Wednesday, November 2, 2011
The Greek people are angry, referendum proposed as Greek PM prepares for showdown with Merkel and Sarkozy, Europe in Crisis
The various people protests around Europe, America and elsewhere all have one thing in common.
People rising up against Governments backing rich bankers instead of the public who they were elected to serve!
This has led to massive protests such as those empowered by the Occupy Wall Street.
The banking system is overloaded with too much debt and riddled with fraud in the derivatives market.
There is too much toxic debt in the system and the solution is to pump more taxpayer into the failing system which cannot work.
A solution is to think the unthinkable and let banks fail with the government stepping in and protecting the savings of the customers.
Greece has seen particular hardship fostered on them by their government and this has led to massive protests as austerity is forced through resulting in cuts.
This is the most serious political crisis facing the entire world, the collapse of the banking system.
Because it stretches across boundaries, there needs to be a new framework for financial markets.
With growing unrest, the Greek prime minister has announced shock plans to hold a referendum on his country's emergency bail-out.
The Greek people should reject the bail out which is killing their country as their national assets are being sold off putting them further into debt.
Total absolute default is their only way forward to right their country.
Prime Minister George Papandreou is on his way to Cannes, France, after securing his ministers' support in a mammoth seven-hour cabinet meeting last night.
The referendum could take place next month.
When Greece rejects the austerity measures, it will ripple through the entire EU and plunge the eurozone into an economic catastrophe.
From the decay a new order can rise, after the second world war, Germany was destroyed, but measures were put in place and their country is one of the strongest in the EU.
It is the industrial powerhouse of Europe.
We need a new Marshall plan for Europe; we need better politicians and new vision.
There is much anger out there in Greece and it will spread if serious measures aren’t taken.
The European experiment needs to be redesigned. Different economic systems have shown themselves to be at odds with the single euro currency.
Rumours that Germany may reintroduce the deutschmark don’t seem too far fetched in the event of total collapse.
A measure which might be used as a short term strategy is Greece leaving the Euro, but that is piecemeal, it may give breathing space but doesn’t solve the long term problems.
How bad is Greece?
Athens has announced extraordinary plans to sack its military leaders amid rampant speculation that it was trying to head off a coup d’etat.
One Greek official put it bluntly:
“It’s all over. The government is about to collapse.”
Greece’s former deputy finance minister Petros Doukas agreed:
“The **** has hit the fan.”
European leaders had been counting on China to use its financial muscle as holder of the world's largest foreign currency reserves to bolster the revamped euro rescue plan.
The Chinese have played the current crisis as a blinder, they have their own problems but not to the same extent as Europe and America who are effectively crippled.
Political leaders may try and fool the public we can grow our selves out of this but they are wrong, we have to contract first because financially we have no choice.
Things will get worse before they can get better.
When Greece default happens; then expect the domino effect to start in possibly Spain, Italy and Portugal, who are also in trouble holding too much debt.
It’s all toxic.
Europe financial crisis is a like a house riddled with dry rot, kick the structure hard enough and it will all fall in.
Question is when.
The Campaign for Human Rights at Glasgow University