Sunday, July 3, 2011

Euro Zone Agrees to Dispense 12 Billion Euros to Greece

Euro zone finance ministers agreed on Saturday to disburse a further 12 billion euros ($17.4 billion) to Greece.

No surprise here. I said all along that Greece would get this money. This was just a dress rehearsal. The real play comes in September, when the EU has to decide on another 120 billion bailout plan. How much abuse will German citizens take, seeing their hard earned money taken from them and passed on to the Greeks, who pass it on to the banksters?

Will the ECB step in and start printing euros? Will Greece bail and return to the drachma? Or will the IMF (read the U.S. and the rest of the globe) play a bigger role?

1 comment:

  1. I heard an interesting South American academic on bloomberg Radio (forgot the name). Two of his points surprised me: 1. Germeny benefits from the Euro. It is essentially cheap money to Germeny because they have increased productivity but it is fixed value relative to importing countries like Greece and Spain. Sort of like China benefits from the peg to the dollar and similarly the one way trade requires financing by the exporting country to maintain. China is probably tired of financing America but if it wants their jobs to grow has to buy something in Dollars.

    2. Greece has become a basket case while its traditional enemy Turkey has grown into a world power. If Greece drops the Euro or defaults; what will it do if/when Turkey starts getting aggressive about "disputed" territory? The Turkish military can basically do anything it wants to Greece unless NATO (a bunch of countries holding defaulted debt) or the US (already overextended) gets involved. Greece can stick it's thumb in the eye of Europe but I am sure it is aware of the greater power of its neighbor Turkey.