‘Greece in death spiral’
The bailout deal with the IMF and EU essentially means that if Greece undergoes “another five or six years of total potential destitution and austerity,” it will end up with one-and-a-half times the debt it has at the moment, Young told RT.
“There is no way that Greece can manage to bring together all of these cuts,” he said.
Young believes that three years ago, when it first came to light that Greece’s financial figures were a complete fiction, the country should have left the eurozone.
“There is no possibility that Greece is going to survive in the euro in the long term,” he said. “We’ve got this absolutely psychotic desire by a group of frankly economically illiterate people in western Europe, particularly in Germany, who are desperate to hold this all together. Then we’ve got another group of people who are absolutely determined to try and keep Greece in the eurozone.”
Many businesses have already suspended their operations with the Greek government and Young says that the country is not far from the point when all suppliers refuse to take Greek debts upon themselves.
“For example, in the Greek public sector there have been large problems with getting supplies of medicine because many pharmaceutical companies haven’t been paid,” he explained. “Realistically we are at that terrible approach. That is what a death spiral means.”