Wednesday, April 28, 2010

Greek Debt - Greece should suspend military spending

The Greek Debt Scandal is the news and Greece' economy is in trouble. The international credit crunch threw a spending choke chain around the World's 27th largest economy such that it's budget deficit and public debt have reached fantastic proportions.

A number of European countries are readying massive loan assistance programs to help in the Greek Debt problem, but given that Greece' credit rating is at a "junk" level there's no guarantee of a timely repayment

In the view of this blogger, the one best target is Greece military spending. It's 3 percent of the Gross Domestic Product; it should be reduced to one percent or less through a multi-year elimination of non-essential spending. Event if Greece has to go without a military save for paid soldiers, that move would make a large dent in spending.

The process of raising taxes from people who don't have jobs should be halted. Instead, Greece should dramatically increase tariffs on good imported.

The Greek Debt Scandal is threatening to plunge that country into a state of economic collapse. Greece does not need to spend money on war. Better to drop the system before its too late for everyone.

Stay tuned.

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