Greece bailout: Eurozone agrees ‘breakthrough’ debt deal – BBC News

English: Various Euro bills.

English: Various Euro bills. (Photo credit: Wikipedia)

The BBC reports that Eurozone finance ministers agree to extend a further bailout loan to Greece as well as debt relief, in what they call a “major breakthrough”.

Source: Greece bailout: Eurozone agrees ‘breakthrough’ debt deal – BBC News

The breakthrough is that the IMF‘s insistence on debt relief has finally won the day.

Whilst I am no great fan of the IMF and its bitter medicine, I respect it as an internationally institution with some of the finest economic brains in the World. As for the other members of the troika, they are part of the problem, just as much as Greece herself.

The ECB has repeatedly had its powers curtailed by Germany.

Similarly, the EU has been Angela Merkel‘s puppet.

It’s no surprise they Greece has pulled back from further austerity. Look at the terrible lives of the Greek people. They have made mistakes but they deserve better.

BUT the true villains who have escaped attention are the French and German banks who gave uncommercial loans to Greece in the first place. So far, these banks have not suffered because they have had the patronage of Angela Merkel’s government.

Ultimately, it’s the Euro and the structure supporting it that has been responsible for the context. Germany has benefited enormously from the Euro and is not prepared to adjust its economic policy for Europe benefit.

It is time for the German and French banks to be held accountable.


How much could Brexit wipe off UK GDP? | World Economic Forum

English: Official logo of the World Economic F...

English: Official logo of the World Economic Forum. (Photo credit: Wikipedia)

The authoritative WEF provides a powerful  meta-analysis assesses the potential economic impact of a vote to leave in the UK’s referendum.

Source: How much could Brexit wipe off UK GDP? | World Economic Forum

This research looks at existing research projections and concludes that they are probably understating the downside risk from Brexit.

This bottom line was recently reinforced by the Christine Lagarde, the managing director of the IMF. She concluded that the impact of Brexit is between bad and very bad in terms of economic impact.

Supporters of the Brexit dismiss all these arguments as theory but they fail to offer alternatives in terms of evidence and risk assessment.

Ultimately, the referendum vote will be between those favoring xenophobia and those who look to economic prosperity. Logic and reason favour the Remain campaign but the Brexit campaign is now being championed by the UK’s own right wing populist (like Trump and Le Pen), namely Boris Johnson.