Greece In a Downward Spiral
Not my words, but those of Jason Manolopoulos in an article in The Times today.
This paragraph sums up Greece’s progress to get their economy in check.
The technocrats are nominally in charge and the EU elite is applying plenty of pressure on my country to accelerate reform, but they are discovering that the Greek system is almost ungovernable. It took Ireland just a few weeks to make more progress on cutting back their public sector debt than we have seen in two years in Greece.
And there’s a lot more in the same vein.
The article finishes by saying that an unplanned Greek default and return to the drachma would be catastrophic.
I think I may get hold of Jason’s book called Greece’s Odious Debt.
Everybody else should get hold of today’s Times and read the article, as it has a lot of repercussions for us all. For instance, he claims that the IMF is breaking its own rules, by lending to a country whose debt is above 120% of GDP. nd who’s funding the IMF? We are for a start!
The Anonymous Widower 
lending to a nation whose debt is larger than GDP sounds bad, because unlike a large personal debt such a mortgage which may be many times higher than income, there is no collateral in the loans to Greece. Not sure of the logic behind allowing some of the very poor countries into Eurozone.
Comment by liz | January 17, 2012 |