CHINA FIRST ECONOMICAL POWER

CHINA FIRST ECONOMICAL POWER

THIS IS A FICTION or maybe not…

POLITICAL AND ECONOMICAL SCENE IN EUROPE

Mr. Yorgos Papandreu decides to call for a un referendum (December 1st) because Europe REQUIRES (not simply asks foro r suggests) him to take tough economical actions inside his own country, Greece; the adjustment measures are focused on his PUBLIC DEBT. Mr. Yorgos Papandreu clearly sees all these actions will provoke the end of his political career; I will add on his son’s and grandchildren too…As a typical Latin, he finds out a short term layout; a Latin layout (with mismatches and unforeseen consequences, highly innefective).

EUROPEAN UNION SPOKESMEN

Angela Merkel (Germany) and Nicolás Sarkozy (France)

NATIONS WITH GREEK DEBT 

Germany, France and USA.

HIGHLY AFFECTES NATIONS IF GREECE DOESN’T PAY

Italy and Spain.

SUPERPOWERS SHIFT

Since the 3^rd of November USA stopped being the greatest superpower which now is China.

WHY CHINA?

Because  China answered yes to supply the essential funds to stop the fall of the European currency, the Euro, accompanying Italy and Spain’s failure and a new crisis in the international markets.

CHINA’S REASONS

The fundamental reason is to continue being the world’s main engine for economical productivity.

WHAT OFFERS EUROPE IN EXCHANGE

Europe in exchange for the promise (maybe not even necessarily accomplished…) will give China the armamentarium technology they need to secure its position as the  world’s first Superpower, not yet available. When you think about it, the price is ridiculous, because it’s just the promise but China will have the agreement settled down and signed. 

The situation is so serious in Europe that there is no choice, a pure checkmate due to the fact they took in the wrong partner, a country which never deserved to be European. At least I hope Europe has learnt the lesson and, sincerely, although the Carta Magna doesn’t include this situation, it should be definitely expelled as an example to others, after the stabilization of the markets.

THE AFTERMATH IF GREECE DOES NOT GET THE EUROPEAN RESCUE

Europe says to Yorgos: “Dear Yorgos, we have the financial support from China, so the Euro is not in danger now (at least it seems so for Italy and Spain), but if you insist with this “puppet master poll” that’s what is going to happen:

1. You will not have economical resources, no cash to pay your official and public employees.
2. Your banks, right now loosing the 10% of the assets and investment funds, will  proceed to lose the 80% . The derivatives, CDOS or SWAPS are not in the talk, because they’re not at Greece anymore…Yes, yes, dear Yorgos, they’re already gone.
3. But you’re going to have two options this time, the European way (checkmate again): the bank crashes and takes with it the savings of the mad savers who trusted him ó generates a new “corralito” (Argentinian way), so no one could take out a single Euro.
4. Increase the multinational companies exodus  (economical and legal unsteadiness) and decapitalization. This translates into an exponential increase in unenployment, provoking the fast increase of the so-called “call effect” spreading to any company with enough to leave... Maybe we should wait for a term that I’m not sure if it already exists in economy, like an “implosion” (the inner collapse of the Greek financial system).
5. No one is going to lend you Money EVER. Well, maybe not, maybe I’m lying, maybe someone can provide you with some cash… But of course, the risk is so high that they’re not going to believe the data coming from your banks (NOT ONE WORD). At this point, the private entrepreneur and moneylender will tell Greece: OK, tell me how much you need, but with the highest interest never seen , probably a compound interest directly linked to the amount provided.

Fiction: Sarkozy, Merkel and Yorgos having a coffee somewhere in Europe…………………..

Sarkozy winks to Merkel,  Yorgos staring in perplexity ( after the word “bank” he didn’t understood a single word…), then Sarkozy tells him: “Yorgos, I’m afraid just thinking about it...”.

THE AFTERMATH IF GREECE DOES NOT GET THE EUROPEAN RESCUE 

AT  GROUND LEVEL:

1. Official and public employees strike, one month after not retrieving the salar y.
2. Protest march of the Greek people. They lost their savings.
3. The Banks cannot lend Money.
4. Increased unemployment after the medium and small size national companies massively collapse.
5. Increases the leakage of the greatest Greek capitals (Europe won’t help stopping the situation).
6. Increases the unemployment in the highly qualified classes. They have to migrate, because the great companies have left.
7. Increase global unemployment reaching levels never seen before.
8. No foreign investments, waiting for the immediate stock exchange collapse.

by Octavio Ignacio Ruiz Ruiz  email: oirmab@gmail.com