Greek debt is running out of time - Unending Austerity Measures - When it will End?

The Austerity Measures for Greece is still continuing without any opposition. In Greek Mythology there was a king named Sisyphus, who condemned by the Gods to roll a boulder up a hill for all eternity. The name is used now to describe a never-ending Task. This is what now happening in Europe in the case of Greece. There was talks between European officials, during last Friday (i.e. 13.01.2012), aimed at reaching agreement with creditors to cut Greece's debt burden.

The talks are seeking to slice €100 billion ($126.7 billion) from the Greek government's €350 billion in debt without delivering an ultimatum to private bondholders, who together hold more than €200 billion of bonds. (For Full Article here)

Greece's continued access to bailout loans depends not only on delivery on its austerity promises but also on negotiations with private creditors on a bond swap deal aiming to cut its debt by 100 billion euros ($129 billion.) It needs to get an agreement soon if it is to secure more rescue loans, with a bond repayment of 14.5 billion due on March 20 that the country currently lacks the cash to pay. (For Full Article here)

The International Monetary Fund (IMF) is planning and proposing to lend a $1 trillion to insulate the global economy against any waning of Europe’s debt crisis, according to an official at a Group of 20 nations.  The interesting part is that IMF is pushing China, Brazil, Russia, India, Japan and other oil-exporting nations to make the huge contribution for this lending. It is expected that the agreement would stuck at the meeting of G-20 Finance Ministers and Central bankers which is going to held on February 25-26 in Mexico city.

My Perception

The IMF as a financial watch dog is doing its work more sincerely than any other institution across the globe. But, the real question is, whether it can avoid the financial catastrophe in Europe. Those who follow the Greece Crisis knows that the officials from the European Union and International Monetary Fund, which are lending money to Greece to keep it from bankruptcy, is expected to coerce the government to have faster cost-cutting measures. Greece had access to the bailout loans not only on the delivery of its austerity promises but also on the negotiations with the private creditors on bond swap deal aiming to cut its debt by 100 billion Euros. Remember that, Greece needs second bailout of 130 billion euros in order to pay its creditors. Despite that, IMF is ready and planning to lend $ 1trillion to wane the Europe’s debt crisis. The question which is frequently asked by many people is how long the current and additional austerity measures will be carried out. Interestingly, many of the European countries itself are not ready for further austerity measures. 

I again and again repeat the quote of Ludwig Von Mises, from his book Human Action, "There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved."

People may say sooner (or) later, that in order save Euro we may not continue the austerity measures.  Greece should be either ready for Voluntary abandonment, if at all it wants to save Euro and other European nations else there may be total Catastrophe.