Thursday, October 16, 2014

The Greek Tragedy Continues...

I've written about the Greek tragedy that has painfully and slowly developing over the last few years. A quick summary:
  • Joined EU in 2000 (there is some debate as to whether Greece hid debt from the EU commission to join the EU)
  • Budget deficits increase year after year.
  • In 2009, Greece faced a severe economic crisis.
  • In early 2010, it was revealed that through the assistance of Goldman Sachs, JPMorgan Chase and numerous other banks, financial products were developed which enabled the governments of Greece, Italy and many other European countries to hide their borrowing. (source & source)
  • May 31, 2012: I wrote an article about the unfolding of the Greek economy. Shortages of all kinds because businesses were afraid of not getting paid (i.e. credit drying up).
  •  In 2013, Greece is the first developed economy to be reclassified as an emerging economy. (source)
  • Greece's socialists show they are leading other parties ahead of the country's next elections. If far-left leader Alexis Tsipras becomes prime minister, he promises a showdown with the European Union over austerity—that Greeks have been living with since 2010, in exchange for a huge financial bailout.
  • Oct. 15, 2014, Greek stock market collapse (source) as borrowing rates increase by 80 basis points.

While this is a rather simplistic review of the Greek tragedy, I have observed a few things. The voters will support even more socialist candidates. The new politicians will require more of the resources of the economically responsible citizens. Keep cash on hand because if you don't possess it, it's not really yours. A good example of this would be the Cyprus bank bail-in, where the depositors got an expensive haircut on their bank deposits. Imported goods were increasing scarce, especially medicine.

Keep Right On Prepping - K


  1. Greece seems to have one lifeline in that so many retired Europeans have settled there that it does continue to get some economic influx. Like pretty much every other country in the world though Greece's numbers are cooked and cannot be trusted but Germany is beginning to have problems of it's own so bailouts are not gonna be happening anymore. Now with France having issues the EU is once again facing some danger.

    I think it's going to be an interesting Winter.

    1. It is interesting that they have been in a decline for over 6 years, the slow kind. How many of us have the resources?