Volcanic Ash Returns
Right on the heels of the economic troubles Europe is facing, the volcano in Iceland has decided to make things even harder, especially for the already stressed holiday resorts of southern Europe.“Civil aviation officials on Sunday said a drifting, dense cloud of volcanic ash is "rapidly encroaching" on British airspace, forcing the closure of airports in Northern Ireland.
The National Air Traffic Service said a no-fly zone has been imposed over parts of Northern Ireland, and no flights are going in or out of airports in Belfast or the Isle of Man.” -AP News - Whole Article
A quick look at wikipedia revealed some troubling information concerning Eyjafjallajokull’s eruption history. The last major eruption the Volcano had, which was less than 100 years ago, lasted 2 years. If this cycle stays with our current situation, the aviation industry will have some heavy losses for some time to come.
Greece Passes Austerity Measure
Late on Thursday, Greece’s parliament voted and passed harsh austerity measures to combat defaulting on their debt. While riots and demonstrations ( hundreds of thousands) raged outside parliament on Thursday night, both of Greece’s main parties argued for hours over what should be executed to help Greece.“The 172-121 win was a joyless affair, however, for Prime Minister George Papandreou and his Socialist Party. The three-year austerity package, which the European Union and the International Monetary Fund required in return for a 110-billion-euro ($145 billion) bailout, will impose painful and far-reaching changes on Greece.” -USA Today - Linked Artilce
Without getting into political options, the overall effect of these austerity measures is that the greek working class will once again carry the burden of political/Corporate theft. Just like the Americans did, 9 months ago, having to bail out AIG and most of the US financial institutions, Greek citizens will shoulder the Euro/IMF rescue plan. What overall effect this will have on the actual debt problem is unknown but life for the lower/middle class is just about to get very hard for the prolonged future.
Pound Sterling Vs. The Euro
While Southern Europe, especially Greece, prepare to tighten their belts and agree to harsh austerity measures, it’s the Pound Sterling that will see the most out of the bad economic situations facing the South. “Sterling rose to a near 9-month high against the euro on Wednesday as deepening concerns that euro zone debt problems will spread beyond Greece battered the single currency.” - Reuters - Link to article
The saving grace for tourist areas of Greece may be the strengthening Pound Sterling because the new austerity measures passed on Thursday in Athens, will strangle the working class greeks. As I write this article, one pound sterling is about 1.169 €, which is better than what it was all last year. In a weird turn of events, Greece bringing down the Euro, might be the only thing that ends up saving Greece in the end.
Volcanic Ash Could Reach Greece
The cloud of ashes after the eruption of the Eyjafjallajoekull volcano in Iceland may reach Greece on Tuesday, Greek Antena TV reports. The national meteorological service prognosticates Northwest wind in Central Europe, Italy and the Balkans, including Greece, which may bring the volcanic ashes on the territory of the country.As of April 22, the winds in the central part of the Mediterranean Sea and in the Balkans will change their direction to West-Southwest and even if the ashes reach Greece, they will be pushed away from this area again.
Euro Fall Due To Panic
(Bloomberg) -- Harvard University Professor Martin Feldstein said the euro’s 4.6 percent decline against the dollar this year has been “panic selling” stemming from the financial crisis in Greece.
“The euro is weakening despite their better trade balance,” Feldstein, an economist, said in a Bloomberg Television interview broadcast today. “This is a kind of an irrational or panic selling where people are just saying, ‘I don’t know what is going on, I am just going to step to the sidelines and not leave money in euros.’” Read the full article
The only good that I can see in this whole disaster (Criminal Ponzi Scheme) is that if the Euro currency falls, especially against the British Pound, it might translate to more tourists coming to Corfu in the summer. The weak Pound has hurt tourist all over Greece and especially on Corfu. We can only wait and see.
EU Nearing Bailout For Greece...
(RTTNews) - The European Union is working on reaching an agreement on a bail-out deal for Greece, media reports said Saturday. Euro leaders are set to meet in Brussels on Monday to finalize the proposal.
The multi-billion euro rescue package would provide loans and guarantees for Greece if it sought help for financing its deficit, reports said citing EU officials. The Greek crisis had hurt the 16-nation currency, euro. Greece has not asked for financial help thus far.