The Greek debt burden is more than the people of Greece can ever repay.
But evidently the creditor nations will not accept this until Greece is bled dry.
Their “austerity” plan is for higher taxes, lower wages and higher prices and the sale of Greek national assets at bargain prices.
Greece is being treated like a nation defeated in war, and, like a defeated nation, it will never prosper until it can free itself from the power of its conquerors.
A trust fund created by Greece’s creditors will sell off 50 billion Euros worth of Greek national assets, with half the money to be used to pay Greece’s debt and half to recapitalize Greek banks. Greeks will not have a voice in what is sold or at what price.
The 23 nations also in external debt crisis are Armenia, Belize, Costa Rica, Croatia, Cyprus, the Dominican Republic, El Salvador, The Gambia, Grenada, Ireland, Jamaica, Lebanon, Macedonia, Marshall Islands, Montenegro, Portugal, Spain, Sri Lanka, St. Vincent and the Grenadines, Sudan, Tunisia, Ukraine and Zimbabwe.
The 14 high risk nations are Bhutan, Cape Verde, Dominica, Ethiopia, Ghana, Laos, Mauritania, Mongolia, Mozambique, Samoa, Sao Tome e Principe, Senegal, Tanzania and Uganda.
My guess is that Ukraine is the next country in line to lose its national sovereignty to creditors; this is likely as soon as the government no longer needs financing to crush the rebellion in Donetsk and Lugansk.
We Americans should remember that the United States is a debtor nation like Greece, not a creditor nation like Germany, Japan or China. What happens to Greece today and to Ukraine tomorrow could happen to the USA someday, too, when our debts are in yuan or some other currency instead of dollars.
Beyond Greece, the world is filled with debt crises by Heather Stewart for The Observer.
Global Debt Can’t Be Paid by Briton Ryle for WealthDaily.