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Monday, 13 July 2015

" NO DEAL YET" - Euro Disaster Still Possible, & More

Platinum Wealth Partners Insights

When is a deal a deal? 

Well it our minds despite all the high rhetoric in the press clippings this is not even close to be being a deal. Firstly, various political approvals are required by the participating countries, and namely Greece whose parliament is unlikely to approve a worse deal than was thrown out by a vote just a week ago. Let's all fall on our sword, together!

Moreover, other events need to occur over the deal’s three year duration. defaults in any of these events scuttles the agreement. Three years?  Somehow that time frame just gives this charade more doubt. 

Does any sane person think that Greece can magically solve and fugue out their problems in 36 months when they already had about three thousand years, plus the Philosopher Kings? Sure, somewhere over the rainbow!

All theses so-called deals fail on one critical point - dealing with the real problem. That is Greece is no longer a viable economic entity because it has overshot the per capita carrying or productive capacity of the physical space it owns and occupies. Drastic measures are needed to re balance  the resource population equilibrium, such as population reduction through migration and natural attrition. All the financial and economic  policies are otherwise doomed because they fail to address the real physical issues. 

In other words, we guarantee  that none of theses political –economic deals will ever work. We all must know this by now. So how can you ever have a deal when everyone knows they are doomed to fail?. I guess its politics as usual and we all kick the can down the road.... 

Good luck; Be careful out there

A week ago, Greeks partied in the streets after voting to resoundingly reject terms of a new European bailout. On Sunday, those same streets were filled with a dazed and confused populace struggling to understand how they were now faced with swallowing a deal even tougher than the one they had just snubbed.

Image result for the wall street journal

In the summer heat in central Athens, groups of people gathered around televisions at cafes showing Sunday’s live coverage of talks in Brussels, where top Greek officials were scrambling to negotiate a last-ditch rescue. Like Anna Christoforidi, many viewers struggled to understand the strange turnabout that could result in the screws being turned even tighter as a condition for Greece remaining in the eurozone.

Angela Merkel, Alexis Tsipras and François Hollande talk at the eurozone leaders summit in Brussels.

The Guardian view on the Greek negotiations: out in the cold or in chains

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