The 30 June 2015 was default day. It has been obvious that this day has been coming for a number of years. This has not been a purely Greek fault and the main drivers such as France and Germany have been responsible for much of the pain Greece will now have to bear. The Euro monetary unit is certainly not based on democracy as last year when Greece was first entering a greater discomfort zone and they proposed a democratic referendum to decide if they should break ranks with the Euro Unit ,draconian action was promised against the then government, who were then incidently pro Euro. So resentment was built up against the union. Obviously the main drivers of the Euro monetary unit wanted give their private citizens time to unwind their exposure to Greece.
Now towards the end of the saga they seemed to impose more impossible conditions upon Greece, knowing full well that Greece could not meet them so as to shift the blame fully to them and away from the Union. Greece gave in on most points ,but then always more was required.
To say that Greece only represents about 4% of the Euro trade and will have only minimal effect upon the union in a break up is also not true. Do remember the citizens and their government have withdrawing Euros from those been injected into their banks which might now might be billions.
So when Greece returns to their original currency, which say they devalue by 40% then they will still have the Euros which could threaten the stability of the European Union. These moves of the major countries in Europe are not lost on other Mediterranean countries I am sure.
Another worrying aspect of this debacle is that Greece has always been a staunch member of Nato. No doubt Russia would help Greece and those ties would weaken!
Showing posts with label Greece. Show all posts
Showing posts with label Greece. Show all posts
Tuesday, June 30, 2015
Sunday, May 20, 2012
Dramatic Happenings GLOBALLY
JUNE 2012
TIME TO STAND BACK ,TAKE A DEEP BREATH AND DO A SOBER REVEIW OF WORLD ECONOMIC CONDITIONS.
WE ARE BEEN TOLD THAT IF GREECE DEFAULTS IT WOULD CAUSE AN ECONOMIC TIDAL WAVE ,GREATER THAN ANY NATURAL TIDAL WAVE THAT HAS HAPPENED IN THE PAST.
YES FOR SURE THERE WILL BE REPECUSSIONS,BUT LET US NOT FORGET THIS PROBLEM HAS BEEN CAUSED BY POITICIANS INTERFERING IN ECONOMIC AFFAIRS YET AGAIN.
IN THE FIRST PLACE GREECE SHOULD NOT HAVE BEEN ALLOWED TO JOIN THE EURO MONETARY UNION AS THEY NEVER QULIFIED COMPLETELY
NOW THE AUSTERITY MEASURES IMPOSED UPON THEM ARE SO SEVERE THAT THERE IS LITTLE CHANCE THAT THEY CAN EVER RECOVER OR EXPAND WHILE IN THE EURO MONETARY UNION AGAIN. NOW THE QUESTION MUST BE ASKED IF THEY DEFAULT WILL THE INITIAL SHOCK DESTABLISE WORLD MARKETS COMPLETELY?. SURELY NOT AS THEY HAVE HAD TWO "HAIRCUTS" i.e. MINI DEFAULTS ALREADY. MARKETS ARE ALREADY DICOUNTING THIS ALMOST INEVITABLE OUTCOME BY RETRACTING WORLD-WIDE.WHEN GREECE RETURNS TO THEIR OWN ECONOMIC SYSTEM THEY WILL IMMEDIATELY DEVALUE THEIR OWN CURRENCY.WHILE THIS IN THE LONG RUN IS NOT DESIRABLE IT WILL RELEIVE THE PRESSURE UPON ITS FISCUS AND GIVE IT A PERIOD OF CALM TO STILL MAKE MARKET CHANGES AND INSTALL CONFIDENCE IN ITS CITIZENS.
THE UNITED STATES OF AMERICA WHICH CAN NEVER REPAY ITS DEBT HAS BOASTED THAT IT CAN NEVER FALL INTO THE MESS THAT THE EURO NATIONS ARE IN AS IT CAN PRINT AS MUCH MONEY AS IS NEEDED TO AVOID SUCH A SITUATION!WORLD-WIDE THE PRACTICE OF PRINTING MONEY WITHOUT PROPER BACKING LEADS TO DE-FACTO DEVALUATION OF A CURRENCY.
Now the major countries of the world are trying to keep the Euro Monetary Area intact.If they succeed it will delay the recovery of the EURO ZONE for a long time.France is already suffering under the weight of the monies lent to the PIGS countries.
ALSO
WORTH A VISIT;
For PROPERTY UP DATES see the page
My REAL ESTATE PART A
ON:
http://2010plusstocktrends.blogspot.com/
ALSO
PAWSITIVELY ADORABLE PETS
http://paws2012.blogspot.com/
TIME TO STAND BACK ,TAKE A DEEP BREATH AND DO A SOBER REVEIW OF WORLD ECONOMIC CONDITIONS.
WE ARE BEEN TOLD THAT IF GREECE DEFAULTS IT WOULD CAUSE AN ECONOMIC TIDAL WAVE ,GREATER THAN ANY NATURAL TIDAL WAVE THAT HAS HAPPENED IN THE PAST.
YES FOR SURE THERE WILL BE REPECUSSIONS,BUT LET US NOT FORGET THIS PROBLEM HAS BEEN CAUSED BY POITICIANS INTERFERING IN ECONOMIC AFFAIRS YET AGAIN.
IN THE FIRST PLACE GREECE SHOULD NOT HAVE BEEN ALLOWED TO JOIN THE EURO MONETARY UNION AS THEY NEVER QULIFIED COMPLETELY
NOW THE AUSTERITY MEASURES IMPOSED UPON THEM ARE SO SEVERE THAT THERE IS LITTLE CHANCE THAT THEY CAN EVER RECOVER OR EXPAND WHILE IN THE EURO MONETARY UNION AGAIN. NOW THE QUESTION MUST BE ASKED IF THEY DEFAULT WILL THE INITIAL SHOCK DESTABLISE WORLD MARKETS COMPLETELY?. SURELY NOT AS THEY HAVE HAD TWO "HAIRCUTS" i.e. MINI DEFAULTS ALREADY. MARKETS ARE ALREADY DICOUNTING THIS ALMOST INEVITABLE OUTCOME BY RETRACTING WORLD-WIDE.WHEN GREECE RETURNS TO THEIR OWN ECONOMIC SYSTEM THEY WILL IMMEDIATELY DEVALUE THEIR OWN CURRENCY.WHILE THIS IN THE LONG RUN IS NOT DESIRABLE IT WILL RELEIVE THE PRESSURE UPON ITS FISCUS AND GIVE IT A PERIOD OF CALM TO STILL MAKE MARKET CHANGES AND INSTALL CONFIDENCE IN ITS CITIZENS.
THE UNITED STATES OF AMERICA WHICH CAN NEVER REPAY ITS DEBT HAS BOASTED THAT IT CAN NEVER FALL INTO THE MESS THAT THE EURO NATIONS ARE IN AS IT CAN PRINT AS MUCH MONEY AS IS NEEDED TO AVOID SUCH A SITUATION!WORLD-WIDE THE PRACTICE OF PRINTING MONEY WITHOUT PROPER BACKING LEADS TO DE-FACTO DEVALUATION OF A CURRENCY.
Now the major countries of the world are trying to keep the Euro Monetary Area intact.If they succeed it will delay the recovery of the EURO ZONE for a long time.France is already suffering under the weight of the monies lent to the PIGS countries.
ALSO
WORTH A VISIT;
For PROPERTY UP DATES see the page
My REAL ESTATE PART A
ON:
http://2010plusstocktrends.blogspot.com/
ALSO
PAWSITIVELY ADORABLE PETS
http://paws2012.blogspot.com/
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