In the past Greek people had experienced a low retirement age and other benefits. Reform has slashed most of these. Some remain proposals hard to implement whilst others become a fact of life. There are a lot of people suffering in Greece and many are now vulnerable.
With this in mind we are happy to hear that some Greek debt is to be written off. We are however only happy for the people. When such massive debts can be written off one has to ask, how come and who will benefit? Remember this is not the first time that some of the debts of Greece have been wiped away, and it will probably not be the last.
It has been common knowledge all along that many wealthy Greeks have been avoiding paying tax. They have their wealth stashed well out of harm's way away from Greece. As other countries in Europe follow austerity plans that are either a demand of the EU or a choice of that country's government, wiping debts away must have serious implications.
Who will fund the wiped off debts? If such an action does not need others to pay, how come all debts are not simply wiped away wiith a clean slate for all?
The debt cuts may sound complicated and in some ways meaningless. According to a perport on Yahoo the IMF agreed, "on Monday that Greek public debt should fall to 124 percent of GDP in 2020 through a package of extra debt cutting measures totaling 20 percent of GDP, officials said."
Gobbledeygook designed to baffle we the general public. For sure they do like to talk in a way not readily clear to members of the public. More smoke and mirrors of course.
In real terms it is expected that Greece will
- be given some of the profits made by the ECB on Greek debt which it owns
- be handed a debt buyback
- be offered an extension of the maturity and lowering of interest rate on loans to Greece
It does of course set a precedent for other countries caught in the EU financial trap. As we Europeans are all told we must put up with more stringent austerity measures or else, how can officials expect people to play ball. Bail outs and debt cuts simply prove that there is jiggory pokery underway as far as money and figures go.
In essence Greek debt is to be cut by 40 billion euros. A mere drop in an Ocean of debt. You can read a full report at Reuters here.
So what will happen to the likes of Spain, Portugal, Ireland, The UK et al when the going gets tough?
The report is clear on one or two things. Debt is here to stay. The EU does not work, financially. We have too many bureaucrats and officials in the EU receiving inflated salaries for mismanaging our affairs. Money in reality is worthless. The Elite can jiggle it however they want when it suits.
The markets responded postively on the news of the Greek debt cut. Again this reinforces the knowledge that many people have more power than they have a right to. In the midst of the pain the Fat Cats get ever fatter.
Note: Don't believe that the majority of EU bureaucrats are not self seving overpaid non-essentails? Read this report on the new ECB "Palace" under construction in Germany.
It is just one example of EU waste.
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