How can Greece be forced to do such extreme measures for the sake of “cantagion”.
The answer is that the banks control the money supply and Papandreou is worried that the money supply to Greece will run dry if he does not do as he is told.
Why does Greece need the money?
The fundamental reason is that Greece runs a trade deficit. Greece sends approxamitely 20billion Euros a year outside the country. Greece needs the banks to replish the money supply in Greece if Greece is going to maintain the current GDP levels
So what if Greece has a trade deficit?
Okay imagine money was gold, ie something that was limited in supply and something that could not be made out of thin air. If Greece had a gold backed money supply and the trade deficit stayed the same, the amount of gold in Greece would decrease every year until there was no money left.
There is a possibility that the economy Greece would develop technologically enough to be able to operate at the same level with less money but if this were true it would more than likely not have a trade deficit in the first place.
In short, without a balanced trade account Greece is at the mercy of the international banking cartel.
If Greece had control of it’s own currency then the country could simply print more money to make up for the cash that has been sent abroad. This can work but it leads to inflation which creates it’s own problems.
Can Greece have a balanced trade account with the rest of the World?
Absolutely, Greece has 2 major things which are unique to Greece and 2 things which will never run out or get old.
Farm produce like olives, wine, cheese and the big one, tourism. These things on their own are enough for Greece to balance the trade account. As long as the economy is competitive in other areas through low taxes and a productive workforce, Greece can buy and sell with other countries for the goods that it needs to increase it’s standard of living while tourism makes up the difference.
Unfortunately the Greek trade deficit is never mentioned in the mainstream media even though it is the source of Greece’s problems. Maybe that should tell you something, either that it is not important or that the world does not want Greece to be strong and independent.
More Stories
Δήμαρχος Ελληνικού – Αργυρούπολης: 314 βόμβες αεροπορίας εντοπίστηκαν μέχρι σήμερα στο παλιό αεροδρόμιο
Απάντηση Θεοδωρικάκου σε Κασσελάκη: «Ο θαλασσοδαρμένος αρχηγός της αξιωματικής αντιπολίτευσης από τα μαλλιά του πιάνεται»
Στο επόμενο στάδιο κατασκευής προχωρά ο σταθμός 840MW της Ηλεκτροπαραγωγή Αλεξανδρούπολης ΑΕ