Fun and Games with Y Serial Euros in Greece

[JimBowie1958]

From a blogger who keeps up with this stuff:
EUROPEAN BANKNOTES: The suddenly missing Y chromosome in Greece | A diary of deception and distortion

Some of you may recall a post of mine on the subject of how one tells the origin of euronotes by country, and how the Bank of Greece has gone into the business of printing its own unauthorised version.

At the time, I pondered at length during several posts as to why Mario in Frankfurt didn’t seem to be worried about it. Did he know anyway? some Sloggers asked: to which the answer is ‘Yes’, because each country issuing Toytown notes uses a prefix in the note number to denote the origin. Without that, the note isn’t legal tender.

Greece’s code-letter is ‘Y’. And up until just three weeks ago, there were a lot of new ‘Y’ notes in Greece.

Over the past fews days, a number of Greeks have been looking at the serial numbers of their Euro notes. I was alerted to this by one Athenian Slogger, who was surprised to find he had almost no Euro notes issued by Greece. ...

So, what if you have a personal vault full of Y serial number Euros and Greece exits the EMU?

Here is another interesting tid-bit:

Yesterday, the Belgian website Trends led with an investigative article using a mole inside the Bank of Greece. The allegation – put forward by prominent economics writer Johan Van Overtveldt – is that the Bank has run out of money from other sources, and is simply printing its own euros to keep the other Greek majors afloat...

Dimitiriou describes to me his job function at the Bank of Greece. It is just under the directorate of the Bank, a high position let us say. Central to his story, is the ELA program. This stands for Emergency Liquidity Assistance, a kind of emergency program where national banks that are part of the ECB system can fall back on in case of an unexpected emergency....

Dimitriou tells his story of the ELA and of the Greek bankruptcy: “The normal way of things is that banks with liquidity problems offer assets to the ECB. In exchange euros are transferred to the bank in question. This so-called collateral could be anything: bonds from the bank’s portfolio, outstanding loan packages, and so on. The ECB investigates the value of this collateral and on the basis of this will take 70% to 90% of the value into account. The problem is that Greek banks have nothing more to offer the ECB. With the €73bn already taken up by the banks, these banks are at the end of the road. Given the continued flight of capital [out of Greece] the banks are having to cough up more of their remaining liquid funds. This is now happening through the ELA mechanism.”


Dimitriou knows that the capital flight from Greece is around €60bn, and this is the puzzling part, around a third of the Greek GDP. [!!] How does this square with the ELA mechanism? Dimitriou looks me straight in the eye and says in a soft voice “Greece is printing its own Euros. The bank of Greece credits the accounts of Greek banks that would have been shutting their doors but for the emergency funds. All Greek banks are effectively bankrupt, it is that simple. These zombie banks can only survive through these ELA injections. Within the ECB system the only collateral for the euros created within the ELA mechanism – is the guarantee of the Greek state. I do not know what you think of this, but my humble opinion is that this guarantee is as good as worthless. You can change all sorts of declarations about the whys and wherefores of these operations, but believe me, the basic fact is simple: only by allowing the Greek central bank to print euros [create euros] can you avoid the implosion of the entire Greek financial system, with all the consequences that this would have for the eurosystem as a whole”.


The second rescue package that was given to Greece with the debt allowance of €100bn is an eye-catcher is just another fix? Dimitriou says “Yes; first and foremost: how long will this take to become fully operational. Every day the Greek banks are continuing to bleed. Secondly: more than 60% of the aid to Greece does not even come into the country, most of it goes to [private] banks in other countries. Thirdly: how does this aid package help the Greek economy to grow? I simply cannot see this, you know. It wins a little time, in my estimation six months at most and that is being optimistic. In the meantime, the instructions of the government and from the top of the Bank of Greece are quite clear: keep pumping from the ELA well!’

The little Greek boy is running out of fingers for his Dyke, and that can be dangerous, lol.

 

[waltky]

Granny says, "Dat's right - now dey can squander dat money too...

Lenders Say Greece on Track to Get More Bailout Money
April 15, 2013 - Greece's international lenders say the debt-ridden country is meeting their demands to improve its economy and is on track to get more bailout money in the coming weeks.

Greek Prime Minister Antonis Samaras said in a televised speech Monday the country could get a total of $11.5 billion sometime in May. "While insecurity and anxiety are gripping the world, Greece is being stabilized and our position is being bolstered," he said. "Late last night we reached an agreement for the disbursement of the next instalment of 2.8 billion euros, and the road has opened for the May installment of six billion."

The prime minister said 15,000 government workers would be laid off by the end of 2014 as part of the deal with its lenders - Greece's European neighbors, the European Central Bank and the International Monetary Fund. He said the layoffs will not amount to a "human sacrifice," but rather would target workers with "disciplinary violations."

The lenders said in a joint statement that it believes Greece's "debt sustainability remains on track." They said the recession-plagued country has "continued prospects" for a gradual return to economic growth in 2014 .

Lenders Say Greece on Track to Get More Bailout Money

 

[JimBowie1958]

Granny says, "Dat's right - now dey can squander dat money too...

Lenders Say Greece on Track to Get More Bailout Money
April 15, 2013 - Greece's international lenders say the debt-ridden country is meeting their demands to improve its economy and is on track to get more bailout money in the coming weeks.

Greek Prime Minister Antonis Samaras said in a televised speech Monday the country could get a total of $11.5 billion sometime in May. "While insecurity and anxiety are gripping the world, Greece is being stabilized and our position is being bolstered," he said. "Late last night we reached an agreement for the disbursement of the next instalment of 2.8 billion euros, and the road has opened for the May installment of six billion."

The prime minister said 15,000 government workers would be laid off by the end of 2014 as part of the deal with its lenders - Greece's European neighbors, the European Central Bank and the International Monetary Fund. He said the layoffs will not amount to a "human sacrifice," but rather would target workers with "disciplinary violations."

The lenders said in a joint statement that it believes Greece's "debt sustainability remains on track." They said the recession-plagued country has "continued prospects" for a gradual return to economic growth in 2014 .

Lenders Say Greece on Track to Get More Bailout Money

I suspect that hey only plan to 'loan' that money to Greece so the ECB can get their paws on Greek CB GOLD. They will screw the Greek people.