Zero Hedge: Two Spaniards Self-Immolate Due To Financial Problems

"Strong recovery" of the global stock markets in 2012 surely indicates a robust rebound of the global economy, in the minds of central bankers and politicians in the so-called developed nations, from Bernanke to Draghi to Shirakawa, from Rajoy to Obama to Abe.

But people on the street don't seem to buy into that idea, as their lot hasn't particularly improved. It has gotten decidedly worse, apparently, for the two Spaniards, as Tyler Durden at Zero Hedge writes (1/5/2012):

Two Spaniards Self-Immolate Due To Financial Problems

First it was a German, then an Italian, and now, two months, later, the European self-immolation wave has spread to the country that many expect will be the next one to follow Greece into effective debt default. El Pais reports that an impoverished 57-year-old man who set himself on fire in Málaga Thursday, and subsequently died of his injuries at Carlos Haya hospital. He had third-degree burns on 80 percent of his body and suffered a multi-organ failure. The victim, thought to be of Moroccan origin, had worked in construction for years but was out of a job now, said people who knew him. In the last few months he had been scraping a living with the small change he made guiding cars into parking spaces near the hospital, an illegal practice that is usually overlooked by authorities. The police, who have not yet located his relatives, are not ruling out the possibility of an accident just as the man was lighting up a cigarette. Just two minutes before the event, he bought a pack of cigarettes from a local newsstand whose owner asked him how he was doing.

“I don’t even have enough money for food,” he replied. The man is thought to have been homeless at the present time, and seemed even more depressed than on other occasions, said the stand owner.
Several taxi drivers came to the rescue with their vehicles’ fire extinguishers when they saw the man go up in flames on a side street from the hospital. A few hours after being admitted into the emergency room there, he was transferred to a specialized burn unit in Seville, where doctors were unable to save his life.
He was the unlucky one - as BBC follows, another Spaniard also lit himself on fire on Thursday night, in the same city, but lived.

Another man is being treated in the same hospital apparently after setting himself alight in Malaga on Thursday.

The 63-year-old was found with serious injuries beside his burning car under a road bridge, police said.

No other details were given of that man but, according to Spain's El Mundo newspaper, preliminary investigations indicated that the fire had been lit intentionally.
...
Spanish media have reported a number of cases in recent months of people facing poverty in the country's recession killing themselves.

Considering it was an identical act of self-immolation in Tunisia that set off the Arab Spring in the winter of 2011, Europe has for shown far more resiliency to socio-economic collapse than many had expected, although this is not unexpected: after all, Europeans, and especially Spaniards, still have more to lose than gain by rising up against a reverse Robin Hood globalist system bent on taking from what's left of the middle class and giving to the status quo banking oligarchy. Or so they think: the big strawman, is and for the past 150 years has been the welfare state myth.

Then again, now that Spain has almost drained its entire social security fund, and replaced it with worthless ECB repo material, i.e., Spanish bonds, will Spaniards finally wake up and realize that while they were snoozing, their government spent 90% of their pension and retirement money to prop up the Ponzi for one more year. And instead of committing suicide, or even patching up various symptomps, shouldn't the people of Spain, and all of Europe, finally address the real underlying cause of their misery: a dysfunctional government, which contrary to indication, is merely a puppet in a banker-led globalist system?
If not, how many more people have to burn themselves to death before it becomes clear?

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Italians Take to Street to Protest Against Technocrat (and Goldman Alum) Prime Minister Monti

Organizers say 100,000. Reuters say "tens of thousands", which is one order of magnitude bigger than the customary "thousands" when the media reports any protest anywhere in the world.

Despite a minor recent setback of having been sentenced to 4 years in prison for tax fraud (and not likely to ever be in jail anyway), Silvio Berlusconi vows to take down the unelected prime minister who was installed by the EU troica of IMF, the EU and the ECB.

(Berlusconi's center-right party is part of the Italian coalition that props up the Monti administration, as Reuters reports in a separate article.)

From Reuters (10/27/2012):

Tens of thousands protest against austerity in Rome

(Reuters) - Tens of thousands of people marched through Rome in a "No Monti Day" on Saturday, some throwing eggs and spraying graffiti to protest against austerity measures introduced by Italian Prime Minister Mario Monti's government.

Appointed in November when Italy risked being sucked into the euro zone debt crisis, Monti has pushed through painful tax hikes, spending cuts and a pension overhaul.

"We are here against Monti and his politics, the same politics as all over Europe, that brought Greece to its knees and that is destroying half of Europe, public schools, health care," said demonstrator Giorgio Cremaschi.

Some protesters threw eggs at bank windows and set off firecrackers, but no major incidents were reported.

"United with a Europe that is rebelling. Let's get rid of the Monti government," read one of the banners held at the demonstration.

Unemployment in Italy has risen to 10.7 percent, its highest since monthly records began in 2004, and unions are locked in disputes with companies over plant closures and layoffs. The nation's public debt is running at 126 percent of output, according to the International Monetary Fund.

"It's been years that there have been no investments, instead it's all outsourced and privatized, we are here to say enough and we hope this voice will grow," said another demonstrator, Caterina Fida.

Organizers said more than 100,000 people participated in the demonstration.

Monti says he believes his technocratic government will be remembered for having helped Italy pull itself out of a deep economic crisis without needing to resort to external aid.

Separately, some 20,000 doctors and nurses, wearing their white hospital gowns or uniforms, marked in another section of Rome to protest cuts to the national health service.

"The entire system risks collapse if the cuts continue," one demonstrator said on television.

In another demonstration in northern Italy, a small group of protesters scuffled with police near where Monti was addressing a rally on the theme of family values.

Family values? What could that be? That family members should support each other without the money from the government? (Which is by the way the Japanese way that even the Japanese do not and cannot practice these days.)

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"Tens of Thousands" on the Streets All Across Spain to Protest Against Government Austerity Programs

I suppose the phase "tens of thousands" must be the global standard that the media has to follow whenever they have to report a very large demonstration. (If it is just a large demonstration, the phrase is "thousands".)

What good does the government's austerity programs do? Well it will squeeze out enough money to pay to the bankers outside Spain.

From AFP (7/20/2012):

Police fire rubber bullets after huge Madrid protest

Spanish police fired rubber bullets and charged protestors in central Madrid early Friday at the end of a huge demonstration against economic crisis measures.

The protest was one of over 80 demonstrations called by unions across the county against civil servant pay cuts and tax hikes which drew tens of thousands of people, including police and firefighters wearing their helmets.

"Hands up, this is a robbery!" protesters bellowed as they marched through the streets of the Spanish capital.

At the end of the peaceful protest dozens of protestors lingered at the Puerta del Sol, a large square in the heart of Madrid where the demonstration wound up late on Thursday.

Some threw bottles at police and set up barriers made up of plastic bins and cardboard boxes in the middle of side streets leading to the square and set them on fire, sending plumes of thick smoke into the air.

Riot police then charged some of the protestors, striking them with batons when they tried to reach the heavily-guarded parliament building.

The approach of the riot police sent protestors running through the streets of the Spanish capital as tourists sitting on outdoor patios looked on.

A police official told AFP that officers arrested seven people while six people were injured.

The protests held Thursday were the latest and biggest in an almost daily series of demonstrations that erupted last week when Prime Minister Mariano Rajoy announced measures to save 65 billion euros ($80 billion) and slash the public deficit.

Among the steps is a cut to the Christmas bonus paid to civil servants, equivalent to a seven-percent reduction in annual pay. This came on top of a pay cut in 2010, which was followed by a salary freeze.

"There's nothing we can do but take to the street. We have lost between 10 and 15 percent of our pay in the past four years," said Sara Alvera, 51, a worker in the justice sector, demonstrating in Madrid.

"These measures won't help end the crisis."

(Full article at the link).

At least these people still have jobs. Spain's unemployment rate is over 24%, hitting young people disproportionately. The unemployment rate for people aged 16 to 24 in Spain is 51.5%, about twice as much as the overall average (which has always been the case in Europe, except Germany).

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World (Central Banks) Braces for Greek Election on Sunday

Any insight on the possible or likely outcome, European readers?

From Bloomberg News (6/15/2012):

Greek Candidates Make Final Pleas Before Vote With Euro at Stake

Greek political leaders made their final campaign pleas before elections tomorrow that may determine whether the country becomes the first member of the euro to leave the currency union.

“The first thing we must determine in the elections on June 17 is to choose between the euro or drachma,” New Democracy leader Antonis Samaras told a crowd of flag-waving supporters in central Syntagma square last night. He faced the Parliament building in Athens, the site of protests against austerity measures demanded in return for 240 billion euros ($303 billion) of emergency aid pledges. A vote for the anti- bailout Syriza party “means Greece out of the euro,” he said.

The vote will turn on whether Greeks, in a fifth year of recession, accept open-ended austerity to stay in the euro or reject the bailout conditions and risk the turmoil of exiting the 17-nation currency. World leaders, who gather for a summit in Mexico June 18, have said they’d prefer a pro-euro result, underscoring concern over global repercussions.

Almost 10 million Greeks are eligible to vote for the second time in six weeks after a May 6 ballot failed to yield a government.

Exit polls will be released when voting ends at 7 p.m. in Athens, with a first official result estimate due around 9:30 p.m. The final polls, published on June 1, showed no party set to win a majority.

Syriza leader Alexis Tsipras, who promises to renege on Greece’s end of the bailout deal, and New Democracy ran even in final opinion polls. The socialist Pasok party, which won the 2009 election and led the country into the bailout, was third at about 13 percent.

...

Tsipras told Athenians June 14 that he was sending a message that nobody should bet on Greece leaving the euro area.

“Turn your backs on the two parties of bankruptcy,” Tsipras told supporters, referring to the Pasok and New Democracy parties which co-signed the rescue. They “lowered the Greek flag and surrendered it to Angela Merkel”-- the German chancellor who led the demand for austerity -- he said.

(Full article at the link)

With the rumor (or was it an announcement? or does it matter?) that the world's central banks (ECB, FED, BOJ, etc.) will intervene in case of a dire credit crunch that may happen depending on the result of the 2nd Greek election this Sunday, there seems to be nothing to lose for the Greeks to vote out the incumbent parties.

Judging by how the stock markets around the world fared toward the end of this week (particularly that of the US), the central bank intervention is very much priced in.

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Nigel Farage: "Euro Titanic Hit the Iceberg and There Aren't Enough Lifeboats"

From Zero Hedge (6/13/2012):

In an epic rant, trumping Biderman, UKIP's Nigel Farage appears to have reached the limit of his frustration with his 'peers' in the European Parliament after the Spanish bailout. Rajoy's proclamation that this bailout shows what a success the euro-zone has been, sends Farage over the edge as he sees the Spaniard as just about the most incompetent leader in the whole of Europe (up there with favorites like Van Rompuy and Barroso). The erudite Englishman notes that by any objective criteria "The Euro Has Failed" expanding on the insane farce of Italy funding Spain's banking bailout at a loss (borrowing at 6% to fund a loan at 3% as we discussed here). "This 'genius' deal makes things worse not better" as it merely drives other nations towards needing bailouts themselves and while his socialist colleagues in the room are mumbling and checking their blackberries, he reminds them that Spanish national debt will surge and that 100 billion does not solve the problem, and that if Greece leaves, the ECB is failed, is gone, and to rectify this there will be a cash call from the very same PIIS (Ex-G) that are tumbling towards the abyss. Blood pressure surges as he screams "you couldn't make this up" concluding that "the Euro Titanic has now hit the Iceberg and sadly there simply aren't enough lifeboats."

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OT: Egan Jones Downgrades Spain to CCC+, Lower than Uganda (Which Has B Rating), While Greeks Stock Up Non-Perishable Food

From Zero Hedge (6/13/2012):

And so, the little rating agency that could, just gave Spain the triple hooks, downgrading the country from B to CCC+, negative outlook. As a reminder, the Uganda credit rating is B: it sure is no Spain.
From EJ:

Synopsis: KINGDOM OF SPAIN EJR Sen Rating(Curr/Prj) CCC+/ CC Rating Analysis - 6/13/12 EJR CP Rating: C Debt: EUR805.9B EJR's 1 yr. Default Probability: 18.0% Spain continues to be weakened by high funding costs (6.75% for 10yr today), the gov. deficit of 9.6%, an estimated decline in GDP of 1.7% (per the Economy Ministry), the 24.4% unemployment, the IIF's recent estimate of additional bank loan losses up to EUR260B, and possible depositor withdrawals. Over the past four fiscal years, that is from 2008 to 2011, Spain's GDP declined from EUR1.09 trillion to EUR1.07 trillion. Meanwhile, its debt mushroomed from EUR519B to EUR806B. With the EUR100B infusion for Spain's banks, the debt to GDP will rise to 90% plus future additions for the government deficit, support for its regions and additional support for its banks. Social benefits are a major problem; while payments to the govt have been down EUR 3B (2008 to 2011), payments from the government have been up EUR 29B). As a result, Spain is short about EUR50B per year for social payments, EUR35+B per year for interest, and an additional EUR 30B for asset growth; hence the EUR110+B per annum increase in debt. As we expected, Spain requested support for its banking sector and will probably need cash for weaker provinces. Assets of Spain's largest two banks exceed its GDP. We are slipping our rating to " CCC+ " ; watch for more requests for support from the banks and money creation.

Just the reminder that the Greek election is on Sunday, June 17, and people are withdrawing money from the banks at a furious pace ($1 billion, or about 800 million euros per day). As CNBC reports, they are stocking up on non-perishable food:

...New Democracy has been telling voters they must choose between the euro or the drachma, while Syriza promises to end the austerity measures imposed by Greece's international lenders, such as salary and pension cuts, that have driven many Greeks into abject poverty.

Fears that Greece will collapse financially and leave the euro have slowly drained Greek banks over the last two years. Central bank figures show that deposits shrank by about 17 percent, or 35.4 billion euros ($44.4 billion) in 2011 and stood 165.9 billion euros ($208.1 billion) at end-April.

Bankers said the pace was picking up ahead of the vote, with combined daily deposit outflows from the major banks at 500-800 million euros ($625 million to $1 billion) over the past few days, and 10-30 million euros ($12-36 million) at smaller banks.

"This includes cash withdrawals, wire transfers and investments into money market funds, German Bonds, U.S. Treasuries and EIB bonds," said one banker, who spoke on condition of anonymity.

Retailers said consumers were stocking up on non-perishable food while almost all other goods were seeing a huge drop in sales as cash-strapped Greeks have no money to spare in the country's fifth year of recession.

"People are terrified by the prospect of returning to the drachma and some believe it's good to fill their cupboard with food products," said Vassilis Korkidis, head of the ESEE retail federation.

"It's over the top, we must not panic. Filling the cupboard with food doesn't mean we will escape the crisis," he said.

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US 10 Year Treasury Yield Hit All-Time Low at 1.5340%

It has risen a bit, at 1.5810. Flight to liquidity, for sure. Not sure about "safety" but it's all relative.

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Greek Pensioner Hangs Himself In Protest That "Greece Will Be Wiped Off The Map"

From Zero Hedge (5/30/2012):

Two months ago, an elderly Greek took his life in broad daylight in Athens' central square while decrying the country's traitors in government, and who preferred to take his own life than to defer his debts to his children or "fishing through garbage cans for his sustenance." Hours ago, another tragedy struck.
From Athens News:

A 61-year old pensioner was found hanging from a tree on Wednesday, in the Agios Filipos park of the Nikaia area. The lifeless body of the pensioner was discovered by a park attendant, who also found his suicide note which read as follows:

"The police does not know me. I have never touched a drink in my life. Of women and drugs I have never even dreamed of. I have never been to a kafenio (coffee house), I just worked all day! But I commited one horrendous crime: I became a professional at age 40 and I plunged myself in debt. Now, I’m an idiot of 61 years and I have to pay. I hope my grandchildren are not born in Greece, seeing as there will be no Greeks here from now on. Let them at least know another language, because Greek will be wiped off the map! Unless of course there was a politician with Thatcher’s balls so as to put us and our state in line.

Signed, Alexandros 29/5/2012”

His neighbours described the pensioner – a father of two- as a hard working man. He had been employed in ship repairs and construction sites and up until recently, he had been working as an electrician on a merchant ship.

He was facing sizeable financial problems and it was these that pushed him over the edge.

According to neighbours, prior to taking his own life, he was seen wearing his work overalls, carrying his tools and sitting on a bench in the park.

Tragic.

===================================
The Maastricht Treaty was signed in February 1992, around the time when this pensioner took on debt.

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Spiegel Interviews Tsipras: "If Greece Is Destroyed, Angela Merkel Will Be Guilty"

Mr. Alexis Tsipras, the Syriza leader, promises Greece will stay in euro, and no he won't abide by the austerity diktat. If anything goes wrong in Greece, it will be Angela Merkel's fault, and other European forces.

He probably scoffs at IMF Chief Christine Lagarde too, who told the Greeks to "pay up".

In the interview below, the Spiegel reporters don't sound too happy.

From Spiegel Online International (5/28/2012):

Greek Leftist Leader Alexis Tsipras 'It's in Europe's Interest to Lift the Austerity Diktat'

Alexis Tsipras, head of the leftist Syriza party, wants an end to austerity in Greece. Ahead of Greek general elections in mid-June, he speaks with SPIEGEL about the dangers his country poses to the euro, the failure of economization measures thus far and why Chancellor Angela Merkel would be to blame if the Greek economy collapses.

Tsipras, the 37-year-old rising star in Greek politics, lays his Ray-Ban sunglasses on the table. It's Tuesday afternoon, and he looks exhausted. Indeed, he has a packed schedule: first Paris and then Berlin, where he met with Gregor Gysi and then with Jürgen Trittin and Sigmar Gabriel, senior officials in Germany's Left Party, Green Party and Social Democratic Party, respectively. Tsipras was the surprise victor when his Radical Left (Syriza) party took second place in May 6 general elections in Greece. Because leaders were unable to form a coalition government, a new election will be held on June 17. Most believe that Tsipras will attract even more votes in this second election.

Tsipras' tour through "Europe's two most important capital cities," as he put it, was primarily about cultivating his image. The civil engineer, already politically active in high school as a member of the Communist Youth of Greece, numbers among the strongest critics of the EU-International Monetary Fund (IMF) strategy for Greece, which calls for radical budget cuts and austerity in return for international aid. Should he win the June 17 election, Tsipras plans to ditch the terms of the bailout agreements struck with its creditors. On the campaign trail, one of his slogans has been that Greece is in danger of becoming a "German colony." But he toned things down in Berlin, saying: "We want to persuade, not blackmail."

SPIEGEL: Mr. Tsipras, is Berlin really as bad as you always say back home in Athens whenever you rail against the evil Germans?

Alexis Tsipras: Berlin is my favorite capital city in Europe. It's too bad that I'm always here only briefly. I'd like to have more time.

SPIEGEL: You might be Greece's prime minister the next time you come to Berlin. If that happens, will Greece still be a member of the euro zone?

Tsipras: Of course. We'll do everything we can so that Greece can retain the euro. We're trying to convince our European partners that it's also in their interest to finally lift the austerity diktat. We need policies that don't destroy the Greek economy but, rather, allow for renewed growth. If the austerity course isn't changed, it will result in the complete destruction of the Greek economy. That would indeed be a danger to the euro.

SPIEGEL: But even some parts of Syriza, the leftist alliance you lead and which came in second place in the May 6 election, have been calling openly for a return to the drachma.

Tsipras: That's only a minority. In each party, no matter whether big or small, there are different orientations, different opinions. Then there will be a vote, and the majority decides. What's more, this minority among us isn't in favor of an exit from the euro, for example; it just wants to ensure that Greece can also survive, with the help of another currency, for example, if others have completely ruined our national economy.

SPIEGEL: Which "others" do you mean? The Greek economy is already in a shambles.

Tsipras: What I mean by that is if our economic foundation is completely destroyed and the decisions of an elected Greek government are not responsible for it but, rather, certain political forces in Europe. Then they too will be guilty, for example Angela Merkel.

SPIEGEL: Are you seriously claiming that the reforms which Europe is demanding as a precondition for loan assistance are the reason for Greece's miserable situation?

Tsipras: If we are once again pushed and blackmailed into an austerity program that has so obviously failed, then it won't be long before Greece is in fact no longer capable of paying its creditors. The result will be a halt in payments, one into which we were practically forced. This would not only be dangerous for Greece, but for the entire European economy. These days, the financial systems of all countries are so closely intertwined with each other that one can't limit the crisis geographically. It's a problem of all countries and of all national economies.

SPIEGEL: If Greece ultimately exits the euro, you will also bear some of the blame. You promised your voters the impossible: retaining the euro while breaking Greece's agreements with the rest of Europe. How can such a plan find success?

Tsipras: I don't see any contradiction in that. We simply don't want the money of European citizens to vanish into a bottomless pit. The fact that there is financial assistance is the principle of European solidarity and a mark of being part of a community. That's good. But we think these resources should also be put to sensible use: for investments that can also generate prosperity. Only then will we in fact be able to pay back our debts.

SPIEGEL: For you, other people are always the scapegoat. It's other people's fault that the economy is languishing, so other people also have to rescue it …

Tsipras: That's not correct; we naturally also take a critical look at ourselves. We bear significant responsibility for our situation. We've accepted politicians who have destroyed our country's manufacturing base and created a corrupt state. We have elected the very people who have stashed their money away abroad and not only allowed tax evasion to occur, but also fostered it. Of course we are responsible for that; we allowed it all to happen. But we also have the responsibility to change exactly that right now.

SPIEGEL: Given your dependence on financial support and your rejection of vital structural reforms -- such as that of the public administration -- already agreed on, how do you propose doing so?

Tsipras: We're not opposed to reforms. We're only saying what so many economists, what many German newspapers and what even former German Chancellor Helmut Schmidt are saying -- and what the OECD has now reconfirmed in a study: The austerity policies we've been implementing for two years -- the policy of solely relying on drastic belt-tightening -- have failed. We now find ourselves in the fifth year of the recession. This year too, our economy will once again contract by at least 6 percent.

SPIEGEL: Is that the complete truth? Even Alekos Alavanos, your old mentor and the former Syriza floor leader in parliament, has called on you to finally be honest with your fellow Greeks.

Tsipras: Alavanos left the party some years ago because he didn't share our conviction about remaining within the euro zone. It's fairly odd that I now have to justify myself for the fact that we -- like the vast majority of the population, incidentally -- want to stay within the euro association.

The political reality is simple: The austerity programs, as constructed thus far, have failed, partly because they've been based on a false model, namely, that of domestic devaluation. But we're not an exporting country. It is much more the case that most of what we produce, we consume. Our ability to compete doesn't only depend on labor costs, as so many people say; they also depend on other parameters, such as the infrastructure and the mind-set of people and politicians. We really do long for a bit more meritocracy …

SPIEGEL: The concept of merit-based remuneration hasn't made it all that far in Greece. Instead, there's widespread corruption, cronyism and clientelism -- not exactly an advantage when it comes to competitiveness.

Tsipras: I am aware of the problems the Greek state has. It was systematically run down by the politicians of ours who were in power. And many Greeks share in the blame: They've supported this system; they've sustained it by continually electing the same politicians. But this can't be the cause of the crisis but, rather, at most it is a symptom. The financial and debt crisis isn't purely a Greek problem -- otherwise, there wouldn't be high government deficits in other countries, as well, such as in Italy, Spain, Portugal and Ireland. So there must be other causes. That's why we have to analyze the structure of the community, its architecture. Also that of our common currency, the euro.

SPIEGEL: Do you see in François Hollande, France's newly elected Socialist president, a new ally in the battle against the austerity diktat coming out of Germany?

Tsipras: Hollande is clearly a great white hope for us. Now, ideas and arguments that haven't been listened to will once again be heard and discussed, such as a stronger role for the European Central Bank or the introduction of euro bonds. We can't just treat symptoms, or we really will stumble over Greece. That doesn't help anyone. If our country exits the euro zone, all of Europe is in danger. We mustn't fool ourselves about that.

SPIEGEL: The most recent talks in Athens aimed at forming a government failed because you refused to join in any coalition. At the moment, opinion polls indicate that your Syriza alliance is running neck and neck with the conservative Nea Dimokratia (New Democracy) party. Who would you like to partner with after the new elections on June 17?

Tsipras: We would, of course, like to have a left-wing coalition. And we'll do everything we can to make things add up in our favor this time.

Interview conducted by Julia Amalia Heyer and Manfred Ertel

Translated from the German by Josh Ward

Zero Hedge, where I took the link to Spiegel article, says "Well, in the US, it is all Bush's fault".

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UK Home Secretary: "We'll stop migrants if euro collapses"

From UK's Telegraph (5/25/2012):

Theresa May: we'll stop migrants if euro collapses

The Government is drawing up plans for emergency immigration controls to curb an influx of Greeks and other European Union residents if the euro collapses, the Home Secretary discloses today.

In an interview in The Daily Telegraph, Theresa May says “work is ongoing” to restrict European immigration in the event of a financial collapse.

People from throughout the EU, with the exception of new member countries such as Romania and Bulgaria, are able to work anywhere in the single market.

However, there are growing concerns that if Greece was forced to leave the euro, it would effectively go bankrupt and millions could lose their jobs and consider looking for work abroad.

The crisis could spread quickly to other vulnerable countries such as Spain, Ireland and Portugal, although Britain is regarded as a safe haven because it is outside the single currency.

Details of the contingency plan emerged as the euro crisis deepened further yesterday.

Catalonia was forced to turn to the Spanish government for a bail-out and speculation mounted that Bankia, the troubled Spanish bank, would need £15  billion in state support. European markets fell again as the euro dropped in value against other major currencies.

The Home Secretary says that the Government is already “looking at the trends” to determine whether immigration from beleaguered European countries is increasing. While there is no evidence of increased migration at present, she adds that it is “difficult to say how it is going to develop in coming weeks”.

On the subject of whether emergency immigration controls are under consideration, Mrs May says: “It is right that we do some contingency planning on this [and] that is work that is ongoing.”

The introduction of immigration controls within the EU would undermine a key part of the single market. However, it is allowed in “exceptional” circumstances under European law.

Controls are most likely to include restrictions on people seeking to work in Britain, who could be made to apply for visas.

Several European governments introduced temporary immigration controls when countries such as Poland and the Czech Republic joined the EU, to stop an influx of workers. France also threatened to reintroduce passport controls at the Italian border following an influx of Libyan and Tunisian refugees during the Arab Spring.

David Cameron has already said that Britain has made contingency plans to deal with the break-up of the single currency.

They involve preparations to evacuate Britons from Greece if civil disobedience spirals out of control, and for banks to take steps to protect

The last paragraph looks incomplete, but that's what is there at The Telegraph.

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ECB Has Been Secretly Propping Up Greek Banks

From Financial Times, via CNBC (5/21/2012):

There has been no official announcement. No terms or conditions have been disclosed. But Greece’s banking system is being propped up by an estimated €100 billion or so of emergency liquidity provided by the country’s central bank — approved secretly by the European Central Bank in Frankfurt. If Greece were to leave the eurozone, the immediate cause might be an ECB decision to pull the plug.

Extensive use of “emergency liquidity assistance” (ELA) to help banks in the weakest economies has been one of the less-noticed features of the eurozone crisis. Separate from normal supplies of liquidity and meant originally as a temporary facility for national authorities to use when banks hit problems, ELA proved a lifesaver for the financial system Ireland and is now even more so in Greece. As such, it has given the ECB — which has ultimate control over the facility — considerable power to determine countries’ fates.

Whether that power would ever be exercised is unclear. ELA is a subject on which the ECB is deeply reluctant to provide information — even on where or when it is provided.

“You don’t say when you are in an emergency situation, because then you make the situation worse. So I really don’t see the usefulness of being more transparent,” Luc Coene, Belgium’s central bank governor, explained in a Financial Times interview this month.

The ECB’s guard slipped a little late last month. Its weekly financial statement published on April 24, showed an unexpected €121 billion increase in the innocently titled heading “other claims on euro area credit institutions,” the result of putting all ELA under the same item. By definition, €121 billion was the minimum amount of ELA being provided by the “eurosystem” — the network of eurozone central banks.

By scouring ECB and national central bank statements analysts, have since pieced together more details. Analysts at Barclays, for instance, reckon Greece is now using €96 billion in ELA, with Ireland accounting for another €41 billion and Cyprus €4 billion. If correct, total ELA in use has exceeded €140 billion — more than 10 per cent of the amount lent to eurozone banks in standard monetary policy operations.

Because of the risks of extra liquidity creating inflation, ELA in excess of €500 million requires approval by the ECB’s 23-strong governing council: its use can be stopped if two-thirds of the council oppose an application.

(Full article at the link)

On this reassuring news, the stock futures for the major European bourses are up right now. Stock markets in Asia are all up, with Korea's KOSPI up more than 1.7%.

In an separate, related article at CNBC, Mr. Alexis Tsipras is quoted:

In Greece itself, the head of the county’s radical left party traveled to Paris on Monday to try to consolidate support from political allies for rejecting the terms of the country's bailout package, ahead of general elections that could decide the destiny of Greece in the euro zone.

"I don't know if we have scared Europe, but judging by your presence here today, we have surprised it," Alexis Tsipras, the 37-year-old leader of Syriza, told journalists at the French National Assembly.

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Greek Citizens Withdrew 700 Million Euros from Banks Recently

CNBC couldn't say exactly when.

From CNBC (5/15/2012; emphasis is mine):

Stocks faded in the final hour of trading Tuesday to finish lower following news that Greek depositors withdrew 700 million euros from the nation's banking system and after Greece's leaders failed to agree on a coalition government.

The S&P 500 closed at 3-month lows, while the Dow logged its ninth loss in the last 10 sessions. Major averages are on pace for their biggest monthly losses since last September.

According to a transcript, Greek depositors recently withdrew 700 million euros from the nation's local banks, said President Karolos Papoulias, though the exact timing of the transfer was unclear.

...

Earlier, Greek politicians failed to form a coalition government during their final talks, pushing the Athens Composite Index to a new 22-year low. A caretaker government is likely to be formed pending a new election next month. The euro fell below $1.28 following the announcement and European closed at new 2012 lows.

“The fundamental structural issues in Europe are still there and they’re not going to go away…they’ll continue to kick the can down the road because they’re only doing just enough to get by,” said Matt Lloyd, chief investment strategist at Advisors Asset Management.

(Full article at the link)

22-year low. Ouch...

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OT: Socialist Wins Presidency in France, Greece Parliamentary Vote with No Clear Majority

(UPDATE) Re: Greek Parliamentary Election
New Democracy and Pasok may not have 151 seats needed to form a coalition government. Left is calling for anti-bailout coalition. Stick it to the creditors (European banks)... Read Zero Hedge.

==================================

First, the French presidential election, headline at France 24:

Socialist Hollande beats Sarkozy to win French presidency

Socialist Party challenger François Hollande has beaten incumbent Nicolas Sarkozy in a tight run-off election to win the French presidency with 51.9% of the vote to Sarkozy’s 48.1%, Ipsos exit polls show.

Here's NY Times coverage, with Sarkozy's remark "I become a citizen among you".

And Greece, from BBC (5/6/2012):

Greeks are voting in parliamentary polls, with the country's two mainstream parties expected to lose support to anti-austerity candidates.

The centre-left Pasok and centre-right New Democracy parties have been in coalition since last November.

They are both expected to suffer due to opposition to the austerity measures imposed by the government in exchange for international bailout funds.

No single party is expected to gain a majority.

...

A range of smaller parties looks set to benefit, from the communists to the anti-immigrant, far-right Golden Dawn party, he adds.

"I am going to vote one of the small parties. I have had enough of ND and Pasok," one voter, psychology student Maria, told the AFP news agency. "Ever since I was born people have just voted for them."

Some polls indicate that Golden Dawn could gain more than 5% of the vote and enter parliament for the first time.

In his party's closing rally on Friday, Pasok leader Evangelos Venizelos said Greeks faced a choice between continuing with the austerity programme in order to stay in the eurozone and "mass poverty".

New Democracy's leader Antonis Samaras said the Left was "playing games with the country's European future".

New Democracy is expected to emerge from the poll as the largest party, but with only around 22% of the vote.

Pasok, which has been governing in coalition with New Democracy since last November, has been in second place in opinion polls with around 18%.

Left-wing parties opposed to the terms of the bailout deal have collectively scored around 30% in opinion polls.

European equity markets have been somewhat discounting these outcomes, but decidedly not the US equity market which has been floating higher on hopium on declining volume.

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The Birth Of Barter: How One Greek Town Dropped The Euro And Moved On

This BBC News segment was posted on Zero Hedge (4/18/2012), by Tyler:

Greece was the first country to defect from the non-default game theory regime of the European Union (a move which ultimately will be in its great benefit, as it is forced, very shortly, to default higher and higher into the 177% of GDP secured debt, until finally even the Troika's DIP loan is impaired). It has also become the first country to demonstrate that people can, contrary to apocalyptic claims otherwise by the global banker consortium which realizes oh too well it will be its death if people stop playing by the broken rules, exist under a barter regime. The video below shows how the Greek town of Volos develops its own bartering system without the aid of the euro. Yes - it can be done, especially since one is forced to produce in order to consume, and borrowing infinitely from the future becomes impossible.

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Hilarity of the Day: Japan's PM Noda "Japan Must Heed Lessons of Europe"

According to Bloomberg News, that's what Noda said on January 14 after reshuffling his increasingly unpopular cabinet.

Mr. Noda, it is Europe and the rest of the world trying their best to avoid being like Japan, after having heeded the lessons of Japan, the one and only country in the whole world whose deficit to GDP ratio well exceeds 200%.

Noda's lessons learned from Europe? Raise taxes.

From Bloomberg (1/15/2012):

Prime Minister Yoshihiko Noda said containing Japan’s public debt load, the world’s largest, is critical after Standard & Poor’s downgraded credit ratings on France, Austria and seven other European nations.

Europe’s fiscal situation “isn’t a house burning on the other side of the river,” Noda said on TV Tokyo Holdings Corp.’s program on Jan. 14. “We must have a great sense of crisis.”

Noda reshuffled his cabinet last week, aiming to win support for doubling Japan’s 5 percent national sales tax by 2015 to trim the soaring debt. S&P said in November Noda’s administration hadn’t made progress in tackling the public debt burden, an indication the credit-rating company may be preparing to lower the nation’s sovereign grade.

Japan’s government, which has enjoyed borrowing costs that are around 1 percent, wouldn’t be able to manage its finances if bond yields surged to 3 percent, Noda said last week. The country risks seeing a spike in government bond yields unless it controls a debt load set to approach 230 percent of gross domestic product in 2013, the Organization for Economic Cooperation and Development said on Nov. 28.

(The article continues.)

If the bond yields increase 200 basis points to 3%, Japan's debt servicing would consume all of the government tax revenue, according to Kyle Bass.

Bloomberg's article has IMF suggestion to Noda, which he may be very happy to oblige - raising sales tax to 15%. That should totally finish off the struggling Japanese, because it won't be accompanied by the reduction in income tax:

The International Monetary Fund has said a gradual increase of Japan’s sales tax to 15 percent “could provide roughly half of the fiscal adjustment needed to put the public-debt ratio on a downward path.”

PM Noda and his gang are very eager to do the bidding of the international community at the expense of the citizens of Japan. That much has been known to many in Japan since he took office last September.

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Germany's Siemens Pulled 500 Million Euro from a French Bank

One day after the announcement that the company will pull out of nuclear power business, it has been revealed today that Siemens, headquartered in Munich, Germany, had pulled 500 million euros (US$684 million, 52 billion Japanese yen) 2 weeks ago from an unnamed French bank which is not BNP. (So it's either Societe Generale or Credit Agricole...)

And what did the company do with the money? It deposited the money to the European Central Bank for safety and higher interest. How could an engineering company make a diposit at a central bank? Because Siemens does have a bank, for about a year.

From Financial Times (9/19/2011):

Siemens withdrew more than half-a-billion euros in cash deposits from a large French bank two weeks ago and transferred it to the European Central Bank, in a sign of how companies are seeking havens amid Europe’s sovereign debt crisis.

The German industrial group withdrew the money partly because of concerns about the future financial health of the bank and partly to benefit from higher interest rates paid by the ECB, a person with direct knowledge of the matter told the Financial Times.

In total, Siemens has parked between €4bn ($5.4bn) and €6bn at the ECB’s facilities, mostly through one-week deposits, this person said. Only a handful of large companies have the banking licences that allow them to deposit cash directly with the ECB.

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The company’s move came almost a year after Europe’s largest engineering conglomerate prepared itself for a future financial crisis by launching its own bank, an unusual move for an industrial group outside the car sector, where companies run big car financing and leasing businesses.

In an interview last December, Roland Châlons-Browne, chief executive of Siemens’ financial services unit, said its banking business would enable the group to tap the central bank for liquidity and deposit cash at the ECB.

“In the case of another financial crisis, we will be able to broaden our flexibility and take out risk with our own bank,” Mr Châlons-Browne said at the time.

Siemens does not only use the ECB as a haven; it also gets paid a slightly higher interest rate than it would get from a commercial bank.

The ECB paid an average interest rate last week of 1.01 per cent for its regular offers of one-week deposits, under which it withdraws from the financial system an amount of liquidity equivalent to the amount it has spent on eurozone government bonds.

That compares with an average overnight interest rate paid by eurozone banks of 0.95 per cent.

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Massive Demand from Asians for Euro Bailout Bond

Chinese and Japanese, that is. According to the UK's Telegraph, the demand was so massive and unprecedented that they would need to apply for the Guinness world record.

From Telegraph (Ambrose Evans-Pritchard):

Asian and Middle-East investors have thronged to buy the first issue of AAA-rated bonds by the eurozone's new bail-out fund, marking a key moment in the evolution of Europe's monetary union.

The auction of €5bn (£4.3bn) of five-year bonds to fund the first stage of the Irish loan package was nine times subscribed, reflecting appetite for bonds ranked with core German or French debt but offering higher returns. The yield was 2.89pc, compared with 2.31pc for Bunds.

The outcome was not in doubt after Japan said it would buy 20pc of this month's total issue by the European Financial Stability Facility (EFSF), and China emerged as a white knight for EMU debt. Asian investors bought 38pc of the issue.

"It is the biggest order book ever. We will check before notifying the Guinness Book of Records but nobody can remember anything like that in the world," said Klaus Regling, head of the EFSF. Ralf Umlauf from Helaba said the auction was "a step in the direction of a eurobond".

Poor citizens of China and Japan. The result of their hard work goes to Europe to bail out PIIGS so that their large corporations continue to sell junks (in case of China) and increasingly junky products (in case of Japan) in Europe. The Japanese government actually took 20%, or 1 billion euro, according to Irish Examiner.

FYI, today's US Treasury bond auction happened to be 5-year notes, and the bid to cover ratio was 2.97. That means it was 2.97 times subscribed. But then, Timmy's Treasury Department manages to raise $35 billion every single month, at least so far.

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Japan Joins China to Become a Bagholder for Euro Zone Debt (As If Being US Treasury Bagholder Is Not Enough)

The curse of mercantilism. Japan seems determined to do whatever it takes to cheapen their currency and destroy the wealth of the nation.

Bloomberg reports:

Japanese Finance Minister Yoshihiko Noda said Japan is planning to buy euro-zone sovereign bonds to help support Ireland.

He told a news conference in Tokyo today that Japan will use its foreign exchange reserves to buy the bonds. Japan may buy more than 20 percent of bonds to be issued for the assistance, he said.

Japan plans to reduce the pensions for the retirees in an effort to reduce the deficit. (Why bother?) But it is willing to buy more than 20% of Euro debt to help Ireland.

Where's the outrage in Japan? Alas, the Japanese are the last to take to the streets. "Shoganai" - "can't be helped, nothing we can do, leave it to the fate" is the national character.

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China to the Rescue of EU in Sovereign Debt Crisis

I wonder how long it will take for the politically correct EU to declare China as part of Europe and offer a full membership. (Turkey should have offered to buy the euro debt.)

Bloomberg reports:

Chinese Vice Premier Wang Qishan said China has taken “concrete action” to help the European Union with its debt problems as he officiated the opening of a one-day forum in Beijing to discuss economic and trade relations.

...Chinese Premier Wen Jiabao said in October that China supports a stable euro and won’t reduce its holdings of European bonds. The Portuguese government said last week that China had made a “clear statement” of financial support during Finance Minister Fernando Teixeira dos Santos’s visit to Beijing.

Japan's Nikkei Shinbun takes it to mean the ongoing sovereign debt crisis in Europe will abate with the Chinese purchase of the euro debt, and euro will strengthen.

China got so close to overrunning Europe during the Yuan Dynasty (a Mongolian dynasty founded by a grandson of Genghis Khan) in the 13th Century. This time, the Chinese won't even have to fight a battle. All they need to do is to buy the euro debt on a discount and stick it to Germans. They can use US Treasuries as payment.

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IMF's Strauss-Kahn Wants Eurozone Growth, and Doesn't Want Eurozone Growth

It must be the translation, I hope.

According to AP, Director General of the IMF Dominique Strauss-Kahn said in Greece Tuesday:

there was a need "to have something more dynamic, which is something where the center of the eurozone will be stronger because you can't have a single currency and not have at the same time a coordinated economic policy. And that's the big weakness."

?????

Now, can you figure out what the hell he meant? Did he speak Greek? Did he speak French? Did AP use Google translation? What am I missing?

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