RSS Follow Become a Fan

Recent Posts

200,000 American COVID-19 Deaths - the Reality of the Scope of the Pandemic
A Health Guideline Reversal and Questions - the Diminishing Authority of Health Experts Amid COVID-19
75-Years-Later - Another Defining Time Before the United Nations
No Escape from Crossing Fate - Trump's Inescapable Responsibility for the Spread of COVID-19 in the U.S.
Humanity - Today's Dilemma and Events and the Choices Toward a United Peaceful Tomorrow

Most Popular Posts

Mourn with Moore
On Partnerships of Conflicting Ideologies as a Force Shaping Extremism
DC Linktank
The World in 2014 - Asia
From This Point


Elections 2013
Friends in Business
Gun control
Immigration Reform
In America
Natural Disaster
The World
Towards 2014


September 2020
August 2020
July 2020
June 2020
May 2020
April 2020
March 2020
February 2020
January 2020
December 2019
November 2019
October 2019
September 2019
August 2019
July 2019
June 2019
May 2019
April 2019
March 2019
February 2019
January 2019
December 2018
November 2018
October 2018
September 2018
August 2018
July 2018
June 2018
May 2018
April 2018
March 2018
February 2018
January 2018
December 2017
November 2017
October 2017
September 2017
July 2017
June 2017
May 2017
April 2017
March 2017
February 2017
January 2017
December 2016
November 2016
October 2016
September 2016
August 2016
July 2016
June 2016
May 2016
April 2016
March 2016
February 2016
January 2016
December 2015
November 2015
October 2015
September 2015
August 2015
July 2015
June 2015
May 2015
April 2015
March 2015
February 2015
January 2015
December 2014
November 2014
October 2014
September 2014
August 2014
July 2014
June 2014
May 2014
April 2014
March 2014
February 2014
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013
May 2013
April 2013
March 2013

powered by

My Blog

The Dynamics of Modern Economics Bear Upon an Old Democracy - the Greek Dilemma

Debt is a major load to most individuals. To nations - heavily leveraged from the financial crisis of 2007-08, and forced to accept bail out money from monetary institutions, the load is even harder, more complex, destabilizing and a source of social discontent and dissent from Ireland, to Great Britain, to Spain, to Portugal and elsewhere now encompassing the oldest democracy - Greece.

Greece, like many other countries that have strong social connections to the people who expect political patronage, and where domestic policies have been established to appease and to console their beloved citizens, is finding out that the terms to borrowing money from international monetary institutions, runs adverse to domestic appeasing policies. Greece and others are discovering that practiced domestic spending that has maintained civil stability within their nations for many years, is now threatened under new terms to repay old debts and to attaining new loans.

Simply put, spending cuts mandated by monetary institutions upon debtor nations run counter to the culture of domestic affairs under which nations have been able to sustain their internal stability. Call it austerity or whatever suite-and-tie term fits, but the terms imposed upon nations through borrowing and for new credit, threatens the internal security of some nations.

Greece's present dilemma, which hopefully could be fixed soon, exemplifies the debacle nations face as a result of borrowing. Differences with creditors to make more reforms to satisfy the terms to new loans bring into focus the sovereignty of nations per demands of creditors. 

While Greece complains that the International Monetary Fund(IMF), according to the Associated Press(AP), was being needlessly picky about the reforms Greece has proposed, the IMF has found that the budget savings reforms, which creditors are demanding in exchange for loans, are focused too much on tax increases in Greece that can hurt businesses, rather than on spending cuts.

Alexis Tsipras, the Greek Prime Minister, who came to power in January on an anti-austerity and bail out platform hoping for some write off on Greece's debt, countered the IMF reasoning by debating that as long as Athens delivered the right amount of savings, the IMF should have no say in what specific policies a sovereign country adopted, the AP reported.

"This odd stance seems to indicate that either there is no interest in an agreement or that special interests are being backed," Tsipras charged of the IMF position that spending cuts top tax increases as a measure to solve the Greek dilemma. 

When European Union(EU) finance ministers convene later this week at a summit, it is hoped that an agreement on Greece's debt solution would be put forward - an agreement that other nations could use as precedent to ameliorate their own austerity mandates in order to cushion their impact upon the average citizens from Ireland to Great Britain to Spain to Portugal and beyond.