Many experts still believe it is a liquidity problem. In other words, they think it’s fair to find financing. They blame speculators and hedge funds have panicked… or deliberately closed the valves..
But speculators are simply doing their job. They see that the debt is the real problem. Greece, for example, government has a debt amounting to 120% of GDP. Too much. And even if all the austerity measures were implemented successfully – that is to say if the Greeks accept the proposed budget cuts – the level of Greek debt will climb still 150% of GDP.
In addition, it is not even certain that the remedy acts as expected. The major Spanish unions plan massive strike in a June 8 The malcontents, anarchists, civil servants, retirees – all are resistant to cuts. As long as the rescue plans are in place, they think they can get away. It is more likely that the only way to curb spending is actually cut off.
?’??“?„ But the euro is not alone. The worst deficit on the east side of the Atlantic, not in Greece but in the United Kingdom. And household debt is not the worst in Spain and is also in England.
The U.S. dollar may not be far behind. United States to Great Britain through Greece, the basic figures are very similar. Debts and deficits are high – no obvious way to reduce them.