Delusion is the new currency in the Euro -zone

The uro should be seen as a Trojan horse that will bring down the whole rotten festering EU. Whether the uro was purposely designed that way or it was a result of incompetence or lousy international compromise does not matter today anymore. Like a bomb with a delayed fuse or a silent deathwatch beetle it has been chewing away in the dark. Chomp, chomp, chomp! There may well be collateral damage when the bricks and timbers come tumbling down, so put on your hard hat and lie back an think of the future ... Greece is already bankrupt; it has been for the last few years. All its doing now and has been doing for sometime is rolling over debt, with liabilities growing daily, nothing is being repaid. Even with a 50% haircut, which is a default, Greece is still going further into debt. The Euro idiots think that Greece will not default and will not withdraw from the Euro. Delusion is the new currency in the Euro -zone, as that is all that is left from this failed political folly. The Markets On Friday evening, the Washington-based Institute of International Finance (IIF), which represents bondholders, said that talks had not produced a constructive consolidated response by all parties. The IIF had aimed to implement a swap into new bonds this month. But the two sides still have to agree on the coupon and maturity of the new bonds to determine losses for investors. The breakdown in talks has been described as catastrophic by insiders, who say the repercussions of a default would be felt not just by Greece but by all of Europe. The bond-swap deal, which aims to cut Greeces debt pile by 100bn (82bn), is part of the condition for freeing up 130bn of further rescue funds for the near-insolvent nation. Greeces credit rating did not change on Friday in S&Ps review of euro-zone countries, as it is already considered to be deep into junk status. Lucas Papademos, the Greek prime minister, said the new aid package and bondholder talks were linked and each needed to succeed for Greece to survive. Neither deal can stand on its own. One is a condition for the other, he said in a speech on Friday night. We are fully aware of how critical the situation is. Until these negotiations are completed, we face dire economic dangers. However, Mr. Venizelos last week insisted that the threat of a disorderly default could be averted within weeks and that bond swap negotiations could yet be salvaged. I don't see why the hedge fund managers should agree to any haircut. They insured against

default by Greece, and paid fair and square for the insurance, and very reasonably in fact and now, they want the insurance to pay up if Greece defaults. What was the point of the insurance otherwise? Actually, they owe it to their investors to do the most profitable thing for them. Just few days ago, Europe Central Bank bought government bonds of Spain and Italy, in tens of billions of Euro using electronic money, with no collateral. However, these countries falsely claimed that the bonds were easily bought by private investors. This huge lie was deliberately aimed at trying to fool the rating agencies analysts, and last week, S&P showed that they cannot be duped by spin doctors. The socialist commentators Why not just strangle the poor beggars at birth?... pay your own bloody debts never mind future generations, it is selfish basket cases such as you that create these problems in the first place! What you are advocating is the destruction of civilization in Europe to benefit banking systems kind of investments. Winning WW2 was not of financial benefit to the populace of the Great Cities of Europe as they had all been flattened by our Continental Cousins and continued to be so by the Allies of which, some would "TRUST" to not repeat the instance yet again. The noises from Berlin and Paris do not echo that trust. The Rebuilding of Europe was very beneficial to the people, I can- not think of one war that wasnt brought about by greed either for Land grab or Wealth grab, (take your pick) and that applies to the stealth taxes of the EU, European Union. Because EU or European Union imposes taxes beyond those imposed by each Countries system is more a case of because we can rather than we actually need to and the lesser Countries reluctance to stand on their own feet and to tell the two most singularly powerful countries to BOG Off. How can one have a President or Parliamentary leader imposed on them by not even majority vote but of pure bullying by the strong. Democracy my arse.....When push comes to shove I hope all the peddlers of financial instruments (in that regard) are in the front line along with all the false leaders of European Union! And the Greek Drama "The problem is that, of the 315bn of Greek debt outstanding, only 7.8bn is covered by Greek CDS. The vast majority of Greek debt is held by European banks, which have little insurance on their exposure. Most Greek CDS are held by hedge fund managers accused by Germany and France of financially benefiting from sovereign woes. Some claim that hedge fund managers would benefit from a default, with Europes banks being the losers." Sure enugh, the answer is to pay back the hedge funds and get them out of the picture. It's only 7.8bn out of a total debt of 315bn. Then negotiate with the banks. They won't like losing money when the hedge funds don't, but it's better than the alternative.

"When institutions were lending to Greece did they not therefore notice that Greece had a 'ZZZ-' rating? As ratings are so important why did they carry on give the Greeks billions to flush down the Royal Hellenic Toilet?" it follows that they did notice but didn't care, as they assumed Germany and the ECB would in the end bail Europe out. They may still be right. Though Greece seems doomed, but Italy is the debt dinosaur lurking in the corner. For a long time now, the only question has been "Will Germany let Italy default in preference to printing money through the ECB?" My guess is that in the crunch, it won't, which of course will lead to worse disaster for Europe. The only hope in all this is that "lessons will be learned." but don't bank on it. "The vast majority of Greek debt is held by European banks, which have little insurance on their exposure. Most Greek CDS are held by hedge fund managers accused by Germany and France of financially benefiting from sovereign woes. " this statement sums up Euro folly. People who have hedged properly and are ready for default are being called pirates. Stupid banks who sit there with no planB just expect to get bailed out by Socialist meddlers (meddling with our money) The creditors would no doubt be happy with the gas and oil assets, even if they turn out to be "modest" whatever that may mean as the demand for fossil fuels go up. One assumes that the costs of exploiting must be modest compared to some parts of the world. I thought Cyprus was separate from Greece? And finally I say : Anybody who travels to the developing world knows it is over for the European welfare state, China, India, Singapore etc, countries that don't do bloated welfare are going to wipe the floor with the lazy inefficient Europeans - Im obviously not including the magnificent Germans- in fact that happened long ago, the Europeans have kept the lie of prosperity going by borrowing and false accounting. My money - with massive indigenous European unemployment and poverty - is on the return of fascism. It seems natural that Europe's free for all immigration is going to have dire social consequences.
Date: January 15.2012

Mircea Halaciuga, Esq. 0040724581078 Finance and Law