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Moody’s declares Greece in default of debt

Evans Liberal Politics


The Best in Liberal Christian News
and US Politics

Moody’s declares Greece in default of debt

But New debt deal should tide Greece over

Moody’s declares Greece in default of debt, AlJazeera English, March 10, 2012, by AlJazeera, quoted verbatim, with commentary by Evans Liberal Politics owner Paul Evans:

"Bond credit rating agency says EU member has defaulted on its repayments as it secures biggest debt deal in history."

Moody’s Investors Service has declared Greece in default on its debt after Athens carved out a deal with private creditors for a bond exchange that will write off $140 billion of its debt.

New debt deal
should tide Greece over

Moody’s pointed out that even as 85.8 per cent of the holders of Greek-law bonds had signed onto the deal, the exercise of collective action clauses that Athens is applying to its bonds will force the remaining bondholders to participate.

Overall the cost to bondholders, based on the net present value of the debt, will be at least 70 per cent of the investment, Moody’s said.

“According to Moody’s definitions, this exchange represents a ‘distressed exchange,’ and therefore a debt default,” the US-based rating firm said.

For one, “The exchange amounts to a diminished financial obligation relative to the original obligation.”

Secondly, it “has the effect of allowing Greece to avoid payment default in the future.”

Ahead of the debt deal, Moody’s had already slashed Greece’s credit grade to its lowest level, “C,” and so there was no impact on the rating.

Moody’s said it will revisit the rating to see how the debt writedown, and the second Eurozone bailout package, would affect its finances.

However, it added, at the beginning of March “Moody’s had said that the risk of a default, even after the debt exchange has been completed, remains high.”

"Source: Agencies"

Commentary by Evans Liberal Politics owner Paul Evans: I have to say that this looks exactly like the story by Agence France-Presse that The Raw Story ran yesterday, but since AlJazeera and a gazillion other internet sites saw fit to republish this, and I have an agreement with The Raw Story anyway, I felt I should republish it.

Please watch the video to get the full lowdown on what is going on with the Greek economy and the credit default. To me, the whole thing seems as though it is an arranged situation, with no dire consequences, for example, for the European and world economies. The articles around the web have alarming titles, and the text of this article is rather alarmist in it’s tone and content, as well. However the video portrays a more hopeful, if somewhat grave, situation for the Greek people. Investors in the Greek bonds will lose something like 86 percent of their investment, and we’re talking about hundreds of billions of dollars. Therefore there will be some pain among the mostly European investors.

The Greek Debt Crisis
and Goldman Sachs

In the article mentioned from February 15th, the predatory role of Goldman Sachs in the Greek debt crisis is exposed. The entire Greek economy only amounts to $400-$500 billion anually. However it seems that Goldman Sachs has been investing heavily, to the tune of some $600 to $700 billion, in hedge funds that have been betting on the Greek economy to tank, with attendant results.

See Will the EU and the IMF & Investment Banks relent or will Greece erupt in chaos, Telegraph.co.uk on Evans Liberal Politics, February 15, 2012, by Peter Oborne, with commentarty by Paul Evans: At the time this article was written, it looked like Greece might erupt, perhaps, even into violent revolution. This is a proud, civilized people and they are being driven deep into poverty and sometimes hunger. If the new debt deal results in suffering beyond what is tolerable to most, with the Greek Communist Party and other left wing parties now getting the support of 40 percent of Greeks, anything could happen.

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U.S. demands ‘actions’ from Iran in nuclear talks

Evans Liberal Politics
March 8, 2012


The Best in Liberal Christian News
and US Politics

U.S. demands ‘actions’ from Iran in nuclear talks

U.S. demands ‘actions’ from Iran in nuclear talks, Agence France-Presse on The Raw Story, March 7, 2012, by AFP, used with permission, excerpt quoted verbatim: Evans Liberal Politics is pleased to partner with The Raw Story to bring you cutting edge news:

WASHINGTON — The United States Wednesday rebuffed an Iranian warning that new nuclear talks would fail if they were used to exert pressure, demanding assurances Tehran was not building an atomic bomb.

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“We will demand that Iran live up to its international obligations — that it provide verifiable assurances it is not pursuing a nuclear weapon,” White House spokesman Jay Carney told reporters aboard Air Force One.

The warning came after Iranian parliamentary speaker Ali Larijani warned that the talks offered by the United States, Russia, China, France, Britain and Germany would fail if they were used to “pressure” Tehran.

Carney said the United States was “clear-eyed” about its approach, given that Tehran declined to discuss its nuclear program in previous rounds of talks.

“We will not relent in our efforts through sanctions and other measures to isolate and pressure Iran,” he said.

“Actions are what matter here, and we will judge Iran by its actions.”

The Daily Show
Hebrew Nationalist

Video from March 6: The Republican candidates love Israel — not like that other guy they are running to replace.

On Tuesday, European Union foreign policy chief Catherine Ashton, who represents the world powers, said she hoped for real progress in the talks at a time and place yet to be announced.

President Barack Obama meanwhile said he expected it would “quickly” become clear if Iran was serious about easing concerns about its nuclear intentions in the talks.

In a February 14 letter to Ashton, Iran’s chief nuclear negotiator Saeed Jalili said Tehran was ready to resume the deadlocked negotiations at the “earliest” opportunity as long as the world powers respected its right to peaceful atomic energy. ….

Read the full article here.

See News About Iran, Evans Liberal Politics, ongoing, sources as noted.

Watch Words of Warcraft, The Daily Show, March 6, 2012: “With threats and taunts mounting, can we get a responsible party to break up this Iranian-Israeli schoolyard fight before someone gets hurt?”

Also watch Obama challenges Iran to address nuclear issues in new talks, Los Angeles Times, March 7, 2012, by Paul Richter and Henry Chu, excerpt quoted verbatim:

President Obama, speaking after an agreement to resume talks, says Iran must prove it is not seeking a weapon. He chastises GOP rivals for their war bluster.

See Obama, Netanyahu set to confront divisions over Iran, Evans Liberal Politics, March 2, 2012, by Reuters via The Raw Story.

See Listening Post – Drums of war: The Media on Iran, Syria and in Libya, Evans Liberal Politics, February 25, 2012, Commentary by Paul Evans.

See Obama says new Iran talks should calm “drums of war”, Reuters, March 7, 2012, by Tabassum Zakaria and Justyna Pawlak: “Obama: no choice on action needed within weeks or months.”

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Obama, Netanyahu set to confront divisions over Iran

Evans Liberal Politics
March 2, 2012


The Best in Liberal Christian News
and US Politics

Obama, Netanyahu set to confront
divisions over Iran

Reuters on The Raw Story, March 2, 2012, by Reuters, used with permission, excerpt quoted verbatim: Evans Liberal Politics is pleased to partner with The Raw Story to bring you cutting edge news:

WASHINGTON/JERUSALEM (Reuters) – Just days before what could be the most consequential meeting of U.S. and Israeli leaders in years, aides to President Barack Obama and Prime Minister Benjamin Netanyahu are scrambling to bridge stark differences over what Washington fears could be an Israeli attack on Iran’s nuclear sites.

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Further complicating Monday’s White House talks is a trust deficit between the two men that has been magnified by mounting pressures of the U.S. presidential campaign. Obama’s Republican foes are eager to paint him as too tough on Israel and too soft on Iran.

Netanyahu is coming to Washington to press Obama to more forcefully declare “red lines” that Iran must not cross in its nuclear program, Israeli officials say, even as speculation mounts that the Jewish state could act militarily on its own in coming months.

“If you don’t want me to attack now, I want guarantees,” an Israeli official quoted Netanyahu telling top Obama aides who visited Jerusalem last month. “If you’re saying, ‘we’ll take care of you’, you’re not saying that clearly enough.”

The White House has signaled that Obama, who has pledged to prevent Iran from building a nuclear weapon but has been vague on how far he is prepared to go, will resist pressure for a public policy shift.

Instead, amid growing signs that U.S.-led international sanctions are starting to take a toll on Iran, he will seek to persuade Netanyahu to hold off on any military strike to give those measures and diplomacy time to work, U.S. officials say.

But Israeli officials say they fear that time is running out for an effective Israeli attack as Iran buries its uranium enrichment program deeper underground.

Monday’s meeting was supposed to have been a defining moment for the American and Israeli leaders, a chance to present a united front as international pressure on Iran intensifies.

Underscoring the gap between the two allies, the Israelis also complain that the Obama administration is undercutting the deterrent effect of their threat to use force by publicly questioning the timing and wisdom of airstrikes on Iran, which says its nuclear activities are for generating electricity.

Calls for a tougher approach on Iran are also coming from Republican presidential hopefuls, who see Obama as vulnerable on the issue as he seeks re-election and will seize on any public rift with Netanyahu.

Read the full article here.

See Obama to Iran and Israel: ‘As President of the United States, I Don’t Bluff’, The Atlantic, March 2, 2012, by Jeffrey Goldberg:

Dismissing a strategy of “containment” as unworkable, the president tells me it’s “unacceptable” for the Islamic Republic of Iran to have a nuclear weapon.

At the White House on Monday, President Obama will seek to persuade the Israeli prime minister, Benjamin Netanyahu, to postpone whatever plans he may have to bomb Iran’s nuclear facilities in the coming months. Obama will argue that under his leadership, the United States “has Israel’s back,” and that he will order the U.S. military to destroy Iran’s nuclear program if economic sanctions fail to compel Tehran to shelve its nuclear ambitions.

See ‘We’ll attack Iran without telling U.S.’: Israel to keep America in dark if it decides to launch strike on nuclear facilities, Daily Mail Online, February 29, 2012, by Daily Mail Reporter.

See Washington expects Tehran to hit at US targets if Israel attacks Iran, The Guardian, March 1, 2012, by Chris McGreal: “US officials calculating that Iran will strike back but not seek to seriously escalate the conflict, expect ‘calibrated’ response.”

See Listening Post – Drums of war: The Media on Iran, Syria and in Libya, Evans Liberal Politics, February 25, 2012, Commentary by Paul Evans.

See MSNBC: US Naval commander in Gulf: We’re ready to confront Iran, MSNBC video on Evans Liberal Politics, February 14, 2012.

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World Video News Roundup for February 26, 2012

Evans Liberal Politics
February 26, 2012


World Video News Roundup
for February 26, 2012

2 US Officers Killed
In Afghanistan Shooting

Pakistan demolishes
Bin Laden’s hideout

Population Research Institute
Russia Is Dying

“Free & Fair”
Elections in Syria

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Listening Post – Drums of war: The Media on Iran, Syria and in Libya

Evans Liberal Politics
February 25, 2012


Listening Post – Drums of war:
The Media on Iran, Syria and in Libya


Commentary by Evans Liberal Politics owner Paul Evans: Below is a fairly long (25:05) video produced by AlJazeera, the independent Arabic news operation which does a good job with the English language versions of its news and has a global reach. In my experience, they have been fairly unbiased as a news source. So when AlJazeera does a segment describing the current media frenzy regarding an imagined necessity of going to war with Iran, and comparing that to the run-up to the Iraq war, it sends chills down my spine. And it should for you, too.

If you remember,there was absolutely no need to go to war with Iraq. There were no weapons of mass destruction, and even the last U.N. inspectors who had been in Iraq (not too long before the war) stated that, while there was no transparency in the inspection process, there also was no evidence of a dangerous capacity in regard to WMD. Moreover, Saddam Hussein (the dictator in Iraq) was a secular Muslim, who hated fundamentalist groups such as Al Qaeda. There was no Al Qaeda in Iraq before the U.S. invaded.

Do you remember all the speeches Bush made about WMD and “yellowcake” going to Iraq from Africa and “significant contacts” between Iraq and Al Qaeda? Do you remember the sham speech that Colin Powell was conned into making at the U.N., which gave us the necessary backing to go to war with Iraq?

In this video, the second and third sections are about the media in Syria and the altogether new, free media in Libya.

Please at least watch the first part, describing the building media hysteria about going to war with Iran. Going to war with Iran is a much bigger deal, than was going to war with Iraq, too. You would see the whole Middle East region go up in flames. Israel would be fighting a war on three fronts, against Hamas, Hezbollah and Syria. Probably the U.S. and likely Saudi Arabia would be fighting Iran inside Iraq. (Iraq and Iran share a 906 mile (1458km) border.)

It is also likely that it would be necessary to re-instate the draft, and that gasoline prices would double, destroying the economy’s fragile recovery and sending America deep into an economic depression.

There is no evidence that Iran’s nuclear enrichment program has reached the level of 90 percent purity, necessary to produce an atomic weapon. The last news I read about it had their enrichment level at 20 percent, which is a level consistent with medical uses.

One fifth of the world’s oil passes through the 21 mile-wide Straits of Hormuz, adjacent to Iran. There are two (and only two) main Saudi oil terminuses and Iran has 1,000 or more ballistic missiles. Do you think we could put in a sufficient number of Patriot missile batteries so that the Saudi oil terminuses remained safe? Likewise, Israel has only two major cities, Jerusalem and Tel Aviv. So that would give Iran only four primary targets for 1,000 or 1,500 ballistic missiles.

Folks, do we really want to do this?

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Will the EU and the IMF & Investment Banks relent or will Greece erupt in chaos

Evans Liberal Politics
February 15, 2012


The Best in Liberal Christian News
and US Politics

Special Coverage on the Greek Crisis

Will the EU and the IMF & Investment Banks
relent or will Greece erupt in chaos

EU and IMF Austerity Imposed
on Greece is Crushing the Greek People

The callous cruelty of the EU is destroying Greece, a once-proud country, Telegraph.co.uk, February 15, 2012, by Peter Oborne, quoted almost verbatim with apologies, commentary by Evans Liberal Politics owner Paul Evans:

For all of my adult life, support for the European Union has been seen as the mark of a civilised, reasonable and above all compassionate politician. It has guaranteed him or her access to leader columns, TV studios, lavish expense accounts and overseas trips.

The reason for this special treatment is that the British establishment has tended to view the EU as perhaps a little incompetent and corrupt, but certainly benign and generally a force for good in a troubled world. This attitude is becoming harder and harder to sustain, as this partnership of nations is suddenly starting to look very nasty indeed: a brutal oppressor that is scornful of democracy, national identity and the livelihoods of ordinary people.

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The turning point may have come this week with the latest intervention by Brussels: bureaucrats are threatening to bankrupt an entire country unless opposition parties promise to support the EU-backed austerity plan.

Let’s put the Greek problem in its proper perspective. Britain’s Great Depression in the Thirties has become part of our national myth. It was the era of soup kitchens, mass unemployment and the Jarrow March, immortalised in George Orwell’s wonderful novels and still remembered in Labour Party rhetoric.

Yet the fall in national output during the Depression – from peak to trough – was never more than 10 per cent. In Greece, gross domestic product is already down about 13 per cent since 2008, and according to experts is likely to fall a further 7 per cent by the end of this year. In other words, by this Christmas, Greece’s depression will have been twice as deep as the infamous economic catastrophe that struck Britain 80 years ago.

Yet all the evidence suggests that the European elite could not give a damn. Earlier this week Olli Rehn, the EU’s top economist, warned of “devastating consequences” if Greece defaults. The context of his comments suggests, however, that he was thinking just as much of the devastating consequences that would flow for the rest of Europe, rather than for the Greeks themselves.

Another official was quoted in the Financial Times as saying that Germany, Finland and the Netherlands are “losing patience” with Greece, with apparently not even a passing thought for the real victims of this increasingly horrific saga. Though the euro-elite seems not to care, life in Greece, the home of European civilisation, has become unbearable.

Perhaps 100,000 businesses have folded, and many more are collapsing. Suicides are sharply up, homicides have reportedly doubled, with tens of thousands being made homeless. Life in the rural areas, which are returning to barter, is bearable. In the towns it is harsh and for minorities – above all the Albanians, who have no rights and have long taken the jobs Greeks did not want – it is terrifying.

This is only the start, however. Matters will get much worse over the coming months, and this social and moral disaster has already started to spread to other southern European countries such as Italy, Portugal and Spain. It is not just families that are suffering – Greek institutions are being torn to shreds. Unlike Britain amid the economic devastation of the Thirties, Greece cannot look back towards centuries of more or less stable parliamentary democracy. It is scarcely a generation since the country emerged from a military dictatorship and, with parts of the country now lawless, sinister forces are once again on the rise. Only last autumn, extremist parties accounted for about 30 per cent of the popular vote. Now the hard Left and hard Right stand at about 50 per cent and surging. It must be said that this disenchantment with democracy has been fanned by the EU’s own meddling, and in particular its imposition of Lucas Papademos as a puppet prime minister.

Late last year I was sharply criticised, and indeed removed from a Newsnight studio by a very chilly producer, after I called Amadeu Altafaj-Tardio, a European Union spokesman, “that idiot from Brussels”. Well-intentioned intermediaries have since gone out of their way to assure me that Mr Altafaj-Tardio is an intelligent and also a charming man. I have no powerful reason to doubt this, and it should furthermore be borne in mind that he is simply the mouthpiece and paid hireling for Mr Rehn, the Economic and Monetary Affairs Commissioner I mentioned earlier.

But looking back at that Newsnight appearance, it is clear that my remarks were far too generous, and I would like to explain myself more fully, and with greater force. Idiocy is, of course, an important part of the problem in Brussels, explaining many of the errors of judgment and basic competence over the past few years. But what is more striking by far is the sheer callousness and inhumanity of EU commissioners such as Mr Rehn, as they preside over a Brussels regime that is in the course of destroying what used to be a proud, famous and reasonably well-functioning country.

In these terrible circumstances, how can the British liberal Left, which claims to place such value on compassion and decency, continue to support the EU? I am old enough to recall their rhetoric when Margaret Thatcher was driving through her monetarist policies as a response to the recession of the early Eighties. Many of the attacks were incredibly personal and vicious. The British prime minister (who, of course, was later to warn so presciently against monetary union) was accused of lacking any kind of compassion or humanity. Yet the loss of economic output during the 1979-82 recession was scarcely 6 per cent, less than a third of the scale of the depression now being suffered by the unfortunate Greeks. Unemployment peaked at 10.8 per cent, just over half of where Greece is now.

The reality is that Margaret Thatcher was an infinitely more compassionate and pragmatic figure than Amadeu Altafaj-Tardio’s boss Olli Rehn and his appalling associates. She would never have destroyed an entire nation on the back of an economic dogma.

One of the basic truths of politics is that the Left is far more oblivious to human suffering than the Right. The Left always speaks the language of compassion, but rarely means it. It favours ends over means. The crushing of Greece, and the bankruptcy of her citizens, is of little consequence if it serves the greater good of monetary union.

Nevertheless, for more than a generation, politicians such as Tony Blair, Peter Mandelson, Nick Clegg and David Miliband have used their sympathy for the aims and aspirations of the European Union as a badge of decency. Now it ties them to a bankruptcy machine that is wiping out jobs, wealth and – potentially – democracy itself.

Thus far only one British political leader, Ukip’s Nigel Farrage, has had the clarity of purpose to state the obvious – that Greece must be allowed to default and devalue. Leaving all other considerations to one side, humanity alone should press David Cameron into splitting with Brussels and belatedly coming to the rescue of Greece.

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UPDATE: See Europe’s Failed Course, NY Times Editorial, February 17, 2011:

Struggling euro-zone economies like Greece, Portugal, Spain and Italy cannot cut their way back to growth. Demanding rigid austerity from them as the price of European support has lengthened and deepened their recessions. It has made their debts harder, not easier, to pay off.

This is not an issue of philosophical debate. The numbers are in.

Recommended: Greek economy spirals down as EU forces final catharsis, Telegraph.co.uk, February 14, 2012, by Ambrose Evans-Pritchard. The Telegraph is the only prominent news source I know of that in the last few days has consistently given the Greek crisis the coverage it deserves.

A Greek default and traumatic ejection from the euro moved a step closer last night after eurozone finance ministers cancelled a crucial meeting, accusing Athens of failing to flesh out austerity cuts.

Also See: Greece won’t see a cent of the great bail-out, Telegraph.co.uk, February 13, 2012, by Andrew Lilico:

MPs in Athens may have voted for austerity, but the reality is that default is looming. Over the weekend, the Greek parliament voted to accept Europe’s latest demands for spending cuts and tax rises and other reforms and retrenchments. The aim was to make it marginally less implausible that Greece will pay back the hundreds of billions of euros that its neighbours are lending it. The alternative, we were told, was that it would become “ground zero” for a new financial meltdown, with its exit from the euro leading to social chaos within the country and economic chaos outside.

So Greece’s MPs voted it through, 199 to 74 – despite the tens of thousands rioting on the streets of Athens, despite GDP having contracted for three years in a row, despite tax revenues collapsing thanks to austerity-induced depression and overt, systematic tax evasion, despite the main governing party’s popularity falling to 8 per cent in the opinion polls.

The Vampire Squid Goldman-Sachs
Rears Its Ugly Head in the Greek Crisis

Commentary by Evans Liberal Politics owner Paul Evans: Ah the tentacles of the infamous vampire squid sucking any prosperity out of ordinary people, and now apparently the smaller, southern European countries: (Even though the source is the official Iranian Press TV, watch Goldman Sachs cooked Greece books.) Apparently the Greek economy runs in the vicinity of $400 – $500 billion a year (although this is sinking fast), but Goldman Sachs has apparently bought large chunks of $600 to $700 billion of hedge funds which are betting on Greece to tank. Why is it I’m not surprised? When ultracapitalism runs rampant, anywhere in the world, ordinary people suffer, sometimes badly. This is the side of unfettered, unregulated capitalism which conservatives need to be made aware of.

A last note: Because of the extreme poverty now in Greece, which the terms of the austerity “bailout” of Greece will only make much worse, the Communist Party and other left wing parties in Greece are now polling at 40 percent. Far right parties are also on the march. But the governing party is now polling at about 8 percent. So if the EU thinks Greece will stand for this sort of a.) interference in a country’s sovereign affairs and b.) impoverishment beyond what is reasonably tolerable for a civilized country, they had better think again. Chaos and bloody revolution may await.

Watch a slideshow of 36 photos, from The Atlantic, February 13, 2012, “Athens in Flames.”

Now, if anyone is still with me, here are four videos highlighting the situation in Greece. Despite the fact that I have used some shady sources for two of the videos here (such as the video referenced above from Press TV, and the last video from Russia Today), I believe they all speak the truth, in more or less strident tones. AlJazeera (source for the second video, below), is actually fairly reliable. Pay special attention to the first one featuring British Labour MP Mr. Farage:

Farage: Globalist Troika
Driving Greece
Towards Violent Revolution

Greece: (do the bankers
care at all?) austerity
deal hits people hard

Greece mounting concern
for MEPs

Russia Today:
Greece Burns

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MSNBC: US Naval commander in Gulf: We’re ready to confront Iran

Evans Liberal Politics

 

The Best in Liberal Christian News
and US Politics

MSNBC: US Naval commander in Gulf:
We’re ready to confront Iran

Perhaps the main significance of this video
being featured on page one of MSNBC is the fact that
war with Iran is now being openly discussed
in the mainstream media.

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