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Greek bankruptcy is a world-shaking peacetime event

posted 19 Jul 2015, 11:45 by Peter Webb   [ updated 1 Nov 2015, 11:32 ]

The magnificent shell that is the Parthenon in Athens now stands testimony to a country in ruins economically. It is bankrupt and rescue attempts by the Eurozone cannot hide the tragedy of a now violently desperate people. A false prospectus for entry in to the euro system came out of poor governance and financial indiscipline such as 'voluntary' tax. The inevitable crash followed a borrowing spree to fund up to €5 in every €6 of spending. What were the lenders thinking of. They deserve a no-repayment "haircut".   In recent days attempts through a referendum asking an impossible question about “austerity” have misled and been overtaken by events. "The disaster will continue as long as it is financed".

Every government on the planet should pay attention. Financial health is as necessary for countries as it is for households and businesses. The IMF say that only 14 countries do balance sheets and none including our own have yet built a proper financial system, indeed our leaders seem not to know what that looks like. Our Chancellor does not exercise his role as if a CFO.

Our UK net liabilities continue to rise with annual deficits accumulating as debt. Yet all political debate takes place as if there is no financial dimension, no borrowing to be repaid and all savings being available for transfer spending rather than debt reduction for reserve strength.

The constitutional reality is that we the people have the universal franchise and  taxpayers not only pay but guarantee. In the information and  accounting  fields we are not being given the chance to know our risk or exercise our responsibility electorally. We in UK don’t even know which of two deficits our elected governors feel they are responsible for. We should be very afraid.