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OK children, here's how we will stabilize the economy
DrMarty | June 3, 2012 at 05:11 amby
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1) ``I hope you win because, as Spaniards, we need a lift in such difficult times,'' Rajoy told the national soccer team. ``A triumph for the national team would be a morale boost for the whole of Spain.''
2) The Spanish government announced yesterday that it has at last granted its first wave of online gambling licenses, the prestigious financial newsletter Onlinepoker.net announced June 1.
An unidentified spokesman for the Troika responded: ``Sounds good to us.''
Greek Economic Collapse Gallops Apace
The collapse of the Greek economy continues, with the country facing a collapse of the power sector.
The state gas company, Public Gas Corporation (DEPA) is owed EU300 billion by private power companies, and is unable to pay its vendors and therefore is starting straight at a cutoff from its gas suppliers. This is also the result of deregulation and privatization of the power sector in which private electricity generating companies are not paying their bills.
DEPA reported that it is unable to pay its debts to foreign suppliers and needs at least EU100 million in cash to pay Turkey's Botas by June 15 and Russia's Gazprom by June 22.
If it fails to receive any cash, it will ask banks to forfeit the guarantees of private power producers and stop supplying their plants with gas, which would drive them into bankruptcy and cause serious problems in the country's power supply.
Meantime, the government has still not paid its debts to hospitals and pharmacies, driving them over the edge. Now it is reported that the association representing hospital suppliers decided on June 1 to stop delivering to six major hospitals until EU150 million in outstanding debts are settled.
As for the banks, bad loans for the month of March accounted for EU44 billion euros, exceeding 18% of all loans. Atradius NV, the world's second-biggest trade credit insurer, stopped covering new shipments of goods to Greece following a similar decision by Euler Hermes SA, the biggest provider, which translates into a de facto trade embargo since this will obviously discourage suppliers to export to Greece.
Berlusconi: Let Us Print Liras
Former Italian Prime Minister Silvio Berlusconi called for Italy to leave the Euro on his Facebook page yesterday:
"In my life, I have no memory of a more difficult moment than the current one. People are really discouraged. What step could reverse the recession spiral?
"The economic crisis cannot be solved domestically. The Monti government must start back from where we left off and change its political line.
"We must forcefully tell Europe that the ECB must start to print money. In that way the economy changes. The ECB must change its mission, it must become the lender of last resort for sovereign debt and start to print money. Otherwise, in the contrary case, we should have the strength to say 'ciao ciao euro', i.e. leaving the euro but remaining in the EU, or tell Germany they should leave the Euro if they disagree.
"My 'crazy' idea is that the Banca d'Italia would print euros or print our currency. I invite you to work through this idea."
On May 7, Berlusconi had posted an item on his presence at Putin's inauguration, where he wrote that after the ceremony, he had a lunch in a close circle with Putin, former German Chancellor Gerhard Schröder, Dmitri Medvedev, and the three Federation Presidents of the Sochi Olympic Games.
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