Economic survey: no economic target achieved in 2011-12

[hanibal]

Re: Economic survey: no economic target achieved in 2011-12

@kakaballi

Could you yell this to the Spanish government please. They seem to be in a bit of a bother asking big brothers Germany and France for help.

BTW, I would love to know a moneylender who keeps lending me money without ever asking for repayment. Yumm yummmmm!!!

P.S. Taxes are supposed to be the principal source of income of a government, collection of which is a little bit of problem for Pakistani government. That’s all I wanted to say I guess

Hey don’t worry Greeks do not have to pay their loans back and they knew it, the problem is not the re-payment of the loans, had it been the problem, EU and other bodies to whom Greece owe all these debts might have strangled Greeks to get their past penny out!!! but the scenario is different here, Greeks are going to the polls, the new govt is going to be elected and then that Govt will get into discussion regarding loan-repayment and please don’t be fooled by loan re-payment it is mainly interest repayment.. and that is what worries the countries more… and for this interest to be paid and for a moment let us assume that they are going to pay some amount of the principal back… how they are going to do that… yes they will either issue bonds or some wordly financial body is going to lend some good amount to Greeks, part of this amount will be used to pay the interest, some part will be used to pay the principal and remaining part will be consumed by the country for its operational or development work…

e.g.

Greek have to pay a loan installment of USD 1 Billion
The accumalated interest on the loan amonnt is USD 200 Million
That brings a total cash out flow to USD 1.2 Billion,

Now Greeks do not have this amount with them to pay, so now what?

1. The Loan amount and interest will be reschdeuled, that is the principal from now will be 1.2 billion payable in some future time.. and Greeks will provide a soverign garrantee to the Spainsh banks for this re-payment and because they have no other immediate financial obligation on their head, they are entitled to get a fresh loan, and Spainsh banks using the SG will get more money from some other source and in long run, Greek Govt will issue bonds and public will pay off the interest on this loan…

2. The loan amount and interest cannot be reschdeuled, so now what? the financial bodies will issue a loan od USD 1.6 Billion to Greece, from where the amount of 1.2 billion will be paid and remaining will be used by the Greece Govt and now the Debt of Greece is not 1.2 it is 1.6 Billion, debt amount has been increase and the interest to be paid on this amount has increased as well…

It is vicious cycle which will only end with a war, a war like 2nd world war… then many of the countries get wiped out, remaining the in the name of peace will forget the debts other owe them and it will be fresh beginning all together…