You cannot prevent a correction, you can only stretch out the inevitable. Pumping money into Greece will not bring true prosperity or sustainability, it will probably weaken the country in the long run and end up being a fiscal disaster for all those who are involved. Governments around the world are scared to correct their own mistakes, so rather than cut spending and retract the size of government, they ask for bailouts to be forcefully extracted from people throughout the world. All these countries think debt is the greatest thing and don’t even consider the possibility that maybe debt isn’t what’s best for the people. In short, governments have no sense of fiscal reality, no common reasoning, and they must be bailed out only to prop up a failing system. The system will come crashing down simply because you cannot delay reality forever.
ATHENS, Greece – Greece asked Friday for the activation of a financial rescue plan by the eurozone and International Monetary Fund, in the hope it will help the heavily indebted country out of a major crisis and give it the breathing space to put its finances in order.
Prime Minister George Papandreou said financial-market pressure threatened to derail Greece’s economy with high borrowing costs, and that it was now “a national and pressing necessity for us to formally ask our partners for the activation of the support mechanism.”
“The moment has come,” Papandreou said, speaking from the remote Aegean island of Kastelorizo.
The plan agreed in Brussels recently would provide Greece with loans from other eurozone countries to the tune of euro30 billion ($40 billion) at interest rates of about 5 percent, and about euro10 billion from the IMF, in 2010. It aims to cover Greece’s immediate borrowing needs so it can continue servicing its debt and avoid default.
The bailout has to be reviewed by the European Union executive and the European Central Bank, and needs approval by all 15 of the other countries that use the euro.
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