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The sharks are circling

Published Monday, August 17th, 2015

“If you owe your bank a hundred pounds, you have a problem but if you owe it a million, it has”. An old quote from John Maynard Keynes but highly appropriate to the Greek saga. By adding another €86 billion to the two huge bail outs already given to Greece creditors are just adding to the enormity of their problem. In its own version of ‘whatever it takes’ Greece will agree to whatever is necessary to get its hands on the first €26 billion of funds necessary to recapitalise its banks and cover imminent debt repayments.
Cuts in pensions? Yes. An increase in VAT? Of course. Privatisations? Just name the number. But please hand over the money asap. All rejected in the July referendum and now all agreed by a government and parliament riddled by division and which will be in election mode once again before the end of the year. What verdict will democracy hand down next time in Greece? Everybody must know that it is a charade and the IMF is trying very hard to get out from under. A promise was extracted from Christine Lagarde that she would put a proposal to the IMF board after an October review of the progress made by Greece in implementing reforms, but she made it clear that she is firmly of the view that “Greek debt has become unsustainable”.

to read the rest of the report, please click here

Posted by David Hufton