Moral Outrage
Whew! God help us!

Greece to default and cut from Eurozone on March 23?

According to a prominent blog post, written document giving firm dates and detailed actions for a planned Greek default has been in the possession of two top Wall Street bank currency trading bosses since the second week in January.

The document asserts that Greece will officially be declared in default by all the ratings agencies after the close of business on Friday March 23rd . At the weekend all Greek bank accounts will be frozen, with emergency measures detailed to prevent the flight of capital. All major banks would be instructed not to deal with euro exchange as of Monday 25th March.

Reviewing the timeline of the Greek Debt Marathon, the back end of it is pretty obviously one of persistent sabotage from Berlin, Brussels, and the IMF (The Troika).

In the last three weeks, several EU officials have pumped out the line – over and over again – that Greek default is no longer the bogeyman people thought it was….or to be more precise, they told us it was.

First of all Draghi pumps money into the banking system, then the Troika slows everything down. Now awkward facts come to light about the existence of ‘a plan’ which would protect America – by dumping the Greek contagion – and help the eurozone by concentrating the bailout cash available to save the bigger players: Italy, Spain and France.

An unpleasant phrase is doing the rounds in Brussels at the moment: “Amputate and cauterize” (Cauterization being burning part of a body in an attempt to mitigate damage, remove an undesired growth, or minimize other potential medical harmful possibilities such as infections.)

It’s certainly beginning to look like that.

6 Responses to “Greece to default and cut from Eurozone on March 23?”

  1. Okay. So I live in Greece. My husband works for the government (he’s a teacher, not a bureaucrat, let’s just get that straight haha). Will he get paid in April? (No, according to this scenario.) Is it morally wrong for us not to pay our rent on April 1? (Our rent was 30% of our income when we signed the lease. It’s now 80% of our income because of cuts to teachers’ salaries, but we’ve always paid in full and on time.) I don’t want to do the morally wrong thing. Any ideas? (I ask since you call yourself moral outrage 🙂 )

  2. Wow, bad situation! Sorry!

    Having lived in Greece as well some years back, I can only mourn with you the sad state of affairs existing there today in what was such a great place.

    But on your basic question, tough call! All I can offer in response to your question is “according to your faith and leading”. You need to be able to live with your conscience.

    Beyond that, if you have any savings seems you may want to have them in cash in a stable currency and not stuck in a bank come late March. And use this time to stock up on vital supplies, assuming there could be a run on the stores, shortages and prices surging, etc.

    • thanks for your reply! we have been doing our best to get supplies stocked up… to the extent that we can afford them and store them of course! I am actually “grateful” in a sense for this ‘grace period’ where we all know it’s going to happen but it hasn’t happened yet – prices are high here and we have terrible inflation but it’s NOT hyperinflation and it’s still doable. We pay utilities and a car payment, but if things were desperate, I wouldn’t feel *morally* “bad” about not paying an electric bill or the bank for the car – of course not until it were truly desperate. but our landlord is a retiree, I know he’s much better off than we are but still, he’s an individual. I hate that we don’t own our own home, but on the other hand I think in some ways that would be worse because it would be a trap in some sense, we can up sticks and leave tomorrow if we really want to. Anyway, we are doing our best and I hope it doesn’t come to tough decisions like that. Thanks for the thoughts… I agree, Greece is an amazing place with amazing people (I’m American so I can say that hehe) and seeing everything that is happening here is just devastating.

      • From doing some more reading on the subject, I read of the “negative salary” deal: Due to austerity measure there in Greece, it’s being reported that up to 64,000 Greeks will go without pay this month, and some will have to pay for having a job!

        “Salary cutbacks (called “unified payroll”) for contract workers at the public sector set to be finalized today. Cuts to be valid retroactively since november 2011. Expected result: Up to 64.000 people will work without salary this month, or even be asked to return money.

        Amongst them 21.000 teachers, 13.000 municipal employees and 30.000 civil servants.”

        This “negative salary” deal reveals the real human impact of the austerity measures.

  3. yes, my husband is one of those people. but his employer ( a public school system) is spreading it out over 3 months, so his salary was cut by 56%. If they did it all in one month, he would have to pay back a significant amount of money rather than receive a paycheck. this was already the case, the ones announced this week have to do with contract workers rather than permanent workers. the number of people affected is far larger if you include everyone.

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