“Papaconstantinou confirmed Sunday that the government would tighten its belt significantly, despite the protests. “The expenses of the public sector will go down very considerably,” he said. Prime Minister George Papandreou earlier Sunday tried to rally the country behind the government. “We will do everything possible. We are planning very serious changes,” Papandreou said Sunday in a televised Cabinet meeting.”
“Greece accepted a bailout deal including tough austerity measures, Finance Minister George Papaconstantinou announced Sunday.
He did not reveal the size of the package negotiated with the European Central Bank, European Commission and International Monetary Fund, saying it would be announced in Brussels, Belgium, later on Sunday.
It includes a promise by Greece to cut its budget deficit to 3 percent of gross domestic product, as required by European Union rules, by 2014, he said.
Greece had a choice between “destruction” and saving the country, and “we have chosen of course to save the country,” Papaconstantinou said.
The expected austerity measures are unpopular among Greeks. Protesters clashed with police Saturday during May Day demonstrations, and strikes have been announced for later this week.”
What is the real deal with Greece?
The reality is that nothing could be further from the truth because the Greek have accepted nothing. Indeed, it’s their Parliament that has accepted the bail out. This begs the question: how long will they be around and can it be enforced if the people refuse, as they did in Iceland.
So may start the fall of what is now being referred to as the PIGS.
Portugal (Ireland or Italy), Greece and Spain. If one is allowed to go you may see what is commonly referred to as the Domino theory.
They may all go, one after another. How ironic that those who helped create this problem rushed to the largest Debtor nation in the world for security of liquidity. Yet, America in her own right is broke. Her economy is now artificially maintained by the Chinese and some Arab money as well as those who chose to bleed their country’s to death only to seek sanctuary in America.
Who are all to happy to take them and their money. In this case the rats go from one ship that’s in rough waters and taking on water to the Titanic of economic collimates to be. How very ironic.
For those saying Greece is puny to affect the global economy, this is some what true since Greece in terms of geography, resources and trade is not blessed like North America (Canada), nevertheless it is tied to the global economy and is top 30 economic nations with an annual GDP of 350 Billion and add another 100 Billion in unreported black market. So for a small nation of 10 million people that’s not bad.
Greece’s problem is two fold. First, its bloated and corrupt public service that has raised Greece’s debt over the past few decades at the expense of the private sector, which has been pushed to the side and has remained uncompetitive and unproductive. This is why its difficult for a business to do business in Greece and prefers to abandon Greece all together; example: Greece’s merchant fleet the largest in the world, does business under flags of other nations, and carries its business activities abroad and not in Greece. Same goes for Greece’s banks, petrochemical companies and Aluminum companies. Therefore, domestically Greece is only left with its tourism as a main source of foreign currency income.
Second, Greece’s geography and recent history is its curse since its neighbours are all of a concern and instable, requiring it to procure vast amounts of military equipment in addition to pressure applied to it by military producing nations such as your beloved USA, Russia, Germany, France and England. So at the same time you have these nations pressuring Greece to buy weapons from them, and also demand Greece buy their products exlusively for all its import needs, while in terms of balance of payments, investing minimal into the Greek economy. All Greece exports to these lovely nations acting now as Greece’s supporter while complaining, is olives, olive oil and foods.
It has been evident for some time that the ongoing speculative attack on Greece, along with such other countries as Spain, Ireland, Portugal, and Italy, was not primarily a reflection of their economic fundamentals, nor yet a spontaneous movement of “the market,” but rather an orchestrated action of economic warfare. The dollar had been relentlessly falling through the late summer and autumn of 2009. It obviously occurred to various Anglo-American financiers that a diversionary attack on the euro, starting with some of the weaker Mediterranean or Southern European economies, would be an ideal means of relieving pressure on the battered US greenback. Since these degenerate elites are incapable of directly solving the problem of the dollar through increased production, full employment, and economic recovery, one of the few alternatives remaining to them is to create a situation in which the euro is collapsing faster, leaving the dollar as the beneficiary of some residual flight to quality or safe haven reflex.
This is what emerged during the first week of December with a speculative assault or bear raid against Greek and Spanish government bonds as well as the euro itself, accompanied by a scurrilous press campaign targeting the “PIIGS,” an acronym for the countries just named, coming from inside the bowels of Goldman Sachs. I have discussed this phenomenon several times over the last two to three weeks on my radio program on GCN.
Now comes concrete proof of this conspiracy in the form of a Feb. 8 “idea dinner,” held at the Manhattan townhouse of Monness, Crespi, Hardt & Co, a boutique investment bank. Among those present were SAC Capital Advisors, David Einhorn of Greenlight Capital (a veteran of the fatal assault on Lehman Brothers in the late summer of 2008), Donald Morgan of Brigade Capital, and, most tellingly, Soros Fund Management. Source: Webster Tarpley