Greece pays huge price
ONCE it becomes clear you can’t pay your debts a financial collapse can happen very suddenly and you start losing your sovereignty to those you must turn to for financial help.
Greece is paying the price but is it the canary in the coal mine?
Ireland has already received bailouts and they are probably going to need another one at some point. Portugal is a financial basket case and they are probably next in line for a bailout.
In Spain the last official unemployment rate was 23.78 per cent, and if the dominoes start to fall, Spain could be in a massive amount of trouble very quickly.
Italy recorded a government debt to GDP of 132.10 per cent – clearly a problem. Belgium and France also have very substantial debt problems; they probably would not be the first dominoes to fall but if the contagion starts to spread it would be a likely scenario, according to some experts.
In addition to all that, the International Monetary Fund has some bad news for us; the slower rate of economic growth could be here to stay ( businessinsider. com. au/ i mf- world- economicoutlook- slow- growth- 2015- 4).
With a slowing global economy, the truth is, Europe’s entire financial system is extremely vulnerable right now and big banks all over Europe and especially in Germany are leveraged to the hilt. Germany is holding a massive amount of Greek debt, that is why there is so much fear.
When the dominoes fall the crisis in Greece could spread across the rest of Europe. Maybe the US could come to the rescue like they did in 2008.
That’s unlikely, the US total Federal government debt at the end of financial year 2015 is estimated to be $ 18.628 trillion.
The EU can put a gun to the head of the Greek government but the truth is as Yanis Varoufakis said – Greece is bankrupt.
Greece may still remain in the euro but has the crisis been resolved? This deal offers no way out and is not a solution.
The destruction of Greece, like the destruction of other countries by the big mega banks and financial firms is not, as claimed, about austerity or imposing rational expenditures or balanced budgets.
It is not about responsible or good government. It is most antidemocratic. Corporate profit is god. It does not matter who suffers.
In Greece, 40 per cent of children live in poverty, there is a 25 per cent unemployment rate and the unemployment figure for those between the ages of 15 and 24 is nearly 50 per cent. Sadly the Greek crisis has seen a rise in suicides and depression and it will only get worse.
BLUNT MESSAGE: Yanis Varoufakis, who resigned this month as the Greek Finance Minister, says the country is bankrupt.