“At first glance, reducing interest rates appears to be a reasonable idea. The Greeks would be given more time and room to maneuver and donor countries like Germany wouldn’t lose any of the money they lent to Athens. But if you take a closer look, it’s not such a great deal. A lowering of interest rates wouldn’t have a major influence on Greece and it could also prove costly for creditors, just as a haircut would be. The problem is that interest rates are already so low that only certain elements could be reduced at all.”
Kind like deceiving title, both ways, in the facts cutting usury will help the Greek people, but at the same time what Greece needs, just like the rest of the PIIGS in the soft belly of europe, is to cut on unwarranted privileges of its christo-mafiosos castes, just as Italy does.
Without going into the issue that Greece is probably the most corrupted country in the EC, and it should be not failed to notice that Greece central bank has always been private, religious influence in the Greek public system is excessive, and most likely the two issues are related, things like ‘free’ universities paid for by the public cow, and maintained 100% public because a ‘caste’ of ‘barons’ don’t want to give up on their cow to milk, is a scandal for any civilized nation, also considering that they train people on quackeries (such as theology degrees) “on the taxpayer money,” incredible.
Probably any help should be contingent to establishing some legality in the country, such as acceptance from the part of the corrupted Greek government, of having to convert their “so comfortable” conflict of interest system, into one meeting the requirements of European civilized nations, and in so possibly exclude the undue interference of the religious and banking mafia in the public sector, possibly nationalize the central bank, charge reasonable tuition fees and privatize half the university system, and cut off all the privileges and funding to religions and clergy.
All the above should also help reducing corruption, but a revision of the codes in the direction of avoiding persecution of victim-less crimes, and more severe penalties for corruption, could also avoid the country spiraling out of control, and ending up again in a military dictatorship possibly necessary to re-establish the political and economic class honesty lost.