Troika, ex Merkel, Blinks.

Baltic Dry Index. 810 -13    Brent Crude 63.02

LIR Gold Target in 2019: $30,000.  Revised due to QE programs.

"Can't anybody here play this game?"

Mario Draghi, with apologies to Casey Stengel.

Greece defaulted yesterday failing to repay the IMF as anticipated. Suddenly everyone in the troika started to pretend that it didn’t matter. Germany suddenly changed tune and said of course Greece could remain in the dying monetary union, it was entirely up to Greece if they wanted to stay. Albeit, no one seems to have told Chancellor Merkel. The IMF suddenly started talking about the possibility of a new Greek rescue deal. It was game and set to the Greeks, if not yet the match.

Said the Greeks, give us another 29 billion euro from the European Stability Fund and we’ll call off Sunday’s referendum, effectively punting the bankruptcy out to 2017, and winning the match. The terrified members of Euroland are due to get back to Greece on that later today. Such is the state of panic in the monetary union over the exit of meaningless minor member. The panic is over the thought of what happens when Belgium, France, Italy or Spain becomes Greece at the turn of the decade. Euros anyone, even those starting with a German “X”?

Below, the confusion of the default in today’s media. What a way to run a monetary union. Will crowdfunding carry Greece into August? That monkey troupe from the Berlin Zoo look better by the day.

"Been in this game one-hundred years, but I see new ways to lose 'em I never knew existed before."

Chancellor Merkel, with apologies to Casey Stengel.

Greece defaults on the International Monetary Fund after launching 11th hour attempt to agree new rescue deal

Debtor nation makes history in becoming first ever developed economy not to pay back the IMF five days ahead of vital referendum

By Mehreen Khan, Matthew Holehouse, Brussels 11:50PM BST 30 Jun 2015

Greece has become the first developed country in history to default to the International Monetary Fund.

The cash-strapped nation failed to make a €1.5bn payment to the IMF by an 11pm deadline on Tuesday, triggering an arrears process which was last suffered by Zimbabwe in 2001.

In a statement, the IMF said: "We have informed our Executive Board that Greece is now in arrears and can only receive IMF financing once the arrears are cleared."

Greece now joins an ignominious list of states including Sudan, Zambia and Peru who have failed to make their commitments to the world's "lender of last resort".

The default comes after the country lodged a desperate last-minute plea for a reprieve to the IMF, according the Greek deputy prime minister Yannis Dragasakis.

Spokesman Gerry Rice confirmed the IMF had "received a request from the Greek authorities for an extension of Greece's repayment obligation that fell today, which will go to the IMF's Executive Board in due course."

In a sign of the total collapse in trust between its partners, it is unlikely Greece will now be given the traditional 30-day grace period afforded to other debtor nations who have missed repayment in the IMF's 71-year-history. IMF chief Christine Lagarde has said she will notify her Executive Board "promptly" should no payment be forthcoming.

Before the non-payment, rating's agency Fitch downgraded the Greek sovereign to 'CC' from 'CCC' citing the country's breakdown in talks and threat of "a disorderly and more permanent break from the Eurozone's payment system".

Default to the IMF does not however constitute a sovereign default in the eyes of rating agencies. It is also not guaranteed to trigger a series of cross-default clauses on the country's other outstanding debt. Any decision to do so would come at the discretion of its paymasters.

Greece's current rescue deal also expired at midnight on Tuesday, locking it out of access to €15bn in emergency funds. Creditors rebuffed three separate pleas from Mr Tsipras to extend the programme for at least a month, allowing the nation to go to the polls in a referendum on July 5.

With just hours left before both deadlines expired, Athens made an ambitious bid for new a European rescue loan worth €29.1bn to keep the country afloat until 2017.

The funds would come entirely from the eurozone’s permanent rescue fund, the European Stability Mechanism, which is guaranteed by the bloc’s 19 member states. European finance ministers convened for a telephone conference on Tuesday and are due to do so again today to mull over the plans.

The Leftist government of Syriza is thought to be willing to suspend its plans to hold a Yes/No referendum on its bail-out terms in return for securing some form of debt relief from its paymasters.

More
http://www.telegraph.co.uk/finance/economics/11709473/Greece-defaults-on-the-International-Monetary-Fund-after-launching-11th-hour-attempt-to-agree-new-rescue-deal.html

Greece Can Stay in Euro Even With ‘No’ Vote, Schaeuble Tells Lawmakers

June 30, 2015 — 1:12 PM BST Updated on June 30, 2015 — 1:51 PM BST

German Finance Minister Wolfgang Schaeuble told lawmakers in Berlin that Greece would stay in the euro for the time being if Greek voters reject austerity in a referendum scheduled this week, according to three people present.

Schaeuble also said the European Central Bank would do what’s needed to protect the euro if Greeks voted against the bailout terms in the July 5 referendum, according to the people, all of whom participated in the closed-door meeting on Tuesday. They asked not to be identified, citing the private nature of the discussion.

Germany’s stance suggests that policy makers in Berlin are preparing for Greeks to reject the offer by creditors for continued aid to the euro area’s most-indebted nation. Schaeuble said in that event Greece may be able tap about 32 billion euros ($36 billion) in European Union support funding to boost its economy, according to the participants.

“Our goal remains to keep Greece in the euro, regardless of the referendum result,” Antje Tillmann, a lawmaker for Chancellor Angela Merkel’s Christian Democratic Union, said by phone. “It’s up to Greece itself to decide whether it wants to stay in the euro zone.”

A Finance Ministry spokeswoman declined to comment citing the private nature of the parliamentary meeting.

All EU economic-stimulus funds earmarked for Greece are “of course still available,” Merkel said at a news conference Monday. “We also stand ready to help to the extent that it’s necessary for Greece.”

Greece’s government “won’t be able to destroy Europe,” Schaeuble said on ARD television on Monday. “Greece is on a difficult path. But we will do everything to keep Europe stable.”

http://www.bloomberg.com/news/articles/2015-06-30/schaeuble-said-to-see-greece-staying-in-euro-even-if-no-vote-ibjaov8p

Tsipras Asks European Union for a New Bailout Program

June 30, 2015 — 2:37 PM BST Updated on June 30, 2015 — 9:50 PM BST

German Chancellor Angela Merkel dismissed a bid for aid by Greece hours before its bailout expires and a payment deadline to the International Monetary Fund passes.

While Merkel rejected talks before a July 5 referendum called by Greek Premier Alexis Tsipras on further budget cuts, euro-area finance ministers signaled the deadlock may be thawing. As capital controls ration bank withdrawals and pensions, Greek society is feeling the pain.

“We’ll negotiate about absolutely nothing before the planned referendum is held,” Merkel told reporters in Berlin.

The exchange between the chief antagonists in the latest chapter of the crisis saga marked the final hours before Greece staggers into the economic unknown.

The Greek vote, which leaders in Berlin and Paris have labeled a decision on remaining in the euro, could also determine whether the European Central Bank withdraws its emergency loans. That would further decimate an economy that’s already shrunk by about a quarter in five years.

“A ‘no’ in the referendum would make it almost impossible for the IMF and for Europe to provide support for Greece beyond what would de facto be humanitarian relief,” said Holger Schmieding, chief economist at Berenberg Bank in London. “Greece would then have to issue IOUs as a first step to a Grexit.”

Tsipras’s plan would cover all the country’s financing needs for two years. It failed to include any economic-reform measures and proposed a restructuring of Greece’s crushing debt load, spelling its likely rejection.

Euro-area finance ministers, who discussed the plan in a conference call, will examine it on another one at 11:30 a.m. Brussels time Wednesday. Their comments suggested they were open to compromise, though they stuck by their opposition to debt relief and demands for economic reform.
More
http://www.bloomberg.com/news/articles/2015-06-30/greek-pm-tsipras-asks-european-union-for-a-new-bailout-program

Someone Is Trying to Crowdfund a Greek Bailout, and Donations Are Surging

Only 1,599,917,718 euros to go.

June 30, 2015 — 1:24 PM BST

A new campaign has been set up on Indiegogo, an online funding website with a mission of "empowering everyone to change the world." With a goal of raising 1.6 billion euros, the "Greek
Bailout Fund" aims to do what the Hellenic Republic's creditors apparently cannot.

And, unlike Greece's actual bailout package there are no (austerity) strings attached.

More than 5,000 people have pledged so far, raising more than 82,000 euros. When we checked yesterday that figure was at a mere 4,297 euros. Half an hour ago it was at 50,000 euros.

Things seem to be moving fast, though it's worth remembering that at the current rate, raising this much money would still take time. If the campaign does not hit its lofty goal of raising 1.6 billion euros, then contributors are supposed to get their money back. 

If they do hit the goal, the campaign's creator, a self-described a 29-year-old based in London, says; "all profits will go to the Greek people." As the Indiegogo page puts it: "€1.6bn is what the Greeks need. It might seem like a lot but it's only just over €3 from each European."

And for a €3 you supposedly get a postcard sent from Alex Tsipras, the Greek Prime Minister.

More
http://www.bloomberg.com/news/articles/2015-06-30/this-indiegogo-campaign-is-trying-to-bailout-greece

"It's wonderful to meet so many friends that I didn't used to like."

Alexis Tsipras, with apologies to Casey Stengel.

At the Comex silver depositories Tuesday final figures were: Registered 59.69 Moz, Eligible 122.69 Moz, Total 182.38 Moz. 

Crooks and Scoundrels Corner

The bent, the seriously bent, and the totally doubled over.

Today, other news. Not everyone is obsessed with EMU bungling. Despite the rosy Reuters spin, China’s dodgy figures continue to suggest a troubled H2 15. Trouble is rising in the land between the shining seas too.

“Why, sometimes I've believed as many as six impossible things before breakfast.”

Christine Lagarde, with apologies to Lewis Carroll.

China June factory, services surveys fuel hopes economy leveling out, no quick rebound seen

BEIJING | By Kevin Yao Tue Jun 30, 2015 11:42pm EDT

Activity in China's factory sector expanded slightly in June though not as much as expected, while growth in the services sector sped up, official surveys showed, offering some signs that the world's second-largest economy may be starting to slowly level out after a raft of support measures.

Beijing has rolled out a flurry of steps since last year, including interest rate cuts and more infrastructure spending, but analysts remain wary about the outlook given the still-weak property market, erratic global demand for China's exports and fears of a collapse in its wild stock market.

The government is due to release second-quarter gross domestic product data on July 15 and many economists expect growth to dip below 7 percent, which would be the weakest performance since the global financial crisis.

"In general, the softness in the manufacturing sector remains, requiring more policy recalibration", Liu Li-Gang and Zhou Hao at ANZ said in a research note.

"Looking ahead, as real interest rates faced by Chinese companies remain elevated, we see that further monetary easing is still highly needed".

With demand weak at home and abroad, factory growth remained tepid, with the reading just above the 50 point level that separates contraction from expansion on a monthly basis.

The official Purchasing Managers' Index (PMI) stood at 50.2 in June, unchanged from the previous month's reading, the National Bureau of Statistics. Analysts polled by Reuters had predicted it would edge up to 50.3.

"Business development momentum is still insufficient, and domestic and foreign demand remains weak", the bureau said.

More

http://www.reuters.com/article/2015/07/01/us-china-economy-pmi-official-idUSKCN0PB36V20150701

The next Greece may be in the U.S.

Published: June 30, 2015 10:23 a.m. ET

When Chicago Public Schools announced on June 24 that it would borrow $1 billion to make a $600 million-plus pension payment due June 30 an eerie feeling spread across bond investors and taxpayers alike.

It was the same feeling that gripped investors when Moody’s Investors Service downgraded Chicago’s credit rating to junk based almost entirely on the city’s pension problems.

The fear was that elevated pension costs, in cities like Chicago, might push these public entities into insolvency, wiping out much of the holdings of municipal-bond investors.

Once a sleepy corner of the municipal bond market — often not even properly reflected on cities’ balance sheets — public pensions have recently turned into the biggest headache for taxpayers and municipal-bond investors, threatening to bring down the finances of U.S. cities and states.

In some places, like Puerto Rico, Illinois, New Jersey and Chicago, entire balance sheets of cities or states hang in the balance.

Detroit, as well as three Californian cities — Vallejo, Stockton and San Bernardino — had to declare bankruptcy because of their overwhelming pension costs.

In those cases, the courtroom turned into a brutal battlefield pitting bond investors trying to save the money they invested in those cities’ municipal bonds on one side. And on the other side have been public employees trying to save the dwindling pensions that were promised to them.

Recent cases have shown that bond investors are clearly losing this battle.

More

http://www.marketwatch.com/story/these-lurking-debts-may-turn-us-cities-states-into-greece-2015-06-30?dist=lbeforebell

“Why it's simply impassible!
Alexis: Why, don't you mean impossible?
Merkel: No, I do mean impassible. (chuckles) Nothing's impossible!”

With apologies to Lewis Carroll.

 

Solar  & Related Update.

With events happening fast in the development of solar power, I’ve added this new section. Updates as they get reported. Is converting sunlight to usable cheap AC energy mankind’s future from the 21^st century onwards? A quantum computer next?

London solar PV installations top 15,000

By Liam Stoker 30 June 2015, 11:22 Updated: 30 June 2015, 13:01

The Department of Energy and Climate Change (DECC) has confirmed that there were more than 15,000 solar PV installations in London as of last month, totalling more than 52MW in generation capacity.

DECC had been questioned by MP for Hackney North and Stoke Newington Diane Abbott on the uptake of solar in the capital and beyond, and minister for energy Andrea Leadsom responded yesterday confirming that a total of 15,214 installations had been in made in London as of 31 May.

The vast majority of which – 14,457 – were domestic installations with almost 600 commercial or industrial systems installed across the capital as rooftop solar continues to gain popularity with businesses. A total of 163 community solar projects had also been completed.

The figures’ release comes in the same month that former climate change secretary Greg Barker, in his new capacity of chairman of the London Sustainable Development Commission, said he hoped solar would be installed in the capital “with greater ambition and greater scale” in the future.

While the number of solar installations in London has grown exponentially there is a growing feeling that more could be achieved, particularly on London’s public estate of schools and hospitals, and the Green Party’s London assembly member Jenny Jones has led calls for Mayor Boris Johnson to do more to accelerate its uptake.

At the start of this month Johnson confirmed funding had been earmarked for a new phase of the RE:FIT programme which will support wider installation of solar PV on public sector estate, with just one in 15 schools in the capital currently benefitting from a solar PV installation.

http://www.solarpowerportal.co.uk/news/london_solar_pv_installations_top_15000_1819

Exclusive: ‘Solar is the future of world energy,’ says Formula E CEO

By Peter Bennett 29 June 2015, 14:10 Updated: 29 June 2015, 15:26

The CEO of Formula E has told Next Energy News that he views solar as the “future of world energy”.

In an exclusive interview with Solar Power Portal’s sister site, Alejandro Agag said that, while it’s key focus was to “change the perception of electric cars", the championship also has a focus on upstream energy developments.

Agag explained: “We want to focus on the upstream we need to focus on where the energy that powers those cars is generated. And of course in Formula E we believe that solar is the future of energy in the world.”

Agag was talking at the final race weekend of the inaugural Formula E championship at Battersea Park in London. Lightsource Renewable Energy was unveiled as a key sponsor of the event, providing solar energy to help power various aspects of the event across the weekend.

Commenting on the championship’s partnership with Lightsource, Agag added: “For us it's really fantastic to come into this partnership with Lightsource because it's exactly where we want to go.

“So the safety car will be charged with energy that comes from the sun, even the tickets, the people coming in, the scanners will be powered with energy that comes from the sun, and I think that's a great symbol of how Formula E and solar energy, and Lightsource can, and will, work together in the future.”

Agag added that the championship would ideally like to source all of its required energy from solar for future races.

Lightsource Renewable Energy installed a ‘mini solar farm’ at Battersea Park in conjunction with four energy storage devices that were filled up at a nearby solar farm before being transported onsite. The solar electricity was used to power the support vehicles, the ticket scanners and the big screen in the park.

http://www.solarpowerportal.co.uk/news/exclusive_solar_is_the_future_of_world_energy_says_formula_e_ceo_2314

The monthly Coppock Indicators finished June

DJIA: +98 Down. NASDAQ: +192 Down. SP500: +127 Down.