As you are probably aware the Greek parliament voted on Wednesday 29/6/2011 by 153 votes to 138 votes to accept the European Union loan. Of course this is based on the Greek government carrying out the dictates of the EU.
If you read my blog in mid June I laid out the case for Greece defaulting on its debts an adopting an alternative economic strategy to the one proposed by the European Union.
As my previous blog stated the EU loan is dependent on big tax increase,cuts in public sector pay and massive privatization of Greek assets.It in a way leads to a loss of Greek national sovereignty.
Also and probably more importantly it will lead to a permanent economic slump in Greece the same scenario applies for Spain,Portugal and perhaps Italy as well. In other words a two tier European Union with an economic depressed southern Europe wing of the EU.
Due to Greece,s massive debts as many economic commentators have already recognized a Greek default on its debts is inevitable within the next year.
The question then is what alternative economic policies should Greece adopt.
Firstly leave the Euro and reinstate the Drachma as Greece will then be able to set its own interest rates to make its exports competitive.Also reject the EU privatization plans.
Also and perhaps most importantly start making the Greek rich, business and finance class paying their income tax. If this happens the Greek national debt will be rapidly reduced.Which along with economic growth will raise the income tax revenue thus reducing Greek unemployment and the debt.
The economic policies that I have outlined are clearly a positive way forward compared to the permanent slump which the polices of the EU and the IMF will mean for Greece.
PS, If anybody wants to read my blogs before 13/6/2011 please go to my old blog.www.kevcally-channells.blogspot.com