Dear Doves,

         Two weeks ago, I reported that the deal between Greek Bankers and the EU Central Bank Rescue Fund was never going to be negotiated successfully. After the HAIRCUTS were rejected by the Greeks, it was never going to be settled. Greece will default. Greece will leave the EU and issue drachmas again. We can expect the other European economies in trouble to also default. After the 2012 US presidential elections, we will be forced to deal with our politicians addiction to spending money that we don't have.

          We could see the collapse to be an orderly process that takes place between 1-2 weeks. The lack of accountability is the most serious issue. Bond rating agencies will down grade sovereign debt and inflation will rise across the board. 

                                                                   Agape,

                                                                          Mike Curtiss

Eurozone finance ministers reject Greek debt offer
The Telegraph ^ | 1/24/2012 | Bruno Waterfield, Angela Monaghan 

Posted on January 23, 2012 7:23:08 PM CST by bruinbirdman

Talks to restructure Greece's debt hit a new impasse after eurozone finance ministers rejected an offer from private bondholders because the cost of sweeteners on new Greek bonds were too high.

The blow came after a day in which European markets had risen on hopes that attempts to resolve the latest phase of the Greek debt crisis would be successful.

Eurozone ministers have demanded that negotiations between the Greek government and Institute of International Finance (IIF) reach agreement on a lower average coupon, or interest rate, on new Greek bonds issued in return for a haircut on existing debt held by private investors.

"The ministers have sent the offer back for negotiations," said an official last night. "The ministers want a lower coupon than presented in the offer."

The offer, negotiated during tense talks that rattled markets last week, assumed an average coupon on new Greek bonds of 4pc.

The new bonds, likely to have maturity of 30 years, would replace existing Greek debt as sweetener for writing down existing Greek bonds owned by banks and private investors.

The International Monetary Fund (IMF) has insisted that the coupon rate must not exceed 3.5pc on average if the deal is to reduce the currently unsustainable burden of Greek debt to manageable levels.

If the coupon is 4pc then the cost for Germany and other eurozone countries of a second Greek bailout in March will rise beyond a €30bn figure earmarked for sweetening a debt write down for the private sector.

Jean-Claude Juncker, head of the eurozone finance ministers' group, last night confirmed that the group wants a rate below 4pc and insisted that rates must be on average 3.5pc or below until 2020.

Eurozone officials have insisted that there are no plans to increase the €130bn of