Friday, 22 July 2011

The Hellenic Republic has no clothes ...

... can no-one see it.

When Greece was provided with a second huge rescue deal of €109 billion (£95 billion), including €37 billion from the private sector and a significant lowering of interest rates, the circumstances changed not one jot, the country that is Greece does not have the wherewithal to support this European Union largess. 

In the grand scheme of things, would it be such a disaster if Greece defaulted and left the Euro, well individual banks would feel the effect, but so they should, loans were given to a country without a real economy.  Greece is a country that suffers from high levels of political and economic corruption and low global competitiveness relative to its EU partners, were the banks asleep when money was thrown around like so much confetti at a wedding.

I wonder if the Euro is a busted flush, it has all the hallmarks, a family at Christmas coming together to celebrate despite being of different religions, including the atheist step-brother who only pops in to exchange gifts, or in the case of the United Kingdom giving support through the proxy that is the IMF.

Do the people of Germany and France realise how their hard work is being used to support the grand scheme that is the "United States of Europe".


  1. I reckon we ought to set up a sweepstake as to when the next Greek Bailout will occur. My personal bet would be on about 15 months. But maybe that's too long.

  2. As long as 15 months, what I find incredibly stupid is the politicians behind the bale-out are ignoring the fact that "the Greeks do not have the wherewithal to service the loan".