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|User Info||ECB Dissembles And Equivocates: Greece; entered at 2009-12-21 12:29:06|
Registered: 2009-08-10 Germany
Well, for us in EU it is basically common knowledge that Greece has always been beyond sustainable financial levels. I doubt that Greece would ever have made it into the EU if Greece had presented the "true" numbers. And they kept lying for years.|
"In 2004, Eurostat, the statistical arm of the European Commission, after an audit performed by the New Democracy government, revealed that the budgetary statistics on the basis of which Greece joined the European monetary union (budget deficit was one of four key criteria for entry), had been massively underreported by the previous Greek government (mostly by not recording a large share of military expenses)." http://en.wikipedia.org/wiki/Economy_of_....
Therefore I really do not understand the "hype" on this fact since from the beginning Greece has never presented true or sustainable numbers, not even close.
To me it was only a matter of time that this information is taken into consideration by a rating agency. And you know what: it helps to get the USD stable (at least compared to the EUR). Now, that is convenient, isn't it? At least for the FED. They are able to keep on printing without getting too much in trouble by a bad EUR/USD ratio.
In my view the EUR has gotten along with a weak Greece quite long and I am convinced it will NOT be the end of the EUR if Greece continues to operate at non-sustainable GDP levels. They always did that. In my opinion his "problem" is sort of artificially pushed.
There are a bunch of problems where I see the EUR could fail or the EU could get split up. But Greece is not in that line..