Putin and the Greek debt crisis — A Grexit could play into Moscow’s hands

Mathieu Labrèche is a corporate communications manager based in Toronto and a graduate of the Brussels School of International Studies. He argues in this piece that a Greek exit from the euro would have serious geopolitical ramifications and would strengthen Russia’s hand in Eastern and Central Europe.

One Comment

  1. Avatar hemen parekh says:

    The Greek Tragedy

    With a public debt of $ 320 Billion , and unable to raise fresh loans ( to pay off old loans ) , Greece is on the verge of bankruptcy – and exit from Euro-Zone

    Dire predictions are being made by the Economists / Bankers / Politicians etc , as to what will be the impact on :

    * Other debt-ridden countries like Portugal / Italy / Spain etc

    * Economies of the European lender-countries

    * Balance Sheets of Financial Institutions ( eg : IMF / European Common Bank etc )

    * Economies of Developing countries , unable to export to Europe

    But hardly anyone seems to be asking :

    * Why did Greece land itself in such a trouble ?

    * Will Spain / Portugal / Italy – and other debt-ridden countries – soon find themselves in a similar condition ?

    You don’t need to have a Ph D in Economics to know the obvious answer !

    Greece finds itself in this trouble for the same reason that a person would , if he starts spending far in excess of his income

    Usually by borrowing lots of money from friends / relatives , who , oblige without asking :

    > What is your current income ? What is your current savings ?

    > What is likely to be your future income ?

    > What do you need this loan for ? When – and how much – will you repay ?

    If there are no satisfactory answers , then you know that either the borrower has no capacity to repay

    or , ( worse ) , no intention to repay !

    Apparently , Greeks have been living beyond their means ( income ) for many many years

    Generation after generation of Greeks thought :

    > Let us enjoy today . Why worry about tomorrow ? Let our children worry about that !

    The 20+ something Greek youth ( of which , 26 % are unemployed ) , have ” inherited ” that debt of $ 320 billion , from their fore-fathers

    Hence , it is reasonable for them to say :

    ” Hey , I did not borrow / spend all that money ! Why should I be made to suffer for the sins committed by my parents / grand parents ? ”

    Problem is not that the lenders cannot accept this argument and agree to , even write-off $ 320 billion

    All that the lenders are telling the Greek Youth ( thru Greek Government ) , is :

    ” No problem , but no more money either ,

    Just learn to live within your own income . Learn to fend for yourself .

    Stop living on borrowed time ( – and borrowed money ) ”

    Here , there is a lesson for us Indians , as well !


    hemen parekh / 29 June, 2015


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