Greece and the Euro

Unfortunately there is very little chance for Greece to avoid defaulting on its huge debt. Debts that came from easy loans with high interest rates. The money raised gave the Greeks a reasonable standard of living and financed a very well managed public service sector.

The reality is that every country in the world with a few exceptions is facing a financial crisis and Greece, Portugal, Ireland, Spain and Italy are the countries in the Euro that are in great danger.

But the penalty for 'saving' Greece means that the ordinary person in the streets will have to suffer from severe poverty so that the country is able to pay back its debt. There are numerous measures being imposed on the general population which are drastic and scary with the majority of those employed facing more than 30% cut in their standard of living. There are too many new regulations imposed to be able to cover them here.

My prediction is that the current PASOK government will fall very soon and the opposition party, ND will come in with measures to reverse the cuts. And this means Greece defaulting on its debt and returning back to the old currency. The rest of Euro zone don't want to do this because if Greece goes down that road then Portugal and Spain (perhaps Ireland) will follow and that will lead to the collapse of the Euro. So watch this space...