β#worldnews #Greece #DebtCrisisβ
π¬π· Lessons from Greece: The Looming Debt Crisis
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The road to inflation is paved with debt. Fifteen years after the Greek crisis that nearly destroyed the EU, the budget deficits of major countries remain. The accumulated debts are enormous, and the inability to refinance only exacerbates the problem.
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Recall: Greexit 2009 was part of the European debt crisis, which in 2010 covered first the peripheral countries of the EU (
Greece, Ireland) and then the entire eurozone. The Greeks were the first to discover they could not spend as much as they wanted: they could no longer borrow money.
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Such problems take a very long and painful time to heal. Even now, the Greek economy is still 21% smaller than in 2008 - and that's after three financial aid packages from the EU and the IMF. Remember that
Greece's share of the EU economy has always been small, but even that was enough to cause serious structural problems. A similar crisis in France or Italy would be far more severe. And the consequences of a Japanese or American crisis will undoubtedly be felt by the whole world.
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There are two ways to prevent a debt catastrophe. β’ Raise taxes and reduce spending. Alas, none of the current politicians are ready to undertake unpopular reforms; all prefer to increase budget expenditures, maintaining huge deficits.
β’ Accelerate inflation β this will lead to the devaluation of money and, consequently, of debt obligations.
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Apparently, world leaders are willing to tolerate extremely high inflation in the coming decades β this applies to price increases in dollars, euros, yen, and yuan. So what to do?
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It's time to seriously consider diversifying our capital - not only by industry, company, and country. Real estate and gold should also be part of our portfolios. Only with a well-diversified and protected capital stock can we speculate and take risks with a sense of security and preparedness.
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Profits to yβall!