Published on Economic Populist.org, by Robert Oak, June 19, 2011.
The never ending Greek tragedy goes on and on, with bail outs, austerity demands (codespeak to screw the poor and middle class), and votes of no confidence in government officials. All of this raucous is interspersed with violent protests. Now Europe is in talks for a second bail out, about the same as the first one, or $157 billion.
(Watch online this video, 1.44 min).
The EU and ECB refuse to let Greece default and insist the new bailout should guarantee no adverse credit event. Greece’s debt is now about 150% of annual GDP, heading to 160%, or $485 billion, with some estimates of Greek debt being $532 billion. Add to this, Greece’s economy is shrinking, which will never enable them to pay off this debt. This is what austerity brings, social unrest and a non-productive economy, as the Prime Minister tries to blame inept workers.
Below is a graph of countries’ exposure to Greek debt from BBC news.
(Read online this chart … on Greece total dept: $ 485 bn / EU 340 bn).
Yet, Economist Kash Mansori did a little more digging and found the United States exposure to Greece debt much higher, $41.4 billion and that’s just Greece … (full text and comments).
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Debt Collection in Greece, Legal Information: Debt and credit recovery and collection services, Litigation and Enforcement, Bailiffs, Process and Document Serving, June 2010.