Syriza Commits to Deep Austerity in Its Proposal to Creditors
Greece has already offered to continue with a program of significant austerity. No wonder the creditors are close to agreeing to that part of the government’s proposal.
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Tsipras Fighting Two Front War as Revolt Within Syriza Intensifies, Forcing IMF Payment Delay, Cancellation of Negotiating Session
As Tsipras’ options narrow thanks to the revolt in his party, it is also becoming harder for even Merkel to forestall a default.
Read more...The Economics of Parallel Currencies
As Greece’s cash crunch continues and its negotiations are moving slowing and tending towards an impasse, it becomes more and more likely that the beleaguered borrower will issue some sort of scrip in order to fund operations while remaining in the Eurozone. How and how well might that work?
Read more...Satyajit Das: My Big Fat Greek Crisis
Yves here. Das published this post in February and I thought it would be useful to reprise it for three reasons. First, it has held up well to the passage of time. Second, for latecomers to the Greek saga, it summarizes the background, the stances of the parties, and key economic and financial considerations. Third, the section starting “Controlled Warfare” (about 2/3 of the way through the post) summarizes the consequences to the lenders of a Grexit. Those risks are why almost no one thought we’d wind up where we are now, with two sides issuing ultimatums a mere two days before a possible Greek default, and why most of the financial media still believes a deal will get done.
Read more...Greece’s Creditors Meet to Prepare Offer (Updated – Creditors Agree on Uncompromising Terms)
Greece’s creditors met to agree on a last-ditch offer. But it turns out “last ditch” reaffirmed their current position and removed IMF’s debt relief proposal.
Read more...Greece’s Shortening Negotiating Runway and Possibly Erroneous Assumptions
Le Monde published a defiant op ed by Alex Tsipras over the weekend. The wee problem is that Greece is well past the point where political appeals will work.
Read more...Why a Greek Default is Likely to Strengthen the Hand of Austerians
Many fear that a Greek default would lead voters elsewhere in Europe to favour default over austerity. In contrast, this column argues that it is more likely to have the opposite effect
Read more...Wolf Richter: When Betting on QE Suddenly Goes Wrong
Central banks think they’re omnipotent – until they aren’t.
Read more...Greece: An Endgame Finally in Sight?
The noose continues to tighten on Greece.
Read more...Michael Hudson: Ukraine’s “Operation Vulture” and Labor Protests
Hudson’s so-called “Operation Vulture,” the strip-mining of what little is left of a functioning economy in Ukraine, comes straight out of the neoliberal playbook.
Read more...Corruptionomics in Italy
As reader Li, an international road warrior, says, “America is getting to be just like Italy, except without the attractive men.”
Read more...A Parallel Currency for Greece: Part II
Yves here. I’m quite interested in reader reactions to this scheme. My big reservation is that the amount of the scrip devised by the authors, the TCC, has to be limited to the an amount of discount of future tax payments that is deemed to be credible. Given that Bill Mitchell has estimated that Greece […]
Read more...A Parallel Currency for Greece: Part I
A review of the pros and cons of various parallel currency options for Greece.
Read more...Ilargi: Mario Draghi’s Slippery Downward Slope
Mario Draghi is more and more visibly meddling in politics, yet another reminder that central bank “independence” is a fig leaf.
Read more...The Not-Brexit Negotiations as UK Referendum Looms
While virtually no one expects a Brexit, history suggests would be naive to expect the upcoming negotiations between the UK and EU to be a cakewalk.
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