Is Greece braced for a Grexit?
I really don't know. I know next to nothing about economics. I just know it's important as it makes countries work, but that's about it. In my world, life is simple. If a country is struggling financially, then they need to stimulate the economy. And in a country that's broke, it's the not the tertiary industries that need help, it's the secondary.
I'm always going on about Greece in this blog. Even though I'm of Cypriot heritage and Greece was pivotal in 1974 invasion that ethnically cleansed the island and made my mum a refugee, Greece is a fantastic country.
It's the country of the gods for starters. Every inch of the country is boasts stunning landscapes, crystal clear aquamarine seas and archaeological sites that will leave you dumbfounded.
It makes me sad that the cradle of western civilisation; the birthplace of science, astronomy, maths, democracy, medicine, philosophy, literature and art has been reduced to running inadequate health services, substandard pensions, derelict public transport and next to no welfare. How the mighty have fallen.
I like Syriza. I like Alexis Tsipras. And Yanis Varoufakis is cool. While they're rallying around trying to get extensions and funding, the whole of Greece is awaiting with baited breath news of a Grexit. This could have a domino effect with the rest of Europe, like Spain, Italy, Ireland, Cyprus and Portugal following suit. The problem with the Euro is that it's a really strong currency and these countries have a failing economy; how do they ever expect to remain competitive in trade and industry if their taxes and exchange rates are so high.
This has in effect enslaved the Med. There is no way out of this quagmire of debt. In order to pay of debts, you need to make money. In order to make money, you need to have skills and trade. In order to sell your skills and products, you need to undercut your competitors. Something you can't do when the currency and rates are being controlled by Brussels.
I know the EU does wonderful things, but no one elected Angela Merkel to be the CEO - why does she make all the decisions? She made Greece her bitch. Germany and the EU pumps money into Greece as an investment in its infrastructure, these contracts go to German companies and instead of making equipment, Greece is forced to... yup you guessed it, buy it from Germany. So the money from all these bailouts doesn't actually hit the Greek economy.
I hope Syriza has plans on how to boost Greece's economy in the event of a Grexit. I hope they have plans to use a highly educated and skilled workforce to rebuild its industries from the ground up. It needs investment in technology and innovation. And most of all, it needs to be cheap.
Like India, it may need to lower itself to sewing clothes for the high street and the making cheap toot that ends up in our Pound shops. Once the economy starts to grow, with more people in employment, Greece needs to find its USP to ensure that a collapse never happens again, because Greece will be world leading in something.
It's not just these basic things that Greece needs to put in place to secure its future, but it also needs to think diplomatically. Greece's history is closely woven with that of the Middle-East and North Africa, it won't harm them to become a military nation that acts like mediators or aggregators to bring these warring nations together. As they're pretty well off from a resource point of view, this can only benefit Greece in making it more politically powerful as well as adding to the coffers. And the Russians love Greece, this can also be used to her advantage.
Either way, I hope the government isn't just schmoozing the EU to try and get out the current situation. I hope they're laying the foundations for the future. As this is now the best time to think strategically and elevate Greece, like a phoenix from the ashes.
I'm always going on about Greece in this blog. Even though I'm of Cypriot heritage and Greece was pivotal in 1974 invasion that ethnically cleansed the island and made my mum a refugee, Greece is a fantastic country.
It's the country of the gods for starters. Every inch of the country is boasts stunning landscapes, crystal clear aquamarine seas and archaeological sites that will leave you dumbfounded.
It makes me sad that the cradle of western civilisation; the birthplace of science, astronomy, maths, democracy, medicine, philosophy, literature and art has been reduced to running inadequate health services, substandard pensions, derelict public transport and next to no welfare. How the mighty have fallen.
I like Syriza. I like Alexis Tsipras. And Yanis Varoufakis is cool. While they're rallying around trying to get extensions and funding, the whole of Greece is awaiting with baited breath news of a Grexit. This could have a domino effect with the rest of Europe, like Spain, Italy, Ireland, Cyprus and Portugal following suit. The problem with the Euro is that it's a really strong currency and these countries have a failing economy; how do they ever expect to remain competitive in trade and industry if their taxes and exchange rates are so high.
This has in effect enslaved the Med. There is no way out of this quagmire of debt. In order to pay of debts, you need to make money. In order to make money, you need to have skills and trade. In order to sell your skills and products, you need to undercut your competitors. Something you can't do when the currency and rates are being controlled by Brussels.
I know the EU does wonderful things, but no one elected Angela Merkel to be the CEO - why does she make all the decisions? She made Greece her bitch. Germany and the EU pumps money into Greece as an investment in its infrastructure, these contracts go to German companies and instead of making equipment, Greece is forced to... yup you guessed it, buy it from Germany. So the money from all these bailouts doesn't actually hit the Greek economy.
I hope Syriza has plans on how to boost Greece's economy in the event of a Grexit. I hope they have plans to use a highly educated and skilled workforce to rebuild its industries from the ground up. It needs investment in technology and innovation. And most of all, it needs to be cheap.
Like India, it may need to lower itself to sewing clothes for the high street and the making cheap toot that ends up in our Pound shops. Once the economy starts to grow, with more people in employment, Greece needs to find its USP to ensure that a collapse never happens again, because Greece will be world leading in something.
It's not just these basic things that Greece needs to put in place to secure its future, but it also needs to think diplomatically. Greece's history is closely woven with that of the Middle-East and North Africa, it won't harm them to become a military nation that acts like mediators or aggregators to bring these warring nations together. As they're pretty well off from a resource point of view, this can only benefit Greece in making it more politically powerful as well as adding to the coffers. And the Russians love Greece, this can also be used to her advantage.
Either way, I hope the government isn't just schmoozing the EU to try and get out the current situation. I hope they're laying the foundations for the future. As this is now the best time to think strategically and elevate Greece, like a phoenix from the ashes.
First published 22/06/2015
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