Monday, February 6, 2012

Simply Crazy: Bailout Funds Must Be Used by Greece to Pay Debt Only; Therefore Greece Must No Longer Have a Deficit!?

The current Greek fiasco news on the media reads:  "European officials are insisting any new Greek bail-out programme specifically earmark funds to pay off remaining holders of Greek debt, giving lenders the freedom to withhold aid to Athens without risking a messy default that could reignite panic in financial markets".

Thus, if the bailout funds are to be sued to pay off prior debt only, then, Greece must no longer be running  a deficit since it would nto required money to fund operations.

Apparently, the latest plan says Eurozone officials would create an escrow account to accept new bail-out funding instead of paying it all directly to Athens"

"The new fund would then ensure bondholders are paid off, while additional cash to run the Greek government could still be withheld if Athens did not live up to tough new reform demands".

So, they give bailout money to pay banks only then (?!). Simple Crazy.

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