The Greek government’s problems are equivalent to an individual’s problems when he can’t pay his loans and can’t meet daily expenses. The Greek government can’t pay for its daily expenses, ignoring any payments of interest or due bond redemptions.
Greece has bonds maturing worth €14.5 billion euros ($19 billion) on March 20 and interest due on continuing coupon bonds. If they don’t pay bondholders, who will lend them more money at less than 20% or higher rates? Only government entities. The EU bailout of €110 billion euros ($150 billion dollars) from other eurozone countries and the International Monetary Fund is scheduled to be paid in installments, conditionally (see Merkel below).
The immediate problem is that Greece can’t pay its daily bills without more cash from the above mentioned bailout. But, the EU leaders want Greece to institute cuts including a 22 percent cut in the benchmark minimum wage and public-sector layoffs. The Prime Minister is a Bank eurocrat, Lucas Papademos, who was selected by the EU, not elected by the people and is leading a coalition of the Socialist, New Democracy, and the right-wing Popular Orthodox parties. “The creditors are asking for 40 years of submission,” said Georgios Karatzaferis, …[of] Popular Orthodox. “Greece will not give itself up.” Mr. Karatzaferis’s party, however, controls only 16 seats in Parliament, not enough to scuttle the deal if most of the other members of the coalition, legislators in the Socialist and New Democracy parties, support it.”
So, the battle drama begins with these primary actors:
1. The eurocrat banker Prime Minister telling his ministers to support the plan or quit and they give in.
2. “Greece’s largest police union threatened to issue arrest warrants for senior officials leading missions from the International Monetary Fund, the European Central Bank and European Commission – all of whom it named.”
3. LAOS leader Karatzaferis begged to differ. “Greeks cannot be hostages and serfs,” he thundered. “We were robbed of our dignity, we were humiliated. I can’t take this. I won’t allow it, no matter how hungry I am.” Karatzaferis turned his anger on Germany, which will fund much of any bailout and has lectured Greeks on the need to tighten their belts. “Germany decides for Europe because it has a fat wallet and with that fat wallet it rules over the lives of all the southern countries,”
4. Jean-Claude Juncker, chairman of euro zone finance ministers, said: “In short, no disbursement before implementation.”
5. The fearsome Merkel, the German Dominatress, who got“ 25 of the 27 heads of government signed up to the pact for stricter fiscal discipline that Chancellor Angela Merkel has been pushing for. Only Britain and the Czech Republic refused to join.” Or the ministers spoke up for Greece and then voted as Merkel directed.
6. The Street fighters and, eventually, the enabled voters.
Is it have vs have not, or evil vs good, or responsible vs prodigal, or German vs Greek?
Wait to place to place your bets, until some of the other actors, their interests and effects are revealed in Parts 2 and 3.
Posters like that will sure win hearts and minds.
I don’t really know anything about Greek people, but I have experience with Germans and Austrians. I like ‘em. Hard-working and they keep their cities and neighborhoods neat. You could eat off the sidewalks (but you’d look really out of place).
Here’s a poster for all of us, Uncle Rick.
http://www.freakingnews.com/Barack-Obama-s-New-Bill-of-Rights-Pics-79516.asp
Common denominator is always evil vs good.
I looked at the comments on the linked Mail Online article. Most were Greeks a) whining about how awful the Germans and EU governors are and b) complaining about things that happened before they were born (i.e., they didn’t experience them) and were done by people who are long dead.
It looks to me like the whole world needs a crash course in critical thinking skills.
Methinks the world is about to get a crash course in survival skills, Uncle Rick. Sooner than expected, too…
Igor, this will be a test run, like Spain in the 1930′s. It’s left vs right; emotion vs logic/fiscal reality; National socialism images vs International socialism images. Soros and the New World Order are already in the act. Watch, listen and learn about the enemy and what works and what doesn’t..
What an absolutely nasty way to “harpoon” Angela Merkel! Typical of whiny, self-entitled little brats who have been handed everything — they bite the hand that feeds them. The Germans and French have been bearing the financial brunt of the Europe’s economic crisis. I don’t think they are going to do so much longer, especially when some Greeks resort to infantile cheap shots. I wonder how the Greeks will feel when the rest of Europe decides to quit bailing their asses out!