of-reforms
Eurozone finance ministers turned the heat up on Athens on Thursday, demanding that it legislates measures now for the period after 2018, when the country’s bailout ends, dashing the government’s hopes of a swift conclusion to the second review of its third bailout.
The Eurogroup in Brussels, which the government hoped would pave the way for the return to Athens of the representatives of the country’s quartet of creditors to continue talks, was held just two days after the emphatic refusal by Prime Minister Alexis Tsipras to enact any further measures now.
Finance Minister Euclid Tsakalotos said the demands by the International Monetary Fund went “well beyond the European framework of democracy.”there is more
Half of families in Greece live on pensions - -> http://www.ekathimerini.com/215576/arti ... n-pensions
Greek society is evolving into a sum of households surviving on pensions while its most dynamic section, young people aged between 18 and 35, are abandoning it or considering abandoning it to seek a better life abroad, a survey by the Small Enterprises Institute of the Hellenic Confederation of Professionals, Craftsmen and Merchants (IME GSEVEE) has concluded.
The report published on Tuesday suggests that the long-term financial crisis, whose main victims are the middle class, is not only leading to a further decline in incomes and the broadening of inequalities, but also openly threatening social cohesion. The so-called therapy, with its constantly increasing direct and indirect taxes, may lead to primary budget surpluses but this is not returned to taxpayers in the form of public services, as at the same time public spending on health and education is also being reduced.there is more
A New Deal to Save Europe - Yanis Varoufakis -> https://www.project-syndicate.org/comme ... is-2017-01
LONDON – “I don’t care about what it will cost. We took our country back!” This is the proud message heard throughout England since the Brexit referendum last June. And it is a demand that is resonating across the continent. Until recently, any proposal to “save” Europe was regarded sympathetically, albeit with skepticism about its feasibility. Today, the skepticism is about whether Europe is worth saving.
The European idea is being driven into retreat by the combined force of a denial, an insurgency, and a fallacy. The EU establishment’s denial that the Union’s economic architecture was never designed to sustain the banking crisis of 2008 has resulted in deflationary forces that delegitimize the European project. The predictable reaction to deflation has been the insurgency of anti-European parties across the continent. And, most worrying of all, the establishment has responded with the fallacy that “federation-lite” can stem the nationalist tide.
The Year Ahead 2017 Cover Image
It can’t. In the wake of the euro crisis, Europeans shudder at the thought of giving the EU more power over their lives and communities. A eurozone political union, with a small federal budget and some mutualization of gains, losses, and debt, would have been useful in 1999, when the common currency was born. But now, under the weight of massive banking losses and legacy debts caused by the euro’s faulty architecture, federation-lite (as proposed by French presidential hopeful Emmanuel Macron) is too little too late. It would become the permanent Austerity Union that German Finance Minister Wolfgang Schäuble has sought for years. There could be no better gift to today’s “Nationalist International.” there is more