Tag Archives: Greece

News

Greeks Withdraw $1 Billion a Day Ahead of Vote

Reuters | June 13, 2012 | 07:01 AM EDT

Greeks pulled their cash out of the banks and stocked up with food ahead of a cliffhanger election on Sunday that many fear will result in the country being forced out of the euro.

Bankers said up to 800 million euros ($1 billion) were leaving major banks daily and retailers said some of the money was being used to buy pasta and canned goods, as fears of returning to the drachma were fanned by rumors that a radical leftist leader may win the election.

The last published opinion polls showed the conservative New Democracy party, which backs the 130 billion euro ($160 billion) bailout that is keeping Greece afloat, running neck and neck with the leftist Syriza party, which wants to cancel the rescue deal.

As the election approaches, publishing polls is now legally banned and in the ensuing information vacuum, party officials have been leaking contradictory “secret polls”.

On Tuesday, one rumor making the rounds was that Syriza was leading by a wide margin.

“This is nonsense,” one reputable Greek pollster said on condition of anonymity. “Our polls show the picture has not changed much since the last polls were published. Parties may be leaking these numbers on purpose to boost their standing.”

via CNBC

News

Could the Euro Break Up?

Markets continue to tumble across the globe, as the Euro crisis deepens. Since the election in Greece, no new coalition government has been formed, so no agreement reached on the austerity cuts to satisfy agreements with euro partners. The German Chancellor has now told Greece, if they do not stick to their bailout agreements, they will be expelled from the Euro.

In Greece 70% voted for parties against the EU-IMF imposed austerity, but 69% of Greeks want to remain in the Euro. A leaked report has shown that Germany are drawing up plans for a Greek exit from the Euro.

But this has significant dangers:

  •  If Greece goes – will Italy, Spain, Portugal and Ireland want to follow?
  • What happens to the greek debt? It’s in Euro’s not drachma, ….Greece’s creditors would loose billions.
  • The European banking system is already on it’s knees, Greece’s exit could see major banks across Europe collapse.
News

Greece Could Fall in Days as There is a Run on the Banks

Greece have set the date for re-run of elections of June 17th. The recent Greek elections ended in chaos, with none of the parties able to form a workable coalition. However, the new fear is that Greece will not make it to June 17th.

Since the failed elections Greeks have been taking what money they can out of the banks. Companies are moving their money overseas, as fear grips the nation. If this continues, the country will run out of cash and the system will collapse.
If that happens, then Greece will exit the Euro in an un-orderly fashion. Some economists say a Greek exit could cost $ 1 Trillion. The contagion in the markets would likely result in Italy and Spain failing shortly after.

News

EU and IMF Preparing for a Greek Exist

As the crisis in Greece continues, EU leaders and officials from the IMF, are publicly talking about the possibility of Greece leaving the Euro.
Before now, this was said to be unthinkable.

But as the crisis deepens an exit is looking more likely despite the high financial costs.

Chancellor Angela Merkel of Germany has called on the Greece to hold a referendum on the Euro.

Despite the Greek people voting against EU-IMF austerity in the elections, polls still show about 70% of the country want to remain in the Euro.

However, Germany have made it clear, to remain in the Euro, they have to stick to their austerity obligations.

Also in Europe, Ireland’s banks are still struggling and it’s thought Ireland will soon need a second bail-out.

News

The Break Down of Greek Society

What happens to a society when the economy collapses? How does this affect the day to day lives of the people within that society? What happens when the government does not have the money to keep everything working as it once did?

We can see this process happening in Greece, as the nation is effectively bankrupt, and the government is fast running out of options. Greece’s financial woes are largely of her own making. A society based on socialism, with a large proportion of the population employed in public sector jobs, a generous public retirement fund, and national tax avoidance. For years the country has lived far beyond her means. This addiction to debt has been compounded by Greece abandoning her currency, the Drachma, to join the single European currency, the Euro. Being part of the Euro has seriously hampered Greece’s ability to take the necessary action to avoid the economic catastrophe the nation now faces.

Greek’s have a reputation for being loud and gregarious, however, behind this exterior is a generous and civil society built on a strongly matriarchal family unit. The Greek grandmother is a poignant symbol of the nation: the old widow lady dressed in black, with immacualte hair, is a figure which commands the deepest respect from every sector in society. However, a British journalist living and working in Greece observed such a lady begging on the streets of Athens – this was a scene utterly unthinkable a short time ago.

Greek’s are also very civilised and generous, however these attributes are becoming harder to see. Hostility is growing in Greece towards a large immigrant population, with a real fear that the Neo-Nazi movement could make serious political in-roads. Crime is also increasing drastically. In the past Athens was quite a safe city where you hardly heard of muggings, but now muggings are common place. Areas of Athens are becoming no-go areas as crime and drug abuse increase.

Despite the crime and drug abuse on the streets of Athens, behind closed doors the majority of Greek families are simply trying to survive. Many have seen their salaries drop by 25%, whilst taxes increase and basic food prices soar; simply putting food on the table is becoming very hard. There are more tax rises and job cuts to come and as the recession deepens, the coming year is likely to bring further hardship to the people.

Greece has a troubled recent past, after the second world war Greek’s faced tremendous hardship, with people starving to death. Out of this, civil war ripped the nation apart resulting in a brutal military dictatorship until 1974. People again fear a return to the bad days of Greece, as Communist groups call for revolution. Many can see this as a distinct possibility as more and more people become increasingly desperate.

The way the economic crisis is dealt with in the coming months will determine  the outcome for Greece, as well as the rest of Europe. America is not immune from these economic woes. The entire western world has lived on borrowed money for years, we have all grown used to a lifestyle funded on debt, and not on hard earned cash. Many in Greece see the removal of their lifestyle as a loss to their rights, and the rest of Europe and America will be no different. If the rule of law and the political system collapses in Greece, anarchy will ensue and hardship become much worse.

However, we do not need this to happen. God raises up Prophets to take his mantle into regions to protect them from destruction. Poverty, hunger, or anarchy are not what God would have for us, but He needs His mantle to be in these key regions, so they can be steered away from trouble and faith and wisdom be restored. Support Prophet TV so the mantle on this ministry can return to Europe. If the economic system collapses, what we see in Greece today will be America tomorrow.

Via Greece is slipping into the abyss

Politics

Greece: Chaotic Mess Results from the Country’s Election

The two leading parties in Greece have seen their support plummet and are unable to form a coalition, with 70% of the of the electorate voting for parties who are against the EU/IMF bailout.
The recession in Greece has seen the Greek GDP shrink by 13% in two years, many believe the harshness of the EU imposed austerity is to blame for the depth of the recession.
Furthermore unemployment is sitting at 21% and climbing, with official poverty levels in Greece at 27.7%.
The Greek people are desperate for change, but some economists have warned an exit from the Euro would result in an 80% reduction in the Greek standard of living.
Greece is a comparatively young democracy, and was ruled by a military junta until 1974.
The far left and far right are growing in popular support.
For a nation hurting and feeling humiliated these are tense times.
If the politicians cannot form a workable coalition another election in June will be required.
The uncertainty, along with the French election vote, has resulted in turmoil in the European markets, and has destabilised the situation further in Portugal and Spain.
Also in Europe in the past week the Dutch and Romanian governments collapsed with their politicians unable to agree to the necessary austerity measures.
If Greece pull out of the EU/IMF bail out and default on their debts, the domino affect would cause an economic tsunami across the globe.
With the Greek economy the size of Minnesota, that may sink the rest of Europe and by consequence America.

News

Eurozone Crisis Deepens After French Elections

After socialist candidate Francois Hollande won the French Presidential elections, markets fell across the world.

Hollande is France’s first socialist President in 17 years. He won on the promise of a move away from austerity, more government spending, and high taxes on the rich.

Businesses in France are concerned, with many wealthy French planning to move to London.

Hollande’s victory could also bring about division at the heart of Europe, as German Chancellor Angela Merkel has repeated calls that austerity must be stuck to. However, the southern European nations of Italy, Spain and Greece hope that Hollande will side with them in a move away from austerity.

News

European Bailout Fund- Oct ’11 updated

1 Comment

Monday, 31 October 2011 updated to June 2012

Last October we ran a mission into Europe. This was a crucial time as European Union leaders were about to hold a key summit to deal with the ongoing debt crisis.

The week leading up to the summit the negative headlines continued, yet the stock markets across Europe rose each day, resulting in the highest market gains in 11 months.

The summit was also very fruitful, a way forward was presented, including: a hair-cut for Greek debt, a €1 trillion bail-out fund, and a deal to re-capitalise the banks.

However, within days of the mantle leaving Europe the optimism evaporated and the deal struck seemed to fall apart as Greece called for a referendum, and investors backed off from contributing to the bailout fund. One partner watching the news, and unaware that the Europe mission had ended and the mantle had returned to America said, “I knew DP was out of Europe, it all just fell apart suddenly, and the hope left.”

Since then, we have seen a change of government in France, Spain closer to financial ruin, and threats of a breakdown in the pact made during Sarkosy’s Presidency with member nations over the fiscal pact.

However, now the mantle is back in Europe, decisions have been made to enable financial support to Spain, and Greece is continuing to work through her financial difficulties, with the new French president working with EU member nations for a way through the debt crisis.

A sustained Prophet.TV presence is essential.

Support Prophet TV so we can maintain our mantle regularly in these regions.

Video link to cartoon: general financial explanation of debt crisis

http://www.youtube.com/watch?v=0zPyZZIvwCc&feature=fvwrel

News

Eurozone Debt Deal…


At the much anticipated meeting of European Union heads of state in Brussels a deal was reached to hopefully solve the continuing debt crisis threatening the world economy.

Leaders agreed that the European Financial Stability Facility (EFSF), used to bailout nations like Greece when they are in trouble, has been increased to €1 trillion. Leaders also managed to reach a deal which will see a Greek debt haircut of 50%, and a plan was also reached to recapitalize the European banks. The problems in Italy were also discussed, with Italian Prime Minister Silvio Berlusconi giving assurances to the EU meeting, that his government will continue with it’s austerity drive and will seek to have a balanced budget by 2013.

When the deal was announced global stock markets rose at the signs that action had finally been taken. However, it very quickly became apparent Europe was by no means out of the woods. The deal is very short of detail. Nothing was said about how the EU will find the €1 trillion required for the EFSF and since then EU officials have been in talks with China to raise the loan. It was agreed that the fine detail of how to raise the money would be discussed at the next EU summit of leaders in December.

Furthermore, despite stock markets rising on the news, the global bond markets did not follow. The bond markets treated the deal with a great deal of caution. Since it is the global bond markets that lend to governments this is not a good sign. Put simply, investors are not investing in Europe, it is too high risk. If bond markets stop lending to large western economies, it means public sector wages go unpaid, schools close, and hospitals run out of cash. This would result in  serious civil unrest.

As for the recapitalization of the banks. When the details were looked at it was found the amount agreed upon is woefully inadequate. Analysts at Credit Suisse, after looking at the figures, concluded that this is not really a bank recapitalization at all. The recapitalization was so important because the banking sector in Europe makes up a significant proportion of GDP. If the banks fail, and require sovereign nations to bail them out it will be very difficult, and would likely have a snow ball effect on that nations credit rating. This is a particular problem for France, whose banks have a high exposure to the Greek debt.

The haircut for Greece also comes with undesirable consequences for Greece. They are to have EU officials installed in Athens, who will not oversee the running of their economy, in effect Greece has lost her economic sovereignty. This is the fate of any nation now, that requires a bailout.

With the recent attention being given to Greece and Italy, we cannot forget Portugal. Portugal is beginning to show the same signs that Greece had before it went into financial meltdown.

Behind all the deals and negotiations are the citizens of Europe, who are becoming increasingly angry at the whole affair. Solvent nations are seeing their citizens angry that they are having to bailout out the wrongs of others, and those nations in financial difficulty are seeing increased civil unrest due to the crippling austerity packages put in place. Across Europe nationalism is growing.

The deal may succeed, but there are a lot of factors at work which could cause it to unravel very quickly. This is not a time for us to be putting our faith in the politicians to find a solution; It is the time to support the work of Prophet TV, to enable the missions in Europe to continue. Economic meltdown need not happen, but we must protect Europe to ensure that it doesn’t.

 

 

 

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News

European Bailout Fund- Oct ’11

This October we ran a mission into Europe. This was a crucial time as European Union leaders were about to hold a key summit to deal with the ongoing debt crisis.

The week leading up to  the summit the negative headlines continued, yet the stock markets across Europe rose each day, resulting in the highest market gains in 11 months.

The summit was also very fruitful, a way forward was presented, including: a hair-cut for Greek debt, a €1 trillion bail-out fund, and a deal to re-capitalise the banks.

However, within days of the mantle leaving Europe the optimism evaporated and the deal struck seemed to fall apart as Greece called for a referendum, and investors backed off from contributing to the bailout fund. One partner watching the news, and unaware that the Europe mission had ended and the mantle had returned to America said, “I knew DP was out of Europe, it all just fell apart suddenly, and the hope left.” A sustained presence in a region is essential, Support Prophet TV so we can have a sustained presence in these regions.

News

The Break Down of Greek Society

What happens to a society when the economy collapses? How does this affect the day to day lives of the people within that society? What happens when the government does not have the money to keep everything working as it once did?

We can see this process happening in Greece, as the nation is effectively bankrupt, and the government is fast running out of options. Greece’s financial woes are largely of her own making. A society based on socialism, with a large proportion of the population employed in public sector jobs, a generous public retirement fund, and national tax avoidance. For years the country has lived far beyond her means. This addiction to debt has been compounded by Greece abandoning her currency, the Drachma, to join the single European currency, the Euro. Being part of the Euro has seriously hampered Greece’s ability to take the necessary action to avoid the economic catastrophe the nation now faces.

Greek’s have a reputation for being loud and gregarious, however, behind this exterior is a generous and civil society built on a strongly matriarchal family unit. The Greek grandmother is a poignant symbol of the nation: the old widow lady dressed in black, with immacualte hair, is a figure which commands the deepest respect from every sector in society. However, a British journalist living and working in Greece observed such a lady begging on the streets of Athens – this was a scene utterly unthinkable a short time ago.

Greek’s are also very civilised and generous, however these attributes are becoming harder to see. Hostility is growing in Greece towards a large immigrant population, with a real fear that the Neo-Nazi movement could make serious political in-roads. Crime is also increasing drastically. In the past Athens was quite a safe city where you hardly heard of muggings, but now muggings are common place. Areas of Athens are becoming no-go areas as crime and drug abuse increase.

Despite the crime and drug abuse on the streets of Athens, behind closed doors the majority of Greek families are simply trying to survive. Many have seen their salaries drop by 25%, whilst taxes increase and basic food prices soar; simply putting food on the table is becoming very hard. There are more tax rises and job cuts to come and as the recession deepens, the coming year is likely to bring further hardship to the people.

Greece has a troubled recent past, after the second world war Greek’s faced tremendous hardship, with people starving to death. Out of this, civil war ripped the nation apart resulting in a brutal military dictatorship until 1974. People again fear a return to the bad days of Greece, as Communist groups call for revolution. Many can see this as a distinct possibility as more and more people become increasingly desperate.

The way the economic crisis is dealt with in the coming months will determine  the outcome for Greece, as well as the rest of Europe. America is not immune from these economic woes. The entire western world has lived on borrowed money for years, we have all grown used to a lifestyle funded on debt, and not on hard earned cash. Many in Greece see the removal of their lifestyle as a loss to their rights, and the rest of Europe and America will be no different. If the rule of law and the political system collapses in Greece, anarchy will ensue and hardship become much worse.

However, we do not need this to happen. God raises up Prophets to take his mantle into regions to protect them from destruction. Poverty, hunger, or anarchy are not what God would have for us, but He needs His mantle to be in these key regions, so they can be steered away from trouble and faith and wisdom be restored. Support Prophet TV so the mantle on this ministry can return to Europe. If the economic system collapses, what we see in Greece today will be America tomorrow.

 

 

 

News

Turmoil in the Global Stock Markets

The close of trading this week has seen the Dow Jones down for the fourth consecutive week. The last few weeks have seen global markets fluctuate wildly. On many days the spread of the gains and losses have been so extreme, one would expect to see such changes over the course of a year, not a day’s trading.

The erratic behavior of the markets has fueled fears of a double-dip recession in the US and Euro-zone nations, as already slow growth reduces even further.

Economic analysts are seeing markets behave in ways never before seen in the history of stock market trading- this is unknown territory.  Some believe we may be heading for a global depression, or Japanese style stagnation.

The fear within the markets is primarily being fed by the continued uncertainty in the Euro-zone nations. Italy and Spain are looking increasingly unstable, and either one of their economies would be too big to bail out, in the manner of Greece. Even the second Greek bail-out package is looking uncertain, as the other Euro-zone nations loose confidence in Greece’s ability to pay back their debts.

Economists have not given up all hope of finding a way through this present crisis, although the margin for error is very slim. Many believe the only way out is for a break up of the single European Currency. If the economic heavy weights of the Euro- Germany in particular- were to leave it would allow the Euro to devalue, bringing relief for the PIGS nations. Despite the economic virtue of such a plan it is currently politically unthinkable in Germany, as such a move would plunge Germany into a harsh recession.