The World Economy Needs Protection

Opinion: (Yakov Mirkin, Professor, Head of International Capital Markets Department, the Russian Academy of Sciences, from “Numerous discussions of the EU leaders show that they cannot cope with the risks of the global financial system. Greece’s referendum means the declaration of Greek default, followed by the chain reaction of defaults of credit institutions.

“If Europe starts to look at the Greek debt as at its domestic debt, the problem will be solved gradually through emission and inflation. The problem is not the debt, but the debtor seeking the best conditions for himself and dictating terms to the lender.

“The Greek Government is unable to obtain the consent of the population on economic reforms and austerity measures. Even if now the ‘fire’ in Greece is put out, in a year we will see new areas of shocking debts.”

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