Friday, December 31, 2010

Greece Stumbles

by Brian Koenig

American Thinker

December 30, 2010

Greece risks Mediterranean isolation as government debt accumulates and international confidence weakens -- especially now that Moody's Investors Service is reviewing a possible downgrade of its current Ba1 credit rating. With debt levels rising to 127 percent of GDP, Moody's noted that the "review will focus on the factors, namely nominal growth and fiscal consolidation, that will drive the country's debt dynamics over the next few years."

Translation: the leadership of Greece's near-bankrupt country better tighten the financial ropes and cease government handouts and trivial spending projects.

The Greek government has been spending blank checks for decades. Eurostat, a directorate-general of the European Commission, amended debt and deficit figures, labeling Greece as the region's most "indebted country." Financial insolvency has nearly stomped Greece's hopes of returning to the international bond market and has aroused negative sentiment among European neighbors.


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