THE GREEK DRAMA

It starts with a note of melancholy, with the wailing and tears of the people over the fallen body of Greece. The pains and grievances of the society, making the air dense with the echoes of such hopelessness, that even the blunt mind of an ex-veteran military personnel who fancies doing butt exercises in front of other people’s houses, could cut through it… As the carcass of Greece decomposes, the putridity attracts vultures while driving away radiance and sunshine – leaving nothing but darkness. As the dark clouds gather to block the last bit of sunlight, the people raise their hands to the heavens praying for hope.

As the chorus sings of this tragedy something is heard from a distance. As the sound comes closer and closer, the wailing starts fading, allowing the people to identify the sound to be close to a purr of a strong engine. And then, right then, a strong burst of light rips through the dark clouds and in dives, from the heavens, a fleet of Mercedes S500, clad in metallic black armor that could only be owned by the war angels. The fleet then encircled Greece’s body and parked around it, with just enough space for one more of its kind. Then a ray of golden light poured from the heavens and brought in a white Mercedes S500 which could only be made by the god themselves!

The Mercedes descended, and landed in the opening that was left. When the doors opened, the air was ridden of the stench and was replaced by the sweet, intoxicating scents of Hugo Boss and Chanel. Then, out stepped two angels, one dressed in what seemed to be Escada while the other, Louis Vuitton. The people gazed in awe as these angels approached Greece. Then, they knelt by the body of Greece, took out their cards and swiped it on Greece. Almost instantaneously Greece was awakened with all signs of decomposing vanished! And the people cheered the angels and merry were the streets!... Until one nut cracker decided to point to the angels and shout “DEMON”!

  Basically that is what happened and is happening in the Eurozone today. Although the Greeks were rejoicing when they received their “bailout”, they didn’t seem to understand that without proper planning things could go ugly. And the natural human reaction to that would be to blame, first Greece and then whoever who brought it back to life. And unable to take such pressure (which is great in many levels), Greece is deciding to leave the Eurozone. And if this happens, the rest of the Eurozone who helped Greece in the bailout, could kiss the thought of being paid back in full goodbye, a similar predicament that happened during the Greek restructuring that occurred in March. 

There is a lot of discomfort in the global economic scene at this moment, namely amidst the European tax payers and the commercial banks as the exit would generate a price tag of $625 billion. And with the failing and destabilizing that could take place in the already vulnerable European financial system, a domino effect would be imminent. With credit ratings that are already riding the slippery slope, investors are almost deeming the Eurozone unsafe for foreign investments. 

With the jobless rates hitting an 11% mark, social implications are becoming rather visible In Greece. The people have lost hope on the government on its mismanagement of the crisis. This same sentiment has been echoed by the whole of Europe on a geopolitical level. Even in Netherlands and France, the economic pain is nourishing the growth of parties on the far right and left as voters lose faith in main stream political leaders. To be honest, this ideology would intensify if Greece were to leave the eurozone. 

But the Greek dilemma has both sides. A Greek exit might also be good for the nation as it would allow for the creation of its own currency. It could devalue its money thus effectively bringing wages down to a level where the country can compete in the international export market especially since the efforts of the eurozone seem to be more like teaching a person who lives in the desert plains, to fish. 

But if the exit happens and currency is changes, there are VERY high possibilities that the courts around the world would be clogged with lawsuits as Greek companies and leaders fight about whether the contracts should be paid in Euros or the new currency. What’s more, courts might even seize Greek assets to enforce claims, paralyzing the Greek financial system.

Greece is not the only one that is expected to ride the greased slippery slope, no pun intended…( It was funny in my head though…)  The world is now worried if Spain is going to be following suit. With a population and economy 4 times greater than that of Greece, Spain’s fall might be far worse a hit to the global economy. But I don’t foresee that happening so soon (at least from my point of view). With the Spanish government debt at 69% of its Gross Domestic product (GDP) it is still relatively safe in comparison with Greece that has a debt ratio of 165% to its GDP. 

But there are some differences that might put Spain on a whole different playing field when it comes to determining on the time to blow the horn. While Greece holds mostly public debt, Spain hold private i.o.u’s. This became so, when the real estate boom occurred in Spain where Spain had given out loans summing to $663 billion. And since the burst of this bubble, there has been more unemployment in Spain compared to Greece and it would need $200 billion to assist in its restructuring, which the Spanish government can’t quite accomplish without European help. 

However, the similarity is that Greece and Spain both have an economy that is not competitive. And this, in turn, would retard growth. The two nations face a long restructuring process of its social services and its business markets that will test the fortitude of its people. 

So while the merriness has lifted from the streets and people looking more like an angry mob, the angels are in a dilemma. Just then, a thunderous roar sounded from the skies and bright flash of lightning split the heavens and came rushing down to earth. And just by a micro miscalculation, what was sent to stop the mob fried the Louis Vuitton clad angel instead. Realizing the error, the gods rectified this mistake and sent another angel, wearing Jean Paul Gaultier, to assist the Escada wearing angel. The spectacle had stopped the mob but had given birth to a new problem. The two angels could not get along….

The recent elections that changed the French government and with the German Chancellor and French President unable to come to an agreement on the austerity plan, Greece is growing weary (although they are not really in a position to do so), and is literally threatening to leave the Eurozone. It is this unsettled issue that has caused and is causing the current economic downturn.  

Until they come up with something decisive, even if it is to confirm the exit of Greece, the economy will continue to gallivant in the red-zone. With the Greek elections around the corner, decisions (temporary or permanent) better be made; at least consider taking the lesser of two evils, if such a case were to present itself! Or in any worse case scenario, those unemployed in Spain and Greece could come to Malaysia and set up lasagna and pizza stalls in front of our homes since the Malaysian authorities are very compliant with such things…

Scene ends with chorus wailing on a high note with the angels wielding their swords at each other!