Greek Economy In Free Fall
The latest statistical measure of the catastrophic economic depression hammering Greece reveals that in Q1 of 2012 the Greek economy contracted 6.2 percent. The Greek economy, beyond any doubt, is in free fall. Without recourse to printing its own money, the euro-strapped Greeks cannot even inflate away their debts. Unless, of course, they exit the euro. Then, they will have many other financial and economic problems left to contend with.
As the Greek economy implodes, the political establishment in Athens is helpless. The most recent Greek parliamentary election punished the pro-austerity establishment parties, strengthened the parities opposed to the austerity deal with the Eurozone, but left no clear winner. The latest talks to cobble together a coalition government have failed. New elections will take place in a few weeks.
The politics and economics of Greece are feeding on each other in a self-sustaining negative feedback loop. They are both in complete disarray.