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Wednesday, July 8, 2015

The Reality of the Greek Vote

        While Greek citizens say they do not want to leave the European Union, they obviously do not want to pay their taxes. If they paid their taxes, Greece could survive as a Euro zone member. However, there is a solution to the present quandary. If Greece were to hand over the accounts of the negligent tax evaders, cheats, liars, embezzlers, and other scammers to the European Central Bank and give the bank the authority to seize and sell the assets of these non-payers to the highest bidder the money could be raised rather quickly to pay Greece's debts.

Then, there is the issue of the bankrupting  Social Security (retirement system) that needs to be overhauled in its entirety.

A stage of age rollbacks could be instituted every two years starting this year and increasing the retirement age one year for the next fourteen years. Full retirement in 2027 could be had at age 65 as it is in most countries now.

This would ease the pain of transition, but would also save Greece billions in Euros annually over the next fifty years.

Had Greece implemented this back in 2011 as I suggested, the present GDP to Debt scenario would be much improved.

However, Tsipras must be relieved of his office by any means necessary as I believe that this is only one of many battles to come from his political party which is backed by Russia's Vladimir Putin in the attempt to destabilize the European Union.

Maybe Greece should ask Russia for the money to pay its debts since Tsipras and Putin are both socialists?



The way I see it, is you have three options, none of them are pretty:

1. Resign the EU to a Greek exit and pass legislation in the next week amending the Treaty of Lisbon and the Treaty of Maastricht to permit their exit.

2. Enter into a legally binding agreement that would  permit the European Central Bank to act as tax collector and give the bank the authority to seize and sell the assets of these non-payers to the highest bidder.

3. Enter into an agreement whereby Greece would gradually rollback the retirement system age. This rollback could be instituted every two years starting this year and increasing the retirement age one year for the next fourteen years. Full retirement in 2027 could be had at age 65 as it is in most countries now. 

4. Unify the European Union, adopt the proposed Constitution submitted to the member countries in February of 2012, create a national treasury and buy Greece's debt, mandate changes to Greece's economy by the EU legislature, and let history sort out who was right or wrong. 


These are your choices as I see them.  You can implement one or more of these simultaneously to create a more substantial economic impact in favor of the European Union. 

Since these events have unfolded slowly, and most of the Eurozone economies have begun to come back online and return to their former prosperity, I see the implementation of two or more of these options as negligible on the remaining economies outside of Germany (who greedily humiliated Greece in 2011-12) and has refused to unify the European Union as it would no longer be an economic threat to its fellow Eurozone countries, but would be a partner in the European Union's success instead.


There will be some short term fall out across the board internationally in every market for about six months, but stability and calmer heads will prevail.  

Ms. Merkel, Mr. Hollande, and Mr. Tsipras- make your choice- unity or division!  


Sincerely,
Mark Winkle, CEO and Founder
The Winkle Institute for Worldwide Economic Stability
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