Thursday 30 April 2015

From Greece

The invaluable talos from European Tribune once again weighs in with information that you will not find in the Western media.
And if you won't take my word for his reliability (though you could), his report is solidly backed with evidence.

Whatever the reasons, the picture of Greece that is painted for our eyes is highly misleading. And for those of us who don't read Greek (or even some who do: I read Greek - I just cannot understand anything I read), it is difficult to get another view. Unless you know talos and are lucky enough that he has had some time to write.

Here is the opening, but you should really read it at its source. And if you have not avidly been following Greece yet, or even if you have, you could do worse than to read his previous entries.


There is a coordinated PR attack against the Greek government, unfortunately also deceiving people from the left, regarding the Greek government's intentions and actions so far. It is far from certain what the results of the negotiations will be, but preemptively announcing SYRIZA's retreat seems to me to be a performative assessment, meant to both flatter the prejudices on which most of the austerian EU governments have built their TINA alternative, and to dissipate international support away from a government that has up to now, in a small but significant way, made the first steps against the dominant narrative, anywhere in the West, over the past 20 years
So let me put to rest some of the more obnoxious misinformation that is being peddled by "EU / ECB circles" and international media, subservient to the cause of pressuring the new Greek government to submission, by pointing out a few facts...

Monday 27 April 2015

Quote of the day

Hat tips to Migeru of European Tribune:


"Imagine 18 ministers telling a 19th that his government is not throwing enough virgins into the volcano. When the 19th replies with lectures about how how that's not the way the world works, the 18 react by rolling their eyes and calling him unprofessional and a gambler. "




And that is exactly that.
A case in point among many: the insistence that Greece privatises pretty much everything.
Markets demand much higher return on equity than any reasonable sovereign debt interest rates. So unless you are so misleading as to be liable to be sued, you should expect to get a much lower price than the net present value of the future flows.


That's in normal circumstances. Of course, in the case of Greece, the assets will be considered to require a massive discount due to the poor economic situation of the country. So they would not bring anywhere near the normal inflow which, as I said, would itself not be anywhere near the net present value (for the State) of the economic stream that the State would lose.


But that will not stop the Eurogroup from demanding it on the grounds of improving the fiscal position...