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The Masked Tulip

Eu Austerity Policies Risk Civil War In Greece, Warns Top German Economist Dr Sinn

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Greece’s austerity measures cannot prevent default and will lead to a breakdown of the political order if continued for long, a leading German economist has warned.

http://www.telegraph.co.uk/finance/economics/7980291/EU-austerity-policies-risk-civil-war-in-Greece-warns-top-German-economist-Dr-Sinn.html

“We are in the second Greek crisis right now, today,” said Dr Sinn.

Greece is undergoing what amounts to an IMF austerity package but without the IMF cure of debt restructuring or devaluation that usual for a country with a spiralling public debt and a chronic loss of competitiveness.

The IMF says Greece’s debt will rise to 150pc by 2013-2014 even if Athens complies fully, a strategy viewed as self-defeating by several ex-IMF officials. There is a strong suspicion that the real objective is to bail-out North European banks with heavy exposure to Southern Europe, rather help Greece.

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Japan's debt to GDP ratio is larger.

However Japan has traded with the rest of the world and basically stagnated and never tackled it's debt problems.

Too many variables now to know where the tipping point is, Japan may already be screwed due to it's ageing population and the carry trade.

Japan had a hi tech production economy and could be on the brink, the Greeks have what? As a tourist resort it's now over priced thanks to the Euro.

Civil war seems a remote possibility default isn't, unless we are going to see the worlds first Zombie state?

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  • 239 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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