Euro Zone Crisis
Read this article way back in December, 2011, as a reference first.
We are talking of the Euro Zone crisis here.
The change in the Government was inevitable for Greece. As status-quo was maintained in not finding a quick solution to the Euro crisis with Greece, we need some food for thought to address the problems related to the global village. Here are some scenarios that might happen:
- The third stimulus does not work – Greece receives the third package, yet it does not bail out the country
- Greece say “No” to the next stimulus – The new formed Government does negate any further introduction to stimuli, to deepen the debt
- Greece opt out of Euro Zone, for some time – Greece introduces its new currency by opting out from the Euro Zone only for some time, within a short span of less than five years
- Greece opt out for Euro Zone for a longer destination – Greece does not enter Euro Zone for a longer period of time, say ten years
- Greece fails to repay loans – Greece goes as a bad debt for ECB
- Lastly, Greece does well by accepting the stimulus – The ray of hope is that Greece lessens its burden using the package
The possible factors at this stage which might happen as a part of considering an external package are:
- External Intervention by allowing cash rich countries to mint money – When ECB approaches cash rich countries of the other continents to mint their currency, by allowing purchase by ECB some of the bonds of the weaker economies in the EU by this cash rich countries
- Stimulus Package is accepted again by the new Government – The new Government in power accepts the stimulus package, and works with it after the minting is done
- Greece receives bail out from IMF or World Bank – Both or any one joins hand with the ECB to drive a stimulus, in case ECB alone is burdened
- Greece receives money indirectly from India and China – Through a routed channel, Greece absorbs money from the BRICS nations.
Let us see what happens next in this front. Only time can tell. We can just keep our fingers crossed.