Greece and the reality of the Tsunami
It seems that the financial earthquake that hit Greece still hides its real teeth until this moment, the Greek budget deficit represents 12.7% of the gross domestic product and this was the truth that shook the Greek economy, the government, and the former government claims that the deficit does not exceed 3.7%.According to the Washington Post in an investigation underway to find out the details of the earthquake that Goldman bank Sachs behind the financial storm in Greece, The bank as stated in the Washington Post hiding some of the financial transactions for the Greek Government, when the new government take the power in Athena they found that the budget defect more than Numbers recognized by the previous government, This was because of such transactions calculated on the basis that it deals, currency, and are not loans.
Greece now stands in front of very large problems and try to search for solutions to get out of this storm, Where the Greek government has identified five banks to issue government bonds for a period of ten years to collect loans worth $ 6.8 billion the total debt of Greece more than $ 400 billion, and therefore they need to borrow U.S. $ 72.43 billion this year to cover the deficit in its budget , this solution is not successful and will not benefit Greece to get out from the storm , it will increase the debt of Greek more and more .Greece now need the support of the European Union to lend at low interest rates, which dropped personally will not accept the European Union to lend to Greece with low interest rates, let alone that the Spanish and the Portuguese economy may flow the storm soon the both country facing the same problem and soon we will listen about that .
Greek government now have just one solution which is painful, sale of some assets government buildings, businesses and some islands, to pay debts, This storm, which hit Greece shook all corners of the European Union, the European Union currency fell during the trading this week to the lowest price since May 18, 2009 at 1.3435.The Greek government will not come out of this crisis without selling off its assets and this is the only solution to the government. This leads us to believe that there are some parties that stand behind this hurricane to get the benefits from this problem. But the most important question that is going on in my head is, who is this hidden hand behind this crisis?
Senior Analyst / Ali Hasan /FXCBS
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