Debt in the Greece Economy
It should be borne in mind, that in the event of a Grexit, Syriza will most likely renege on all its EU/IMF debts, and as such it will not have that unsustainable burden to carry, but it would undoubtedly have to cope with many difficult issues including stabilising a rapid devaluation of the new Drachma and a high inflation rate, as well as conducting a root and branch reform of the Greek civil service, introduce effective tax to halt the fall of the Greece economy and even turn it around.
In truth, at present, I empathise with Syriza's predicament, as it has been given a mandate to pursue two tasks which are in essence mutually exclusive, ergo, remain within the Eurozone and reduce/end austerity measures. Tsipras and Syriza will need to seek a fresh mandate from the Greek people and commit Greece to a firm course of action by the end of June 2015.
The next couple of months should prove very interesting, and will have ramifications far beyond the borders of Greece.
A Gexit and/or a default in Greek debt will have very bullish implications for both gold and silver.
To see the secrets and numbers you aren't being told of Greece leaving the Euro and its impact on global finance, you should read To Grexit or Not To Grexit?
Article by: James S Gibson
Date of article: 30 May 2015
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