Wednesday, March 11, 2015

RAID: Greek Government Wants to Use Social Security Funds to Pay Government Workers

Note well: This is what happens when governments get desperate.

Greece’s cash-strapped Syriza government is pressing the country’s social security funds to hand over hundreds of millions of euros immediately to ensure that pensions and civil servants’ salaries are paid this month, reports FT.

The social security funds and other state entities hold as much as €2bn of cash reserves that could rescue the public finances both this month and next if they were transferred to the central bank’s Common Fund, which already manages more than €8bn of state agencies’ cash.

The funds and sattes, for good reason, want nothing to do with it.

The unprecedented demand for the transfer of bank deposits follows an unexpectedly sharp fall in tax revenues in January that has left the finance ministry scrambling to raise funds to make a €1.2bn loan repayment to the International Monetary Fund due by March 20.

Yanis Varoufakis, the finance minister, insists Greece has enough cash to meet its debt obligations this month, while at the same time warning that payments to government suppliers and refunds of value added tax may be suspended because of the cash crunch.

But, FT reports, according to another senior official, the government needs to rake in an extra €1.5bn by the end of March to avoid delaying some wage and pension payments.



  1. Coming soon to a bankrupt country near you!

  2. While this is tragic, let us remember that the US gov't already does this.

    There is no "social security lockbox", only promises from a gov't that prints money to meet its deficit.

    So in effect, the Greek government is just following the US model of social security funding. (which is horrible)

    1. You mean to tell me Al Gore's lock box got picked? Say it ain't so!

  3. When is humanity ever going to learn that you can only spends someone else money for so long?

  4. Venezuela discussing gold swap with Wall Street banks: sources

    (Reuters) - Venezuela's central bank is in talks with Wall Street banks to create a gold swap that would allow it to monetize some $1.5 billion of the metal held as international reserves, according to government sources familiar with the operation.

    The move would help the government of President Nicolas Maduro boost its hard currency position as the OPEC nation struggles with soaring consumer prices, chronic product shortages and a shrinking economy caused by low oil prices.

    Under the swap, the central bank would provide 1.4 million troy ounces in exchange for cash, said a central bank source. After four years, it would have right of first refusal to buy the gold back, added the source, who asked not to be identified.

    The ongoing talks involve at least two institutions, Bank of America and Credit Suisse, the source told Reuters.

  5. ah, so that's what libertarian marxism looks like. I'm learning something everyday here.

    1. Bank Of Japan Stepped In A Stunning 143 Times To Buy Stocks, Prevent Drop

      BOJ officials used to be cautious about purchasing ETFs, worried that it could distort market activities and put the central bank’s own financial health at risk. But under pressure from politicians following the global financial crisis, the bank changed its stance in late 2010.

      “We led the cows to water, but they didn’t drink it, even though we told them it tasted good,” Miyako Suda, who was a board member then, wrote in a 2014 book discussing monetary easing at that time. “So we thought we should drink it ourselves, showing them it was tasty.”

      * * *

  6. Great point, A- (11:11) about the Greeks merely using the same tactic that our government uses with us.

    Yep, this is a fascist banana republic police state empire.

  7. The difference is that they can't print euros guys.