Looming financial collapse of Greece spells beginning of the end of global debt Ponzi scheme
by: J. D. Heyes
NaturalNews.com
Wednesday, March 11, 2015
The European nation of Greece is in deep financial trouble, and it doesn’t look like its neighbors are going to open up their treasuries to bail it out this time around. More than that, what the country’s new leadership is planning could eventually spell the end of the euro.
In recent elections, the Syriza party won heavily on promises to reverse conditions of austerity placed on Greece after the country received more than $250 billion in loans from the International Monetary Fund and the rich nations of the continent. Greece’s financial situation had grown untenable in the aftermath of the Great Recession of 2007-2009 after its economy tanked due to declining revenues and high pension costs.
The leader of the far-left party, Alexis Tsipras, “plans to dance wildly on the crumbling edge of the Eurozone,” reports the Financial Times, “to scare its thriftier members into accepting his demands.” In other words, Tsipras’ government is threatening to abandon previously agreed upon austerity measures even while officials are spreading out across Europe in an attempt to convince creditors to restructure the deal.
Would a Greek exit mean the beginning of the end?
“These would include debt repudiation, the unravelling of structural reforms, and rehiring thousands more civil servants,” FT reported. “On this account Syriza would return Greece to the failed clientelism of the past and embolden anti-austerity parties everywhere.”
A number of EU leaders have expressed an interest in “Grexit” — Greek exit from the Eurozone — even if it risks a further breakup of both the zone and especially its currency, the euro.
Most of Greece’s debts are owed to other European Union states, and those governments would harbor the consequences of a Greek default or a Grexit. That’s likely why Greek Finance Minister and economist Yanis Varoufakis is currently making the rounds in European capitals rather than dealing directly with the “troika” of the European Central Bank, the IMF and the European Commission, FT noted.
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