Of course, John. Rescheduling, restructuring, reducing interest. But, as we see from hindsight as of 30 July 2015, Greece's creditors in the Eurozone do not allow any restructuring. That would make too much sense for the Eurozone. The German leadership, Merkel & Schaeuble and so on, think that they can squeeze blood from dry earth.
Tim Geithner reported in a book that Schaeuble was thinking that it would be good to punish Greece in order to scare the other, weak Eurozone states into following German economic policy dictates. The German delegation at the conference in Brussels got their way on most things, but not all. Their approach is more punitive than constructive. And we see that the Eurozone is moving ahead very slowly if at all. In France, the unemployment rate went up again in June, if I am not mistaken, after declining for several months.
The terrible irony is that Germany itself got considerable debt relief without which the German wirtschaftswunder of the 1950s would have been unlikely. But Germany is not willing to do the same for Greece.
Greek mismanagement was a problem. But the main problem is the notion of the single currency itself. The euro was a bad idea whose time had come. The disparities between the member states of the eurozone was great, not to mention lack of a common tax system, pension system, state budget, labor laws, etc etc, plus Greece's special defense needs vis-a-vis Turkey, etc.
What happened to Greece was inevitable and could have happened to other eurozone states. After the Greek debt crisis became known in 2010 it was handled all wrong by the Eurozone which insisted on reforms --due to German domination--- rather than debt relief which at that time could have taken the form of eurobonds at a low interest rate which Greece could have paid at that time. Instead Greece was left to borrow for regular needs --as many countries, inc. the USA, do-- on the open market where interest rates on Greek debt inevitably shot up, and that should have been foreseen. So the Greek debt is much higher today than 5 years ago. And that is the fault of the eurozone, especially Germany/Schaeuble/Merkel etc.
Reforms yes, but not without an easy credit facility plus funds for investment in growth. Lebowitz is right but does not go far enough. Greece has offshore energy resources which Europe needs and could have invested in in order to help both Greece and the EU as a whole. But instead of funds for growth there was excessive austerity which destroyed rather than creating conditions for growth and getting out of the debt straitjacket.
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Greece Is Not The Only Country Facing Severe Economic Challenges…
in other words, the loans to Greece were used to pay off old debts to foreign creditors/institutions/states. It was not used for growth for Greece.
Greece Is Not The Only Country Facing Severe Economic Challenges…
Of course, John. Rescheduling, restructuring, reducing interest. But, as we see from hindsight as of 30 July 2015, Greece's creditors in the Eurozone do not allow any restructuring. That would make too much sense for the Eurozone. The German leadership, Merkel & Schaeuble and so on, think that they can squeeze blood from dry earth.
Tim Geithner reported in a book that Schaeuble was thinking that it would be good to punish Greece in order to scare the other, weak Eurozone states into following German economic policy dictates. The German delegation at the conference in Brussels got their way on most things, but not all. Their approach is more punitive than constructive. And we see that the Eurozone is moving ahead very slowly if at all. In France, the unemployment rate went up again in June, if I am not mistaken, after declining for several months.
See link re Germany & Schaeuble:
ziontruth.blogspot.co.il/.../...reece-in-debt.html
The terrible irony is that Germany itself got considerable debt relief without which the German wirtschaftswunder of the 1950s would have been unlikely. But Germany is not willing to do the same for Greece.
ziontruth.blogspot.co.il/.../...ill-voting-on.html
The Simple Math Behind Greece’s Complicated Situation
Here are some other analyses of the Greek debt crisis which is a crisis of the Eurozone and the euro.
ziontruth.blogspot.co.il/.../...ill-voting-on.html
ziontruth.blogspot.co.il/.../...reece-in-debt.html
ziontruth.blogspot.co.il/.../...ure-hypocrisy.html
The Simple Math Behind Greece’s Complicated Situation
Greek mismanagement was a problem. But the main problem is the notion of the single currency itself. The euro was a bad idea whose time had come. The disparities between the member states of the eurozone was great, not to mention lack of a common tax system, pension system, state budget, labor laws, etc etc, plus Greece's special defense needs vis-a-vis Turkey, etc.
What happened to Greece was inevitable and could have happened to other eurozone states. After the Greek debt crisis became known in 2010 it was handled all wrong by the Eurozone which insisted on reforms --due to German domination--- rather than debt relief which at that time could have taken the form of eurobonds at a low interest rate which Greece could have paid at that time. Instead Greece was left to borrow for regular needs --as many countries, inc. the USA, do-- on the open market where interest rates on Greek debt inevitably shot up, and that should have been foreseen. So the Greek debt is much higher today than 5 years ago. And that is the fault of the eurozone, especially Germany/Schaeuble/Merkel etc.
Reforms yes, but not without an easy credit facility plus funds for investment in growth. Lebowitz is right but does not go far enough. Greece has offshore energy resources which Europe needs and could have invested in in order to help both Greece and the EU as a whole. But instead of funds for growth there was excessive austerity which destroyed rather than creating conditions for growth and getting out of the debt straitjacket.
The Simple Math Behind Greece’s Complicated Situation
Greece cannot make its own customs duties since it is part of a free trade zone/customs union/. It has to go by the EU's customs directives.