Greece Financial Crisis Hits Poorest and Hungriest the Hardest

By

ATHENS — Behind the lace curtains of a soup kitchen run by a parish in the humble Athens neighborhood of Kerameikos, the needy and hungry sit down to a plate of sliced cucumbers, three hunks of bread, a shallow china bowl of chickpea soup and often a piece of meat. Sometimes there is even ice cream, a special treat.

People prize the refectory, run by a priest, for its homeyness, and they travel long distances to fill their empty stomachs at least once a day.

But on Thursday, the priest, Father Ignatios Moschos was worried that he would no longer have enough food to go around if the country’s economic paralysis continues, as it seems likely to do even if Greece and its creditors manage to work out a last-minute deal this weekend to avert a Greek exit from the euro.

“It will be hard, dark, painful,” the priest said, nibbling from a bowl of pistachios as a long line of people waited for their turn to eat at the communal tables. “We will have trouble receiving food.”

Poverty in Greece has been deepening since the financial crisis began more than five years ago. Now, aid groups and local governments say they are beginning to feel the effects of nearly two weeks of bank closings, as Greecestruggles to keep its financial system from failing and to break out of years of economic hardship.

And any deal with creditors this weekend will bring further cuts in government spending. It will also bring higher taxes and, as a consequence, more short-term pressure on the economy.

As Athens takes on the aura of Soviet Russia, with lines of people outside banks waiting to receive their daily cash allowance, some aid groups are seeing their supply channels narrow. By some accounts, lines for food, clothing and medicine have grown fivefold in parts of the capital in the last two weeks alone.

The European Parliament president, Martin Schulz, has said he shares Greeks’ concerns. President Jean-Claude Juncker of the European Commission said this past week that the European Union was making plans for humanitarian aid to Greece to cushion the blow if a third bailout was not worked out by Sunday and Greece was forced out of the euro system.

Read more » The New York Times
See more » http://www.nytimes.com/2015/07/12/world/europe/greece-debt-crisis-athens-poverty-inequality.html?smid=fb-share&_r=0

Canada sheds 6,400 jobs in June

Jobless rate holds steady at 6.8% as results beat economists’ expectations

By Pete Evans, CBC News

The Canadian economy lost 6,400 jobs in June as gains in full-time work were offset by losses of part-time jobs, Statistics Canada says.

The jobless rate stayed steady at 6.8 per cent, the same level it has been at since February. the data agency reported Friday.

It was a better showing than what a consensus of economists were expecting, which was a loss of about 10,000 positions.

Read more » CBC
See more » http://www.cbc.ca/news/business/canada-sheds-6-400-jobs-in-june-1.3146182

Putin: Let’s trade in BRICS currencies

President Vladimir Putin says Russia is interested in using national currencies with other BRICS members after agreeing on such an arrangement with China.

He made the announcement after meeting leaders of Brazil, Russia, India, China and South Africa in Ufa in the Urals for a summit of BRICS nations.

“I think that such development with India, Brazil and South Africa would be interesting and could no doubt lift the level of trade turnover,” Putin said.

The BRICS accounts for almost half the world’s population and about one-fifth of global economic output. Member states have established the New Development Bank with an initial capital of $100 billion and an additional pool of $100 billion currency reserves.

“A pool of nominal currency reserves, with capital of $100 billion, will give us an opportunity to react to financial market fluctuations in a timely and appropriate manner,” Putin said.

The Russian leader said the new development bank will begin financing energy projects next year.

“The New Development Bank will be financing large-scale transport and energy projects and industrial development,” he said.

Economists see the new bank as a challenge to the domination of the World Bank and the International Monetary Fund which are under the US influence.

Putin said BRICS nations will work out a roadmap for investment cooperation by the end of the year when the first projects will be launched.

Read more » Press Tv
See more » http://www.presstv.ir/Detail/2015/07/10/419593/brics-summit-putin-russia-sco-currency