Moritz Kraemer points out Greece will restructure its debt again. There will be down the road, but nobody knows when. At that time Germans will have to come into the boat.
Germans are footing the bill for Greek sins and Greeks aren't doing anything to stem the bleeding. Graecokleptocrats are not conscious of their responsibility for the difficult situation in Greece. It is a winking game. Graecokleptocrats pretend like they want to reform, and Eurokleptocrats act like they believed them. But now this arrangement has reached its elasticity point.
Greeks, adding insult to injury, continue to play the victim and to look abroad for something to blame their own malaise on. Graecokleptocrats have been particularly focused on the Germans. Instead of reaping thanks for all the transfers of German taxpayer money, Germans are now forced to put up with a tongue-lashing.
Bundespresident Joachim Gauck, Bundestag, Bundesrat, Bundesbank, and Karlsruhe resent squandering German taxpayers' hard-earned money for bankrupt Graecokleptocrats. Especially, Vice-Chancellor Philipp Roesler and Foreign Minister Guido Westerwelle are smart libertarians, and they cannot be hoodwinked by Graecokleptocrats.
Poul Thomsen notes while Greece has made an aggressive fiscal adjustment, it will take at least a decade to fully complete the country's reforms. Thomsen says that after the Greek elections in May, there is no doubt Greece will have to reduce its fiscal deficit. It's not clear when Greece will be able to return to markets.
Thomsen notes that while Greece's fiscal adjustment has been unprecedented, very impressive, and undoubtedly socially very painful, a major adjustment is still needed, of seven percent of gross domestic product.
Dumping euros on Greece is ridiculous. It's unfair to squander hard-earned German euros, and it's unfair for Greeks to be addicted to German handouts. Nobody wins in dumping, which increases sinecures, laziness, profligacy, diseconomy, political corruption, and bad attitude.
Kraemer points out more and more official creditors have been jumping the queue and becoming preferred creditors, which means in the case of a restructuring they do not participate. For the regular bond holders, the risk increases significantly. That means that the investor will demand a higher interest rate from Greece and that makes it harder for Greece and other PIGS to establish a sustainable debt trajectory going forward.
Kraemer notes that while making adjustments in a monetary union is more difficult, it's not an impossible task if the political preconditions and flexibility are there.
Eurokleptocrats are losing touch with reality. Greece is broke, and yet Brussels sends Graecokleptocrats billions in new loans. This is understandable, given that abandoning portions of their claims against Greece would translate into substantial losses. But cutting losses short is the golden rule of markets.
Joerg Asmussen points out that without a regime change in policy implementation and a much broader political consensus in favor of painful but necessary reforms, there is a high risk that the program derails. Political courage is needed more than ever.
Christine Lagarde of IMF has made it absolutely clear she does not trust Graecokleptocrats, because they never apply what they vote in the Grand Brothel on Syntagma Square! All Europeans condemn Graecokleptocrats for creating hundred state agencies and hiring many thousands of public employees, even though they promised Troika to close down all agencies and fire many public employees. Some executives at state enterprises have annual salaries of 300,000 euros! Greeks wonder why the bank accounts of rich ministers have not been opened and why major tax evaders have not been arrested.
Olli Rehn says challenges remain as Greece seeks to cut its debt to around 116 percent of gross domestic product in 2020 from more than 160 percent of GDP last year.
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Vice-Chancellor Philipp Roesler warns Graecokleptocrats have a choice, reforms within eurozone or no reforms and expulsion. There is no third way. Shape up or ship out, pure and simple! The Greek government must stop violating the Lisbon Treaty. Graecokleptocrats are ungrateful to Germans, and at some point German patience will end. Germans are near the limit of elasticity.
Schaeuble asserts Fourth Reich needs a process that deals with sovereign insolvencies, while solidarity in the bloc has its limits. There's been a fundamental shift in how markets view sovereign debt, and preventing contagion is a tremendous challenge. Now is the time for bold steps in Fourth Reich. Now is the time to expel those member countries which violate the Lisbon Treaty.
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