Wednesday, 1 July 2015

A Greek tragedy or another Trojan horse for the EU?

Are we still talking about a Greek exit!
Just have done with it already.

Markets and creditors have had 6 years or more now, to get used to the idea of losing money on loans.
To some degree, I would suggest that creditors know the capital is gone, but the bigger issue is the debt service payments that 'grease' the cash-flow.
Like an investment in rental property, or companies paying big on utility assets, the capital is spent/tied up upfront, but then the investor can look forward to many years of interest (service payments).

As things stand I'm not sure I would believe anything from this latest bunch of democratically elected charlatans given their last "last minute" payment to the IMF from unknown accounts.

And if they think they can go on and sort their own mess out with a return to the drachma, good luck to them.
As they have reminded "everyone" they have no credit worthiness that allows them access to international markets, but neither did Iceland, but Iceland have managed to repair their situation independently and have been credit worthy again for some time now.

If the country is serious about recovery then a devalued currency to boost competitiveness is what is needed to boost the national industries (and has been from the beginning), the biggest of which that come to mind being shipping, and tourism.

This bunch appear to have a strategy of sowing the seeds of fear internationally, and involving/appealing to as many as possible to reduce the terms of their agreements.
But if they are unable to implement the taxes, and cuts required to recover whilst being supported, how are they going to do it without the EU.

The truth is that the country's politicians want to remain in the EU, but the latest government seem set on a transparent strategy of holding the EU and its creditors to ransom, in order to continue to coast along for as long as possible on the best possible benefits.

And sadly, what the electorate have failed to realise is that many politicians will tap into the majority concerns of the population, promise miracles in order to get elected, and then come up with any number of reasons as to why they can't now deliver, meanwhile their personal futures, and pensions are secured, and career ambitions fulfilled.

They are playing poker but not with their own stakes, instead they are using the country's population and its future.

They should have a referendum on their continued membership, or perhaps the rest of the EU?

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