Angela Merkel rejects debt relief for Greece

German Chancellor Angela Merkel ruled out any cancellation of Greece’s debt and said the country has already received substantial cuts from banks and creditors.

“There has already been voluntary debt forgiveness by private creditors, banks have already slashed billions from Greece’s debt,” Merkel said in an interview with the Hamburger Abendblatt newspaper.

“I do not envisage fresh debt cancellation,” she said.

The new Greek government has already begun to roll back years of austerity measures demanded by the EU and the International Monetary Fund in return for a 240 billion euro ($269 billion) bailout granted to avoid a financial meltdown in 2010, and says it will negotiate to halve the debt.

At the start of 2012, Greece restructured its debt in a deal involving private creditors who took “haircuts” or wrote down parts of their holdings. This cut Greece’s total debt burden by around 100 billion euros.

  • tom_billesley

    If you went to the bank to ask for a loan, and the manager looked like that, you’d walk straight out again wouldn’t you?

    • Ed Ellison

      If the plan was to rob the bank anyway, maybe not.

  • Greece is what happens after the free lunch is over.

    At some point even socialists have to look at the bottom line.

    Unfortunately it is after they have finished spending all of other people’s money.

    Liberal politics sound great. It is easy. Promise the electorate everything at no cost (just a little deficit spending.) Sooner or later the deficit becomes too big.

    In the business world it is called a PONZI scheme. And the business collapses.

    Countries have civil discord and revolution.

    Get ready.

    • Alain

      I suggest that Greece remains in denial that the free lunch is over.

      • Billy Bob Thornton

        So in essence you are a defender of the banksters in 2008 and the odious debt they plunged on the world and the taxpayers having to agree with the bailouts which happened in the private sector. So you are a fascist? How else are nations going to fix their debt issues? Cutting alone isn’t going to fix the problem but instead lead to less growth. The only true way to fix debt issues is to do what Germany did in the 1930’s and back your currency with something of intrinsic value. Mainstream types always want to defend the system that has caused the problems. It is plain sad to see.

        • Minicapt
        • Pretty strange connections there, Billy.

          There is only one thing that leads to growth, business. Government can only take from the people and business and spend. That is not growth.

          • Billy Bob Thornton

            Nope manufacturing and making things will change the system for the better and why to me state capitalism and protectionism are the routes to go. Business does not improve the nation because corporate laws make corporations dictate everything. It leads to a corporate state which we have now. Which is why libertarians and their talks about free markets are just lies because free markets don’t lead to freedom but to corporate welfare and the corporate state.

    • tom_billesley

      Crooks have Ponzi schemes. Governments have Quantitative Easing.

    • WalterBannon

      Greece is Detroit with better weather

    • Billy Bob Thornton

      So you defend the mainstream to the point on wanting mainstream collusion to continue.

      You don’t believe in radical methods to fix debt issues?

      You completely ignore the Iceland model of punishing bankers and nationalizing the currency which they did.

      Canada had the Bank of Canada as our bank which was nationalized until 1974.

      You notice how our mainstream media glosses over that!

      I guess to you BobSmith there is only one method to correct debt issues.

      How interesting!

      • No. There are two ways. 1) pay them off or, 2) take a haircut (as the EU bankers have said.)

        If you loan you best friend $10K and she can only pay you back $1K that’s a haircut.

        How would you like it?

        Well in any haircut situation someone has to loose.

        Who do you suggest take the haircut?

        The Germans have said they don’t want any more haircuts. That means no more loans.

        • Billy Bob Thornton

          Loaning and the IMF mean more debt slavery.

          Russia and China are outside the IMF and establishing their own organizations that are the equivalent of the IMF and the World Bank.

          You obviously ignore about Papandreou colluding with Goldman Sachs.

          There are 3 ways to establish value based models. The government can nationalize; you can have value based currencies and the final way is to have a bond currency model like Argentina had in 2001.

          It seems to me that this model with the banking systems we have will lead to feudalism instead of a reasonable economic model. All I see are many Ponzi schemes existing throughout the West without a hope in sight.

          Kind of weird how so-called capitalists enjoy people living in societies that are debt-based. I thought capitalism was supposed to remove debt when debt is rampant and debt is just a bargaining chip rather than ever being got rid of.

          It seems that defending the model is all modern day capitalists have left. They know that the system will change yet they want to cling to the system most likely because they stand to lose from the change which is inevitably coming!

    • Billy Bob Thornton

      I agree the free lunch is over for those that want to cause debts that are not real.

      The days are over for building societies on debt.

      I wonder why BobSmith you continue lying to the people here about the fact that our society has any sort of way of people ever truly getting out of debt.

      It is built on credit cards and plunging people into debt and homes that are way too over-inflated.

      You could say debt based systems are Ponzi schemes and that our mainstream class knows this but will talk about this.

      China and Russia know how to build societies not built on debt. Of course, by electing nationalists of the left and right we can have societies where things of intrinsic value or government taking over the monetary system is what is favoured. You notice how you forget to mention Argentina in 2001, Iceland in 2009, Russia in 1998 and so forth.

      • Minicapt

        Nope … still no clue-thingie …


      • Sorry Billy. You do not have to use credit cards. Lots of people do not.

        You are correct about the Chinese. Most of the Chinese I know even paid cash for their homes.

        • Billy Bob Thornton

          Your answers sound rushed and do not talk about how the mainstream has failed the West. You ignore the Icelandic model in 2009 which nationalized their banks and punished the bankers. Our system is debt based yet you ignore that too! Debt based systems are Ponzi schemes and you talk about Germany who is the nation that is setting the rules yet they want no monetary freedom and who stands to benefit? I think Germany only benefits at the expense of everyone else.

          Any person that defends the system is part of the problem.

          • Billy Bob Thornton

            By defend the system I mean of course defend the mainstream class that have ruined everything and are sellouts. They are bought and paid for fools.

  • simus1

    Greece is going to change its name to “Venezuela II -the one with no oil”.
    Idiot marxist rulers voted in by “confused” voters.

    • Frau Katze

      Oil or not, Venezuela is seriously broke just now.

  • Norman_In_New_York

    As a consolation prize, say goodbye to the Eurozone.

  • TotallyPeeved

    She looks like someone that knows she fucked up and the entire human civilization is going to crash land on her stupid, commie koranimal loving head. When will we see that ugly mug sitting on her chest, in a utubeit?

    • Frau Katze

      It wasn’t her who designed the Eurozone. The Germans weren’t even enthused about joining it, but were strong-armed by the French.

  • David Murrell

    I have a Greek-immigrant colleague in my economics department, a fellow in tight with New Brunswick Liberals (he has had part-time patronage jobs with the McKenna and Shawn Graham governments, and knows people in the new Brian Gallant government).

    At any rate, my colleague knows a few people in the new radical-left Greek government. And he is fine with the rather buffoon approach to economics going on over their. My colleague writes on economic policy for our local newspapers, and not once has it entered his head that there might be a cost, to Greece, for running up public debts, and then declaring bankruptcy. All these costs, to a moribund country, has not entered his head.

    Nor has it entered into the heads of any economic ministers in that sad, pig-headed country. The country is going down the tubes, and the only philosophy people promulgate, is “I’m alright Jack”, and “What’s in it for me?”. That’s it.

    • simus1

      The first priority of the “new government” seems to be putting their previously laid off marxist drone buddies back in “their patronage entitlement” slots.

      To paraphrase:
      “When you have run out of other people’s money, it’s time to lay it on the line and start governing like responsible adults.”

  • Ron MacDonald

    Let them turn to their
    Muslim neighbours for help, and see how that works out for them.

    • Frau Katze

      They have 3 Muslim MPs (there are a few Turks left over from the Ottoman era, still living in Greece).

  • ntt1

    Well that is not surprising, the greeks can elect all the socialist/communist types they want but it will not put water back in a dry well. The worry is that the social unrest that will come as the far left fails to deliver nmore goodies, might very well catapult the golden dawn, protofascist party into power and that could be very bad for greece and its citizens

  • Waffle

    Angela, you need facial moisturizer now — very badly. Your fellow Germans make some very good stuff — use it, please!!

  • WalterBannon

    Heil Merkel!

    the fuhrer has spoken