INSIDE SCOOP: GREECE

INSIDE SCOOP: Greece

Life in Greece is not easy and becoming more difficult as more austerity is forced on this struggling nation. Those in the trading world are not thinking about the plight of the average Greek citizen. They are more interested in the latest headlines as global markets react to every twist and turn in what seems like a never ending effort to agree on a bailout that would avoid a disorderly default. It has become a numbers game. The focus of negotiations is on reforms and on how much can be cut out of the Greek budget to bring the longer-term deficit down to what is considered a sustainable level. There is little concern over the impact on the average Greek who has to bear the burden and face years of sacrifice. The alternative is to leave the EURO and default. INSIDE SCOOP looks to show the local perspective and the dilemma Greece faces in an interview with an average Greek citizen, a Global-ViewForex Forum member, who describes the impact at home:

Dear Jay thanks for the opportunity

Life is hard here in Athens, particularly for the lower paid. Pensioners have had their income severed and are expected to "carry on regardless.: I know of one pensioner, 70 years old with his wife of 68 years old, who had a joint pension of around Euro 17,500 per annum which has been cut down to 9,000 with further cuts to come. With rent at 5,000 per annum, a litre of milk at 1 euro, a loaf of bread at 1 euro, how can they survive? How much is left for taxes or food?

Economics wise an internal devaluation is understandable, socially though it is not. The issue is that the funds lent to Greece were given to the government to fund public works. 5 to 10 companies were used hence the distribution of income was to a narrow field. Had this distribution been through the banks a wider number would have benefited whilst creating jobs and raising the economic standards of the country.

The middle class is suffering. The education system in Greece is inadequate. Schoolchildren used to attend school and take extra evening tutorial courses in order to cover the syllabus for the end of year exams. Now families are feeling the pinch because of the cuts and are not able to afford the extra cost. They are faced with a "Sophie's Choice" of which child to educate and which not to educate.

The largest employer is the Greek state as over 30% are civil servants. They have to downsize, that is true and it should be done. But if they do this and small companies are also cutting back, where are the taxes going to come from to create the wealth needed to get us out of this crisis. The issue of investment and expansion is not being addressed.

Crime is on the increase, Break-ins and muggings are prevalent, even to the extent that they steal the pizzas from the delivery but not the money(memories of hyperinflation days in Germany in the 1930s)

The government has let the people down. In the last 2 days we have heard and seen the politicians try to teflon themselves against the bad publicity.

Jay I could go on for hours.

What should be done? Feeling is that we need a change of government. The party diehards from all political parties are getting fewer and fewer as the people have less money in their pockets. New laws should be passed making the MPs accountable. We need fewer MPs to be elected thru a new voting system.

This is the dilemma. We all know that the future of Greece is within the Euro. The demagogues will argue the opposite as they wish to keep control. My pensioner noted above will have to face milk and bread at 3 euros each if we go back to the drachma. The exit from the euro will also open foreign policy issues amongst others. In fact the picture is too bleak to describe.

Anyway I hope this enlightens you.

Please feel free to ask me again anytime as I want to reciprocate as Global View has helped me.

All the best ahead and may the force be with us in Greece.

As traders we forget the human cost when in the midst of battle. Tragedies and disasters often become trading opportunities. One mans plight becomes another mans gold. In the case of Greece, it seems stuck between a rock and a hard place. Is the alternative default and leaving the EURO worth the short-term pain or is it better to face years of sacrifice? Even then, reaching budget goals and avoiding another crisis are far from assured as tax revenues are likely to undershoot forecasts given a depressed economy with little leeway to stimulate.The fallout on the average Greek citizen is the INSIDE SCOOP as it provides the local perspective on a crisis that is more than just numbers on a budget ledger.