POOR GREECE !

 
 

 
 
ΕΙΠΑΝ  .....
ΚΑΙ ΕΣΕΙΣ ΔΙΑΛΕΓΕΤΕ ΚΑΙ...ΠΑΙΡΝΕΤΕ   !!
THEY  SAID....
UP TO YOU TO CHOOSE   !!!
  
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     《  WHAT  IF  GREECE  DEFAULTS  ?  》
When the newly inaugurated president , Adolfo Rodriguez Saa ,
announced to Congress on the 23th of December 2001 , that
" the Argentine state will suspend the payment of its 
foreign debt " , legislators jumped to their feet with joy .
Their cheering quickly morphed into a chant of
" Ar-gen - ti -na  !  Ar- gen - ti-na  !! "
 
                 ::::::::::::::::::::::          ::::::::::::::::::::
Today , it is Greece , led by a recently elected populist
left-wing part , Syriza , that is contemplating a similarly drastic unilateral declaration of independence from foreign creditors
and international financial institutions .


Economists like Nouriel Roubini , a professor at N.Y University , have long argued that " Greece should default and abandon the euro , using Argentine-style measures to prevent a disorderly fallout " . Far from the sky falling in , they say , Argentina's economy soon roared back to prosperity .
Greece should follow suit .
But were the years that followed really so rosy for the people of Argentina  ?
They will certainly be Greeks ready to hail Syriza's leader , Alexis Tsipras , on Day 1 of the great experiment 
.
Mr Rodriguez Saa received a similarly emotional response when he went before Argentina's powerful General Confederation of Labor .
" I believe in social justice " , the president shouted , almost drowned out by ecstatic labor bosses .
" I believe in the revolutionary passion of Eva Duarte de Peron " .
The president believed that a default was the correct political response to the unbridled free-market policies of the 90s , which had pushed Argentina into its worst-ever economic crisis .
He also wanted to distance himself from the pro-capitalist Peronistas who had led Argentina into this dead end , by invoking Evita herself , the unofficial saint of Argentina's  descamisados , or " shirtless ones " .


                  ::::::::::::::::::::::::::         :::::::::::::::::::::::::
Perhaps the spirit of Evita could exorcise what many had come to see as the excesses of a political successor like Carlos Menem , a Ferrari-driving Peronist who was president from 1989
to 1999 . Mr. Menem orchestrated a temporary economic boom by privatizing state assets , dropping import barriers and liberalizing labor laws .
But he also failed to place any social safety net beneath the unemployed put out of work by his free-market shock doctrine - a sin for which , to this day , few forgive him .
  
 
                 :::::::::::::::::::::::::           ::::::::::::::::::::::::::
By 2001 , the nation was caught in the painful crucible of recession anf inflation .
Mr. Saa , appealed to Argentines as a rebellious , nationalistic cry of independence from the free-market conditions dictated by the international creditors .
The sense of triumph was short-lived ...
A week after announcing the default , Mr Saa resigned .
Soon , Argentina lurched into a nightmarish chaos .
Economic activity was paralyzed , supermarket prices soared and pharmaceutical companies withdrew their products as the peso lost three quarters of its value against the dollar .
Because of the virtual bankruptsy of the main private medical insurance firms and the collapse of the public health system ,
badly needed cancer , H.I.V and heart drugs soon became scarce . Insulin for the country's estimated 300.000 diabetics disappeared from drugstores shelves .
 


                 ::::::::::::::::::::::::::        :::::::::::::::::::::::::
With the economy in free fall , about half of the country's population was below the poverty line .
The country's middle class took to the streets by tens of thousands with pots and pans held high , clanging them into what became the echoing beat to Argentina's 2002 social collapse . A run on the banks had already forced the resource- 
- starved government to enact the most draconian economic measures in Argentina's history .
Savings accounts totalling $66 billion were frozen across
the country . Depositors started protesting inside banks .
Soon , most of Argentina's banks were boarded up with thick wooden panels , on which depositors banged their pots and pans angrily .
Well off Argentines could get around the restrictions .
In back rooms , large account holders were able to unofficially withdraw thousands of dollars at a time , or even wiring their savings abroad through a growing black market .
For the rest , hundreds of barter clubs popped up around the country . Some were the size of shopping malls , set up in the abandoned hulks of closed factories .
Thousands of cashless and hopeless Argentines flocked to them. At makeshift stalls , haircuts were traded for 
psychoanalysis sessions . Apple cakes for clothes .
By early 2002 , the network of clubs was enrolling tens of thousands of glum-faced members every week .
When the supply of pesos dried up because of the bank freeze , some of the biggest of the barter clubs began printing their own
currency , the credito...
 
 
 
                      ::::::::::::::::::::::::::         ::::::::::::::::::::::::
Eventually , Argentina did recover .
By 2004 , the economy was booming again under a new Peronist
president , Nestor Kirchner , who stared down the IMF and applied his own brand of economic common sense .
 
                      ::::::::::::::::::::::::::         ::::::::::::::::::::::::
It may fall to the historians to decide how much of the crash was attributable to Argentina's defiant default and how much to the irresponsible application of the Menem era free-market reforms .
But the price of the default for those who lost everything , most
of them from the lower middle class , who didn't have the resources to survive the freeze on bank withdrawals , was brutal.
Many cash-strapped families were forced to sell their homes at ridiculous prices to the better off who still had access to ready money .
  
                     :::::::::::::::::::::::::::         ::::::::::::::::::::::::::
Greeks would do well to realize what may follow if they back a Syriza-led default and exit from the eurozone .
 
They may be stamping their feet for Mr. Tsipras today .
Tomorrow , they could be banging their pots in protest....
 

 
 Why  Europe  will  never  give  up  Greece ?  }
           ( Marc  Faber )
  
   *************************************************
Preventing Russian influence in the Mediterranean , is the real
reason why Europe will NEVER  allow Greece to leave the Euro zone , according to global investor M.Faber...
Greece is generally regarded as a getaway to the Mediterranean,
it is also a key NATO outpost in the Balkans .
If there's a Grexit , " the Russian fleet can move into the 
Mediterranean from the Black Sea " , Faber said .
Faber's theory is underscored by European worries of closer ties between Athens and Moscow following Greek PM Alexis Tsipras'
visit to Moscow in April .
   
              ***************      ***************
" GRIMBO " : The new thing to worry about in Greece  ...
           (  UBS , Wealth Management  ).
After the famous " GREXIT " and the less utilized " GRACCIDENT"
neologisms for the Greek situation emerge daily within the analyst community .
Worth mentioning is " Grimbo " - a contraction of Greece and limbo , a situation in which would default but would remain in the Eurozone . Also notable is a rampant form of " GREXHAUSTION ".....
     






 
 
           ****************       ****************
" A bitcoin-like solution for Greece "  ?
This approach is a hybrid of a parallel currency and an asset-backed security . Combining the attributes of a digital currency and an asset backed security would result in several benefits .
1.  Greece would retain ownetship of its highly prized state assets , satisfying the voter mandate to curtail privatization .

2.  The currency could be used to pay government salaries and workers would be able to spend the currency at local businesses
providing a much needed economic boost .

3.  This creates an investable asset that would be a proxy for a recovery of the Greek economy.

4.  Greek banks could hold this hybrid asset instead of Treasury
Bills . The asset backing would immediately strengthen
bank balance sheets .
    
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DO YOU REALLY NEED MORE  TO MAKE UP YOUR MIND  ?
IF YES , WAIT TILL ...TOMORROW  !!!
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