Sunday, October 6, 2019

Greece Financial Crisis Explained - Economic Collapse - Stock Market Crash

Greece has already ended its final international bailout but, with no sign the debt will ever be paid off, some fear another crisis is looming . Yanis Varouvakis once said " God and his angels couldn't fix Greece's finances" . Welcome to The Atlantis Report . Now that Greece’s bailout program has ended, what are the prospects for economic growth and development in Greece? Greece has been in economic turmoil for most of the last decade. Years of financial mismanagement alongside a culture of clientelistic politics, where goods and services were exchanged for political support, culminated in a long-term recession. In global financial history no country has received as much money as Greece. Since May 2010, when it became clear that three decades of economic mismanagement had brought the state to its knees – creating a deficit quadruple the size of that allowed by Brussels – the EU and International Monetary Fund have sought to avert bankruptcy by committing more than €300bn in loans to Athens. The country has taken stock of €260bn, although most of that money has instantly gone back to creditors in the form of debt repayments. Rescue has come at a price. The conditions attached to such aid have been tough, unpopular and, at times, punitively aggressive. Pay and pension cuts, tax rises and structural reforms, many deeply disliked if long overdue, have been at the root of creditors’ relentless demands. But the fiscal straitjacket has also stifled economic growth. From 120% of GDP at the start of the crisis, the ratio of debt-to-economic output now hovers around 180%, by far the highest in the EU. The country was bankrupt in 2010, but the creditors pretended it was a cashflow problem, when really Greece needed a restructuring of its debt early on. Internationally that wasn’t feasible because everyone was so afraid of the consequences it would have for French and German banks. Levels of extreme poverty shot up from 8.9% in 2011 to 15% in 2015. One in 40 of those affected are pensioners, long thought to be worst hit by cuts. One in four are young Greeks, aged 18 to 29 – people who are among the million who have lost jobs, or from the start have never been able to find one. Many believe it will take a decade, at least, before the nation claws back lost income and returns to pre-crisis living standards. Worsening demographics have not helped: after Bulgaria, Greece has the lowest fertility rate in the EU, with the population dwindling by almost 3% as a result of emigration and fewer births during the crisis. One of the most concrete consequences of the crisis is the number of young people that have left the country. In 2016, about 20,000 people aged between 25 and 29 left Greece. About 14,000 others aged between 20 and 24 also left the country in the same year, data from analytics company Oxford Analytica showed. These figures are roughly twice as much as they were prior to 2010. Corporate tax in Greece is currently 28 percent and the highest level of income tax is 45 percent for those earning above 40,000 euros a year ($45,000). But citizens are still taxed 22 percent for the first 20,000 euros they earn in a year and 29 percent for anything between 20,000 euros and 30,000 euros. The standard value-added tax on goods is 23 percent. How do you actually recover from the international bank fraud that triggered the collapse of your entire industry, your entire transportation, communication, healthcare and banking sector and caused the suicide, homelessness and desperation of thousands of people. You don't. You just don't. The Russians are still -100 years later - coping with the consequences of one similar episode. Greece, if it survives the concurrent economic desperation, "refugee" crisis and wars with Turkey, will not be a normal country until at least 2200 AD, if even. 1999/2000 was the actual onset of failure to recover and failure to re-enter the labor market. The cosmetically-enhanced years leading up to 2008 were carefully stoked Fed fraud. The country has been subjected to an influx of worthless migrants, which the EU does not allow them to reject, and an EU imposed austerity programme which will keep them enslaved forever. The Greek people voted for Tsipras who promised to deal with the EU but who then proceeded to sell them out. Maybe they should try Grexit and voting for golden Dawn next time. Greece has been turned into an internment camp, a holding cell for migrants and it will only get worse. The Rich EU countries like Germany use these camps to "vet" the migrants and any with unique skills or education/multilingual get relocated to EU countries that can utilize those skills! As for the military/weapons spending, it unfortunately is part of the "terms" of the loans they accepted. It is the only reason Greece remained current with NATO spending 2% of GDP because they had to, the money was skimmed off the top as part of the loan terms. IMF had their terms as well which included more military spending, in other words, buy more US/UK/German weapons even though they are of no use to this country. All the biggest private companies in Greece are looking for outside options, the taxes being pushed on them are overwhelming, a large company in Greece will actually be paying about a 65% tax rate when you account for employees and all other forms of taxation aside from what they actually market. They are all looking at other markets like Bulgaria for their operations and then bring it back to Greece to sell. Every asset that had value in Greece has been forced by loan terms to be sold off for pennies on the dollar/EURO, so they gave up the airports,electric companies, shipping ports,fresh water,etc etc. and even when the country recovers by the year 3000 they will still own nothing that is of value, they are officially enslaved to the EU ECB policy, their only hope is the collapse of the euro/EU block. When Italy voters lose it over the new group in charge and vote out 5 star, the explosion will happen, UK will Brexit, Italy will lash out at the EU/ECB policy and walk away from their debts and the miserable experiment in debt slavery called the Eurozone will collapse, it is inevitable and almost every working class citizen wants out because they are not benefiting, only the wealthy are gaining from this because they have been allowed to put their finger on the scale and tip everything in their favor while the societies get screwed. The EU cannot recover from BREXIT NO DEAL, they need that cash cow to fund the EU and buy EU products, Italy will be the final nail in the coffin of this experiment in vampirism, sucking all the blood out and loaning them just enough back to keep them alive for a later feeding! Greece's bailout money almost all went to service debt held by foreign banks (mainly German and French I believe.) Greece was forced to borrow money to service debt and is probably, even now, borrowing even more money to service even more debt. Germany is never going to let them escape. Greece would have done better to have borrowed from the Mafia. Greece should default, not to mention going after Germany for reparations for the crimes Germany committed during the war. Perhaps they could tell Germany to write off their debt and they will, in turn, write off Germany's war reparations debt. Not only Greece, but the rest of the world hasn’t recovered much either. Why should it . It never was fixed after 2008 so the next crash will be much worse but who cares . The show must go on. The coming financial economic collapse will make Greece look like a walk in the park.

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