A Resounding No Vote by Greece
A crises of confidence is the final root problem in Greece. It represents a lack of trust in honoring financial trustworthiness.
“In 2012, Greece’s government had the largest sovereign debt default in history. Greece became the first developed country to fail to make an IMF €1.6 billion loan repayment on June 30, 2015. At that time, Greece’s government had debts of €323 bn.” (source: Wikipedia)
Some of the root causes for this deficit can be blamed on several factors:
- Government overspending
- Current account imbalances (funny money bookkeeping practices–“Greece is the only member state that cheated with its statistics for years and years”) (source: Wikipedia)
- Tax evasion and corruption
- the Downgrading of Credit Worthiness
- Shutdowns of Government and Stock Markets
Solutions involving possible default, restructuring banking loans or the possible withdrawal from the Eurozone is what ultimately led voters to the voting booth Sunday, July 5, 2015 to vote on a referendum for a Yes to stay in a 19 member Eurozone or a No vote to reject the austerity demands of the international creditors from the Eurozone.
However though, the restructuring may not have been in place or strong enough to convince the creditors (the European banks) that they would be repaid in time to either grant an extension or pull in more financial aid to get Greece through in this period of financial turmoil.
“As of 2012, tax evasion was widespread, and according to Transparency International’s Corruption Perception Index, Greece, with a score of 36/100, ranked as the most corrupt country in the EU.” (source: Wikipedia)
The economic, social and international ramifications and the continuing and increasing debt are noteworthy.
GREECE Says NO!! Monday Madness Expected
Honeymoon Over for Greek Couple Who Went Penniless in NYC
“Newlyweds Valasia Limnioti and Konstantinos Patronis’ long-planned “dream trip” to the U.S. ended in New York City, where their three-week honeymoon quickly turned into a nightmare: Their Greek-issued credit and debit cards were suddenly declined and they were left penniless. “We were hungry, and I cried for two days,” Limnioti said. “I felt homeless in New York.” The couple skipped a few meals before spending their last dollars on dinner at McDonald’s. Strangers from two Greek Orthodox churches in the city’s Queens borough came to the rescue, giving them survival cash until their flight home to Greece on Friday. Valasia Limnioti described her bafflement at the turn of events.”
This was the scene four days ago in Greece with long lines to get to the ATM’s. What will it be like Monday or the day after, if the banks do not open for business as some are predicting?
“Heartbreaking Scene” – Greeks Treated Like Animals By Banksters
“So it goes” is a simple but profound phrase–so it goes with Greece it shall be for others (including the U.S.) who fail to honor their financial obligations and defaults start to hamper triggering inflationary funny money printing like QE (Quantitative Easing) causing bloating in the financial districts:
“The process would be inflationary if the banking system were to use those reserves to increase their loans. This is the fundamental concern of those who fear that QE is going to cause inflation or hyperinflation, and it is not unreasonable.” (source: cnbc)
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