Rush for safe havens as euro fears rise

US benchmark borrowing costs plunged to levels last seen in 1946 and those for Germany and the UK hit all-time lows as investors took fright at what they see as a disjointed policy response to the debt crisis in Spain and Italy. In a striking sign of the flight to haven assets, German two-year bond yields fell to zero for the first time, below the equivalent rate for Japan, meaning investors are willing to lend to Berlin for no return. US 10-year yields fell as low as 1.62 per cent, a level last reached in March 1946, according to Global Financial Data. German benchmark yields reached 1.26 per cent while Denmark's came close to breaching the 1 per cent level, hitting 1.09 per cent. UK rates fell to 1.64 per cent, the lowest since records for benchmark borrowing costs began in 1703. "They are extreme levels because we are in an extremely perilous situation. People just want to put their money somewhere where they think they will get it back. People may soon be paying Germany or the US to look after their money," said Gary Jenkins, head of Swordfish Research, an independent credit analysis company. The flight to safety came as the situation in Italy and Spain, the eurozone's third- and fourth-largest economies, deteriorated further. Italy held a disappointing debt auction and saw its benchmark borrowing costs rise above 6 per cent for the first time since January. The euro fell 0.8 per cent against the dollar to under $1.24 for the first time in two years. Confusion over how the Spanish government's rescue of Bankia, the stricken lender, will be structured led the premium Madrid pays over Berlin to borrow to hit fresh highs for the euro era at 540 basis points. Analysts said the elevated level meant that clearing houses could soon raise the amount of margin, or collateral, that traders need to post against Spanish debt, a move that led to the escalation of crises in Portugal and Ireland. The European Central Bank has made clear to Spain that it cannot use the bank's liquidity operations as part of a recapitalision of Bankia. However, the central bank said on Wednesday it had not been officially consulted on the plans. Equity markets globally fell on the eurozone fears with bourses in Paris, Frankfurt and London all dropping 2 per cent. But Nick Gartside, international chief investment officer for JPMorgan Asset Management, noted that while US bond yields had halved since April last year the S&P 500 equity market was at the same level. "One of those two markets is mispriced. Core government bonds are an efficient market and they are ahead," he added. Investors said borrowing costs for the US, UK and Germany were likely to continue to fall amid a worsening economic backdrop and the threat of more central bank intervention. Wealth managers have been moving client assets into currency havens in recent weeks, with the Swiss franc and the US dollar among the biggest beneficiaries "Risk aversion, a rapidly slowing global economy and unusually low policy rates will pin these short and intermediate maturity bonds at unprecedented low levels for quite a while," said Mohamed El-Erian, chief executive of Pimco, one of the world's largest bond investors. Mr Gartside said he could easily see German rates going below 1 per cent, following a path that only Japan and Switzerland have taken among major economies, while the US and UK could dip under 1.5 per cent. Markets are increasingly resigned to more turmoil until policy makers take more radical action. The two most popular plans of action for investors are for the ECB to buy Spanish and Italian bonds in unlimited size or for eurozone countries to agree on a fiscal union involving the pooling of debt. "You have to throw everything at it. Spain is just too big for half measures. The next intervention has to be not just massive in size but it has to show a total commitment," said Mr Jenkins. He recommends that the ECB set targets either for the premium Spain and Italy pay to borrow over Germany or for their yields.

Read More

Euro break-up 'could wipe 50pc off London house prices'

Property prices in the capital’s most sought-after postcodes have been driven up by investors moving funds out of assets held in euros to buy into what is seen as a “safe haven” alternative. Foreign money seeking a refuge from the wider economic turmoil accounted for 60pc of acquisitions of prime central London property between 2007 and 2011, according to a report by Fathom Consulting for Development Securities. If the shared currency broke up completely, London property would initially be boosted by the continued flight towards a safe haven, the report predicts. But, once the break-up had taken place, demand for these assets as an insurance against this event would start to ebb. “Although fears about a messy end to the euro debt crisis may account for much of the gain in prime central London (PCL) prices that has taken place over the past two years, we find that a break-up of the single currency area is also the single greatest threat to PCL,” said researchers.

Read More

Times are desperate in Spain. The Sun is setting on expats' Costa dreams

 

It was sundowner time at the Cantina tapas bar in the picturesque village of Frigiliana, a few miles inland from the Costa del Sol town of Nerja. Inside, local men were watching bullfighting on television and smoking cigars in quiet contravention of the smoking ban. Outside, expatriate Britons were discussing the vagaries of living in Spain while downing glasses of tinto de verano, the popular summer drink of red wine and lemonade. Mark Jones, who runs his own gardening and pool maintenance company, had spent two days queuing at the local municipal office to renew his residence permit. "I got there at 9am on the first day and my number was 26; by lunchtime they were only up to number 6 and they close at 2pm," he complained. "You have to renew every bit of paper here every few years but I can't afford two days off to queue in an office. There are no staff now because of the cuts, so it all takes longer. It's like everywhere – as soon as the recession hits, it's the immigrants who cop it worst."  Conversation turned to a local couple, who are desperate to leave Spain but who can't because their house is still unsold after four years on the market - despite dropping the asking price from €1 million to €750,000. In 1992 the BBC spent millions of pounds launching an ill-fated soap opera, Eldorado, following the fortunes of British expats on the Costa del Sol. The project flopped and was cancelled a year later. Now, 20 years later, the real-life diaspora is experiencing an equally disastrous end to its Iberian dream. Times are desperate in Spain. More than a million people took the streets earlier this month to protest at budget cuts, 24 per cent unemployment and the rising cost of living. The price of milk and bread has risen by 48 per cent during the last year, according to a recent study, and of potatoes by 116 per cent. Electricity bills are up 11 per cent while property prices are in free fall; they have declined for 15 consecutive quarters and are 41 per cent lower than in 2006. Several of its banks are faltering: this weekend Spain's government is preparing to pump a further €19 billion into Bankia, the country's fourth-largest lender, in the biggest single bank bailout in the country's history. Trading in the bank's shares was suspended on Friday until negotiations over the rescue were complete. Santander, Europe's largest bank, was among 11 Spanish financial institutions to be downgraded by the credit rating agency Standard and Poor earlier this month; and there's no sign of anything like economic recovery on the horizon. Expats are finding life hard in a country where they once basked in a cheaper way of life. Around one million Britons spend part or all of the year in Spain, but thousands are now returning home – and more want to, but say they can't afford to because their property is no longer worth what they paid for it. For the first time since 1998, Spain recorded a drop in foreign residents last year, according to newly released figures. With its narrow cobbled streets, whitewashed houses and children riding horses down the main road, Frigiliana lives up to most tourists' idea of an authentic Spanish village. But appearances can be deceptive. Out of its 3,000-strong population, 1,280 are foreign nationals including 700 Britons, making the village one of the most expat-dominated in Spain. The school advertises itself as bilingual. The British population is so large that the local council pays Kevin Wright, a former travel rep from Leicestershire who has lived in Spain for more than 20 years, to run a "foreigners' department". He helps expats deal with everything from local business permits to burst pipes and land disputes with neighbours, and has noticed changes since the eurozone crisis began. "Before, I was getting 10 newbies a week moving here from the UK; now I get one," he said. "Some Brits have lived here for 20 years but now families move out here then six, eight months later pack up and go back because they can't find work, or didn't realise what the cost of living would be." Mr Wright says many Britons fail to learn Spanish or to assimilate, so that the community becomes dependent on itself – to its cost. "People think they can set themselves up doing business to other Brits, like finance or house sales and rentals, or pool maintenance, gardening and cleaning. "But the property market isn't there any more and people have cut back and do their own maintenance, so there's less work." In desperate economic times, the expat community is increasingly vulnerable to financial trickery. "The worst people for scamming you are other Brits," said Gary Smith, a builder, who emigrated two years ago. "You trust them more but they just take your money for an investment and you never see a penny." Elderly residents are particularly vulnerable. The exchange rate - still far less favourable than five years ago - has meant British pensions and other income in sterling do not stretch as far as they once did. Julia Hilling moved from the UK to Fuengirola, along the coast from Frigiliana, 20 years ago with her husband. They bought a spacious, three-bedroomed apartment with two balcony patios in an upmarket area, overlooking the town's castle. Six years ago, Mrs Hilling, by then a widow aged 83, was persuaded by an independent financial adviser to take out a full mortgage on the apartment. She was told the equity raised would be invested, risk-free, to provide an income, while the mortgage would help offset Spain's 34 per cent inheritance tax when she died. Now 89, Mrs Hilling has never seen any return on her money, owes more than €300,000 to Rothschild Bank on the mortgage and relies on handouts from her children to stay in Spain. "It's devastating," she said. "The man was British, very charming, and said there was no risk. My children said 'Mummy, please don't do this', but I needed the extra income. Now I'm fighting for my life and my home." She is one of more than 100 mainly elderly British expats who have banded together in a Spanish court action to have their mortgages voided, arguing they were mis-sold. Rothschild and several Scandinavian banks also named in the legal action claim the financial advisers are to blame; and the advisers, who are not regulated in Spain as they are in Britain, insist the risk was mentioned in the small print. In a country fighting for its own survival, Spanish politicians are not unduly concerned with the plight of British residents, particularly when many are retired so do not actively contribute to the national economy. Spain's government is currently involved in a dispute with Britain over extent of free health care for Britons under EU law and there are moves to force them to pay 10 per cent of their prescription costs. But for some, returning home remains unthinkable. Former fitness instructor and gym owner Jo Morrison, 49, moved to Spain from London with her partner Lloyd 11 years ago. In 2008 she sold her house in Putney so she could open a gym in Nerja but the project failed after her business partner pulled out, and then the global financial crisis erupted. She now works as a cleaner while renting a one-bedroom home. "Sometimes we've gone without food and I still can't believe that I don't have my house or any savings any more," she said. "But Spain is my home now. I'd rather sleep on the beach than go back to the UK."

Read More

The cast and crew of “Gangs of Wasseypur” at Cannes Film Festival in France.

The cast and crew of “Gangs of Wasseypur” at Cannes Film Festival in France.

CANNES: The longest-running entry in this year’s Cannes festival, a five-hour Indian gangster epic, won a warm welcome at the Riviera event, even drawing parallels with Quentin Tarantino.

Anurag Kashyap, who directed the five-hour-20-minute “Gangs of Wasseypur”, described the film to AFP as “a Bollywood-influenced gangster epic, part Western, part documentary.”

With a folk-meets-dubstep soundtrack and a basis in true stories, the film follows three generations of coal and scrap-trade mafia gangs in a suburb in east India who are obsessed with traditional Hindi cinema.

The two-part film screened this week in the Directors’ Fortnight sidebar section of the Cannes festival, to strong reviews.

“‘Gangs of Wasseypur’ puts Tarantino in a corner with its cool command of cinematically-inspired and referenced violence, ironic characters and breathless pace,” was how the Hollywood Reporter summed up the movie.

“There’s never a dull moment in this Indian gangland epic,” wrote Screen International.

Bollywood stars like to spice up the red carpet at Cannes but their movies seldom create a serious buzz.

Kashyap, who is also working with British “Slumdog Millionaire” director Danny Boyle on a film about 1960s Mumbai, hopes Cannes exposure can help change perceptions of Indian cinema and boost ties with foreign film-makers.

His film was one of three examples at Cannes this year of a burgeoning, alternative Indian cinema that departs from commercial song-and-dance Bollywood hits so popular at home – but the other two met with more lukewarm reviews.

Kashyap also had a hand in the experimental “Peddlers”, which screened in the other main sidebar section at Cannes, Critics’ Week.

Directed by newcomer Vasan Bala and financed through appeals on Facebook, the Mumbai-set movie weaves together the stories of a cynical narcotics cop, and two youngsters who fall into the drug trade.

The Hollywood Reporter regretted its “confused, at times naive story-telling”, despite an “action-packed last half-hour.”

Likewise, Ashim Ahluwalia’s “Miss Lovely”, screened in the Un Certain Regard new talent section of the festival, drew a muted reception.

France’s Liberation newspaper said the storyline, about the sleazy world of 1980s “C” grade Hindi movies, had the potential to be fascinating, but was rendered “charm-less” and “dull” through an overly-serious tone.

Read More

Stephanie of Monaco new love ... an acrobat

Alberto's sister has a soft spot for the circus. And after a husband and a boyfriend circus, lost his head for an acrobat at the festival known Monaco. A Moroccan boy ...

Stephanie of Monaco for a walk with his new love princiapto Shaffik Mohamed, a Moroccan acrobat 29 years ( PHOTOS )

Stephanie of Monaco, at age 47, has a new love. And again the princess does not disappoint: after ex-cop husband Alain Ducruet, a former bodyguard boyfriend Jean-Raymond Gottlieb, a second marriage with Adans Lopez Peres circese artist and love with the king of the circus in Switzerland Franco Knie (with whom she lived in a trailer in Switzerland), Princess of Monaco has found his passion into a tumbler. But not in any acrobat: the boyfriend called Shaffik Mohamed, a Moroccan acrobat and almost 20 years her junior.

PAIR OF CONSOLIDATED - now it is easy to see them Monaco (like the pictures in these pages) with gazing into one another, gay or walk. They met at the last edition of the traditional Circus Festival which takes place every year in February in Monaco. There, Mohamed has performed in many of the human pyramid. From that moment the two started seeing each other and often the princess flew to Marbella, Spain, where he lives.Mohamed is the second largest in the Maghreb entering Grimaldi extended family.

Read More

Three killed in northern Italy earthquake

Three people have been killed in a 5.9-magnitude earthquake that struck northern Italy near Bologna, according to reports. The quake that struck at just after 4am local time was centred 21.75 miles north-northwest of Bologna at a relatively shallow depth of six miles, the US Geological Survey said. Italian news agency Ansa, citing emergency services, said two people were killed in Sant'Agostino di Ferrara when a ceramics factory collapsed. Another person was killed in Ponte Rodoni do Bondeno. In late January, A 5.4-magnitude quake shook northern Italy. Some office buildings in Milan were evacuated as a precaution and there were scattered reports of falling masonry and cracks in buildings. The tremor was one of the strongest to shake the region, seismologists said. Initial television footage indicated that older buildings had suffered damage. Roofs collapsed, church towers showed cracks and the bricks of some stone walls tumbled into the street during the quake. As dawn broke over the region, residents milled about the streets inspecting the damage. Italy's Sky TG24 showed images of the collapsed ceramics factory in Sant'Agostino di Ferrara where the two workers were reportedly killed. The structure, which appeared to be a hangar of sorts, had twisted metal supports jutting out at odd angles amid the mangled collapsed roof. The quake “was a strong one, and it lasted quite a long time”, said Emilio Bianco, receptionist at Modena's Canalgrande hotel, housed in an ornate 18th century palazzo. The hotel suffered no damage and Modena itself was spared, but guests spilled into the streets as soon as the quake hit, he said. Many people were still awake in the town since it was a “white night”, with shops and restaurants open all night. Museums were supposed to have remained open as well but closed following the bombing of a school in southern Italy that killed one person. The quake epicentre was between the towns of Finale Emilia, San Felice sul Panaro and Sermide, but was felt as far away as Tuscany and northern Alto Adige. The initial quake was followed about an hour later by a 5.1-magnitude aftershock, USGS said. And it was preceded by a 4.1-magnitude tremor. In late January, a 5.4-magnitude quake shook northern Italy. Some office buildings in Milan were evacuated as a precaution and there were scattered reports of falling masonry and cracks in buildings. In 2009, a devastating tremor killed more than 300 people in the central city of L'Aquila.

Read More

Spain’s banking crisis reached Britain’s high streets last night when the credit rating of Santander UK was cut.

In a sweeping reassessment, ratings agency Moody’s announced in Madrid that it is downgrading 16 Spanish banks because it could not be sure of the ability of the country’s government to provide the necessary support.

Santander UK was among the banks highlighted after the ratings agency took aim at its parent Banco Santander, based in Spain. 

The Spanish banking crisis has hit the British high street, with the news that Santander has had its credit rating cut

Santander is one of the biggest players in UK retail banking, having taken over the former Abbey National, Alliance & Leicester, Bradford & Bingley and most recently the English branches of the Royal Bank of Scotland.

The new lower A2 credit rating is certain to be a cause of anxiety to Santander UK’s millions of British customers. 

Nevertheless, they can be confident that their deposits up to £85,000 are guaranteed by the British government should there be a loss of confidence.

Read More

Brink's Mat the reason that Great Train Robber was shot dead in Marbella

The Brink’s-Mat curse even touched on the Great Train Robbery gang of 1963. One of them, Charlie Wilson, found himself in trouble when £3 million of Brink’s-Mat investors’ money went missing in a drug deal. In April 1990, he paid the price when a young British hood knocked on the front door of his hacienda north of Marbella and shot Wilson and his pet husky dog before coolly riding off down the hill on a yellow bicycle.

Read More

British tourist falls to her death from hotel balcony in Magalluf

23 year old British tourist has fallen to her death from the third floor balcony of her hotel in Magalluf, Mallorca. Emergency sources said it happened at 4.25am Saturday morning at the Hotel Teix in Calle Pinada. Local police and emergency health services went to scene. After 20 minutes of an attempt to re-animate her heart, the woman was pronounced dead. Online descriptions for the Hotel say it is the best place to stay of you are looking for non-stop partying, adding it not suitable for families.

Read More

Four of the last reporters and photographers willing to cover crime stories have been slain in less than a week in violence-torn Veracruz state

Four of the last reporters and photographers willing to cover crime stories have been slain in less than a week in violence-torn Veracruz state, where two Mexican drug cartels are warring over control of smuggling routes and targeting sources of independent information. The brutal campaign is bleeding the media and threatening to turn Veracruz into the latest state in Mexico where fear snuffs out reporting on the drug war. Three photojournalists who worked the perilous crime beat in the port city of Veracruz were found dismembered and dumped in plastic bags in a canal Thursday, less than a week after a reporter for an investigative newsmagazine was beaten and strangled in her home in the state capital of Xalapa. Press freedom groups said all three photographers had temporarily fled the state after receiving threats last year. The organizations called for immediate government action to halt a wave of attacks that has killed at least seven current and former reporters and photographers in Veracruz over the last 18 months. Like most of those, the men found Thursday were among the few journalists left working on crime-related stories in the state. Threats and killings have spawned an atmosphere of terror and self-censorship, and most local media are too intimidated to report on drug-related violence. Social media and blogs are often the only outlets reporting on serious crime. Veracruz isn't the only battleground for Mexican media. In at least three northeastern states, journalists are under siege from assailants throwing grenades inside newsrooms and gunmen firing into newspaper and TV station buildings. In the state of Tamaulipas, on the border with Texas, local media stopped covering drug trafficking violence, mentioning drug cartels or reporting on organized crime shortly after two gangs began fighting for control of Nuevo Laredo in 2004. As part of that war, reporters were targeted to keep them silent or because they had links to gangs. Mexico has become one of the world's most dangerous countries for journalists in recent years, amid a government offensive against drug cartels and fighting among gangs that have brought tens of thousands of deaths, kidnappings and extortion cases. Prosecutions in journalist killings are almost nonxistent, although that is widely true of all homicides and other serious crimes in Mexico. The latest killings came in Boca del Rio, a town near the port city of Veracruz where police found the bodies. The victims bore signs of torture and had been dismembered, the state prosecutors' office said. One victim was identified as Guillermo Luna Varela, a crime-news photographer for the website http://www.veracruznews.com.mx who was last seen by local reporters covering a car accident Wednesday afternoon. According to a fellow journalist, who insisted on speaking anonymously out of fear, Luna was in his 20s and had begun his career working for the local newspaper Notiver. The journalist said Luna was the nephew of another of the men found dead, Gabriel Huge. Huge was in his early 30s and worked as a photojournalist for Notiver until last summer, when he fled the state soon after two of the paper's reporters were slain in still-unsolved killings. He had returned to the state to work as a reporter, but it was not immediately clear what kind of stories he was covering recently. State officials said the third victim was Esteban Rodriguez, who was a photographer for the local newspaper AZ until last summer, when he too quit and fled the state. He later came back, but took up work as a welder. The London-based press freedom group Article 19 said he, like the other two, had been a crime photographer. The fourth victim was Luna's girlfriend, Irasema Becerra, state prosecutors said. Article 19 said in a report last year that Luna, Varela and Rodriguez were among 13 Veracruz journalists who had fled their homes because of crime-related threats and official unwillingness to protect them or investigate the danger. The Committee to Protect Journalists said in 2008 that Huge had been detained and beaten by federal police as he tried to cover a fatal auto accident involving officers. Last June, Miguel Angel Lopez Velasco, a columnist and editorial director for Notiver, was shot to death in Veracruz along with his wife and one of his children. Authorities that month also found the body of journalist Noel Lopez buried in a clandestine grave in the town of Chinameca. Lopez, who disappeared three months earlier, had worked for the weeklies Horizonte and Noticias de Acayucan and for the daily newspaper La Verdad. The following month, Yolanda Ordaz de la Cruz, a police reporter for Notiver, was found with her throat cut in the state. Lopez was found after a suspect in another case confessed to killing him, but the other two murders have not been resolved. The cartel war in Veracruz reached a bloody peak in September when 35 bodies were dumped on a main highway in rush-hour traffic. Local law enforcement in the state was considered so corrupt and infiltrated by the Zetas and other gangs that Mexico's federal government fired 800 officers and 300 administrative personnel in the city of Veracruz-Boca del Rio in December and sent in about 800 marines to patrol. Mike O'Connor, the Committee to Protect Journalists' representative for Mexico, said journalists in Veracruz were exercising an unusual degree of self-censorship even before Ordaz and Lopez were killed. He said media avoided much coverage of crime and corruption. "Important news was not covered because it might upset the Zetas. Then these guys were killed and self-censorship cracked down even more," O'Connor said. "Almost all of the police beat reporters left town after those killings." Regina Martinez, a correspondent for the national magazine Proceso, continued to cover crime-related stories along with a handful of other journalists, however. On Saturday, authorities went to her home in Xalapa, the state capital, after a neighbor reported it to be suspiciously quiet. They found the reporter dead in her bathroom with signs she had been beaten and strangled. "Self-censorship was extraordinarily strong but whoever killed these journalists wanted more," O'Connor said. "It still wasn't enough to satisfy whoever killed these journalists." Mexico's human rights commission says 74 media workers were slain from 2000 to 2011. The Committee to Protect Journalists says 51 were killed in that time. It noted in a statement on the Mexico killings that Thursday was World Press Freedom Day.

Read More

Greek far-right parties could end up with as much as 20 percent of the vote in Sunday's elections. The neo-Nazi Golden Dawn party has intensified the xenophobic atmosphere in the country.

At night, the streets leading to Omonoia Square are empty. That wasn't always the case. The area was the premier multicultural neighborhood of Athens and one of the first quarters to be gentrified. Jazz bars and Indian restaurants lined the streets, separated by the occasional rooms-by-the-hour hotel. It was a quarter full of immigrants, drug addicts and African prostitutes, but also of journalists, ambitious young artists and teenagers from private schools. Today, the immigrants stay home once night falls. They are afraid of groups belonging to the "angry citizens," a kind of militia that beats up foreigners and claims to help the elderly withdraw money from cash machines without being robbed. Such groups are the product of an initiative started by the neo-Nazi Chrysi Avgi -- Golden Dawn -- the party which has perpetrated pogroms in Agios Panteleimon, another Athens neighborhood with a large immigrant population. There are now three outwardly xenophobic parties in Greece. According to recent surveys, together they could garner up to 20 percent of the vote in elections on Sunday: the anti-Semitic party LAOS stands to win 4 percent; the nationalist party Independent Greeks -- a splinter group of the conservative Nea Dimokratia party -- is forecast to win 11 percent; and the right extremists of Golden Dawn could end up with between 5 and 7 percent. My name is Xenia, the hospitable. Greece itself should really be called Xenia: Tourism, emigration and immigration are important elements of our history. But hospitality is no longer a priority in our country, a fact which the ugly presence of Golden Dawn makes clear. A Personal Attack Shaved heads, military uniforms, Nazi chants, Hitler greetings: How should a Greek journalist deal with such people? Should one just ignore them and leave them unmentioned? Should one denounce them and demand that they be banned? One shouldn't forget that they are violent and have perpetrated several attacks against foreigners and leftists. I thought long and hard about how to write about Golden Dawn so that my article was in no way beneficial to the party. On April 12, the daily Kathimerini ran my story under the headline "Banality of Evil." In the piece, I carefully explained why it was impossible to carry on a dialogue with such people and why I thought the neo-Nazi party should disappear from media coverage and be banned. Five days later, an anonymous reply to my article appeared on the Golden Dawn website. It was a 2,500-word-long personal attack in which the fascists recounted my entire career, mocked my alleged foreign roots (I was born in Hamburg) and even, for no apparent reason, mentioned my 13-year-old daughter. The unnamed authors indirectly threatened me as well: "To put it in the mother tongue of foreign Xenia: 'Kommt Zeit, kommt Rat, kommt Attentat!'" In other words, watch your back. Most Greeks believe that Golden Dawn has connections to both the police and to the country's secret service. Nevertheless, I went to the authorities to ask what I should do. I was told that I should be careful. They told me that party thugs could harass me, beat me or terrorize me over the phone. It would be better, they said, if I stopped writing about them. If I wished to react to the threats, they suggested I file a complaint against Golden Dawn's service provider. That, however, would be difficult given that the domain is based somewhere in the United States. Like Weimar Germany A friend told me that I should avoid wearing headphones on the street so that I can hear what is going on around me. My daughter now has nightmares about being confronted by members of Golden Dawn. Three of her classmates belong to the party. The three boys have posted pictures of party events on their Facebook pages. For their profile image, they have chosen the ancient Greek Meandros symbol, which, in the red-on-black manifestation used by Golden Dawn, resembles a swastika. The group's slogans include "Foreigners Out!" and "The Garbage Should Leave the Country!" The fact that immigration has become such an issue in the worst year of the ongoing economic crisis in the country can be blamed on the two parties in government. The Socialist PASOK and the conservative Nea Dimokratia (New Democracy, or ND) are running xenophobic campaigns. ND has said it intends to repeal a law which grants Greek citizenship to children born in Greece to immigrant parents. And cabinet member Michalis Chrysochoidis, of PASOK, has announced "clean up operations" whereby illegal immigrants are to be rounded up in encampments and then deported. When he recently took a stroll through the center of Athens to collect accolades for his commitment to the cause, some called out to him: "Golden Dawn has cleaned up Athens!" Yet, Chrysochoidis is the best loved PASOK politician in his Athens district, in part because of his xenophobic sentiments. His party comrade, Health Minister Andreas Loverdos, is just as popular. Loverdos has warned Greek men not to sleep with foreign prostitutes for fear of contracting HIV and thus endangering the Greek family. High unemployment of roughly 22 percent, a lack of hope, a tendency toward violence and the search for scapegoats: Analyses in the Greek press compare today's Greece with Germany at the end of the Weimar Republic. "We didn't know," said many Germans when confronted with the truth of the Holocaust after Nazi rule came to an end. After elections on May 6, no Greeks should be able to make the same claim.

Read More