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Posts Tagged ‘greece economic crisis’

Greece Unemployment Rate Continues To Rise

February 14th, 2014 Comments off

The Greek debt crisis,  epicenter of the Eurozone debt crisis, has in recent months receded from the global headlines. This may have given a false impression that the Greek economic crisis has been solved.  However, official statistics just released by Athens demonstrate that Greece remains struck in a fiscal and economic catastrophe that is clearly a depression by any known measurement.

In November, the Greek jobless rate reached a record high level of 28 percent, an increase from the unemployment figures from the previous month, which stood at 27.7 percent. Most alarming, youth unemployment in Greece, defined as those seeking jobs under the age of 25, now stands at  a staggering and almost incomprehensible 61.4 percent.

To understand how disastrous the unemployment rate is in Greece, just compare the current level of 28 percent with the jobless rate prior to the onset of the nation’s debt crisis in May of 2010, which stood below 12 percent. Official  talk from the government in Athens is that thanks to the skill and brilliance of Greek politicians, the country’s economic woes are on the mend. Reality says something very different.

 

 

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HILLARY CLINTON NUDE

Hillary Clinton Nude

 

 

 

 

 

 

Greek Economy In Free Fall

May 15th, 2012 Comments off

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.

 

                 

 

 

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Greek Economy Continues To Collapse

May 10th, 2012 Comments off

The recent Greek election, to no one’s surprise, severely punished the pro-austerity establishment parties, and greatly strengthened the anti-establishment political parties advocating the ripping up of the European bailout and austerity package. Currently, Greece is without a government.

As Greece slides into political disarray, its economy continues in meltdown mode. With the Greek economic  contraction accelerating, debts accumulating despite the bailout, and the unstable political situation prevailing, it is no shock that the most recent numbers show that Greece has an official unemployment rate of 22 percent. Without a doubt, Greece is in a sustained economic depression, with no clear light visible at the end of the tunnel.

 

                 

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Greek Debt Crisis Continues As Politicians Play Games

February 10th, 2012 Comments off

After days of largely contrived drama, the nearly dysfunctional emergency coalition government in Athens announced a deal among ruling political parties for another austerity package, in the expectation that this will lead to the Eurozone going forward with the second bailout of Greece, involving another 130 billion euros. As everyone knows by now, this is a game. The political actors in Greece continue to come up with new, punishing austerity measures, while the politicos in Brussels assure the world, and especially the bond markets, that this time at last the Greek debt crisis has been permanently resolved.

It is unlikely that investors in sovereign debt will be impressed with the latest deal being offered by the government in Greece. They are aware that even Eurozone politicians, especially in Germany, are voicing skepticism over the sufficiency of the Greek measures to address their debt crisis. They are even more cognizant of the fact that the austerity measures create a fiscal drag on the Greek economy, leading to even further deficit problems despite cuts in government spending. The political turmoil in Greece, with another general strike being planned by the nation’s labor unions, is likely not to reassure the bond vigilantes.

Meanwhile, as the Greek debt and economic crisis boils over, the other PIIGS nations (Portugal, Italy, Ireland and Spain) are waiting in the wings with their own acute crises.

 

 

                 

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Greece In Economic Crisis: Is Athens Crumbling?

June 15th, 2011 Comments off

No matter how the EU and IMF policymakers try to spin truth, the reality is that Greece (and not only Greece) is functionally insolvent. The spread on Greek debt is a clear sign as any can be that markets have thumbed their noses at Greek sovereign debt. The European/IMF bailout, at the price of severe austerity by Athens, is life support for what is already a fiscal corpse. Now that Standard & Poor’s has cut its ratings on four of the largest Greek banks to CCC, the politicians in Athens and throughout the Eurozone are even more desperate.

How bad things are in Athens can be observed by the latest machinations by Greek politicians. George Papandreou, the current Prime Minister of Greece, is supposedly offering to step down as the price to pay for a broad-based coalition government. It is said only a coalition government can adopt the severe austerity measures the IMF is demanding for more of the loans that alone keep Greece afloat. In the meantime, there are riots on the streets of Greek cities, as the population rebels against paying the price for sins it did not commit.

I think the smart money is on Greece defaulting on its sovereign debt, either outright or stealthily through restructuring. Of course, Greece will not be the last casualty of the rapidly evolving global sovereign debt crisis. In looking at Greece today, perhaps followed soon by Ireland and Portugal, we are also catching a glimpse of what is in store for the greatest sovereign debtor of them all; the United States of America.

Greece Faces Severe Economic Crisis Over Public Debt

December 9th, 2009 Comments off

Within the Eurozone Greece has the highest ratio of public debt to GDP, currently at 125%, prompting Fitch to lower the nation’s credit rating. Other rating agencies are likely to follow. The Greek stock market is in a tailspin, while Athens is coping with both an acute financial crisis and social unrest, as a wave a riots has broken out to mark the anniversary of a previous violent outburst.

The level of public debt in Greece is clearly unsustainable. The question being asked is if the Eurozone will bailout the Greek government. Such a policy move is not likely to be  well received by the taxpayers in other Eurozone economies with lower debt to GDP ratios, namely Germany and France. More importantly, the dismal economic and financial crisis in Greece, compounded by ruinous public debt problems, follows on the heels of the debt conundrum facing Dubai World. In addition, other Eurozone economies face looming public debt crises in the not too distant future, including Ireland, Spain and Portugal.

Is the next bubble to burst in the global economic crisis a string of sovereign debt crises? Readers of my report, “Global Economic Forecast 2010-2015: Recession Into Depression,” are aware that I project a catastrophic sovereign debt crisis afflicting both the United States and the UK by 2012.

 

For More Information on “Global Economic Forecast 2010-2015” please go to the homepage of our website, http://www.globaleconomiccrisis.com