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Greece Debt Crisis 2011: Could China Be The Savior For Greece And The Eurozone?
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Greece Debt Crisis 2011: Could China Be the Savior for Greece And the Eurozone?

Recent Development in Greece Debt Crisis 2011:

The financial market has been sporadic in recent weeks as Greece is neogotiating a bail-out package with the EU and IMF to help cut its government deficit. There has been rumors that the bail-out packaged maybe delayed till September as EU and IMF are unwilling to issue the $110 billion EURO funds without seeing drastic measures from the Greek’s part to implement more austerity measures and economic re-structural plans.

However, the two core members of the EU, France and Germany, both know that a solution must be implemented immediately with no further delay even in the midst of huge political demonstration in Athens as ordinary workers have already experienced 30% cut on their salaries as a result of this. EU and IMF are quickly gathering private bondholders to create an emergency fund package valuing around $110 billion EURO to avoid further default from the greece debt crisis 2011. Currently, there’s no set date as to when the fund is to be issued but most people believe the solution will come to the surface by mid-July.

China, the New Hero to the Rescue?

On the other hand, China, which is Euro’s largest trading partner have just announced its support for this single currency and will do whatever it can to help Greece, Portugal, Ireland, and other peripheral European countries to get back on its feet. China as the largest global foreign currency reserve holders of over $3.05 trillion, is looking to invest into European assets and government debt. Of particular interest is European’s thriving alternative energy and natural resource sectors which China needs to continue fueling her expanding economy.

China wants to buy more European debt as a way to move its foreign reserves denomination to the EURO instead of the dollar. It is also encouraging more bilateral trade in an effort to ease the debt tensions.

Personal Opinion on the Greece Debt Crisis 2011:

I think that China is stepping in at a very crucial time when Western economies are faltering. China recognizes that since the entire financial system is globalized, any major players such as the EU, being the second largest economic entity after the US, will send a huge rippling effect across the entire system thus the end of the so called “globalized financial system.” It is essential that every major economies learn the lessons from the Greece debt crisis 2011 because not only is Greece faltering, all neighboring peripheral Eurozone countries such as Ireland, Portual, Spain, and Italty have government decifit above 10% of their GDP.

This is a very tough lesson on money management because the Southern European tends to work less hours, take more holidays, and overspend while the conservative Germans are on the opposite side of the spectrum, being more industrious and hard working. The Eurozone as a concept would not have existed without the financial backings of both the Germans and the French.

Greece Debt Crisis 2011: A coming lesson for America

America should also be aware of the Greece debt crisis 2011 because if the Amercian dollar is not the world’s reserve currency today, America could very much be facing the same consequence as the Greeks. In fact, if you consider the future liability in entitlement program in America such as Medicare, Medicaid, social security, and the current national public debt of 14.3 trillion, America public debt is actually greater than 100% of its GDP.

As the old saying goes: “empire rises and falls.” Those who learn their histories remain in power while those who don’t heed the lessons will be washed away like the sands in the seashore.


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