We think at Serrai Invest Capital Ltd , it’s going to be very hard to change either the UK or the EU because both are controlled by the elite. People need to educate themselves about economics & how the world is run before we will be able to change either; or maybe elite will once again crash the econ & the mob will go on the rampage, unlike in 2008!
By Serrai Invest Capital Ltd ( Media Team)
Greece should fix its taxation and overspending problems. But, for a complete fix, it should also leave the straightjackets that are the euro and EU. What good has the EU been if Greece is so heavily indebted to German banks and the IMF, and homeless and poverty levels are worse than when it joined in the first place? The UK should follow Greece in leaving the corrupt “union” on its own terms
Will ECB keep Greece afloat for another week?
There is a script which seemingly all Euro-zone leaders are urged to learn, which is that if the currency union is in the grips of crisis, no solution can or should be found till markets and economy are on the verge of a heart attack.
So it is playing out again, as Greece has struggled to secure adequate loans from its Euro -zone and International Monetary Fund (IMF) creditors to avoid the disaster of failing to keep up its payments to the IMF.
For months the government, led by Alexis Tsipras, failed to convince these creditors he was taking appropriate and adequate steps to balance Greece’s books.
With almost no time left before a de facto default – and, more frighteningly perhaps, with a Greek banking system on the brink of total collapse because savers had lost all confidence that a rescue for their state could be found – Mr Tsipras has come up with a plan that his fellow Euro- zone leaders see, at last, as the basis for a deal.
So subject to technical talks – on raised taxes for businesses and the wealthy; higher pension contributions; and selective increases in VAT – an actual deal to release life-saving additional loans for Greece may be reached at the end of the week.
But, as per the normal cliched Euro-zone script, the drama will go on for months.
First, existentially important talks on providing relief to Greece on its excessive debts is to be deferred for negotiation in coming months
Second, the flight of savings and deposits from Greek banks has been so great that they have almost exhausted the assets or collateral in their possession that is available to swap for life-saving loans from the Bank of Greece and European Central Bank.
So unless Greeks can be persuaded to start retrieving their cash from under their mattresses to deposit in banks, Greek banks will remain perilously close to collapse – and will struggle to provide the finance that the sick Greek economy so desperately needs.