Greece financial crisis simplified !


Greece has been basically spending money it doesn't have,
 and that for years........
There was a time when the Global economy was in a better state, so different governments of Greece took advantage and burrowed a lot of money to finance prestige projects like the Olympic 2004 and/or raising wages of public servants to raise the standards of living and expanding its middle class…As a result Greece continuously built up a bigger and bigger deficit.
The definition of deficit is…The difference between the amount a country brings in with/through Tax and what it spends.
This method, caused Greece to enjoy a so called “boom” for years, not forgetting the highly successful and expensive Olympics that supplemented a domestic impression of stability and well being…. But it wasn’t long before the Global economy started to stumble, Greece started to stumble too.
Banks that lent the money started to declassify Greece as a country with financial management problems….....argument was, that with high probability , Greece will have difficulties in paying back its debts.....The legitimate worries were specifically, Greece not being able to pay its loans and declare bankruptcy, which could have kick-started an unpleasant chain reaction nobody wanted….

To cover the risk, banks changed their conditions when lending more money to Greece , this incidentally made matters worse, specially because it was so publicized. …So, eventually Greece went elsewhere looking for help !
Greece started to Burrow Money from EU countries and/or from the International Monetary fund, They loaned at better rates but, tougher conditions. These tougher conditions were not only of financial nature, but of social and political nature… A de facto reform in Greece was the precondition, A long due action in order to bring some order in this house of chaos.. The Greeks promised to oblige.
Greece had to promise to cut its budget deficit, and this was the main objective demanded of them !
It is the implementation of these reforms that has brought Greece to its knees and the reason for the extreme reactions of its people towards the more dominant and richer nations of the EU. Now turning the tables on everyone that has loaned them money for years, next to the recent childish political kicking, screaming and threats…....makes one wonder !

Question is, should this populist behaviour now also be rewarded with debt relief and inevitably more loans ?

Comments

Post a Comment

Popular posts from this blog

Wikihoax on Iran

Image
Here are some of the supposed leaks on Iran, mixed with some true ones concerning other countries and their heads of states or controversial ministers (of course harmless ones), making it a bit problematic and that much harder for consumers of such information to "not" believe. Always remember,the most talked about issue amongst all heads of states without exception is and has been the mother of all conflicts (namely the Israeli & Palestinian conflict). Yet there is not a single word issued from anywhere or anyone, not even sworn enemies of one or the other states.... If that did not give you a reason to doubt then nothing else shall. When something smells like a fish, swims like a fish, then it must be a fish.This Wikileaks business has been the target of an article by this site (Here) So needless to emphasize anymore about disbelieving the authenticity of the content of wikileaks concerning Iran. Nonetheless, here are the Iran related ones. US Embassy Ottawa (2008) .. T...
Read more

A Dangerous Woman !

Image
UK’s Independent wrote , “The leader of Germany’s main right-wing anti-migrant party has caused political uproar by insisting that the country’s border police should be authorised to “ shoot at refugees” trying to enter the country illegally. Frauke Petry , the 40-year-old leader of Germany’s (a mother of four who recently left her pastor husband for a neo-nazi boyfriend) once merely Euro sceptic but now increasingly xenophobic Alternative for Germany (AfD) party, made her controversial demands after addressing a political meeting in Hanover at the weekend. “Police must stop migrants crossing illegally from Austria,” Ms Petry told the Mannheimer Morgen newspaper. “And, if necessary, use firearms. That is what the law says. (actually she is dead wrong on the law issue) ” She added: “I don’t want this either, but the use of armed force is there as a last resort.” Her remarks were the most extreme political response so far by a substantial political figure to mounting publ...
Read more

Vaccinating Egypt !

Image
This once cradle of an unparalleled civilization, the land in which its scientists and mathematicians, its thinkers and inventors, used the through generations of incestuous intermarriages, genetically inferior Pharaohs and their manipulability, and made some of the longest-lasting, unique and enigmatic monuments, in the history of mankind. We should also not forget the Egyptian culture, after its Islamisation, which was not of lesser importance. Their Universities and philosophical centres were all magnets for all regional cultures and an inspiration for generations throughout centuries for peoples beyond its borders. Egypt’s ups and downs in history, have been fairly moderate, comparing it to other nations, one seems to get the impression that it all had its use for the Egyptian culture. The only deficit an observer might detect here is their inability to adopt positive and useful cultural features from their so-called cultural invaders, which due to its geo-political situation happ...
Read more