Greece and the Euro

in Currency-trading

The riots in Greece have escalated beyond the measure of what has been seen in the country in the last several years. Gasoline-based IEDs and other devices are being hurled against both police and buildings as Greek citizens protest the austerity measures being proposed. If Greece continues to deteriorate in this way there is a good chance the country will default on its loans and cause a lot of hard to the EU and the Euro on the online forex exchange. There has already been news in the country of their current Prime Minister offering to change out members of his cabinet; however, many Greek protestors are refusing to cease their actions until the Prime Minister completely resigns from his post.

This situation has been greeted with a good deal of anxiety from both Greece and the world at large, this is the first time austerity has been resisted so violently. The demands upon Greek citizens include increased taxes, the forfeiture of public assets (land, the lottery, etc…) to private lending institutions. This “auctioning” of public property and an insistence of an increase in taxes has brought about a revolt; the Greek people have had enough and are not willing to pay their debts in this way. There is not always going to be a bottomless line of credit, but Greeks no longer care and are willing to declare “bankruptcy” where the world’s economy is concerned. Many are open to financial ostracism and are more than happy to begin building a new Greece from the ground up, no matter what the consequences.

Currently nearly half of all Greeks aged 15-25 are unemployed, and nearly 20% of the country is jobless; in times like these it is no wonder that Greeks have begun to take to the streets and fight. Any movement with regard to the decisions of the Greek Prime Minister or any members of his cabinet will be a direct reflection of where the Euro is headed. If Greeks continue to cause social upheaval and violence in the streets to the point of an ouster of their prime minister it will mean Greece defaults on their debts. If this should occur the direct impact upon the EU and the Euro will be absolutely catastrophic, and going short on the EUR/USD would be a very, very good idea. Only if the Greek Prime Minister manages to hang on to control of his country and follow through with the proposed austerity measures will the Euro stand a chance.

 

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james smith has 172 articles online and 1 fans

The author is a Forex trader and financial analyst residing in Denver, Colorado.  To stay up to date on all the latest developments in the financial world and beyond be sure to stay up to date with the latest forex quotes.

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Greece and the Euro

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This article was published on 2011/06/17