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Breakdown Of Greek Austerity Measures

Tyler Durden's picture





 

For those asking, here is a full breakdown of the actual proposed fiscal measures to be implemented if the mid-term austerity vote passes tomorrow, courtesy of the BBC.

The Greek parliament is debating the latest set of austerity measures, which it needs to pass to qualify for another payment under the bail-out from the European Union and the International Monetary Fund. The five-year plan was changed last week to allow for more money to be raised through tax increases and less money to be saved through spending cuts. The plan involves cutting 14.32bn euros ($20.50bn; £12.82bn) of public spending, while raising 14.09bn euros in taxes over five years.

These are some of the austerity measures planned.

TAXATION

  •     Taxes will increase by 2.32bn euros this year, with additional taxes of 3.38bn euros in 2012, 152m euros in 2013 and 699m euros in 2014.
  •     A solidarity levy of between 1% and 5% of income will be levied on households to raise 1.38bn euros.
  •     The tax-free threshold for income tax will be lowered from 12,000 to 8,000 euros.
  •     There will be higher property taxes
  •     VAT rates are to rise: the 19% rate will increase to 23%, 11% becomes 13%, and 5.5% will increase to 6.5%.
  •     The VAT rate for restaurants and bars will rise to 23% from 13%.
  •     Luxury levies will be introduced on yachts, pools and cars.
  •     Some tax exemptions will be scrapped
  •     Excise taxes on fuel, cigarettes and alcohol will rise by one third.
  •     Special levies on profitable firms, high-value properties and people with high incomes will be introduced.

PUBLIC SECTOR CUTS

  • The public sector wage bill will be cut by 770m euros in 2011, 600m euros in 2012, 448m euros in 2013, 300m euros in 2014 and 71m euros in 2015.
  • Nominal public sector wages will be cut by 15%.
  • Wages of employees of state-owned enterprises will be cut by 30% and there will be a cap on wages and bonuses.
  • All temporary contracts for public sector workers will be terminated.
  • Only one in 10 civil servants retiring this year will be replaced and only one in 5 in coming years.

SPENDING CUTS

  • Defence spending will be cut by 200m euros in 2012, and by 333m euros each year from 2013 to 2015.
  • Health spending will be cut by 310m euros this year and a further 1.81bn euros in 2012-2015, mainly by lowering regulated prices for drugs.
  • Public investment will be cut by 850m euros this year.
  • Subsidies for local government will be reduced.
  • Education spending will be cut by closing or merging 1,976 schools.

CUTTING BENEFITS

  • Social security will be cut by 1.09bn euros this year, 1.28bn euros in 2012, 1.03bn euros in 2013, 1.01bn euros in 2014 and 700m euros in 2015.
  • There will be more means-testing and some benefits will be cut.
  • The government hopes to collect more social security contributions by cracking down on evasion and undeclared work.
  • The statutory retirement age will be raised to 65, 40 years of work will be needed for a full pension and benefits will be linked more closely to lifetime contributions.

PRIVATISATION

  • The government aims to raise 50bn euros from privatisations by 2015, including:
  • Selling stakes this year in the betting monopoly OPAP, the lender Hellenic Postbank, port operators Piraeus Port and Thessaloniki Port as well as Thessaloniki Water.
  • It has agreed to sell 10% of Hellenic Telecom to Deutsche Telekom for about 400m euros.
  • Next year, the government plans to sell stakes in Athens Water, refiner Hellenic Petroleum, electricity utility PPC, lender ATEbank as well as ports, airports, motorway concessions, state land and mining rights.
  • It plans further sales to raise 7bn euros in 2013, 13bn euros in 2014 and 15bn euros in 2015.

h/t Ran Squawk

 


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Tue, 06/28/2011 - 11:02 | Link to Comment Bindar Dundat
Bindar Dundat's picture

Like this is ever going to happen!

Tue, 06/28/2011 - 11:03 | Link to Comment oogs66
oogs66's picture

the vote for it happening, or it actually happening? 

Tue, 06/28/2011 - 11:35 | Link to Comment monkeyshine
monkeyshine's picture

I am hoping they vote against it. But they will probably vote for it, then, vote again later against it, to quote a famous american politican campaign.

They will probably pass the bill, then over the course of the next several years unwind it.

Personally, I can't see how this plan is workable.  The primary goal of raising taxes is to increase revenues to the treasury, but these are so onerous and vast that they will result in the opposite; First, they raise the income tax on everyone, leaving fewer discretionary income. Then they raise the VAT "sales" tax which means of the money you can spend in any store or restaurant, more of your discretionary income has to go towards the tax, ultimately resulting in you spending less in that store or restaurant, which means lower income for the owner and workers, which means less discretionary income, which means lower incomet tax revenues and less spending. 

I cannot see this happening, either. They may vote for it (though I hope they do not), but tthey will have to change their minds pretty soon afterward. 

Tue, 06/28/2011 - 11:57 | Link to Comment A Man without Q...
A Man without Qualities's picture

These measures aren't particularly onerous, it's the fact that current tax collection is so weak.  Only 5,000 people in the country declare earnings above 100k Euros, and having stated income at 15k has become an art form.  The biggest industry in Greece is tax exempt for fuck's sake, how is this supposed to work.  What the Euro leaders would like to see is the government taking steps to stop rampant tax evasion, but they cannot step across this boundary without being called Nazi.  So, what will happen is even more will move underground, or under the table, in the "spirit of resistance".

So, they'll vote for it and then immediately get back to what they do best.

 

 

 

 

 

Tue, 06/28/2011 - 14:36 | Link to Comment Jonas Parker
Jonas Parker's picture

Looking at the percentages involved, it appears that the Greeks will be legislating themselves into an economic crash if they go with these numbers. They'd probably be better off to default and start over.

Wed, 06/29/2011 - 00:22 | Link to Comment caconhma
caconhma's picture

There will be a terrible ending for Greek people but it will be a beginning of the end for the criminal bankster cartel.

Tue, 06/28/2011 - 11:35 | Link to Comment Jack Sheet
Jack Sheet's picture

They will agree to anything to get the next suck of the teat - 12 billion €. Then they will proceed as hitherto - compliance D-

Tue, 06/28/2011 - 11:48 | Link to Comment SheepDog-One
SheepDog-One's picture

And its all for 12 billion Euro's....thats not even 2 days of Bernank POMO. Imagine whats coming here right after this big fat Greek debaucle!

Tue, 06/28/2011 - 16:08 | Link to Comment masterinchancery
masterinchancery's picture

No it won't, since these massive tax increases would kill the Greek economy stone dead.  But the Greeks may SAY they are going to do it, to get their hands on the cash, which will promptly disappear.

Tue, 06/28/2011 - 11:09 | Link to Comment slow_roast
slow_roast's picture

Basically they'll aim to cripple the economy, which will somehow help the country to grow at a rate which allows them to pay off their newly added debt; yeah...okay. 

This may be the best part: " Taxes will increase by 2.32bn euros this year, with additional taxes of 3.38bn euros in 2012, 152m euros in 2013 and 699m euros in 2014."

Tue, 06/28/2011 - 11:09 | Link to Comment Doode
Doode's picture

Called shock therapy - at first it hurts A LOT, but then once the socialism sickness is shed the healthy body starts to grow very rapidly. The same happened in Russia in the 90's.

Tue, 06/28/2011 - 11:19 | Link to Comment richard in norway
richard in norway's picture

yes but ordinary Russians are still 10 years away from the standard of living they had in 1991, assuming that the rate of growth remains as high as today

Tue, 06/28/2011 - 11:30 | Link to Comment Doode
Doode's picture

"yes but ordinary Russians are still 10 years away from the standard of living they had in 1991"

Ehhh? Where did you get that from? Per Capita went up a lot.

Tue, 06/28/2011 - 11:30 | Link to Comment richard in norway
richard in norway's picture

per capita is not the same as ordinary, or maybe you can't count

Tue, 06/28/2011 - 11:34 | Link to Comment Doode
Doode's picture

Ordinary is up as well - it crossed USSR threshold a few years back. It was a big deal in the news.

Wed, 06/29/2011 - 01:00 | Link to Comment laomei
laomei's picture

then do please explain how former soviet states are full of people who are much worse off now? Capitalism only served to enrichen a handful at the expense of millions who (previously had job security, food security, housing security) are now living in abject poverty?  Capitalism is a con game and the sooner it is destroyed the better off everyone will be.

Tue, 06/28/2011 - 11:25 | Link to Comment Medea
Medea's picture

Yeah, Russia is a dream come true.

Tue, 06/28/2011 - 11:26 | Link to Comment TheTmfreak
TheTmfreak's picture

Perfect for kleptocrats.

Tue, 06/28/2011 - 11:26 | Link to Comment CrashisOptimistic
CrashisOptimistic's picture

Russia has 10 million barrels per day of oil production.  Greece has jack.

Tue, 06/28/2011 - 11:29 | Link to Comment TheTmfreak
TheTmfreak's picture

Talk about diversification...

Tue, 06/28/2011 - 11:26 | Link to Comment A.W.E.S.O.M.-O 4000
A.W.E.S.O.M.-O 4000's picture

That, combined with their secret weapons of Alcoholism and Despair, makes Russia unstoppable!

Tue, 06/28/2011 - 11:39 | Link to Comment Doode
Doode's picture

What are you talking about - they got plenty of oil!!! Just a bit different kind - the olive kind :)

Tue, 06/28/2011 - 11:28 | Link to Comment slow_roast
slow_roast's picture

Russia is a bastion of freedom and equality.  Of course Russia also had a currency that they couldn't manipulate and almost no natural resources to exploit eh...oh wait....

Tue, 06/28/2011 - 11:35 | Link to Comment monkeyshine
monkeyshine's picture

What economy?  The export of Baklava, Gyros and Olives?

Tue, 06/28/2011 - 13:30 | Link to Comment Reptil
Reptil's picture

I just had some fresh italian pasta, greek feta cheeze and spanish olives for dinner.
In the coming food shortage period (peak-food?) unspoilt cultivated land that hasn't been drenched in Glyphosate yet, is a truly valuable asset.
That's why the idiots in Brussels should be shot, like rabid dogs, for destroying an economic unity in the making, with their obsession to control everything and everyone, by sneaking in unlawful (un-constitutional) treaties, and for nearly 2 decades throwing money at corrupt elites all around. They're not state builders, they're power hungry fools, and should be disposed of.

Yeah I'm pissed, and disappointed.
Over here the proponents of this failed "strategy" that they kept, and are keeping secret are trying to calm the population, seeing the massive incompetentcy in everything they've ever done. "Please stay calm, nothing to see here" is mostly a sign they're either going to enslave their kin by brute force while steadily repeating the same mistakes (beating down a peaceful protest march of artists yesterday here in the capital, unheard of in all of the Netherlands' history! does NOT appear in most of the leading papers), or are about to throw their hands in the air call their peers and try to "move forward" by staging some sort of a "coup".

http://www.telegraaf.nl/binnenland/10104524/__Verhagen__onbehagen_begrij...

One definition of insanity is repeating an action over and over, and expecting different results.

:-/

Tue, 06/28/2011 - 16:42 | Link to Comment WakeUpPeeeeeople
WakeUpPeeeeeople's picture

coming soon to a Greek restaurant in Athens.

 

Sir,

 Would you like some cat food with your olive oil?

Tue, 06/28/2011 - 12:43 | Link to Comment Reptil
Reptil's picture

Or in Haïti. Doode, would you like some mudpie?

Your idea is terrible from an ethical POV, but worse; it's completely wrong. Comparing Russia of the late nineties (before Putin planted his false flag) with Greece is totally off the mark. (a vast resource-rich former leninistic (not socialistic) world power with nuclear capabillity and virtually unconquerable with OTOH a smallish sunbaked balkan country (bordering on Macedonia, and Albania) supporting a marginal tourism based economy, derived from (but not abandoned by) a former militairy dictatorship, with the only resource of value being it's (overall stubborn) people, strategic and arable land, and a few ships and old stones? yeah right! :-S)

Then to expect "austerity" measures, in a country that already was robbed blind by it's corrupt elite, in effect "raising taxes" on the productive part of society (workers and farmers) as a "cure against socialism" is ridiculous. It's more "repair payments" alike of a country that just lost a war, like post WW1 Germany, despite the spoiled and utterly worthless elite of Greece that despite the proposed "cure" will stay out of the bullseye.

Also, the "austerity" is presented as a means to balance a budget, while the cause of the imbalance was and will not be mended. Basically the average, illiterate, hardworking peasant will bleed EVEN MORE, while the elite will continue to siphon off wealth. Don't you get that with accepting this, and the ECB package, the very same people that lived like kings on EU money, will continue to do so, on more EU money. Of course they don't give a DAMN about their country, their own people, or anything. They see the world as a playground for the most vile, the most shrewd. Sounds familiar? It's a common state of mind. If you want to call anything a "sickness", psychopatic delusion of grandeur is a good candidate.

As all kleptocracies show, this is a losing strategy in the longer run. More organised, andvanced and disciplined countries, where a well informed and economically powerful middle class is the balancing weight to prevent megalomaniac imbalance, will overrun the disorganised, hollowed out countries. Something you can see happening everywhere, if you'd care to look.

But alas, like you, there are many; blinded by the generalising propaganda of "the greek being lazy" as if a nationality of a person also determines his or her character, and nature, you spout nonsensical "theories" of "socialism sickness" without really knowing what "socialism" is.

Please, get a clue?

Tue, 06/28/2011 - 12:52 | Link to Comment Tenma13
Tenma13's picture

that was a verbal ass-kicking of the first order. Think you KO'd him half way through and were beating on a corpse after that. Nice one. 

Tue, 06/28/2011 - 13:57 | Link to Comment dark pools of soros
dark pools of soros's picture

wait, but my social conditioning playbook says:

 

Greeks are lazy

Russians are drunk

Africans are untamed

Asians are gamblers

Brits are sickly

Germans are psychos

Italians are smelly

Spainards are confusing

Mexicans still have knives

Canadians are forgotten

French are rude

Americans are stupid

and Jews are fair with money and power

Tue, 06/28/2011 - 14:37 | Link to Comment Jonas Parker
Jonas Parker's picture

Well said!

Tue, 06/28/2011 - 11:06 | Link to Comment Re-Discovery
Re-Discovery's picture

The country had exactly 10 tax filers last year who claimed over $1 million Euro in income.  Yeah, this will work.

Tue, 06/28/2011 - 11:09 | Link to Comment SheepDog-One
SheepDog-One's picture

This cant be real, HAS to be an Onion piece slipped in.

Tue, 06/28/2011 - 11:21 | Link to Comment Re-Discovery
Re-Discovery's picture

heard on CNBS from inteviewee so I will grant that it could be wrong.  Clearly a huge issue.  50% of country's workers belong to a union.  Also, shipping probably the only real local business and the ability to shift income around to other countries in the region is legendary. 

CORRECTION UPDATE:  10 people in entire country prosecuted for tax evasion last year.  Not sure which tidbit is worse.

Sorry for misinformation.

Tue, 06/28/2011 - 11:23 | Link to Comment SheepDog-One
SheepDog-One's picture

No, I mean this entire story of their 'plan'.

Tue, 06/28/2011 - 11:54 | Link to Comment Re-Discovery
Re-Discovery's picture

The market is acting like a rat in a maze.  Trichet comes out with some bullshit 'vigilance' buzzword today to appease Merkel's political desires and everyone thinks that they'll be hiking rates.  They won't.  The Greek bailout is the ECB's form of QE/money printing, plain and simple.  The Euro is trash (Eurotrash?) and when the market wakes up to this the S&P will be back to 1000.

Tue, 06/28/2011 - 11:55 | Link to Comment Re-Discovery
Re-Discovery's picture

The market is acting like a rat in a maze.  Trichet comes out with some bullshit 'vigilance' buzzword today to appease Merkel's political desires and everyone thinks that they'll be hiking rates.  They won't.  The Greek bailout is the ECB's form of QE/money printing, plain and simple.  The Euro is trash (Eurotrash?) and when the market wakes up to this the S&P will be back to 1000.

Tue, 06/28/2011 - 11:24 | Link to Comment TheTmfreak
TheTmfreak's picture

The tax increases are ridiculous. Its funny how they think that raising all those taxes they think they're going to bring in more money. All this is going to do is shrink their economy further and make people save even more money. Its ludicrious to think raising taxes raises revenue in a country with a shit economy. All it says that the people should fear uncertainty even more. (justifiably)

Tue, 06/28/2011 - 11:09 | Link to Comment Everybodys All ...
Everybodys All American's picture

That is crazy difficult to see implemented all at once.

Tue, 06/28/2011 - 11:06 | Link to Comment Corn1945
Corn1945's picture

They are asset-stripping the entire country.

Tue, 06/28/2011 - 12:22 | Link to Comment Greater Fool
Greater Fool's picture

Yep, this is how Greece becomes Scotland with better weather.

Tue, 06/28/2011 - 11:06 | Link to Comment flyr1710
flyr1710's picture

sounds similar to ideas being floating around the US..interesting

Tue, 06/28/2011 - 11:11 | Link to Comment kridkrid
kridkrid's picture

Outside of our printing press, the gravity of the situation is not much different.  Americans won't fight the privatization of all things public as we churn through our austerity measures yet to implemented.  Here's to hoping that the rest of the world makes our option less likely by showing the way.

Tue, 06/28/2011 - 15:08 | Link to Comment WakeyWakey
WakeyWakey's picture

I cant wait to see them try and force Austerity measures in the US. Somehow I think the largest nation of armed citizens in the world won't just stick to stones and molotov cocktails.

Tue, 06/28/2011 - 11:11 | Link to Comment SheepDog-One
SheepDog-One's picture

OMFG LMAO! 'Uh yea, you Greek peoples just hand over all your property and money and income, and we're all fixed....for a little while anyway. OK ready, set, VOTE!'

Tue, 06/28/2011 - 11:08 | Link to Comment Doode
Doode's picture

It is like watching a bulldozer running over socialism! Very exciting!

I do not want this to happen here though so those debt talks better get some cuts done soon. If they do not cut it now then the sheer scale of unrest in this country in a decade with all the guns out there will be epic.

Tue, 06/28/2011 - 11:10 | Link to Comment SheepDog-One
SheepDog-One's picture

Max Keiser says after Greece, USA's turn next. 

Tue, 06/28/2011 - 11:17 | Link to Comment Doode
Doode's picture

I think we are like a deer in the headlights right now starring down at an incoming truck of debt. If we move now then many problems can and will be averted - the question is will we. Technically, we have another decade before things will get completely out of control so there is time, but it also leads to a false sense of security that we have time to act.

Tue, 06/28/2011 - 11:21 | Link to Comment SheepDog-One
SheepDog-One's picture

But they wont act, they never act, they only react and hide and point fingers after the fact. These congress critters have had 30 years to deal with this crap and its far too late! Adjusting the brake pads on the speeding freight train 10 feet from the edge of the cliff is far too little too late.

Tue, 06/28/2011 - 11:39 | Link to Comment centerline
centerline's picture

LOL.  Serial junker again.  Ha, ha, ha.

Yeah, the sequences of loosening, decoupling, and deregulation over the last few decades clearly shows the desperate need for increased leverage in order to keep the current fiat ponzi scheme from coming off the rails.  It was just a matter of time and human nature that we reach the end of it with a bang.  History moves in cycles and some people just dont see that.  Funny.  I guess when it comes to timeframes longer than an epsiode of American Idol, people just assume linearity (aka normalcy bias).

Junk away idiots.

Tue, 06/28/2011 - 11:33 | Link to Comment centerline
centerline's picture

First, we wont move.  That has been made clear over and over again.  The only question is how the system fails... the series of "currency" and political events that will lead up to a physical reality.

Second, "another decade?"  back off on the crack pipe man.  Take virtually any chart and crayon-in a reasonable asymptote for the parabolic moves.  Yeah - this could draw out a little more - but we are talking months to years, not a decade.

Tue, 06/28/2011 - 12:04 | Link to Comment ATM
ATM's picture

Months? Improbable

Years? Probable

Decade? Possible

Don't underestimate the size of this thing and the inertia needed to finally get it over the top. People want to beleive that the USA is this financial giant but when they realize we are the dumbasses down the street that bought at the top of the market with a zero down loan and also added the BMW and Benz to the garage only to walk away everyone will cringe and be holding their arseholes.

But IMO that has always been the plan. Debt bomb, chaos, authoritarians sweep in to try to grab power. I guess McCarthy was probably right. 

Tue, 06/28/2011 - 12:11 | Link to Comment centerline
centerline's picture

I would surmise that a decade long roll-over is exactly the plan actually.  A controlled manuever.  One of the main reasons why I think they wont be able to pull this off is how events have accelerated over the last couple of years.  The half-life of interventions gets shorter and shorter each time.  The math would dictate that we see a "flattening" of curves in almost everything going forward - but so far this is not happening.  Rather we are still on a course requiring massive interventions.

Now, the wildcard at play here is war.  That could be a real game changer.  But, it would have to be something really big.  Not a ME skirmish or occupation.  Something on a scale not seen in a very long time. That could very well draw this out.

Tue, 06/28/2011 - 15:26 | Link to Comment WakeyWakey
WakeyWakey's picture

I agree. WWIII scenario is building.

China has become sole world superpower without firing a shot in anger at anyone outside it's own borders since WWII. Killing a few thousand of its own citizens and disappearing a few thousand more has helped them dominate global economics by providing the cheapest source of labour for greedy western profit driven corporations to exploit.

Now the west is bankrupt..no jobs, no money and a shitload of debt it can never pay back With the chinese holding a lot of that debt what beter way to re-balance the system in the West favour.

Cancel the debt with the enemy, nuke their factories and workforce off the face of the earth and bring all the jobs and manufacturing back to the west.

You and I as the little people can see this plan is stupid and futile, but remember it's the kleptocratic psychos in charge who need to sustain their greedy millionaire lifestyles.

Were all fucked.

 

Tue, 06/28/2011 - 16:29 | Link to Comment Moe Howard
Moe Howard's picture

Your second sentence is incorrect. Do some research instead of made up facts. The rest of the paragraph is way off. Try replacing millions for thousands and you might have a close shot at it.

 

Very poor grasp of recent history. Try attending a class or reading a book.

 

I junked you for made-up history.

Tue, 06/28/2011 - 11:35 | Link to Comment kridkrid
kridkrid's picture

Nothing can be averted.  All money starts as debt with interest accumulating.  Only problem... there is no money in the system to pay interest.  Solution... issue more debt... rinse and repeat.  There is no mechanism in our monetary system to actually pay down debt.  As an individual, yes... in the aggregate, no.  Debt will and must expand or the system crashes.  The system started to wobble in the late 90's to early 00's... the fed blew up the housing bubble through cheap money and the next round of debt suckers entered.  When things started to collapse in 2008 it was the gov't that stepped in as the sucker taking on debt to keep debt expanding.  There is NOTHING the US can do.  Nothing.

Tue, 06/28/2011 - 11:45 | Link to Comment centerline
centerline's picture

Enter the housing bubble in various other countries, as well as the college bubble here.  The end game seems to be littered with completely abnormal "pockets" of massive debt expansion.  Of course the opposite of money (debt) creation is debt (money) destruction, which also equals asset stripping.  Just makes me all warm and fuzzy inside knowing that the mathematics of the current system are built to eventually implode or explode.  So, death by hanging or electrocution... pick one.  And, no there is not a "cake" option.

Tue, 06/28/2011 - 11:46 | Link to Comment SheepDog-One
SheepDog-One's picture

But....while I may be in my bathrobe, Im actually studying for my worthless MBA!

Tue, 06/28/2011 - 11:52 | Link to Comment centerline
centerline's picture

LOL.  Arent those MBA degrees available on Amazon or Ebay now?

Tue, 06/28/2011 - 11:58 | Link to Comment kridkrid
kridkrid's picture

It's pretty simple, really.  It's remarkable to see people choose not to understand it.  I don't think one needs to be of above average IQ to understand what is, in essence, not terribly difficult to grasp.  Yet somehow you are little more than a Cassandra for stating the obvious.  The world is mad.

Tue, 06/28/2011 - 11:23 | Link to Comment Clueless Economist
Clueless Economist's picture

who in hell is max keiser????????  get back to me when he wins a nobel like us real economists

Tue, 06/28/2011 - 11:24 | Link to Comment SheepDog-One
SheepDog-One's picture

He's this one guy, yes he may not have a Nobel in economics but he says things.

Tue, 06/28/2011 - 13:29 | Link to Comment Vinny
Vinny's picture

He has a show on Iranian state television. 

Hey, it must be true because I heard it on Iranian tv!

Tue, 06/28/2011 - 13:25 | Link to Comment Reptil
Reptil's picture

lol

Sarcasm recognised and appreciated.

There are some that did manage to keep their head out of their orafice. Oh look one is being interviewed right here: skip to 12:50

http://www.youtube.com/watch?feature=player_embedded&v=_Tu2uiV1lps

Tue, 06/28/2011 - 15:23 | Link to Comment Hacksaw
Hacksaw's picture

Isn't that amazing? The answer to too much debt isn't more debt it's raising wages so folks can pay off debt. I guess all those who poo-pooed the government giving money to the people instead of giving it to the TBTF financiers because people wouldn't spend it, they'd use it to pay down debt, were full of crap. Just imagine how much better off the USA would be now if the 20+ trillion dollars given to the TBTFs was used to pay down debt. Kind of clears up the situation doesn't it? The TBTF financiers fight debt reduction like they are fighting fire. At the same time they push cutting people's ability to pay off debt through austerity.

Tue, 06/28/2011 - 16:35 | Link to Comment Moe Howard
Moe Howard's picture

Yes, many would have used it to pay down debt, personal debt. That would not help the national debt directly.  I fear the law of unintended consequences. However, I still don't think giving money to the banksters was the right idea either.

Tue, 06/28/2011 - 11:15 | Link to Comment kridkrid
kridkrid's picture

Socialism was a pawn for the banking interests.  The only thing that really matters... how to foist as much debt into the system as possible.  In fact, it's the only thing that keeps the system going... new debt must be issued to allow interest to be paid on old debt.  This isn't about the failure of Socialism, it's about mathematical realities, fiat money, and fractional reserve banking. 

Tue, 06/28/2011 - 11:34 | Link to Comment Spastica Rex
Spastica Rex's picture

All the labels are just flags for people to rally around. The NFL wins the Super Bowl every year no matter how well or poorly "my" team performs.

Tue, 06/28/2011 - 11:41 | Link to Comment kridkrid
kridkrid's picture

Carefully crafted and nurtured over the course of generations.  It's remarkable to watch.  I stand in awe.

Tue, 06/28/2011 - 11:14 | Link to Comment Akrunner907
Akrunner907's picture

Reading through the list brings one thing to mind:  Never going to happen!  Doing some quick math means that standard of living will fall by about 50 percent for the average citizen, given the wage cuts and increase in taxes.  The destruction of personal wealth will create a situation in Europe of mutually assured destruction between the countries of Europe, and the spillover effect will be to bring down the US and other countries.  So are we at defcon level 2 or 1?

Tue, 06/28/2011 - 12:10 | Link to Comment Fanakapan
Fanakapan's picture

Quite so,as Churchill and the Yanks realised when the Jewboys were calling for Germany to be put back to the Middle Ages after WWII, it would have the effect of Europe being shackled to a Corpse.

Whilst Greece is No Germany, the Austerity proposals would certainly have the effect of shackeling the Eurozone to a Corpse. Likely that would fit the American pistol very well, hopefully we will see European politico's growing some Balls, and start to play play for their own interests rather than being the Puppets in an American controlled theatre :)

Tue, 06/28/2011 - 11:15 | Link to Comment Cdad
Cdad's picture

Well, you can see why a positive vote on this proposal presages bullishness in the Euro.

If they pass that proposal, the Greek economy will NEVER recover...and all for the low, low price of selling everything that is worth anything in Greece in a fire sale to European and US bankers.

It will be a "priceless" moment indeed when they hang the "JP Morgan Parthenon" sign from the Acropolis.

You don't think 10 million Greeks will be engraged by this, do you?

 

 

Tue, 06/28/2011 - 11:14 | Link to Comment SheepDog-One
SheepDog-One's picture

This is like selling your house, and all your friends and relatives houses, future income, and savings, for a few crack rocks. Fucking unbelievable! 

But thats not all....theres a 'Plan B' as well!  :D

Tue, 06/28/2011 - 11:20 | Link to Comment Deepskyy
Deepskyy's picture

I'm personally waiting for the "TD Ameritrade Sanctuary" to show up, followed by "Bank of America Temple."  Think of the marketing!

 

 

Tue, 06/28/2011 - 11:12 | Link to Comment Mediocritas
Mediocritas's picture

Wow, they're really going all in here aren't they?

Yeah, all in with a 2 & 7 off suit.

Tue, 06/28/2011 - 11:15 | Link to Comment hedgeless_horseman
hedgeless_horseman's picture

But...but...how can Greece lose?  I thought that with socialism, everyone is a winner.

Tue, 06/28/2011 - 11:22 | Link to Comment Mediocritas
Mediocritas's picture

This is socialism? Looks like quite the opposite. This is sale to Germany.

Tue, 06/28/2011 - 11:25 | Link to Comment Cdad
Cdad's picture

I thought that with socialism, everyone is a winner.

No, it just means that folk quit keeping score.

Tue, 06/28/2011 - 11:15 | Link to Comment Cdad
Cdad's picture

Wow, they're really going all in here aren't they?

Which comes right before they fold...and then turn to the Fed to replace their lost chips.

The XRT is literally committing suicide today.


Tue, 06/28/2011 - 11:13 | Link to Comment alien-IQ
alien-IQ's picture

aren't they also supposed to offer up the first born of anyone making less than 100k per year as slaves to JPM and GS ?

Tue, 06/28/2011 - 11:15 | Link to Comment Hedgetard55
Hedgetard55's picture

It is going to happen one way or the other, but to think it is so the money stolen by Greece's kleptocracy can be paid back is astonishing.

Tue, 06/28/2011 - 11:16 | Link to Comment J U D G E M E N T
J U D G E M E N T's picture

My advice to the Greek population:  Leave now, there are many other countries that will give you and your children a better opportunity to live a better life. 

Tue, 06/28/2011 - 11:21 | Link to Comment LawsofPhysics
LawsofPhysics's picture

And when the world economy faces "austerity" (total joke, those that committed fraud keep their wealth), where are you advising people to go?  Mars?

Tue, 06/28/2011 - 11:20 | Link to Comment AGORACOM
AGORACOM's picture

Canada

George ... The Greek ... From Canada

Tue, 06/28/2011 - 11:35 | Link to Comment LawsofPhysics
LawsofPhysics's picture

So Canada is no longer part of the world? I wish.  my wife is willing to take a dry cold, but only as far north as Montana.  All those people still need to heat their homes.  Bullish for heating oil, fine with me. Devil is in the details.

Tue, 06/28/2011 - 11:23 | Link to Comment AGORACOM
AGORACOM's picture

Judgement, some of my friends already have. One stated "Greece is dead. There is no future for Greece."

Tue, 06/28/2011 - 11:20 | Link to Comment LawsofPhysics
LawsofPhysics's picture

Massive deflation, followed by inflation, followed by WWIII.  Hedge accordingly (all things physical).  Republics turned kleptocratic die where they were born, how poetic.

Tue, 06/28/2011 - 11:20 | Link to Comment Atomizer
Atomizer's picture

Just drop your pants & bend over, I promise you won't feel a thing.

Tue, 06/28/2011 - 12:17 | Link to Comment Mad Cow
Mad Cow's picture

Just the tip...                            of the iceberg.

Tue, 06/28/2011 - 11:16 | Link to Comment AGORACOM
AGORACOM's picture

This is nothing but window dressing to buy time for the EU.  

It sounds good and may even be passed by Greek parliament - but good luck on many of these goals being achieved.  These measures will serve nothing more than to:

1]  Sweep Greece concerns under the rug and get it out of the headlines

2]  Fill the pockets of opportunists that will complicitly steal Greek assets 

George .... The Greek .... From Canada

Tue, 06/28/2011 - 11:17 | Link to Comment AldoHux_IV
AldoHux_IV's picture

Privatisation is where the real klepocracy exists-- it's basically a government takeover by the same villains all around the world.

Tue, 06/28/2011 - 14:14 | Link to Comment I Got Worms
I Got Worms's picture

Confessions of an economic hitman!

Tue, 06/28/2011 - 11:17 | Link to Comment AGORACOM
AGORACOM's picture

"The VAT rate for restaurants and bars will rise to 23% from 13%."

Bye-bye tourism

George ... The Greek .... From Canada

Tue, 06/28/2011 - 11:24 | Link to Comment ThirdCoastSurfer
ThirdCoastSurfer's picture

Which is worse this or the Treaty of Versailles? 

Look for today's youth that are unemployed and rioting to become tomorrow's brown shirts. 

The best is how naive it is to assume you'll get anywhere near 50bn euros for something you must sell. 

As with everywhere, the politicians do what the the rich are willing to back with political campaign contributions and for the rich to go along with this must mean that Greece will become the Winter residence of the rich as they are all going to move elsewhere.  

Tue, 06/28/2011 - 11:23 | Link to Comment infinity8
infinity8's picture

a big fat disincentive package. swell.

Tue, 06/28/2011 - 11:27 | Link to Comment Ethics Gradient
Ethics Gradient's picture

Blimey, guvnor!

Anyone care to estimate what that would do to their GDP?

I'll start the bidding at -20%

 

Tue, 06/28/2011 - 11:41 | Link to Comment richard in norway
richard in norway's picture

well this is worse than the Romanian package and that gave a hit of -15, so I'll see your 20% and raise you 10%

 

the Romanian finance minister has the nickname Dracula, i wonder what the Greek finance minister will be called

Tue, 06/28/2011 - 11:31 | Link to Comment CrashisOptimistic
CrashisOptimistic's picture

Something not mentioned here . . . it is my understanding that EuroStat monitoring will increase from quarterly to monthly.  

They will fail compliance within 2 months.  Then what?

Tue, 06/28/2011 - 11:30 | Link to Comment Jack Sheet
Jack Sheet's picture

Compliance will be as strict as during the 1st austerity package.

Tue, 06/28/2011 - 11:33 | Link to Comment frostfan
frostfan's picture

Let's see, they're lowering the minimums people are going to be taxed at, they're lowering the wages of the public sector, they're increasing the taxes people pay at cafes and bars, they're cutting health and social security benefits and they're selling the country to the Germans.

 

How can the Greeks possibly turn down this great offer :)

Tue, 06/28/2011 - 11:37 | Link to Comment LawsofPhysics
LawsofPhysics's picture

I guess that the important question is, do the Germans think they are getting a good deal.  Have the German taxpayers weighed in on this yet?

Tue, 06/28/2011 - 11:33 | Link to Comment zorba THE GREEK
zorba THE GREEK's picture

 At least they stopped short of the North Korean solution:

 Close all the schools and put the children to work. Maybe

 they are holding that back for the third round of bail-outs.

Tue, 06/28/2011 - 11:36 | Link to Comment Piranhanoia
Piranhanoia's picture

socialism.  It might be wise to understand definitions and uses before interchanging them with others as though synonymous.

Tue, 06/28/2011 - 11:48 | Link to Comment kridkrid
kridkrid's picture

Or better yet... You might be wise to forget the definitions that you have been conditioned to accept as capital T - Truth. 

Tue, 06/28/2011 - 11:41 | Link to Comment Rynak
Rynak's picture

40 years of work, to get full pension...... uh, well..... i guess that is in line with closing thousands of schools, since to even have any chance of reaching that without going to work with a walking stick.... is for everyone basically start working at the age of 20 - and never getting fired - right.

Short version: No one will be able to meet those demands.... which means that in practice, they are simply removing cash from pensions.

Tue, 06/28/2011 - 11:37 | Link to Comment Greeny
Greeny's picture

Rising tax on everything? Not going to work, they'll

get much less revenue to tax. Simply if someone will tax tourist

23% VAT tax in Cafe? It's just nonsense. Greeks not gonna make it. :)

Otherwise if they Default, then for a while they can forget about

pensions, SS benefits and all that shit, and standard of a leaving

will drop too, but that's how it works, no way to avoid that.

Like Russian Default in 1998, wake up next day and if you have paper

Rubles good luck with that..

Tue, 06/28/2011 - 11:41 | Link to Comment GeneMarchbanks
GeneMarchbanks's picture

This belt-tightening is going to cut off circulation. At which point your limbs will go numb; that's how you know it's working. Then we'll simply chop them off and sell them to the highest bidder. Questions?

Tue, 06/28/2011 - 11:38 | Link to Comment Cassandra Syndrome
Cassandra Syndrome's picture

This is akin to curing a seriously injured patient with cyanide and strychnine

Tue, 06/28/2011 - 11:42 | Link to Comment centerline
centerline's picture

Just a Modest Proposal.

Tue, 06/28/2011 - 11:38 | Link to Comment Blano
Blano's picture

Solidarity levy.........hahahahaha!!!  Good one.  Classic claptrap.

Tue, 06/28/2011 - 11:46 | Link to Comment SheepDog-One
SheepDog-One's picture

'Solidarity levy'...HOORAY for mumbo-jumbo saving the day!

Tue, 06/28/2011 - 11:45 | Link to Comment Version 7
Version 7's picture

It's like cutting your legs if you have a difficulty to walk.

Tue, 06/28/2011 - 11:44 | Link to Comment SheepDog-One
SheepDog-One's picture

And as ridiculous and draconian as these Greek measures are, wait until theyre imposed on the US next!

Tue, 06/28/2011 - 11:49 | Link to Comment centerline
centerline's picture

The ultimate irony is twofold... One, no matter what the Greeks do, all the BS is coming to an end at some point soon.  Second, they are better getting out of the debt-box they are in asap regardless!  

 

Tue, 06/28/2011 - 11:46 | Link to Comment Jovil
Jovil's picture

Passing the measures is one thing. Enforcement is another in a country where the national passtime is to evade taxes. It is in their culture. Sale of public assets like bridges and highways. Now people will have to pay a toll to go anywhere or cross any bridge.

Tue, 06/28/2011 - 12:15 | Link to Comment The Fonz
The Fonz's picture

I was most concerned about them selling their water plants. Other countries have learned some very nasty lessons selling that particular resource to corporations. You NEVER sell your water supply.

Tue, 06/28/2011 - 11:46 | Link to Comment MFL8240
MFL8240's picture

Never is, was or has been about the Greek people or austerity.  This is a bailout for the courrpt Greek bankers and politicians and for the French, US and German bankers, nothing more and its time for someone in the news to say so. 

 

Tue, 06/28/2011 - 11:48 | Link to Comment americanspirit
americanspirit's picture

It's those cuts to "defense" that are going to break the camel's back. Does anyone seriously think the Greek military is going to accept those cuts while the rich continue to live in luxury? Military coup - before September.

Tue, 06/28/2011 - 13:11 | Link to Comment Tenma13
Tenma13's picture

this is an interesting possibility which is not mentioned much. If goes along the lines of South America in the 1980s the banksters will still find a way to bleed the country dry. More people on the streets seems like their best bet.   

 

 

Tue, 06/28/2011 - 11:57 | Link to Comment Mediocritas
Mediocritas's picture

Does anyone else find "solidarity levy" to be super ironic?

What better way to destroy solidarity!

Tue, 06/28/2011 - 12:05 | Link to Comment bankruptcylawyer
bankruptcylawyer's picture

thank you for this post i trust that it is accurate. the american msm will never publish things like this, because they know they are not allowed to give the public in the u.s. a heads up as to what is coming our way somewhere in our future. 

here is one way to benefit from the greek disaster if you are not greek and it is an easy one to figure out-----SMUGGLING.  

on the way to greece, you smuggle, these things

 

  •     Excise taxes on fuel, cigarettes and alcohol will rise by one third.------this one is EASY SMUGGLING.
On the way out of greece, you smuggle the valuables out that can be sold elsewhere. 

 

 

  •     Luxury levies will be introduced on yachts, pools and cars.----oh yea...the biggest one would be ART and museum collectibles. because when you stop paying the museum guards, there is no question that stuff will start going missing in the museums.  anything in the outdoors that is considered valuable, is especially likely to go missing. 

 

Tue, 06/28/2011 - 12:11 | Link to Comment Seasmoke
Seasmoke's picture

everywhere the Greeks turn they will be getting taxed......no way this will ever work

Tue, 06/28/2011 - 12:37 | Link to Comment Escapeclaws
Escapeclaws's picture

At least the Greeks can be comforted by the idea that all the taxes they will be paying will eventually go to the pockets of the top .1%. Every cloud has its silver lining.

Tue, 06/28/2011 - 12:19 | Link to Comment zorba THE GREEK
zorba THE GREEK's picture

 It's a shame that hard-working Greeks have to suffer

 because of the actions of corrupt politicians. Wait a minute,

 "hard-working Greeks", isn't that an oxymoron? The only 

 hard working Greeks I know of are in the USA.

Tue, 06/28/2011 - 16:43 | Link to Comment Moe Howard
Moe Howard's picture

I was thinking the same thing. Don't all the hardworking Greeks own restaurants in Chicago? Ooompah?

Tue, 06/28/2011 - 12:26 | Link to Comment zee
zee's picture

Coming soon to a country near you.

Tue, 06/28/2011 - 12:26 | Link to Comment glassmaker
glassmaker's picture

Increase property tax is a no-go. You don't have to pay property taxes if your home is not finished, if you have a little church on your property. Most homes have one floor unfinished or debar sticking out, and it is a photographic extravaganza to take pics of the little doll size churches on many yards.

Tue, 06/28/2011 - 12:30 | Link to Comment glassmaker
glassmaker's picture

Increase property tax is a no-go. You don't have to pay property taxes if your home is not finished, if you have a little church on your property. Most homes have one floor unfinished or debar sticking out, and it is a photographic extravaganza to take pics of the little doll size churches on many yards.

Tue, 06/28/2011 - 12:26 | Link to Comment graspAU
graspAU's picture

This is what is headed to the USA soon, or something close to it. Plan accordingly. It has been covert debt slavery of the masses. Soon it will be overt to all.

Tue, 06/28/2011 - 12:33 | Link to Comment glassmaker
glassmaker's picture

Sorry about duplicate post .iPad fingers

Tue, 06/28/2011 - 12:54 | Link to Comment glassmaker
glassmaker's picture

Tourism $$$ will go to $.

Tue, 06/28/2011 - 13:04 | Link to Comment Cone of Uncertainty
Cone of Uncertainty's picture

Hahahahaha, this list is awesome.

The only thing I have to say to this is the following bitches:

http://www.youtube.com/watch?v=iUAn_dHMnbs

Tue, 06/28/2011 - 13:05 | Link to Comment Waterfallsparkles
Waterfallsparkles's picture

It used to be you needed Guns and an Army to take over another Country.  Could anyone ever have envisioned taking over another Country thru Debt?  I guess it is now time for the Rape and Pillage by the victorus Bankers.

Tue, 06/28/2011 - 14:22 | Link to Comment I Got Worms
I Got Worms's picture

Fantastic eye-opening documentary called "Life and Debt" showing how the IMF destroyed Jamaica with debt (it's available on Netflix streaming). Brutal how it just swoops in on these countries like a vulture and picks the bones.

Tue, 06/28/2011 - 13:19 | Link to Comment ak_khanna
ak_khanna's picture

It is high time when the citizens of some country stood up against the cartel of bankers and politician­­s and told them to stuff it. 

At least some people in the Eurozone have balls to stand up for their country before their tax revenues and their future country's income is looted by the too big to fail institutio­­ns. The best option for the people of Greece is to default on their loans and let the bondholder­­s pay for making stupid investment­­s.

http://www­.marketora­cle.co.uk/­Article245­81.html

Tue, 06/28/2011 - 13:15 | Link to Comment the not so migh...
the not so mighty maximiza's picture

This protest is lame, they are just standing around or walking around scratching their asses.

 

 

Tue, 06/28/2011 - 13:42 | Link to Comment Reptil
Reptil's picture

The point is to occupy strategic positions. That square is like the White House lawn.
I've followed the goings on for a while, at some point the police lined up on one side, blocked the connecting road (cutting the "supply" of fresh reïnforcement protesters off) and then proceded to try and take the "head" of the stage, near the gates of the parliament building. That didn't work, and they had to retreat. They failed to secure a safe position. Armoured vehicles don't work either, because of the multiple stairs and trees and small buildings. Remains using bigger material like waterguns, and tasers and all the stuff that's good and "made in USA", but I suspect they (police) expecting the parliament to pass the bill, and the protestors expect them to do not.
Once they've passed it, that's when the moment of descision comes. If the protestors walk away defeated, head low, then they lose. If they rush in and despite the police cordon take the parliament building, the airport, the energy plant, etc, and the army keeps out they win.

Of course they could overrun the building at any time, if they'd like to do so. But, the will to do something, determination, as well as leadership (?) will be the deciding factor.
Tomorrow...

Tue, 06/28/2011 - 13:21 | Link to Comment russwinter
russwinter's picture

There is no kicking the can down the road here: shockingly immediate. 

Tue, 06/28/2011 - 13:32 | Link to Comment topcallingtroll
topcallingtroll's picture

I think they might surprise us with some additional can kicking. It all depends on thursday.

Tue, 06/28/2011 - 14:41 | Link to Comment shazbotz
shazbotz's picture

There will be blood in the streets and once everyone sees how easy it is to stomp on some elitist ass, the rest will follow...

Tue, 06/28/2011 - 15:00 | Link to Comment ivana
ivana's picture

even maybe it's deserved, this is just a f... torture.

After cutting wages like that - there's no chance GDP or any macro indicator will rise

Tue, 06/28/2011 - 17:17 | Link to Comment falak pema
falak pema's picture

herd thinning of western middle class begins in syntagma square...the road to pauperism...while the Oligarchy conspires with the new leaders of the new USA, factory of the world...You got it...the US oligarchs will never come back until slave labour in USA is on par with slave labor elsewhere and this "western" experiment begins in Syntagma square.

Note it down for posterity. Its like the Sarajevo incident before WW1... a tipping point...cos the Oligarchy always digs its own grave like the european oligarchy did between 1914 & 1945.

 Now its the US/EU oligarchy that is doing the digging first of the people's grave, then their own...except the uber alles who always remain immortal...

Tue, 06/28/2011 - 19:27 | Link to Comment NOPOMO
NOPOMO's picture

Talk about a beating.  Slavery is a better alternative.  Hope the Greeks have enough sense to reject this vigorously.

NOPOMO

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