THE GREEK EURO CRISIS

In the E U 16 countries out of 27 have adopted the EURO as their official currency. The crunch has come because Greece has not respected the financial and economic conditions that the E U requires. Greece has broken the rules !!!

Initially Greece wanted help of about 40 Billion Euros as loans to cover it's banking crisis. A closer inspection of Greek affairs has raised this amount to 110 Billions Euros.

Greece adopted the Euro in 2001 and since then has not controlled its excessive expenditures. It is undeniable that Greece is bankrupt !!!

However, what is also undeniable is that the E U, in spite of all its rules and legislation, has been completely surprised by the Greek bankruptcy and the consequent turmoil we now see in the press !!!

Who controls what in the E U ? Which hightly paid experts were asleep on the job during recent years ? This is not an unexpected overnight drama !!! Is there no one who has the courage to raise these questions ?

The real question now is "What happens next ?" In fact Greece has the option of quitting the E U , readopting its former currency, and then massively devalue !!! This will not affect its debts which are in a foreign currency. It will still have to repay its debts in EUROS !!!

Alas, creditors of Greece will have to wait a long time. Greek debts are bad debts and comparable with discounted Junk Bonds. Creditors have really already lost their shirts !!!

What is worse is that there are other countries in the wings watching carefully how the Greek problem is solved. They too want to ask for help !!!

Thank God that the U K has not abandoned the Pound Sterling in favour of the EURO !!!