June 16, 2024

News Cymru

Two sides to every headline

1. The key to the Troika (IMF, EU and World Bank) plan is to bring the government deficit down to a manageable level.  An outright Greek default would achieve this almost instantly and would not cost European tax payers a penny.

2. One of the major problem countries face when defaulting is increased borrowing costs. Greece cannot borrow on open market as it is, as far as the markets are concerned Greece has already defaulted, the Greek government may as well get the benefits of an actual default which is massively reduced interest payments. Currently Greece pays around 1.2billion Euros a month just to service the debt, this could be cut by 80%, or to 240million Euros a month with a real default

3. The current debt load is huge and the interest payments and monthly repayments will hang over the Greek economy for years, a Greek default would instantly bring the national debt down to  a reasonable level and will slash the monthly interest payments on the debt. The money saved can be returned to the Greek economy through tax cuts to create growth.

4. Default will force government to prioritise its spending. The Greek government is planning to enforce government workers to go on gardening leave for a year before cutting wages, a Greek default would instantly cut these workers and free up money for tax cuts to help the economy re grow.

5. Misguided and misspent government grant spending will be eliminated. A Greek default will mean the Greek government has much less money top spend every month, this will mean misguided government grants and funding will be cut.

It is clear that Greece would be far better of to default both for the people of Greece and for Europe as a whole yet the European Bureaucrats continue to portray a Greek default as something negative rather than a cleansing of a nation and a fresh start for the people of Greece.

To give an example of the double speak and propoganda that surrounds the Greece economic issues, the EU Monetary Affairs Commissioner Olli Rehn is quoted as saying

“The 16 other eurozone countries will not abandon Greece and allow it to default on its massive debts”

This is a classic example of government spin, associating a negative word with a positive action, to make the positive action seem negative.

A truthful way to phrase this sentence would be to say “The 16 other Euro-zone countries will not allow Greece to default on it’s massive debts” – I think this is a more accurate portrait of the situation as the European leaders see it.

Given that a default is the most logical and best step for Greece both in terms of it’s current economic outlook and the economic outlook for sutre generations you have to ask why is Europe so dead against a default?

To state the obvious as I see it, the European leaders are being blackmailed by the international banking cartel. The European leaders are being told that if they allow Greece to fail then we, the international banking cartel will implode the European monetary system.

Could it be more obvious what is happening here. It has happened in America there is no reason why it is not happening in Europe. Luckily the American system of government is far more transparent than the EU system of government otherwise the people would be none thew wiser to the eeconomic coup d’état.

As if the ecominc coup was not enough the incompetence of the Greek government continues to suprise me. The Vice President Pangalos is quoted today in Athens News the impeding public sector layoffs will be 70,000 and concern “not the public administration but the state enterprises”.

So not only does the second in command of the Greek economy not want to layoff unproductive employees he wants to layoff employees that work in profitable companies, seriously, you can not make this stuff up.

While I don’t agree with the solution presented by Opposition Radical Left Coalition (Syriza) I believe he is right on the money with his comments “your government is unscrupulous, cynical and dangerous for the people.”

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