Every economic crisis can have its own truth. Soon millions of Europeans will realize that the euro they knew no longer exists. The world will be in economic chaos.
In order to understand the reasons for all this, you first need to stop feeding yourself with illusions. The current crisis in Europe is represented by a series of actions that seem to be able to overcome the situation, but at the same time turn out to be a clear step back. The upcoming elections in Greece are one such step. And even though most of the “pro-rescuers” will work in parliament, a new currency will be circulating on the streets of Athens in the near future. By the way, you can follow the daily information about changes in the exchange rate on the website from the Kit Group company in Zaporozhye https://obmen.zaporizhzhe.ua/
Greek savers are rapidly withdrawing their savings from banks, taxpayers are in no hurry to pay taxes, companies are delaying payments to suppliers. All this can happen because they have nothing to pay, or to pay off soon with cheap drachmas.
The European Commission, the ECB and the IMF were unable to stop the fall, so any updated lending program will have the same result. The frustrated head of the IMF said: “If we talk about Athens, then I always think about people who are constantly hiding from taxes.”
The Greek backlash reflects the pain and hardship that comes with the intention of orchestrating an “internal devaluation” to restore competitiveness and repayment capacity.
European politicians today are assuring us that Greece’s exit from the euro will take place in an orderly manner, and it will be the only country that will take such measures.
Therefore, if Greece leaves the euro area at the end of this year, the government will default on its obligations regarding 300 billion euros of external public debt, as well as about 187,000,000,000 euros of debt to the IMF and the European Financial Stability Fund. In addition, Greece will not be able to fulfill its obligations in the region of 155 billion euros to the euro currency system.
The Polish finance minister issued a statement and warned that a Greek default would cause banks to collapse. In order to prevent an even greater disaster, the rest of the euro area members are required to have adequate funding in an unlimited amount for up to 18 months. Jacek Rostowski is concerned that the ECB is not in a position to take such a step, due to legal reasons. Given the fact that the ECB already has a lot of credit risk, it will not provide unlimited funds to other countries.
The periphery is suffering a significant decline, the goals set by the troika will not be met, and the public debt burden will become unaffordable for governments. This will lead to the fact that the euro exchange rate will significantly decrease in relation to other types of currencies, so currencies such as the dollar will be attractive for investors – https://obmen.zaporizhzhe.ua/usd-uah and the pound sterling – https:// obmen.zaporizhzhe.ua/gbp-uah. The fact that the ECB no longer has the power to manage monetary policy will finally be acknowledged.
The euro will lose the status of a safe currency, and investors will begin to avoid ties with many regions, including Germany. There will be problems with lending at quite reasonable interest rates. As a result, German taxpayers will be subject to unsustainable inflation, which is a consequence of the desire to bail out their partners in the euro area.
It is most likely that many retirees and households will lose their savings, which will be destroyed by inflation. In recent years, European politicians have been assuring that they are doing everything possible to save the euro. Today it becomes clear that they are unable to keep their promises, which require actions that are unacceptable to the electorate. However, no one can accurately predict the future of this monetary unit.