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Generational Dynamics Web Log for 3-May-2010
3-May-10 News -- EU announces another non-bailout bailout of Greece

Web Log - May, 2010

3-May-10 News -- EU announces another non-bailout bailout of Greece

Tra-la, it's May, the lusty month of May

Greece is granted a non-bailout bailout by the EU and IMF

Look, I don't know what's going on, but I've read all the news reports and this seems to be a repeat of what we've already seen several times in the last few months.

There are the usual popping champagne corks, the ebullient cries of politicians congratulating each other, and cheerleading financial reporters announcing that the worst is over, and there's no reason why the stock market bubble can't continue to grow.

The other thing that's the same is that there are absolutely no commitments from anybody. The announcement said that 100 billion euros will be loaned to Greece, but the form in which it will be provided was apparently not announced. Nor was it announced when it will be repaid.

And then there's this from the Bloomberg report:

"About two-thirds of the funds will come from Greece’s 15 euro-area partners, which must still sign off on the disbursement by a unanimous decision."

Huh? This deal has to be approved by 15 countries?? Does anyone really think that's going to happen automatically?

In fact, Germany's DPA press service points out that the EU has NOT approved the deal, and that there'll be a meeting on Friday to decide WHETHER to approve the deal.

And elsewhere you read that the members of the board of the International Monetary Fund (IMF) have to approve the deal. According to Reuters, the IMF approval will be "fast-tracked," and "The financial numbers ... are going to be big, they are going to be unprecedented." Is that really a sure thing?

And oh, one more thing. The Greek parliament are going to have to approve a brutal 30 billion euros of budget cuts, requiring the loss of many public sector jobs. Is that really going to happen? Bloomberg reports that unions representing 500,000 civil servants will be calling a 48-hour strike on Tuesday, and a general strike is planned for Wednesday.

Look, maybe I'm wrong this time. Maybe all the puzzle pieces will fall into place this time. We should know within a few days.

Debts of the PIIGS countries

One of the major motivations of the EU and the IMF to bail out Greece is that failure to do so could cause a chain reaction of defaults. The PIIGS countries (Portugal, Ireland, Italy, Greece and Spain) are highly intertwined in debt relationships, and a default in one could cause defaults in others.

The following NY Times graphic shows the debt relationships between the five countries:

Indebtedness of the fives PIIGS countries to each other and to Britain, France and Germany. Arrow widths are proportional to debt amounts. <font size=-2>(Source: NY Times)</font>

Indebtedness of the fives PIIGS countries to each other and to Britain, France and Germany. Arrow widths are proportional to debt amounts. (Source: NY Times)

Tra-la, it's May, the lusty month of May

May Day has been a day of celebration for centuries, a day to welcome the coming of summer. In the United States in the 1800s, it became associated with the labor movement, and in 1917 it was appropriated by the Russians for the Bolshevik Revolution. Since then it's been mostly associated with labor movements and communists, but many countries still celebrate it as the beginning of summer.

May Day parade in Istanbul, Turkey, organized by trade unions, and featuring songs and celebrations. <font size=-2>(Source: AFP)</font>

May Day parade in Istanbul, Turkey, organized by trade unions, and featuring songs and celebrations. (Source: AFP)

In Cuba, there was a traditional communist-type May Day, as hundreds of thousands of Cubans marched through Revolution Plaza in Havana on Saturday. AP says that, with Fidel Castro ill, Cuban officials wanted to prove to Washington that the communist revolution is still alive.

Turkey, for example, is Russia's historical enemy, but still recognizes May Day as a gala celebration sponsored by labor unions. Tens or perhaps hundreds of thousands of people marched into Taksim square in Istanbul on Saturday. According to AFP, they're commemorating the events of May Day 1977, when authorities fired on the crowds, killing some.

However, Turkey hasn't been as greatly affected by the financial crisis as some other countries, and so Turkey's Zaman didn't mind gloating a little by pointing out that "Hundreds of thousands of people joined May Day rallies across Europe on Saturday, many protesting against government austerity policies in the wake of the global financial crisis. In Greece, protesters burned garbage cans and set a TV van on fire."

For today's musical entertainment, here's a a recording of the great Julie Andrews in her prime singing "The Lusty Month of May" from the Broadway show Camelot.

Additional links

18 businesses were damaged in a violent May Day protest in Santa Cruz, California. AP

The International Crisis Group is predicting a civil war in Thailand, where prime minister Abhisit Vejjajiva has announced that he plans to end the demonstrations that have shut down the shopping district. However, regular readers of this web site are very well aware that a civil war is impossible, or if one begins it will fizzle quickly, because Thailand is in a generational Awakening era. Australian Broadcasting

We've reported that the "Maoist" or "Naxal" terrorists have practically declared war within India. (See "8-Apr-10 News -- India reacts to Tuesday's Maoist attack.") Naxalites have shut down much of Nepal with massive demonstrations and a general strike. Guardian

Ever since King Henry VIII formed the Church of England (or Anglican Church), breaking from the Catholic Church so that he could get divorced and marry Anne Boleyn (whom he later beheaded), the two Churches have had a "friendly rivalry." Now there are rumors that three traditionalist Anglican bishops are considering converting to the Catholic Church, because of their opposition to the ordination of women and their opposition to liberal Anglican views on homosexuality. Irish Times

Egypt's blockage of Gaza is causing Hamas to be short of cash, causing a backlash against Hamas' hold on power. AP

Nasa's next Mars rover may have 3D cameras, thanks to help from Avatar director James Cameron. Information Week

Bankers are not the only ones gouging the public and paying themselves million dollar bonuses. Lawyers and accountants have racked up almost $1 billion in fees and expenses dealing with the Lehman bankruptcy. NY Times

Iran and the U.S. are poised for a confrontation at the Nuclear Non-Proliferation Treaty conference, opening at the United Nations in New York on Monday. Iranian President Mahmoud Ahmadinejad will be attending. Washington Post

(Comments: For reader comments, questions and discussion, see the 3-May-10 News -- EU announces another non-bailout bailout of Greece thread of the Generational Dynamics forum. Comments may be posted anonymously.) (3-May-2010) Permanent Link
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Generational Dynamics Web Log for 3-May-2010 3-May-10 News -- EU announces another non-bailout bailout of Greece

Greece is granted a non-bailout bailout by the EU and IMF

Debts of the PIIGS countries

Tra-la, it's May, the lusty month of May

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Generational Dynamics Web Log for 3-May-2010
3-May-10 News -- EU announces another non-bailout bailout of Greece