Peter's Viewpoint

My blog spot, my mind, your time, and hope for the better

What Happens When Your Country is Declared Bankrupt

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Country Bankruptcy ExposedWhen the financial crisis finally exposed all the inequities and corruption of the Greek government and its system, now known as Kleptocracy, I began to search for information about other countries to learn about their experiences in economics was global or not.

I have experienced firsthand what it means for the people of the bankrupt country of Greece to live everyday while also seeing what happened to Cyprus.

At the university, some students study accounting, economics, and taxation but those studies never delve into the abyss of country bankruptcies or the class (lower, middle, upper) inequalities, and the effects of taxation.

Countries or should I say political parties are now looking at what happened to Venezuela, Greece, and Cyprus and analyzing how those scenarios apply to their own.

Assigning blame won’t solve a problem that has accumulated over years of ignorant or blatant stupidity; it will only delay solutions.  The answers are incredibly difficult and require leadership and foresight to avoid falling into economic despair.

Which path to take?
The real questions are how much are you willing to lose and whether you can afford to lose your life’s work and savings.  This is where the decision makers that include the country politicians, the IMF, and Troika step in to take that decision away from the people.

One path
Fast or slow market death and therefore increased unemployment and poverty.
Increased unemployment equals less spending.
Less spending equals businesses closing.
Business closing leads to Government ownership of businesses.
This decision was applied in Greece and has developed into a vicious circle that requires some form of investment injected into the economic stream that will hopefully produce a positive economic result.

Another path
Immediate reduction of individual wealth and assets regardless of class, which is what was decided for Cyprus by OTHERS.

Both paths saved the countries fictitiously.  They are not governed their own citizens but by the EU, the IMF, Banks, and even the OECD.
Both countries are expected to struggle into the year 2020 under a global economy that is already showing signs of unanticipated problems.

What’s the difference?

The differences are how fast or slow an economic death do you want to face when businesses close.  Savings accounts are drained to pay taxes and to repay loans from the countries that your country is borrowing from but to also feed government bloat by employees that continue to be the primary cause of the problem.

Should the fight bring politics into the solution?
If you have classified yourself as being a left, center, or right wing politically do you really think that this applies when the axe falls?  The problem is a financial one that requires proper management of government and all that government encompasses including assets, money, and human resources.

The justification by politicians is that you voted for them and what they did is therefore your responsibility.  This is true but was the decisions made with complicity or innocence.

This is a fight for your well being, both psychologically as well as financially, not to mention that what you have toiled over the years to amass could disappear over a weekend.  Why a weekend?  That’s when the banks close and you find that a percentage of your money has been confiscated on Monday morning for the good of the country that created the problem in the first place.

Should government employees be judged?
If you bring politics into the fight then each political party will produce their own verborhea (a diarrhea of the mouth) to justify their decision making.

My opinion is that it depends on the country.  In Greece the political parties hired employees to insure their votes and therefore my opinion is that the majority should be dismissed.  A proposal has been created to objectively rank government employees but they do not want to accept that simply because they fear it will be used by each of the political parties that they do not belong to as a power struggle.

What are they to do after losing their jobs?  The only answer that I can give is that they return to farming from which they came in the first place.

The outcome
Greece has not succeeded in positive change as yet and if it does not, then the people will be forced to participate in a war lead by civilians rather than a humane solution.

As an example, the government initiated a real estate tax that should be based on property valuation but is actually based on what the government wishes to collect to continue the use of a vote for job campaign.  This is a farce that is devised to show foreigners that the government is changing methods of the past but in actuality this means that as they increase their spending it will increase the amount of taxes that property owners will pay thus creating a mirage of change.

The percentage of corruption in a country will determine how much its citizens will suffer from the sins of the father’s.

Economic recovery in a problematic global economy is difficult; add the fact that other countries become the sharks circling to take advantage of migrating citizens; add whatever services or products you produce reduced in price, and the outcome of positive economic results are strenuous.

Class structure is destabilized by the failure of legislation to create and enact fair taxes in a global environment.

I hope that my opinion and this information will shed some light to those who foresee their own country heading into economic doom or help citizens to understand how important it is to have the right people to vote for during elections, and why education is the basis for better decisions by citizens.

References:

IMF

The OECD defines the quality of agricultural products to reduce product pricing to make them more affordable without consideration of quality.  The quality of food, especially in Greece, is correlated to the longevity and quality of health.  Are organizations contradicting the health issues?

OECD

Troika

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