Hans-Werner Sinn: "Impose Capital Controls In
Greece Now To Avoid Another Cyprus" - (www.zerohedge.com) There is a saying: "strike while the rehypothecated iron is
hot", and nobody is better at it than Germany, which hours after the
latest disappointing Eurogroup summit failed - again - to reach a solution on
the third iteration of the Grexit dilemma, has decided to pour even more gas on
the fire in the form of infamous Euroskeptic, the president of the Ifo
Institute for Economic Research, Hans-Werner Sinn who in an FT op-ed beckons someone, supposedly
Europe's federalist, if non-existant, powers which in the mind of the German
have control over Greek sovereignty, to immediately 'impose capital controls
in Greece or repeat the mistake of Cyprus." And while the
key letter excerpts can be found below, the most notable section is the
following: The ECB is underwriting a temporary reprieve for Greek banks that
would otherwise be bankrupt, and doing so at the risk of eurozone taxpayers. It
is ultimately the citizens of other eurozone countries who, without having been
consulted, are providing credit at their own risk to enable wealthy Greeks to
whisk their money to safety. The Greek central bank should not be allowed to
live beyond its means. Assistance for the country’s commercial banks should be
capped at €42bn.The Greek government should then set up capital controls to
stop money from leaving the country and keep its banks solvent. The Cypriot
example should not be repeated.
Greece
defies creditors, seeking credit but no bailout - (www.reuters.com) Talks
between Greece and euro
zone finance ministers over the country's debt crisis broke down on Monday
when Athens rejected a proposal to request a six-month extension of its
international bailout package as "unacceptable". The unexpectedly
rapid collapse raised doubts about Greece's future in the single currency area
after a new leftist-led government vowed to scrap the 240 billion euro ($272.4
billion) bailout, reverse austerity policies and end cooperation with EU/IMF
inspectors. Dutch Finance Minister Jeroen Dijsselbloem, who chaired the
meeting, said Athens had until Friday to request an extension, otherwise the
bailout would expire at the end of the month. The Greek state and its banks
would then face a looming cash crunch.
How a Liquidity Squeeze Could Push Greece Out of the Euro - (www.bloomberg.com) The standoff between Greece and its creditors on how to proceed on its bailout program risks triggering a simultaneous cash and credit crunch, which could drive the country out of the euro area. Here’s how a worst-case scenario could unfold: The Greek government, companies and lenders have all effectively lost access to international markets, due to the uncertainty over the country’s future. The current sources of liquidity are bailout funds from the euro-area nations, the currency bloc’s crisis fund, the International Monetary Fund and the European Central Bank’s Emergency Liquidity Assistance. Failure to strike a compromise means that these payments would cease. This means that the state would be unable to service its debt obligations, which stand at 22 billion euros ($25 billion) this year, excluding treasury bills, according to the 2015 budget. Greek aid talks in Brussels ended abruptly Monday.
West
Coast ports dispute drags on; labor secretary to intervene - (www.reuters.com) A
partial shutdown of 29 U.S. West Coast ports stretched into a third day on
Monday ahead of the U.S. labor secretary's scheduled arrival in San Francisco
to try to broker a settlement ending months of disruptions on the cargo-clogged
docks. President Barack Obama, under pressure to weigh in on a labor dispute
that has rippled through the U.S. commercial supply chain and beyond, said on
Saturday he would dispatch Labor Secretary Tom Perez to meet with the two sides
in the conflict. But there was no word on timing of the trip until Monday, when
a spokeswoman for the labor secretary said Perez was due to arrive in San
Francisco on Tuesday to join in talks between the shipping companies and the
union representing 20,000 dockworkers. Neither the International Longshore and
Warehouse Union nor the shipping companies' bargaining agent, the Pacific
Maritime Association, have spoken about the negotiations since agreeing on
Friday to honor a news blackout requested by a federal mediator. And no
face-to-face talks between the parties are believed to have occurred since
then.
Judge:
Police takeover of Henderson homes not covered by Third Amendment - (www.reviewjournal.com) According to the Mitchells’ lawsuit, a
Henderson police officer asked Anthony Mitchell to allow police to use his
house to gain a “tactical advantage” over the neighbor, but Anthony Mitchell
rejected the request. The lawsuit claims police later knocked down Anthony
Mitchell’s door with a metal ram and entered his house without either a warrant
or his permission. A Henderson police officer then arrested Anthony Mitchell,
according to the lawsuit, and multiple officers searched his home. Meanwhile,
the lawsuit alleges, police entered his parents’ home across the street without
either a warrant or permission and searched it. Michael Mitchell also was
arrested, according to the lawsuit, which claims both he and his son spent at
least nine hours at the Henderson Detention Center on charges of obstructing an
officer before they were released on bond
Greece
bailout talks break down after Athens rejects 'unacceptable' eurozone demands
- (www.theguardian.com)
Eurozone Issues Greece an Ultimatum; Athens Hopeful of Deal - (abcnews.go.com)
Meeting on Greek Debt Produces an Ultimatum - (www.nytimes.com)
Eurozone Issues Greece an Ultimatum; Athens Hopeful of Deal - (abcnews.go.com)
Meeting on Greek Debt Produces an Ultimatum - (www.nytimes.com)
Battle rages for town where Ukraine rebels reject ceasefire - (www.reuters.com)
Ukraine Fight Grinds On as First Deaths Reported After Truce - (www.bloomberg.com)
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