While advanced nations are facing some of the highest debt ratios since World War II, IMF economists cited research by Moody’s Analytics that suggested countries such as the UK, US and Canada could afford to live “forever” with relatively high debt shares compared with their pre-crisis averages, reports The Telegraph.
Cyprus is preparing for the presidential ballot this weekend after last week conservative leader Nicos Anastasiades won 45.4% and his opponent communist-backed independent Stavros Malas took 26.9%. According to economists, Mr Anastasiades might be the one who will do what is needed to help Cypriot economy to recover and to strengthen international diplomatic relationship, reported Financial Times.
The next crisis is here.
The BREXIT or British exit from the EU is this crisis’ Bear Stearns: an unexpected situation that Central Banks will go all out to sweep under the rug.
Whether or not they will succeed remains to be seen. But what has started cannot be undone.
For seven years, the Central Banks have maintained the illusion that all is well. Meanwhile, global leverage has exploded to record highs, with the bond bubble now a staggering $100 trillion in size.
Europe’s problem is that it has more than one Greece. Greece’s problem is that it is alone.
If it were just a negotiation between Greece and its creditors, the issue would be complex enough, a multi-player game of chicken between Greece, the eurozone governments, the European Central Bank, the International Monetary Fund and the financial markets. Even so, if that were all, the crisis might well have been resolved by now: debt relief in exchange for structural reform; haircuts, handshakes and Champagne all round.
Eurozone Breakup ComingTelegraph writer Jeremy Warner moans Soon, There Won’t be a Europe to be Part Of."It’s not a question of in or out, but of whether Britain can avoid the flames of destruction," says Warner.