[Redtop]

So the real boss (USA) in EU realized their Brussel minions was on the way to turning a minor financing crisis into the biggest political crisis EU ever faced, over 5 Billion euros and some cleaning ladies.

[Redtop]

Not sure if I understood the current immediate crisis with Greek debt, but here is what I got so far.

1) The 2015 debt payments are relatively large compared to the following years 2016+, so the big hurdle is getting through 2015.
2) From 2016 and onwards it is likely that Greece will manage to make its payments without (too much) paying old debt with new debt.
3) To get through 2015 Greece need around 7.5B Euros in new debt to make payments on old debts,
4) The EU won’t lend them that unless they agree to further austerity
5) The further austerity is supposed to make it easier for Greece to recover and service their debts beyond 2015.
6) Further austerity (fireing cleaning ladies, teachers and doctors) is in reality unlikely (according to Syrzia) to improve the situation in Greece long term. Many others agree on this too.

If the hurdle really is 2015 payments and getting passed that would mean the crisis might be over, why isn’t one or both sides giving in, instead of making small sum of 7.5B Euros blow up the entire debt and default the country.

The Troika could spin the Greek offer in media and make it look like they won and provide the required 7.5B Euros.
Syrzia could make promises they don’t have to deliver on (like so many politicians before them) and get the 7.5B Euros.
Or both could give in and get past this relatively small crisis.

I get the feelling neither side wants to solve the crisis and get on with the plan of recovering, since they know there is not going to be a real recovery. Instead they want to be able to blame eachother when it all blows up.

The only plan for real recovery is exiting the Euro.

[Author]

Posts