Adonis Diaries

Posts Tagged ‘Greek Crisis

Is the Greek Crisis Over? Why this overwhelming silence in the news media?

The Greek crisis was not that confusing from the start: European politicians needed this normal crisis to take a world dimension.

1. The Greeks wants to remain in the Euro Zone and benefit from all the facilities extended by this vast market, especially the financial ease of borrowing and be able to travel without visas everywhere. Turkey was better positioned than Greece to join the Euro Zone, but for imaginary cultural affiliation to Europe, the European leaders forced Greece within the membership.

2. The Greeks refuse the stringent constraints imposed on them after the 2008 financial crisis.

3. The steady austere programs imposed on them to reform their institutions has taken its toll and its economy is unable to restart due to lack of Liquidity.

Remember Benjamin Franklin explanation of how the American colonies managed to expand their economy? It was because the colonies still had the right to issue money as their internal market expanded.

How to reach a satisfactory deal with Greece, a win-win deal that unburden the shoulders of most EU members?

1. Greece needs liquidity for its internal market to function and expand. The monopolistic right to print Euro is in the hand of Germany who is generating $5 billion just by printing new Euros. And Germany is not about to relinquish this manna and power status.

2. Short of printing rights of currency for the internal market, Central Europe Bank should consider issuing Euro B, earmarked for the internal usage of each member State.

3. Euro B will not be used for any export of goods or services. Only the main (Euro A) currency will be handled for export outside the Euro Zone and among the member States.

4. A special institution will study and analyse the necessary set of criteria that should trigger the issuing of Euro B for each internal market. When the internal market expand, more liquidity is injected. When the internal market shrinks, Euro B will be extracted from the market to keep inflation in check.

5. The Euro B will give each member State the implicit sense of autonomy and provide more incentive Not to transfer the blame to other States for their economic failure.

6. The internal liquidity problems will be the best Indicator to pre-empt future financial difficulties

The implicit enduring political colonial mind-set of the major power player in this Union says:

  1. We have been for centuries the first colonial powers before the current superpower existed
  2. We have been the first Capitalist nations that amassed wealth before the current capitalist nation existed
  3. We are the first to comprehend that pre-emptive wars to maintain economic supremacy is the main strategy for powerful nations
  4. We are Not about to bow to lesser economic States in the Union to dictate to us the world strategy via local democratic means such as Referendum
  5. 5. The lesser States have got to grasp the requirement to bow down to the higher developed States.

Unless the economic Liquidity problems are separated from higher political positions, Greece and other Union members are in deep trouble for many years to come.

Mind you that the Union decided on the single currency because they forecasted the financial crisis of 2008 and had no other alternative but to wait for the USA to announce the financial catastrophe.

The Euro was the best strategy to face the incoming distabilizing conditions.




January 2023

Blog Stats

  • 1,515,967 hits

Enter your email address to subscribe to this blog and receive notifications of new posts by

Join 822 other subscribers
%d bloggers like this: