Greece —- Not Out Of The Woods, Yet?


They’ve got to be kidding!  There’s just no way to look at Greece’ position and think anything remotely positive is happening.  But, they are!

ATHENS (Reuters) – Greece must resist internal political pressure to slow economic reforms in a year that will dictate whether it avoids bankruptcy, Finance Minister Yannis Stournaras told Reuters in an interview.

With EU partners starting to praise Greek efforts to exit its worst crisis in decades and some economic indicators showing fledgling signs of recovery, demands are increasing on the government to give up crippling austerity and reforms.

“What scares me is the big pressure from society, media and parliamentary deputies from all parties to ease the programme. We must resist … it’s too early to declare victory,” he said from his office on Syntagma square overlooking parliament.

Money is returning to Greek banks, bond prices are rising and the 2013 primary budget will do better than the troika of international lenders predicted for the year, registering a 0.4 percent surplus, despite a crippling recession.

“The primary deficit is what we are judged on. The troika expects it at zero but we believe we will do slightly better,” he said. “This means that there is a good chance our partners may further reduce our debt.”

Wow, talk about optimistic!  This is beyond the 1/2 full, 1/2 empty argument.  Let’s look at some numbers……

Greece’s euro area partners agreed last year to extend the maturities and reduce the interest on the nation’s bailout funds to help cut its debt mountain to a more sustainable level of 124 percent of GDP in 2020, from an estimated 173 percent this year.

LOL, uhmm, when your debt is such, 124% GDP is just as unsustainable as 173%, by 2020?  What are they going to do then?  After years of continually racking up debt, their target is 124% of GDP?  They may as well say a deadbeat nation 4ever. 

He acknowledged unemployment, the euro area’s highest at 26.8 percent in October, would take longer to start declining and only after the economy starts to grow, which is expected in late 2013. GDP is expected to decline 4.5 percent this year, the country’s sixth consecutive year of contraction.

The economy is expected to grow but contract by 4.5%?  What’s that?  A new word?  Growthdecline?  Any bets Greece will reach 30% unemployment?  What growth are they expecting and from what?  Too early to declare victory?  Holy crap!  If these are good signs, we’re all in a bunch of trouble. 

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4 Responses to Greece —- Not Out Of The Woods, Yet?

  1. DirkH says:

    As the long term value of the Euro is zero, 173% or 124% debt in 2020 will be just fine – the debt is denominated in Euro…

    Switching to Gold ETF’s in 21 days…

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