Mike Shedlock

Once again talks between the Troika and Greek politicians broke down. Talks between the Greek political parties have also broken down.

Meanwhile support for Golden Dawn, a political party with a Nazi-like symbol is on a huge upswing. For details, please see, Greek State Tries to Stem Neo-Nazi Rise.

Talks in Greece over the next tranche of loans are now on hold until after the US election. There were numerous reports this week that Obama did not want failed talks before the election, preferring instead they not fail until after the election when it will not matter to him.

Limits? What Limits?

The talks broke down when the Troika asked for more wage and benefit cuts.

The finance ministry says it can make the required savings from cuts in operational expenses and the restructuring of the public sector. But the troika of international lenders, especially the IMF, is unconvinced. It has asked for more wage and pension cuts, according to a person familiar with the talks.

Talk of tension between finance minister Yannis Stournaras and a member of the troika as well as strains within the coalition have fuelled rumours that talks have reached stalemate.

Fotis Kouvelis, the leader of the moderate Democratic Left party, said: “The troika must stop attacking Greek society. The troika must understand there are limits.”

Greek Bailout on Hold Again

So ... Greece Braced for Bailout Delay

Mike Shedlock

Mike Shedlock is a registered investment advisor representative for Sitka Pacific Capital Management.

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