Tuesday, July 25, 2017

Greece's return to the bond market is "a success"?

In this crazy fucked up world it is clear that debt is considered good and saving/thrift is something difficult to fathom and negative in virtue; a paradox. 

Greece has been locked out of the bond market for a few years now but they are trying to float 3bn Euros at 4.625% and hailing this as a success of some kind.  REAL success would be if Greece would say, "we default on everything external to the country and w don't need more loans in order to keep our people happy and not rioting internally.  Furthermore, we vow to never go into debt again as a nation and we will make government smaller in order to fulfill that promise".  Now THAT would be success.  Of course, you will only read something like that in The Onion.  It will never happen in real life.

Of course, any money loaned to Greece will eventually be defaulted upon so I guess a con man would call it a success if he can find any suckers to step up and loan money at any rate of interest.  But 4.6% is  better than I can get with a credit card and I have never defaulted or been late a payment in my life.  You might say, but yeah, credit cards are unsecured loans.  But then again, folks, so are government bonds.  IF they default on you then you have no recourse but to invade them and take back what is owed at the barrel of a gun.

So what we see here is evidence of monetary delusion on the part of the desperate lenders who need yield in order to make their pension promises.  If anyone loaned money to Greece it should be at 20% or higher in order to even come close to compensating for the very high risk of default.

Behind all of it you can rest assured that some large global banking scam like JP Morgan or Goldy Sachs was used to "advise" its pension fund clients to buy the debt while at the same time charging Greece a hefty fee for bringing sheep to the economic slaughterhouse.

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