Says the European governments to the ECB. The model put in place to effectively extend Greek debt payments by mechanism of a bond swap for longer term and lower yields. In addition the Greek government will also undergo a selective DEFAULT. The selective default will wipe out 20% of debt against maturing bonds.
The possibility of this theme recurring year over year with Greece is quite high. This is because the economic profile of Greece is poor. In general they are naturally a weak economy and only managed to enter the Euro through deceit and brown envelopes passing hands in dark alleys. I say this because concerns where raised about their profile before they entered the Euro and thus the only way in would of been via brown envelopes.
Also the utopian society created on debt and early retirements was always economically doomed and a grade Z maths student understands that ponzi schemes can't last indefinitely as bubbles always pop.
Now can we believe that this is the only time that special circumstances will be used for only one specific country. Lets face it, politicians spend millions on making up rules just to throw them away when the pressure's on. They're already looking to change the rules about using rating agencies ratings for accepting collateral for debt issuance. So would they change the rules again for say another country. Sure they will, all it takes is a call from the USA president and a simple rule change to fire up the printing presses. This is the only way to ensure capitalist slavery continues down its Romanic path. For if the debt ponzi scheme is not continued then we could all end up living in a different world come 2020. It won't be long before Hollywood start making Mad Max 4, they're quite good at showing us our future.
At the end of the day this paper token scheme for swapping goods and services for money will start to look a bit silly when governments are printing money to wash away problems. At some point people will expect to be given free money globally per country if we can just wash it away with inflation and a hot printing press. Is there really any point working as a doctor on 100k a year when a cleaner in 10 years will be on the same money. Ok your salary may then be 1,000,000 but you would of wasted your time 10 years ago if inflation becomes silly. Lets face it, in such circumstances would it not just be best to sit back for 10 years and then re-enter the employment arena.
I always looked in amazement how the Zimbabwe leader seemed to be accommodated by all, especially by France. He walked around with his big smile, with most politicians smiling back each nodding like donkeys in mutual appreciation. The Zimbabwe presidents was running his printing presses 24/7/365 on nitro rockets. Lets consider why all this smiling mutual appreciation was going on. It clicked with me. He new that they new that he new that they soon in the future would be running up modifications of nitro rockets to their printing presses. This is what is known as diplomatic in the know heads of states sharing information at the most senior levels of government, in conjunction of having the in the loop economic professors within senior government. They all know that the current society which has been built on Romanic banking and demographic ageing populations with know real growth factors in the economy other that big government spending, will all go the Zimbabwe way. Which leads to the gold boom reflecting fear of loss of wealth via paper money. One must also understand that gold is nothing when your hungry and it can't build a home, bricks do that. It might look nice around your neck. You must also understand that gold in reality is as real as a newly made internet virtual currency, albeit you can see gold. But if everyone accepts a new currency, then gold is devalued as a means of trade, it's also not liked by Romanic banking for they like paper virtual currencies.
QE3 is an inevitability, more about that another time and more on how oil is useless if most people can't afford it.
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