Armstrong Economics Blog/Greece Re-Posted Aug 9, 2022 by Martin Armstrong
Greece’s debt problem has been unrelenting. The European Union refuses to consolidate member state debt, and Greece’s money woes have only multiplied since joining the euro. The global economic downturn is hitting the Mediterranean nation hard.
Inflation reached 11.6% in June, a rise from May’s reading of 10.5%. The Greek Statistical Service (ELSTAT) collected data noting a €13.417 billion increase in public debt from the first quarter of 2021 to the second quarter of 2022.
Fitch Ratings somehow gave Greece a positive BB rating. However, the agency warned that the nation’s debt ratio will likely triple other BB rated countries by 2024.
Greek’s public debt has reached 193% of GDP and has surpassed €357 billion. This is cause for concern, to say the least.
The EU crisis began on schedule with the political pi turning point from the major high that formed in 2007. Precisely on the day of the ECM turning point, April 16, 2010 (2010.29), Greece notified the International Monetary Fund (IMF) that it was on the verge of bankruptcy. The euro fell to year-low levels by April 22, 2010, prompting the IMF to provide Greece with €45 billion the following day. Greece’s debt woes only worsened over the years, and the IMF decided that Greece’s debt was simply too high to support and urged for it to be forgiven. Brussels refused, and now Greece is in a situation from which it cannot possibly recover.