The Harsh Reality Of The Greek BailoutPosted: February 17, 2012
Is it just me? Or is the world sitting back and letting Greece fry?
I don’t even know where to start when it comes down to describing the alternative motives when it comes to the Greek Bailout. I know I should probably be starting this Blog by saying cheery hellos and words of humour and banter, but quite the contrary, I am outraged!
Greece is in big trouble and I mean Big Trouble….. To understand exactly how much trouble Greece is in we have to examine the amount left payable to its creditors. Sounds easy right? Well, unfortunately for me, it is not. I had to try to come up with a figure that is more precise than the unreliable sources we have the pleasure of listening to such as the infamous BBC, Sky News, etc.
So, lets go back to when the trouble started within the economy in Greece. Over the last 20 years Greece has been living without its means and over the period of 2007-2010 they suffered an increase in tax evasion and as a result of a global financial meltdown the country suffered badly at the hands of the ECB (European Central Banks). When Greece first alerted the EU that they were in fear of a default on payments, they assembled in May 2010 and Greece was awarded the 110 Billion Euro Bailout loan it so desperately needed. Then again in July 2011, Greece received another 109 Billion Euro Bailout loan which was also supposedly essential for the countries survival and reattainment of the Public Sector staff that faced redundancy and pay cuts. Then again in October 2011 the Eurozone managed to get banks to agree to a 50% “haircut” of Greece’s holdings along with a substantially increased Bailout loan of 130 Billion Euro’s.
So, at this point we can at very least say that Greece has at least 349 Billion Euro’s in loans, ironically intended to clear debts, so we can imagine the amount still left for Greece to pay.
The harsh reality of the Greek Bailout is that this money is owed to individuals and, now due to Bailout loans, other Eurozone countries. Greece may be forced to give up its right to govern and control its own people/finances. The main point to raise here is that Germany is the main driving force in the Bailout Scheme as they are they are top of the gold stock bearers of the world. I’m sure in years to come Greece will regret every bailout they received from the Eurozone and will most likely fall apart from the weight of their “saviours” from the Eurozone.
The mass effect is reflective on the people of Greece who have voiced their opinion with both peaceful and violent protests against there parliament members and have been put under some serious scrutinies since the bailouts started. With National Minimum Wage being reducing by 250 Euro, a month from 750 to 600, and almost three quarter of the public sectors staff being put under wage restrictions or been made redundant, this is the real issue, the people. The Greek government is ignoring the real issue here and ignoring the democratic voice of the people. Greece is supposed to be a republican ran country but is acting out the traits of something on the scale of a dictatorship in mid-soviet Russia.
It is ignoring it’s people opinion and strong voice only to aid it own rotten gains. I say the Eurozone stops the charade of theses Bailout Schemes and lets Greece default in it’s payments and be removed from the Eurozone as a result of above said default.
The UK realised that the Bailout Scheme was neither a prosperous choice or option for the British taxpayer but what it definitely was in the eyes of David Cameron was unimportant as we stood strong and held on tight to our sterling currency and also have no real significant ties with the Greek government other than a few thousand drunken British teenage tourists, therefore the Greek’s defaulting on there debt would not be the end of the world for the British government.
But as said before we must think of the Greek people at this point in time and I would personally like to express my sympathies to those who have been made redundant or have had their wages cut by the “Big Dogs” in the Greek government.