Greece and Versailles

Written by Walter Marlowe Wednesday, 07 March 2012 11:09
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In his new blog, Walter Marlowe, author of the forthcoming, Thematic Investment (Searching Finance, September 2012) considers the economic future for Greece:

“You load sixteen tons and what you get? Another day older and deeper in debt…” (With thanks to Tennessee Ernie Ford)

Last remarks on Greece (for the time being, promise!):  

Because it matters to the financial stability of the so-called “Developed World” and the financial welfare of its working and financially responsible citizens and their families the Greek bail-out, as generally accepted in financial circles, is no solution at all but rather just Act II in what has the potential to be the catalyst for a huge market blow-out sometime in the future.

No one can believe that the bail-out terms are a sustainable solution to Greek indebtedness.

As far as I have seen in the press there is not a single economist who believes that the Greek population will tolerate the situation they are faced with – extreme austerity and a no growth future while the bail-out regime lasts.

Central and Latin American countries including Mexico, Argentina, and Ecuador among others re-structured or reneged on their excessive indebtedness renouncing the precepts of discredited “neo-Liberal economics”. 

They refused to bow to the IMF and other creditor groups and labour their already burdened populations with punitive economic policies dictated by creditor nations, themselves heavily and irresponsibly indebted, who think they “know better” how to right the world’s socio-economic wrongs.

Greece is responsible for its dilemma and that responsibility starts at the top, the government and goes right down through the upper classes, the middle classes and the trade union class. However, it’s not hard to see the bail-out terms as a Treaty of Versailles re-dux but with the Germans on the other side this time.

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