Right now, Greece is the country of the unlimited business opportunities. The ancient Chinese said that crisis equals to opportunity and we can see how right they were by looking at Greece today.

Nowadays Greece is the place to invest and buy.

When you decide to invest in Greece it is always better to have a local ally to work with. We at Kyearta offer just that.

We do it with dozens of experienced financial and business managers in our company.

Every one of them knows from their personal experience what it means to do business in Greece. Our employees have theoretical and practical training and they are the people to whom with ease and security you can trust your investment.

In Kyearta we realize business opportunities in Greece and we help the country in this situation of crisis.

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Sporadon 1, Athina 113 61, Greece

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The expansionary monetary policy of the ECB – the inflation could rise

The expansionary monetary policy of the ECB raises fears that inflation could rise. Using the example of Japan it shows that a greater quantity of money does not necessarily lead to rising inflation. Thanks to historically low interest rates and the decision by the European Central Bank to buy up more government bonds from countries in crisis, in Germany increases the fear of inflation. We all know, what are real income losses and redistribution as from creditors to debtors.

The European Central Bank President Draghi sees this as a sign of a ecbchoicesuccessful monetary policy. There are many voices against an imminent rise in inflation. However, Japan shows that monetary expansion in the form of zero interest rates and unconventional monetary policy does not necessarily lead to inflation. However, it gets even without inflation to redistribute income and real losses to the financial sector. Japan is experiencing a speculative boom in the stock and property markets.

The bursting of the bubble, similar as in Europe today, triggered an even stronger monetary easing. The interest rates have been reduced by about 8% in 1990 to zero in 1999. Since then, interest rates remain at zero, without affecting output or the prices. The nominal and real interest income of the household sector dramatically shrinks. However, the real interest rate and wage expense of government and business are reduced as net borrowers from capital markets.

The figure shows the development of the two income components in Japan since 1985, when the bubble in the stock and real estate markets began. While the euphoria on the investment markets initially led to a sharp increase in wage and income. The income from interest / these for the old-age security in Japan play an important role/ halved since the bubble burst. They are far fallen below the level of before the crisis. The real wage have declining for the Japanese financial crisis in 1998, an average of one percent per year. Now not only the real income from wages and savings are further reduced. It is redistributed by bailouts and monetary bailouts of any kind from Germany to the European crisis countries.

Another way to look at export successes

Midst of the crisis of the German export writes new records. The Federal Statistical Office reported for May 2012 a further increase of 3.9% from the previous month. After the slump at the beginning of the crisis, exports are back to an all-time high. Now, you might be interested about the reasons that led to this. exportPicThe reasons are many, but not necessarily pleasing or virtuous.

First, as the cause is mentioned the public and private consolidation policy since the late 90-s. Government spending and the social systems were streamlined; the wages in the industry kept low by international standards, and increased productivity.

The fall in unit, labour costs and the real depreciation of the defunct German mark and drives the German export sales, especially in the ailing European common currency area. Second, helping economic growth in East Asia. Especially in China (but also in many other East Asian economies) still is felt a speculative capital inflows and government subsidies export-driven investment boom. This is driving the demand for German capital goods (e.g., engineering), but also for luxury cars. Third, help put together in Brussels bailouts and rising imbalances in the TARGET2 balances of the European System of Central Banks. The different facets of immense public capital inflows into the European crisis countries support the import demand for German products and services. Fourth benefit of German exports is the redistributive effects of the global monetary crisis management.

The inequalities between rich and poor widen. The commodity prices are still very high in result of the global liquidity. Especially in many oil-exporting countries, small elites monopolize the soaring profits. This gladly show you German luxury goods and services. The German export successes are so worn withal not only by virtues such as thrift, precision and quality.


They are also inspired by uncontrollable monetary bailouts and rising income inequality. Whether generated by the export surplus assets on the international capital markets to be paid back remains to be seen. Recent experience shows increasing volatility in international capital markets. The uncertainty is increases as to whether international claims can be asserted.

A clever book by Paul Kirchhof

Paul Kirchhof has written a clever book. His criticism applies to the German government debt. It analyzes the issues in depth and presents concrete solutions to escape the debt trap. There are incredible numbers. For example, according to the plans of the Ministry of Finance this year, Germany’s debt will rise to more than 2.2 trillion euros of debt, which is an equivalent to a debt ratio of over 83 percent.

Germany would have to repay more than € 800 billion in order to achieve the EU-wide total allowable debt 00471491_6D95E79A81F9A9689D6C6B30A5FE5819level of 60 percent of gross domestic product. With a total tax revenue of the Federal Republic of € 530 billion is expected it to be almost impossible. Now it can be said: We are deeply in debt. If we put it cynically, it would mean that Germany is a failing enterprise. The tone was always friendly, of course.

In his interesting book “Germany in Schuldensog”, Paul urges a speedy return of the government borrowing to zero and for a reduction in deficits. Germany has the debt problem is not currently. Ultimately, it is good to know that a stability of money without a stability of the law is not achievable.

The bulk of the book revolves around concrete proposals on how to strengthen the state again. Here are some quotes: „New debt can be avoided if the budget balances revenues and expenditures without new loans“. This legal norm would be achieved if the German parliament would retain its authority over the budget. Also, if be implemented protect against desires of other states and the reach of the financial market. German lawmakers should refuse grants a country whose per capita debt is cheaper or similar to their own debt. It comes to a clear protection of “financial transaction tax”, which is both exchange and OTC financial transactions.

To get out of the debt trap, it is necessary to be moderate the government spending. It is recommend, to be put more revenue in the future as and work focused on reduction of liabilities. Grants to other governments, banks and manufacturing companies should be made only on reciprocity: So, if a state had rehabilitated the other would have to support them after refurbishment by financial services, credit and interest rate discounts or free shipping of products.