• Steve H. Hanke
    05/04/2016 - 08:00
    Authored by Steve H. Hanke of The Johns Hopkins University. Follow him on Twitter @Steve_Hanke. A few weeks ago, the Monetary Authority of Singapore (MAS) sprang a surprise. It announced that a...

PAPANDREOU HAS VOTES TO PASS AUSTERITY BILL: 155 VOTED TO EXTEND BANKER OLIGARCHY STATUS QUO

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Wed, 06/29/2011 - 09:03 | 1411338 qussl3
qussl3's picture

NOW WHAT?

 

Wed, 06/29/2011 - 09:09 | 1411351 EscapeKey
EscapeKey's picture

Now we wait for the next farcical vote out of either Ireland or Portugal.

Wed, 06/29/2011 - 09:07 | 1411367 MonsterZero
MonsterZero's picture

Now nothing, the people finally begin to pay for their failures to develop a successful governance and economy. Living outside of your means and handing power to those you shouldn't have trusted are hard lessons in life but something that they obviously need to learn.

Wed, 06/29/2011 - 09:09 | 1411383 Judge Holden
Judge Holden's picture

"Living outside of your means and handing power to those you shouldn't have trusted are hard lessons in life but something that they obviously need to learn."

 

You would, of course, broaden this statement to include the USA, correct?

Wed, 06/29/2011 - 09:16 | 1411407 Arius
Arius's picture

you mean include himself ?

thats too much to ask ... dont you think so ?

Wed, 06/29/2011 - 11:57 | 1412110 bernorange
bernorange's picture
"The Federal Reserve extended its program to provide emergency currency swap lines to the European Central Bank last week as the euro zone's sovereign debt crisis deepened, the Wall Street Journal reported on Wednesday.

The swap lines allow foreign central banks, including the ECB, the Bank of England and the Canadian, Japanese and Swiss central banks to borrow an unlimited amount of dollars for a fee and lend them out to banks in their home countries.

The program was set to expire Aug 1. Its extension was approved by a vote during last week's Federal Open Market Committee meeting, the Journal said.
... "

http://www.reuters.com/article/2011/06/29/usa-fed-ecb-swap-idUSN1E75S04120110629

US Taxpayers on the hook for bailing out the PIIGS for the forseeable future...

Wed, 06/29/2011 - 09:09 | 1411384 trav7777
trav7777's picture

sure.  Supposing they decided to tell the banksters to GFY, they still spend more than they produce.  Austerity of some sort is inevitable, it's only a matter of whether it comes with interest or not

Wed, 06/29/2011 - 10:49 | 1411759 centerline
centerline's picture

Wow. Takes a real idiot to junk this one on it's content.  The truth hurts - but the tragic comedy here is that either way they are fucked and so are we.  In fact, they are worse off to go down the road of another bailout... it only raises the stakes.

Wed, 06/29/2011 - 11:21 | 1411884 trav7777
trav7777's picture

who cares about junks?

People seem to believe that if we "just got rid of the banksters," that we could then ALL live luxurious lives where we spend more than we produce.

The Greeks are facing a decline in standard of living because their std was driven by DEBT, not real production.  Just as ours is.

All the debt we have is somebody else's production; somebody else's oil, somebody else's manufactured goods.

If we repudiate, someone takes a loss...one man's debt is another man's asset.  Sure, we can claw back a lot of the kleptocracy's ill-gotten gains, but the oil we've all been burning for 40 years?  We borrowed money to buy that.  We still OWE someone, even if we repudiate the interest and destroy all the banks.

The nations of the world will figure out why gold was the reserve asset for so long; you can't cheat on the forex.  The single biggest benefit of empire to the US was the BW dollar reserve standard.  Without this...shit.  Look at our trade deficit or budget deficits.  We'd be at parity with the Colombian Peso or worse against that backdrop.

Wed, 06/29/2011 - 11:47 | 1412062 mchadellis
mchadellis's picture

Money is debt. All currency in circulation is owed to someone. The bankers have designed this debt based money system. The usury mechanism of our debt money forces wealth to the top few. Please somebody tell me WTF a bank has EVER "produced". Making money off of money is a scam that always fails. The banks have created a system where the ones who actually produce something get the least wealth. Capitalism requires poor, desperate workers to do the REAL work while the pimps on wall street reap the REAL wealth. The poor create the rich. If there arent poor shmucks laboring, there arent rich fucks lavishing. Technological unemployment is here to replace the aforementioned slaves. So much for cyclical consumption. Machines will set us free. Man created debt. Is Earth bankrupt? We are all pussified idiots. The banks are the parasitic cancer. Where do you think the nanny state originated? 1913.

Wed, 06/29/2011 - 12:31 | 1412313 centerline
centerline's picture

One simple chart says it all... historical population growth.  We are approach "peak" in so many ways including the currency fiat system.  If we had a convergence of only one or two factors, I wouldn't be so concerned.  But, at this juncture we are approaching the convergence of way too many huge problems.  Earth definately is not bankrupt.  But, a period of profound adjustment is just beginning.  I really hate to call it a supercycle for fear of being pulled into an EWT argument - but the shoe does fit.

Wed, 06/29/2011 - 13:24 | 1412548 Bob Sacamano
Bob Sacamano's picture

Despite the fact bankers "designed" offering debt, it does take a borrower to complete the creation of debt - so presumably borrowers share a meaningful portion of blame as well (rarely discussed in banker rage debates). 

I am in favor of not borrowing. I am in favor of those that did borrow, repaying what they borrowed.  I understand these are antiquated notions. 

 

Wed, 06/29/2011 - 12:26 | 1412290 centerline
centerline's picture

I like to point it out for the fun of it.  I really could care less.  I get the overall big picture math and what it could lead to.  And all I care about at this point is paying attention to how it goes down to help best protect my family.  If along the way some idiot here "see's the light" - that is cool.

Lots of old timers around here dont post much anymore.  I think it is because they have found it futile.  And are spending more time watching... and preparing.  

Wed, 06/29/2011 - 09:11 | 1411403 taraxias
taraxias's picture

Spoken like a true fascist, banking lemming.

You sir, are a monster zero indeed.

Wed, 06/29/2011 - 09:26 | 1411474 MonsterZero
MonsterZero's picture

Banking lemming I think not. But I think some aspects of Facism would be very welcome:

Fascists seek to purge forces, ideas, and systems deemed to be the cause of decadence and degeneration and produce their nation's rebirth based on commitment to the national community based on organic unity where individuals are bound together by suprapersonal connections of ancestry, culture, and blood. Fascists believe that a nation requires strong leadership, singular collective identity, and the will and ability to commit violence and wage war in order to keep the nation strong.

What is a nation afterall... I think the Greeks really need to consider what they really are these days.

Wed, 06/29/2011 - 09:35 | 1411524 AccreditedEYE
AccreditedEYE's picture

All austerity and no bank principal reductions is bullshit in my book bud. If you wanna play the "fair and square" game, there should be equal amounts of pain to go around...

Wed, 06/29/2011 - 09:39 | 1411535 MonsterZero
MonsterZero's picture

Nobody is taking money from peoples past here. Debt before equity is a very old and "fair" concept.

Wed, 06/29/2011 - 10:46 | 1411755 Burnbright
Burnbright's picture

The point is the people who recieved the gains from the debts are in the PAST, the people who have to pay for the consequences are in the FUTURE.

This is a transfer of wealth from the future generation to the past generation. 

 

Wed, 06/29/2011 - 12:20 | 1412252 trav7777
trav7777's picture

why?  I agree on the compound interest component, but the Greeks DID actually spend all the money lent.  These loans are someone else's asset, german pensions and whatnot.

To repudiate debt means that those who lent take a loss...fine.  But the Greeks still spent the money.

Just like the homeowner/bankster dichotomy.  Sure the banksters committed fraud, but the homeowners spent the money and got the house.  Somebody is holding that loan as an asset.  Someone's principal somewhere got spent on it.  So the banksters ripped them off, our only recourse is to clawback and prosecute.  But the free lunch still ends.

Putting Chuck Ponzi in jail didn't bring the investors' money back

Wed, 06/29/2011 - 14:10 | 1412625 AccreditedEYE
AccreditedEYE's picture

Trav: What about due diligence? What about underwriting standards? Banks knew the score on Greece.. they new the size of the leverage to assets + income and have the research staff and sophistication to know what the Greek "landscape" really looked like. How about the thimble sized amount of CDS to outstanding sovereign paper? These institutions could have hedged during the good times... I don't feel much sympathy for holders of PIIGS paper. (I didn't junk you)

Wed, 06/29/2011 - 09:57 | 1411591 SMG
SMG's picture

Yeah that sounds great.  In practice though Facism always leads to corrupt oligarchs, a police state, and at some point mass murder.  Screw that.  Live free or die!

Wed, 06/29/2011 - 10:03 | 1411615 Clark Bent
Clark Bent's picture

Your comment reminds me of just such an earlier nationalistic Greek adventure, the invasion of Sicily in the Peloppenesian war circa 325 B.C. That manly action ended not so well for Athens. BTW who is it that is qualified to speak for the collective mind? 

Wed, 06/29/2011 - 09:58 | 1411598 TheFourthStooge-ing
TheFourthStooge-ing's picture

Time to get some stout rope, enough for 155 nooses for the necktie party.

Spoken like a true fascist, banking lemming.

You sir, are a monster zero indeed.

...and some tar and feathers for monster zero.

 

Wed, 06/29/2011 - 09:13 | 1411417 nedwardkelly
nedwardkelly's picture

I think you're a little mistaken there...

"The people finally begin to pay for....."

What you really mean is that younger generations now have to suck it up and pay for older generations. That guy that retired last year at 52? He's all set. The poor 25 year old sucker that now has to face a lifetime of crazy high taxes, later retirement, etc - well he's fucked.

At some point the younger generation will realize how fucked over they're getting.

 

Wed, 06/29/2011 - 09:52 | 1411578 Stuck on Zero
Stuck on Zero's picture

The young, realizing what a dead-end situation they are in, will respond by dropping out of society altogether.  They'll stay where they are and become potheads, dopeys, gang members or they'll emigrate to find better opportunities.  Then what?

Wed, 06/29/2011 - 10:39 | 1411731 nedwardkelly
nedwardkelly's picture

Right, I'm not suggesting the young should set about lynching the old. I am suggesting that the younger generations are pretty fucked. At some point they'll realize this. Then what?

Higher taxes, less freedom, more regulation, fewer benefits. None of which are due to anything they did, or anyone they voted for (more than once or twice).

Wed, 06/29/2011 - 10:53 | 1411771 centerline
centerline's picture

Yup.  Yet another wall sitting out there at some point in the near future.  This is precisely how major social shifts occur, and underground markets as well.  One of the first things that will get taken out here in the States is student loans defaulting en masse.  Yeah - they cant be discharged in court, but that wont matter at some point when folks dont have the ability to pay them anyhow.

Wed, 06/29/2011 - 10:12 | 1411655 rwe2late
rwe2late's picture

 

The banksters and war merchants are in conflict with young and old, and with those aged in between. The institutions they head are destructive of the planet and its inhabitants.

Your contention that the young should spite the elderly because the elderly will not suffer enough is ridiculous. There will be plenty of suffering to go around (except for the inside elite and their elite bodyguards). Joblessness, loss of pensions, loss of medical care, environmental destruction, and wars will spread plenty of suffering.

Divide and conquer is the traditional strategy. Promoting strife based on superficialities of age, race, sex, religion, etc. only serves TPTB.

What better way to promote that strife than to inequitably distribute crumbs of reward and appeal to the childish sentiment “How come Jonny got some and I didn’t”?

As though the bailouts, the wars, the political and financial arrangements have been decided by the common citizen.

As though the chief beneficiaries of systematic mayhem have not been a wealthy elite and the global corporations they head.

 

Wed, 06/29/2011 - 10:35 | 1411718 nedwardkelly
nedwardkelly's picture

Your contention that the young should spite the elderly because the elderly will not suffer enough is ridiculous

That's not my contention at all. My contention is that the younger generations are MORE fucked than the older generations.

We've had X decades of debt fueled growth. Here in the US $14 trillion dollars of it. $14 trillion dollars padding the ride for the last 30-40 years. Not a bad gig.

At some point that is unsustainable. That 'some point' is coming. When it comes it will affect tomorrows generation much more than it affects yesterdays.

Just look at the average state retiree today, vs the average state new recruit. The new recruit still gets a pretty good deal in the grand scheme of things, but compare it to the deal the guy that retired 5 years got? It's night and day. But who has to pay for the guy that retired 5 years ago? We all do.

Just so it's clear - we'll all suffer. The bigger portion of the burden is on the young, who short of revolt will be forced to pay for the promises made to the old.

Wed, 06/29/2011 - 11:03 | 1411803 rwe2late
rwe2late's picture

 forced to pay for the promises made to the old  ???

how can it be to pay for "promises" that won't be kept?

is it actually to pay for bailouts and wars, and the upward transfer of wealth?

Your perception of why promises of decent pensions and healthcare allegedly can't be provided is wrong. It is not because they are all excessive, or because a few are excessive. The pilfering of funds for wars, bailouts, and health industry subsidies and away from beneficial investments is the primary explanation.

Your attempt to inflame intergenerational rivalry is wrong-headed.

Your whole approach to the question of the inequitable distribution of wealth and power is wrong ... inasmuch as it ignores and diverts attention away from the actual holders of power and wealth, and away from how and why current policy is actually decided.

 

Wed, 06/29/2011 - 13:11 | 1412475 nedwardkelly
nedwardkelly's picture

So clearly you're an old guy, upset that I think old guys are more responsible for our current mess than young guys. You want to blame 'the bankers' and war merchants. The fact is, the bankers and war merchants are just leeches taking advantage of the system that 'we the people' have provided for them. There's always going to be leeches, there's always going to be greedy assholes, there's always going to be corruption etc. It's human nature. All you can do is try to create a 'system'/society where they don't get a free ride.

How did the funds for wars, bailouts and health inudstry subsidies get approved? Was it facilitated by our government? How did we end up with a government that would get us into all this mess? Was it apathy and indifference on the part of voters? Was it because voters got hung up on bullshit like who can marry who instead of real issues? Don't try and tell me that democracy is inherintly hopeless and we'd all be fucked anyway, or you might as well just go and end your suffering.

If more people gave a shit, 'we the people' could actually make a change. We'd be able to change the status quo, so the bankers and war merchants couldn't so easily keep the plebs down. For decades the people that could have done something about it (voters) haven't. They've been happy with short term promises that in the long run couldn't be kept. Now the younger generations will pay for it.

Maybe the rogering they'll be getting will wake them the F up so they do something about it. Lynching old people wont help, despite the fact that it's been their apathy and indifference and political selections that have gotten us to our current position.

Wed, 06/29/2011 - 12:44 | 1412385 trav7777
trav7777's picture

wtf...you just called age, race, and sex superficialities?  Are you stoned?

Even if your ass is PC as hell, you cannot see sex as a superficial difference between people unless you don't know the fkin meaning of the word.

The sexes are different.  The races are different.  The ages are different.  Each has its own strengths and weaknesses and individual attributes.  These are not superficialities

Wed, 06/29/2011 - 09:16 | 1411430 wandstrasse
wandstrasse's picture

you are right AND wrong. Decades of piling sovereign debt is one contributing factor of unsustainable koyaanisqatsi - living. But this does not change at all when you pile more debt - an this is what the Greek parliament just decided.

Wed, 06/29/2011 - 09:21 | 1411436 Reptil
Reptil's picture

Again: only a part of the greek population lived beyond their means. Most farmers were totally DESTROYED in the past few years, while the EU funds kept rolling in.

But you're right about handing power to untrustworthy. A hard lesson for everyone. Corruption goes hand in hand with lack of openness. And Capitalism, as a system is clearly at risk, or almost dead (depends on the POV).

First the free market dies, then democracy dies." Folker Hellmeyer

Wed, 06/29/2011 - 13:02 | 1412444 Clark Bent
Clark Bent's picture

Capitalism, or free trade more accurately, (as I hold that Capitalism is not an "ism" at all, but the absence of imposed "ism,") can never die, it can only be subverted, and people burdened by its immoral subversion.  I am free trade told flourishes in the trade occurring in maximum security prisons, and certainly in oppressive regimes. But the commodities are different. Instead of labor and resources, it becomes one's own body, and "services" provided to one's superiors. 

Wed, 06/29/2011 - 10:02 | 1411579 Pegasus Muse
Pegasus Muse's picture

Now nothing, the people finally begin to pay for their failures ... blah blah

No, it's time for the criminals to pay.

Wonder what the Intrade Odds are on the date when the Greek People start hanging the criminal Banksters and sell-out Politicians?  I would wager “soon”.

Wed, 06/29/2011 - 10:03 | 1411602 MadeOfQuarks
MadeOfQuarks's picture

"Now nothing, the people finally begin to pay for their failures to develop a successful governance and economy. Living outside of your means and handing power to those you shouldn't have trusted are hard lessons in life but something that they obviously need to learn."

 

Nah, the Greeks won't implement any austerity. Sure, they'll pretend, but since they already evade taxes and already cheat the gov, it's going to business as usual in Greece. Meanwhile the rest of Europe gets to work 'til they're 75 so that Greekolopolous can retire when he's 55.

Wed, 06/29/2011 - 09:12 | 1411377 1100-TACTICAL-12
1100-TACTICAL-12's picture

Simon Hobbs calls them heros, what a dipshit.CNBS make's me wan't to barf in my corn flakes.

Wed, 06/29/2011 - 09:10 | 1411392 qussl3
qussl3's picture

Hobbes turned into a real cocksucker ever since he left europe.

Its almost as if he left his balls at home.

Wed, 06/29/2011 - 09:19 | 1411428 Boston
Boston's picture

He has balls?

Wed, 06/29/2011 - 09:59 | 1411604 Pegasus Muse
Pegasus Muse's picture

He's a pussy.  That's why they hired him.  Just another sell-out banskter shill.

Wed, 06/29/2011 - 09:28 | 1411503 Fred C Dobbs
Fred C Dobbs's picture

Did you see Mark Faber laughing at Hobbs performance?  It is corporate owned news media theatre.   

Wed, 06/29/2011 - 09:14 | 1411385 Arius
Arius's picture

Now, TO THE MOON !

DOW 36000 ....

The Douleur .52

Wed, 06/29/2011 - 09:15 | 1411400 nonclaim
nonclaim's picture

NOW WHAT?

Now you have to do your part and pay the bill.

Work harder, slave! (sound of whip craking)

Wed, 06/29/2011 - 09:17 | 1411414 max2205
max2205's picture

SELL THE NEWS!!

Wed, 06/29/2011 - 09:24 | 1411483 GetZeeGold
GetZeeGold's picture

 

STFN!!!

 

 

Wed, 06/29/2011 - 09:14 | 1411420 HelluvaEngineer
HelluvaEngineer's picture

Now we throw the lever and sell the news, since all the bulltards went long yesterday.

Wed, 06/29/2011 - 13:25 | 1412542 He_Who Carried ...
He_Who Carried The Sun's picture

Umm, Mr. T-Durd why compare the winning Greek Socialists around Mr. "G-Pap" with "fascism"?

Mussolini just turned in his grave.

Dissapointed that there are no masskillings? Mymy.

All who have been betting against the Euro did not know who they were up against.

Greek Conservatives just playing the opportunist with their demagogue tactics. These were the true fascists leading the way over the cliff and then all the way to the bottom.

I can only hope that some of them will jump anyway.

Start talking about low interest rates and excessive lending for homeownership invented by Clinton/Greenspan. Fascists these as well? I thought the were on the other side?

Come to think of it perhaps real "Fascism" is the only thing that's actually missing in the picture of socialist "Planwirtschaft" at play here... Looking at Greece it seems to be on a path to a 15-year recession without Japanese style diligence and ingenuity. Poor people.

Wed, 06/29/2011 - 09:07 | 1411339 oogs66
oogs66's picture

at least the Greek people know the government is there for them :(

Wed, 06/29/2011 - 09:07 | 1411340 achmachat
achmachat's picture

there's still an angry mob outside... let's not forget that.

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