Sunday, June 28, 2015

End of the Line for Greece

According to a report by "The Economist", Alexis Tsipras, the prime minister of Greece, terminated further negotiations with the troika -- European Commission, European Central Bank (ECB), and International Monetary Fund (IMF) -- on June 26 and will submit their last proposal to a national referendum which will be held on July 5. He is gambling that this referendum will pressure the troika to present a more palatable proposal.

In response, the finance ministers of the Eurozone canceled plans to release €16.3 billion to Athens. Without those funds, it will not be able to repay €1.5 billion to the IMF.

The exit of Greece from the Eurozone is near.

We should not feel sorry for the Greeks. They deliberately destroyed their own nation by, for example, refusing to pay taxes. According to a report by the "Wall Street Journal", unpaid taxes amount to approximately €76 billion.

The ECB should immediately cease increasing the emergency liquidity assistance (ELA) to Greek banks and, hence, force Athens to impose capital controls. Any additional financial assistance to Greece will only be squandered its citizens until they make a genuine commitment to fixing their culture of dishonesty and laziness.

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