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Thursday, 9 February 2012

WHAT GREECE wants but EUROZONE DOESN'T


The aims of GREECE in negotiations with the EUROZONE are now much clearer.  The same can be said of those "Partners" who are behind the EUROZONE team !!!

Greek politicians can no longer prevent Social Upheavels, not to say Bloody Riots and Strikes, by proposing more austerity plans to appease EUROZONE creditors !!!   Greece has urgent Creditors to "pay-off" in the very near future but can no longer accept a solution that means they take-on more EUROZONE debt.

The EUROZONE, its BANKS, and the IMF want more guarantees for the money they lend.  Their basic problem is that they have overlent already and Greece is in a worse financial and economic condition now than two years ago !!!

Sarkozy and Merkel at the outset wanted to prevent an attack on the EURO  by making loans to Greece, but evidently did not understand the real reasons for the financial urgency in Greece.  With hindsight one can question whether a default by Greece two years ago by abandoning the EUROZONE would have had a significant effect on the EURO !!!  

The weight of the EURO is much bigger than the consequences of a default by GREECE.  In fact they would be better off now with a New Drachma, a devaluation and then a new Budget to enable lower paid citizens to survive.

The EU and the EUROZONE must rewrite and write their constitutions, but this will take a lot of time, a lot more time than Greece has at present !!!