Tuesday, January 27, 2015

The Greek Peoples Odious, Enormous and Unsustainable Debt.

The IMF, World Bank and ECB must immediately recognize and understand that Greece, like other poor countries or developing ones that have enormous unsustainable odious debts, has very little capacity to repay such a debt.

Further it is morally and economically appropriate for Greece to refuse and question or recognize the legitimacy of this odious debt forced upon the Greek people and their economy.

Greece its government and citizens must not be held in this position of having to borrow more  just to service a debt. And no longer be asked to service such a debt when it has little to no trade surpluses on an annually basis.

The only way for Greece to get out from under its debt is similar to that of how Germany got out of its debts after World War 2

The current Greek repayable amount must be reduced by 50% and stretched out over 35 years. Also such a new agreement must state that repayments on this reduced loan are due only when Greece has a trade surplus and that repayments be limited to 5% of export earnings.  

This would give the E U countries, the EU central bank and all creditors a powerful incentive to import Greek goods and thus greatly assisting Greece's new reconstruction. 


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Thanks for your thoughts, comments and opinions, will be in touch. Peter Clarke