28-Jun-15 World View -- Greece's Tsipras rejects 'extortionate ultimatum' and ends bailout negotiations

[John]

28-Jun-15 World View -- Greece's Tsipras rejects 'extortionate ultimatum' and ends bailout negotiations


Tunisia will close 80 mosques that are 'spreading venom'

** 28-Jun-15 World View -- Greece's Tsipras rejects 'extortionate ultimatum' and ends bailout negotiations
** http://www.generationaldynamics.com/pg/ ... tm#e150628



Contents:
Furious Eurogroup members plan Greece's default after Tsipras ends bailout negotiations
Greece's chaos may begin as early as Monday
Tunisia will close 80 mosques that are 'spreading venom'


Keys:
Generational Dynamics, Greece, Alexis Tsipras, Syzira, Eurogroup,
Sigmar Gabriel, Wolfgang Schäuble, Game of Chicken,
International Monetary Fund, IMF, European Commission, EC,
European Central Bank, ECB, Emergency Liquidity Assistance, ELA,
Islamic State / of Iraq and Syria/Sham/the Levant, IS, ISIS, ISIL, Daesh,
Tunisia, Habib Essid, Somalia, Kuwait, France

[gerald]

John your statement "As I've been writing for years, nationalism and xenophobia are increasing in country after country as the World War II survivors die off, as the generational Crisis era deepens." raises an interesting question. Maybe you have an answer or maybe no one has thought about it in your context of generations. The issue is the cycle of "hard" and "soft" money.

Does the money cycle correspond with generational cycles, is it influenced by it, or is it different and caused by other issues? China has gone through several cycles of hard (specie) and paper money ( I think four, over the last thousand years or so, and I guess they are now maybe going on their fifth ) Rome and ancient Greece devalued their money ( coinage ) over many generations. Spain devalued theirs as their empire collapsed. The US has also greatly devalued it's money since FDR. The devaluation of money by governments is the cause of many problems in the world. Money devaluation is basically caused by governments spending or promising more then their tax base can afford, and the easiest way to pay for this is by destroying the value of it's money.

This money cycle appears to be independent of generational cycles. It could be short as a few years, such as the assignats of France https://en.wikipedia.org/wiki/Assignat during the revolution, or long - hundreds of years - as with Roman coinage https://www.google.com/search?q=devalua ... jWo-BPM%3A

Thoughts?

[John]

> John your statement "As I've been writing for years, nationalism
> and xenophobia are increasing in country after country as the
> World War II survivors die off, as the generational Crisis era
> deepens." raises an interesting question. Maybe you have an answer
> or maybe no one has thought about it in your context of
> generations. The issue is the cycle of "hard" and "soft" money.

> Does the money cycle correspond with generational cycles, is it
> influenced by it, or is it different and caused by other issues?
> China has gone through several cycles of hard (specie) and paper
> money ( I think four, over the last thousand years or so, and I
> guess they are now maybe going on their fifth ) Rome and ancient
> Greece devalued their money ( coinage ) over many
> generations. Spain devalued theirs as their empire collapsed. The
> US has also greatly devalued it's money since FDR. The devaluation
> of money by governments is the cause of many problems in the
> world. Money devaluation is basically caused by governments
> spending or promising more then their tax base can afford, and the
> easiest way to pay for this is by destroying the value of it's
> money.

> This money cycle appears to be independent of generational
> cycles. It could be short as a few years, such as the assignats of
> France https://en.wikipedia.org/wiki/Assignat during the
> revolution, or long - hundreds of years - as with Roman coinage
> https://www.google.com/search?q=devalua ... jWo-BPM%3A

> Thoughts?

Assignats were part of the generational cycle of financial
crises.

** The bubble that broke the world
** http://www.generationaldynamics.com/pg/ ... 071009.htm

I've never looked at debt crises in Roman times.

Generational financial crises are not caused by devaluation of
currency, although that may end up being part of a crisis.
Generational financial crises are caused by the securitization of
debt, whether by a certificate issued to secure ownership of a future
tulip, or a synthetic subprime-backed security.

[gerald]

> John your statement "As I've been writing for years, nationalism
> and xenophobia are increasing in country after country as the
> World War II survivors die off, as the generational Crisis era
> deepens." raises an interesting question. Maybe you have an answer
> or maybe no one has thought about it in your context of
> generations. The issue is the cycle of "hard" and "soft" money.

> Does the money cycle correspond with generational cycles, is it
> influenced by it, or is it different and caused by other issues?
> China has gone through several cycles of hard (specie) and paper
> money ( I think four, over the last thousand years or so, and I
> guess they are now maybe going on their fifth ) Rome and ancient
> Greece devalued their money ( coinage ) over many
> generations. Spain devalued theirs as their empire collapsed. The
> US has also greatly devalued it's money since FDR. The devaluation
> of money by governments is the cause of many problems in the
> world. Money devaluation is basically caused by governments
> spending or promising more then their tax base can afford, and the
> easiest way to pay for this is by destroying the value of it's
> money.

> This money cycle appears to be independent of generational
> cycles. It could be short as a few years, such as the assignats of
> France https://en.wikipedia.org/wiki/Assignat during the
> revolution, or long - hundreds of years - as with Roman coinage
> https://www.google.com/search?q=devalua ... a=X&ei=Xw-
QVeP0IYOpNsizrcAK&ved=0CE4QsAQ&dpr=1#imgrc=FdIBQs4jWo-BPM%3A

> Thoughts?

Assignats were part of the generational cycle of financial
crises.

** The bubble that broke the world
** http://www.generationaldynamics.com/pg/ ... 071009.htm

I've never looked at debt crises in Roman times.

Generational financial crises are not caused by devaluation of
currency, although that may end up being part of a crisis.
Generational financial crises are caused by the securitization of
debt, whether by a certificate issued to secure ownership of a future
tulip, or a synthetic subprime-backed security.

Well, based upon your above links it looks like we may begin to witness an encore. Tomorrow, Monday could be interesting.

Greek Capital Controls Begin: Greek Banks, Stock Market Will Not Open On Monday
http://www.zerohedge.com/news/2015-06-2 ... sed-monday

A Helpless China Tips Its Hand: A Market Crash "Poses Great Danger To Social Stability"
http://www.zerohedge.com/news/2015-06-2 ... -stability

Pension Funds Are "Compromising Their Solvency" OECD Warns
http://www.zerohedge.com/news/2015-06-2 ... oecd-warns

Dow Futures Open Down 300 Points, 10Y Yield Tumbles 20bps As EURUSD Plunges Over 200 Pips
http://www.zerohedge.com/news/2015-06-2 ... r-200-pips

hmmmm- thanks, -- and what does a small investor invest in? a rhetorical question.
cheers
-----------------------------
Keynes, The Great Depression And The Coming Great Default
http://www.zerohedge.com/news/2015-06-2 ... at-default

"New ideas alone do not change the minds of most people. This includes intellectuals. There is usually a crisis that serves as a catalyst for changing the minds of millions of people. Ideas that had been floating around in the world of intellectuals then get applied by a new generation of intellectuals, and simultaneously they are also applied by politicians. This is what creates revolutions.

It is the job of those intellectuals who favor a new outlook to work on the details of this outlook until such time as a revolutionary figure gains political support, and some new apologist for the revolutionary worldview comes to the forefront and begins to gain disciples. The power of ideas alone does not produce revolutions. There has to be a social setting to allow the catalyst of revolutionary ideas to produce a social and political transformation.

This is why the Great Default of all of the Western welfare states is going to create tremendous opportunities for new ideas to come to the forefront. It is going to undermine and ultimately destroy the Keynesian worldview. This is a great opportunity for younger anti-Keynesians to stake their claims to what appears to be a played-out mine."

[John]

It looks like we're going to see a lot of action on Monday.

[John]

There's more ........

June 28, 2015

NYTimes.com
Breaking News Alert

BREAKING NEWS

Puerto Rico’s Governor Says Island’s Debts Are ‘Not Payable’

Sunday, June 28, 2015 9:01 PM EDT

Puerto Rico’s governor, saying he needs to pull the island out of a
“death spiral,” has concluded that the commonwealth cannot pay its
roughly $72 billion in debts, an admission that will probably have
wide-reaching financial repercussions.

The governor, Alejandro García Padilla, and senior members of his
staff said in an interview last week that they would probably seek
significant concessions from as many as all of the island’s creditors,
which could include deferring some debt payments for as long as five
years or extending the timetable for repayment.

“The debt is not payable,” Mr. García Padilla said. “There is no other
option. I would love to have an easier option. This is not politics,
this is math.”

[Higgenbotham]

"This is not politics, this is math.”

If what Mr Padilla is saying is true, perhaps he could point to where the non-existent inflection point is in the continuous debt equation as a function of time which necessitated that he utter those words at this exact point in time. Oh, so maybe it IS politics.

[John]

> "This is not politics, this is math.”

> If what Mr Padilla is saying is true, perhaps he could point to
> where the non-existent inflection point is in the continuous debt
> equation as a function of time which necessitated that he utter
> those words at this exact point in time. Oh, so maybe it IS
> politics.

Bloomberg just replayed a Padilla interview from 18 months ago:

> Puerto Rico has never defaulted.
> Puerto Rick will never default.
> It's impossible to default, because the government
> would have to close first.

[Higgenbotham]

> "This is not politics, this is math.”

> If what Mr Padilla is saying is true, perhaps he could point to
> where the non-existent inflection point is in the continuous debt
> equation as a function of time which necessitated that he utter
> those words at this exact point in time. Oh, so maybe it IS
> politics.

Bloomberg just replayed a Padilla interview from 18 months ago:

> Puerto Rico has never defaulted.
> Puerto Rico will never default.
> It's impossible to default, because the government
> would have to close first.

That is hilarious. Put monkeys in charge of flying airplanes and this is what you get.

[gerald]

> "This is not politics, this is math.”

> If what Mr Padilla is saying is true, perhaps he could point to
> where the non-existent inflection point is in the continuous debt
> equation as a function of time which necessitated that he utter
> those words at this exact point in time. Oh, so maybe it IS
> politics.

Bloomberg just replayed a Padilla interview from 18 months ago:

> Puerto Rico has never defaulted.
> Puerto Rico will never default.
> It's impossible to default, because the government
> would have to close first.

That is hilarious. Put monkeys in charge of flying airplanes and this is what you get.

http://www.zerohedge.com/news/2015-06-2 ... le-reveals
French Economy In "Dire Straits", "Worse Than Anyone Can Imagine", Leaked NSA Cable Reveals

"Earlier today Wikileaks released a new batch of NSA intercepts among which one in particular stands out: an intercepted communication which reveals that then French Finance Minister Pierre Moscovici believes the French economic situation was far worse, as of mid-2012, than perceived."

and a comment from --

Amish Hacker

"And around the clubhouse turn and headed for home, it looks like the financial jockeys for France, China and Japan are whipping their dead horses furiously, but here come Spain and Portugal on the outside..."
----------------------------
and the monkeys win!!! yea !!!