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There is Only One Way Out For Greece
Submitted by Martin Armstrong via ArmstrongEconomics.com,
Brussels has been dead wrong. The stupid idea that the euro will bring stability and peace, as it was sold from the outset, has migrated to European domination as if this were “Game of Thrones”. Those in power have misread history, almost at every possible level. The assumption that the D-marks’ strength was a good thing that would transfer to the euro has failed because they failed to comprehend the backdrop to the D-mark.
Germany moved opposite of the USA toward extreme austerity and conservative economics because of its experience with hyperinflation. The USA moved toward stimulation because of the austerity policies that created the Great Depression, which led to a shortage of money, and many cities had to issue their own currency just to function. The federal government thought, like Brussels today, that they had to up the confidence in the bond market and that called for raising taxes and cutting spending at the expense of the people. The same thinking process has played out numerous times throughout history. Our problem is that no one ever asks – Hey, did someone try this before? Did it work? This is why history repeats – we do ZERO research when it comes to economics. It is all hype and self-interest.
Greece should immediately begin to print drachma. By no means has the introduction of a new currency been a walk in the park. There is always a learning curve, as in the case of East Germany’s adoption of the Deutsche mark, the Czech-Slovak divorce of 1993, and the creation of the euro itself . However, the bulk of transactions today are electronic, meaning we are dealing with an accounting issue more than anything. The euro existed electronically BEFORE it became printed money; Greece should do the same right now.
The difference concerning East Germany and others was the fact that there was no history. This is more akin to the 1933 devaluation of the dollar by FDR whereby an executive order reneged on promises to pay prior debt in gold. This would be similar. The new drachma should be issued at two-per euro, only because the people will think the drachma should be worth less than a euro based on pride. If the new drachma is issued at par, the speculators will sell, assuming it will decline. Issue it at 50% and you will eventually see the opposite trend emerge once people see the contagion begin to spread.
Brussels already cut off the banks in Greece. All accounts in Greece should be electronically switched to drachmas. Begin to issue printed drachma for small change. The umbilical cord to Brussels must be cut immediately for Greece to stand on its own. You cannot negotiate with people who will not change their view of the world, for their own self-interest will cloud their perspective.
All EXTERNAL debt should be suspended. Any future resolution of debt should be reduced by 50% to account for the overvaluation of prior debt, thanks to the euro, and any interest previously paid should be deducted from the total loan.
All income tax should be abolished and the only taxation should be indirect. A close examination of the cost of government should be carried out and as many aspects of government as possible should be privatized and put out for bid. For example, motor vehicle and police agencies can privatize, eliminating pensions paid by the government. The size of government must be addressed, or Greece will risk civil war between government workers and private citizens.
Eliminating the income tax is critical and desperately needed for job creation. Small business must be profitable to begin to creating jobs and those who had to leave, whom are the nations’ brightest, will return. Bring your best talent home and build an economy.
Eliminating the debt is critical. Some 20 nations forgave all debt for Germany after World War II. The London Agreement on German External Debts, also known as the London Debt Agreement, was a debt relief treaty between the Federal Republic of Germany and its creditor nations that concluded August 8, 1953.
The London Debt Agreement covered a number of different types of German debt, both public and private, from before and after World War II. Some of them arose directly out of the efforts to finance the reparations system, while others reflect extensive lending, mostly by U.S. investors to German firms and governments. Those who forgave German debt: Belgium, Canada, Denmark, France, Great Britain, Greece, Iran, Ireland, Italy, Liechtenstein, Luxembourg, Norway, Pakistan, Spain, Sweden, Switzerland, South Africa, the United States, Yugoslavia, and others. The total amount under negotiation was 16 billion marks of debt, a result of the Treaty of Versailles after World War I, a debt that went unpaid during the 1930s that Germany decided to repay to restore its reputation. This was money owed to government and private banks in the U.S., France, and Britain. Another 16 billion marks represented postwar loans by the USA. Under the London Debts Agreement of 1953, the repayable amount was reduced by 50% to about 15 billion marks and stretched out over 30 years, and compared to the fast-growing German economy were of minor impact.
Therefore, what enabled Germany to rise from the ashes is a successful model. Greece too must be debt free. End federal borrowing, suspend all debt, and do not accept any more bailouts from Brussels.
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THE "EUROPEAN UNION" = GERMANY'S PLAN TO ELIMINATE COMPETITION FROM LOW-VALUE CURRENCY COUNTRIES.
The common person thinks/votes as if authority is there for fairness and for his/her well being...they cannot/will not be disabused of this fallacious notion
World War 3 will save Greece.
The Germans didn't give Greece up easily in the 1940's and I doubt they will now either.
The Fascists shall be defeated once again.
The German mind hardly ever makes a mistake -- but for the very big things.....
If the German government had a pair, there is a simple solution to all of this.
Germany should leave the EU, re-issue Deutch-Marks, and tell their own bankers to pound sand when they beg for a bailout over the bad loans they made to an essentially communist government.
When bankers lend money to retards, they should bear the full burden of their stupid. And staying in the EU will only allow other countries to tax Germany by printing up more Euros.
If Germany went back to the Mark it's value would skyrocket and it would kill German exports. Not saying it won't happen one day but it's not happnin anytime soon , the cheap euro is great for germany , in fact this shit show called the euro is a dream come true for german exports , it allows a weak currency to underpin a strong economy which would never normally happen.
How can there even be any good outcome for Germany or the other strong Euro countries ? The strong are obligated to help the weaker since there is only one currency but very different countries. The EU has no political union and no army. Weaker countries can be devoid of functioning economies but they'll stay in the union.
probably yes, thing is, Germans actually make things that are good and people want, even at elevated prices. Who else is going to deliver good cars, dishwashers, chemicals etc to the rest of Europe? Not the chinese and certainly not the US.
"Skyrocket" is somewhat exaggerated, the D-Mark would become comparable with the Swiss Franc. Purporting "the Euro is great for Germany" is rather imprecise. The cheap Euro is certainly great for the German export industry, but not for the common citizen. Counties like Italy, which used to be favored vacation sites for the Germans, are meanwhile really expensive, not to mention Switzerland, Denmark, Sweden, and others which are meanwhile extremely expensive for the Germans. On balance, the Euro project turned out to be a subsidization of the German export industry by the German taxpayer. But the main harm is done to the export industries of the southern European countries, which have to cope with an overvalued currency. Their decline is just the mirror image of the success of the German export industry. This shows that the "political project" Euro is indeed a bad idea. This reminds me at the former socialist states of the Soviet block. Their "socialism" was also a "political project" against any economic expertise that was doomed right from the beginning.
100% approval. The common Germans subsidize the export industry: the euro is a mean of transfer of buying power out of Germany to the low-level €-countries, that's why people in these absolutely want to maintain it, see Greece ...
The issuing imbalances in the current accounts, and the economic crackup in overvalued countries, are caused by these implicit buying power transfers. Pre Euro, they were nearly close-to-balance, and Europe went a lot better than now.
End the €-system now !
An inflating currency benefits exporters at the expense of citizens.
A strong Swiss Franc is wildly popular with Swiss citizens. Swiss exporters are feeling the shock of long overdue corrections all at once, something they would not have had to deal with if the Franc had never been pegged.
German mistakes, hmmmm, like invading Russia perhaps?
Duplicate, ignore.
one wonderz
One Item omitted: "Commence the sale of vegetables to Russia and arrange temporary financing to cover short-term needs by borrowing in CNY as adavnces against future pipeline and naval base revenues".
..... at the expense of the entire world,,,,, Is there a profit to be realized in that trade?
You are so right, one of the reasons governments are commisioned is to resolve conflict, as anyone can plainly see they are currently doing everything in their power to create conflict, they all must be forcefully disabused of this notion and they will be, one by one.
This all sounds like a plan. If the Greeks don't get a plan fast they will be starved out. The cash runs out on Wednesday and so will a lot of other supplies. Time is of the essence and the Germans are going to drag their feet until pain is felt by the Greeks.
The problem with this article proposal as a "plan" comes from this part of the proposal:
A close examination of the cost of government should be carried out and as many aspects of government as possible should be privatized and put out for bid. For example, motor vehicle and police agencies can privatize, eliminating pensions paid by the government.
That little blurb is sometimes referred to as AUSTERITY. It seems that 60% of Greeks continue to believe in cargo cult economics. The rest of Europe has cancelled those flights.
Unfortunatley, unilke yourself and those with similar insight, the common person is utteryl ignorant.
The EU = France making Germany pay for everything
Too much debt...the EU would never cancel Greece's debt because Portugal, Spain and Italy would want their debnt cancelled too.
Amazing. The Greek people vote to essentially request a restructuring of their debts.
And in response, the ECB et al, increase the liquidity haircut, tell them no deal, threaten to toss them out of the EU and Euro, essentially instituting another whole round of economic warfare on the Greek populace.
My guess is that the response by the Greeks will be for greater disassociation from the EU and Euro, digging their heels in deeper.
The EU's response is not what is done to allies and friends, but mortal enemies.
If I didn't know any better I'd guess that the EU is showing Greece the door but setting it up for them to take the blame, no relief, etc.
(rhetorical)
100% correct Knucks
Straight out of the IMF playbook. So much so even the IMF told the ECB it would never work TWO YEARS AGO.
I still think Greece doing anything "official" here would be a mistake.
There is no way they would last one week with IOU's.
If they Natuonalize the Banks they Natuonalize everything IN the Bank.
They could announce an "EXTRAORDINARY Recapitalization" involve a write down of say...99.8% of all foreign creditors to say...zero...in exchange for "special select Drafhma's" that say...smell like ouzo or something.
What.happens KEEP THOSE ATM'S WORKING!
Russian Federation port visit to Souda Bay in 3...2...1
Operation nemesis !
I'd guess their next step will be to make a bad example of Greece before others follow suit. Greece didn't specifically repudiate the debt but they did, by plebescite, defy the IMF, the ECB and the Germans. That is the message other debt-slave nations heard, loud and clear. It's questionable whether the banks can even withstand a writedown of Greece with the derivative impacts--they cannot withstand multiple such events. So Nuland's sniffing around but she can't create a civil war and destroy the country without creating division. In Ukraine it took years and $5 billion. It needs to happen fast, before it spreads, but right now they've got 60% majority and they won't be overcome in short order with T-shirts and cookies.
Surtax on any goods coming into Thesolnikki might not be bad.
No monies to Brussells!
"All tax belong Athens now!"
That was exactly Bernanke's logic with Lehman. Make them an example to the rest of the investment banks. "A Lehman moment," which everyone on Bubble Vision is denying that this is, is exactly what this is.
Amazing. The Greek people vote to essentially request a restructuring of their debts.
And in response, the ECB et al, increase the liquidity haircut, tell them no deal, threaten to toss them out of the EU and Euro, essentially instituting another whole round of economic warfare on the Greek populace.
My wife and children voted to request that we not make any mortgage payments, car payments, and get utilities and healthcare supplied for free.
Amazingly, In response, lenders cancelled the credit cards, repoed the autos, froze brokerage account, and began to foreclose on the home. The hospital cancelled the scheduled surgery since we still owed them for several wart removals last year.
It seems that we will be eating more tomato from the backyard and trapping squirrels and starlings for the meat pies.
Those in power have misread history, almost at every possible level.
hmmmm......wrong....those in power haven't misread history...they know very well what they are doing and it imploding these countries with debt then consolidating power from the ashes and stealing their resources
Fuck history!
Put 'em on hold!
Announce agreements with various foreign Governemnts.
START A WAR WITH BULGARIA.
Whatever it takes...
Vet, every time I think I have figured out how you are disabled, you say something that makes somewhat some sense.
I think the Greeks suprised even them selves with their solidarity and resolve, but now have to act fast as the place is under economic siege and time is not on their side. The EU can slow play this.
The people are only going to be able to take so much before people start to get desperate and with a shut out hungry mob, anything Is liable to happen with one nutcase with some idea. Heck they might get in boats and assault Sardinia for all anyone knows, stranger things have happened.
This is a dangerous situation and its going to require, bold or maybe unconventional steps and now. I can't believe both sides were willing to run this kind of risk and end up here, which hints at the desperation of both sides.
Announce a deal with Putin, Bring the Drachma, Pm backed currency, counterfeit, nationalize banks, sieze EU shipping goods in the ports or greek shipping tax taxes but dinking around thinking you have the upper hand with organizations who you have pissed off royally by threating their very existence and have no empathy is not a prudent strategy.Thats no way to lead a county Terp man, without a backup plan.
They both hold a pretty strong card, but the fact that we hear of no follow up today tells me the only plan is to strike a deal, which does not HAVE to happen. You need to bring the fight to them somehow or get them off balance with unconventional moves. BUT GET BUSY. Even the 60 euros will run out soon.
It is a "Mouse that roared" moment.
those in power actually don't feel that they are in the frag-pattern of their decisions.
- Ned
{And, for the god's sakes, please douse the fucking bold message!
thanks}
Their not paying attention to history - their just STEALING.
"Wilt thou seal up the avenues of ill? Pay every debt as if God wrote the bill."-- Emerson
Our current global dilemma that cannot be fixed with fixes
The people that are leading the NWO are as old as history and have little ability to adapt or keep up with technology. They need to die or have their wealth removed from them. When we think of ourselves we never imagine that we as people are like the leacherous degenerates that run the NWO. It is embarrasing to think that oligarchs are of the same species as Zerohedgers.
"Hey, did someone try this before?"
It will be different this time.
Honest question: what happens to the pensioners? They starve?
Afraid so.
I've seen it before, which is one of the reasons why I have no plans to retire.
Yellen pulls out the Bernanke helicopters.
Excuse to not raise rates.
Persioners may end up broke, but most will not be left to starve.
What's gonig to happen to the pensioners in the USA?
Oh, you'll get your SS cheque for $2200...bread will be $500 a loaf but never mind.
This will sound shitty but it has to be said:
"Today's pensioners were the ones who FREELY voted in the ponzi scheme that is now playing out. They KNEW that you cannot get something for nothing but went for it anyway.....and now the young should be enslaved to bail them out?"
Unfortunately, this same thing will happen in EVERY OEDC country within the next 10 years. Current pensioners voted for governments that enslaved the children and grandchildren of those same pensioners with debt.....stealing money by government power from someone who is not yet able to vote is moral?
What goes around comes around. Most pensioners are overweight anyway....so they'll be able to handle the $500 loaf of bread....for a while at least.
Life can be shitty when you fall for con men.
Squid
BEWARE the long-Con - get's em' every time....
In EVERY hyperinflation it is those on fixed income who suffer the most...Always!!
They do what they must as a matter of neccessity - just like everybody else....
The euro was never about stability and peace. That's the party line for the donkey class.
The Euro always was and still is about Central Bank syndicate control over formerly sovereign states.
A colony of debt slaves with puppet rulers who answer only to the money.
Greece has alreadY found it's way out of your rotten system. Greece has practiced Aristotel's teaching and has not sacrificed its freedom for security. The question is...ARE YOU EVER GOING TO FIND YOUR WAY OUT?
Nothing wrong with competing currencies. If Europe wants Greece as its slave country, then they will have to pay through the nose for it. No simply bribing just a couple of weak and vain politicians.
49 1/2 luft balloon haircut.
Somebody needs to start putting the thumb on the Germans.
"The stupid idea that the euro will bring stability and peace"
The discourse is starting to get ugly. Oh, some nice words are said but then comes the sucker punches.
Where have I been? I did not know the 1933 gold confiscation was by FDR's Executive Order.
Obama's EO's are chump change next to Frank's.
This feels like Waco.
Try to starve them out.
That doesn't work, bomb them.
Greece needs to get Russian and Chinese military bases on Greek soil, and then together attack the Fourth Reich from the south, blasting their way through Bavaria and on to the destruction of Berlin. Let's get WWI over with for good.
"The root problem is that the debt is no longer owed to banks, funds and private investors, who know that losses are part of normal business when mistakes are made. In Greece’s case, the money is owed to the taxpayers of other EMU states. The two rescues of 2010 and 2012 - primarily designed to save the European financial system - roped in taxpayers from Germany, France, Spain, Italy and the rest of EMU to provide loans to a Greek state that was already bankrupt. It has transformed a normal clash between creditors and debtors into a fratricidal dispute between European nations. The result of this toxic arrangement is the disaster unfolding before our eyes in Greece."
"Germany's Mr Gabriel said any debt relief for Greece is out of the question at this stage since it would cause a collapse of discipline across the eurozone, triggering copycat demands from other countries in distress. “It would blow up the euro,” he said."
http://www.telegraph.co.uk/finance/economics/11722101/ECB-tightens-noose...
NOTHING IS OWED BY THE TAXPAYERS OF THE EMU STATES. C'mon, does it make sense that a privately owned central bank has the authority to indebt the citizens of a sovereign country?
THEY WANT YOU TO THINK WHAT YOU ARE SAYING IS THE CASE. But it is not. The people and the countries owe the banks nothing... no matter what illegal laws are created by corrupt politicians on the payroll of the banks.
It's all one very long effin; con job to the highest order..... F'em all till the dogs come home...
do it. privatizing police, oh,
how about the next, privatizing
the judicial? there we fall off
into the fascist wet dream, good luck
my fiend.
What about America's homeless problem ?
America no longer has a homeless problem.
We do, however, have a large number of marginally successful independent contractors.
a large number of "marginally successful independent contractors" who are homeless, yes
They are flexible
Lol the US during The Great Depression endured austerity? Really? FDR cut government spending, etc, really? FDR increased spending and had dollar devaluation policy. It worked somewhat until 1937.
http://www.globalresearch.ca/karl-marx-was-right/5452795
no...Marx was off a tad
http://fofoa.blogspot.com/2010/07/debtors-and-savers.html
Better to be off by a tad than being off by being a tad more dogmatic. Scientific theory is subject to falsification whereas dogma is not falsifiable, and cannot be tested empirically in the lab, or replicated by other labs. No peer-review assessment, and we have pseudoscience, religion, and 'belief' systems that are self-serving at best. Frankly, I prefer the logic of Marx, and the simplicity of his base arguments. Marx adheres to Ockham's Razor IMHO. If the theory is simple I automatically adhere to it. Moreover, you are talking to a dyed in the wool Grumpy Marxist. I have been a true blue Marxist for 40 years at least. Since I was 15 and started my own small business I have witnessed first hand how monopoly Capitalism screwed my owner/operator position. Furthermore, the corporate sector grows at a much faster rate than small business does due to borrowing capacity with major lenders. Today, small business cannot get funding from banks in most cases. In brief, small business taught me to pay closer attention to the works of Karl Marx in particular.
The dream of the European Union and the Euro doesn't have to be over. If they prosecute and jail the politicians and bankers who jeapardized the EU and the Euro for personal gain and set an example, then the European Union will survive. If all we see is more nasty aggression and kicking Greece out of the EU then it's OVER and Greece was just the first domino.
The only way out for Greece is to get to a cash basis. They must cut expenditures to meet revenue if they are to seel the economy recover. The best thing Europe coudl do is to walk away and allow them to continue to use the Euro as their currency as it would be very difficult to establish a new currency with any creditbility. The promises of the Greek government were not realistic financially and cannot be paid. The Greek people must adjust to a lower standard of living and the sooner they figure it out the better. It is OK to walk away from previous debts but they should never be allowed to borrow going forward as they lack the discipline to make it work. There is no question that pensions and salaries must be cut.
Considering that all curriencies currently printed are issued without the disclaimer that the issuer is indebted to the bearer, (ipso facto acknowledging that the piece of paper in hand is an IOU with a promise to pay) and considering that the Bankers and Governments are fully aware of the larceny of false promise on issuance and further, considering that they own and condone these counterfeit notes, then they are both guilty of conspiracy to defraud. Governments and banks have successfully hoodwinked everyone on the planet, inculcating us from childhood with the false belief that currency is money and is the con of history.
That the debt is fraudulently created, enshrined and protected visciously through force and is the enabling device of war and debt slavery, then they are all guilty of perpetrating crimes such as false imprisonment and slavery, murder and of the highest accusation, genocide. This system is created by and for bankers and governments and there is no denying their culpability once one becomes aware of its insidious corrruption.
Full Faith and Credit of governments is a treasonous and treacherous act of theft, a funding sleight of hand that avoids the transparency of oversight and accountability. It denys the people a responsible treasury. It is a slick ploy that allows governments the ability to spend money it doesn't have and cunningly provides the government a source for payrolls; all off the back of the unsuspecting and trusting private sector.
Government is not now the benevolent and kindly representative of the people; it is a wealth-sapping and enslaving monstrosity that has been corrupted by banks and captured by sociopaths.
When the civil war erupts, as has always occured in times of collapse of trust, it will be a war between sovereign individuals and sociopathic, mafioso government employees.
If you choose to work for them you will be taking orders from them. However, be aware that; "I was just following orders.", will not be accepted as an excuse in the eyes of the wounded, howling masses when they are baying for retributive blood.
It has always been the way of it.
There is only one way out for humanity....
Eliminate the banksters.
You're half way there.
Okay, I give,,,, What's the other half?
Their enablers. Read my above post for my point of view.
So how much printing was done today to keep all those plates spinning? Not that it matters to a bankster. But to tax payers who will be getting the debt it should.
They did not price in jack shit. They simply are winging it and printing up as much as needed.
As for there only being one way out? Come on. Think it over boys. There are some very good ways out of this mess. None of the good ways get talked about much. That dont change that these options exsist.
The grown ups are starting to catch on. This system is the problem. A better system should replace this one. Keeping only the good parts of the old system.
The first country to get out of the Euro will be the first to recover and prosper.
Those who remain in the Euro much longer will have a very difficult situation for many years .
The first country to back their currency with gold/silver will own the 21st Century.
They should have known from the beginning that a common currency does not work. This is the same as Argentina adopting the US dollar as its own currebcy. It did not work. The only way is to go to a supranational currency for world trade, tied to gold, and all the other countries to have their own currency that they can devalue, if needed, without affecting the supra currency. That was the original idea with the USA dollar, until it was decoupled from gold. That's why the dollar too will go to zero value cause the USA will print more and more to compete with all the other countries that have gone into the printing bandwagon.
The German capital stock was shattered during the war. The debt had to be written off. There was nearly nothing left worth repossessing---Lird knows the Russians grabbed what they could in the GDR.
The Greek elite are well able to pay that debt. They just don't want to.
This is the only way out for Greece in court. The three great men can help them.
https://www.youtube.com/watch?v=sZeqHamjyjU
The one thing about "stupidity" is its infinite multiplicity. Stupidity is the most serious disease on the Planet; not only is it ubiquitous, it is also pervasive while floating on the top of the waters.
No Conspiracy Theories - just applied irresponsible STUPIDITY in the hands and minds of blind and thoughtless Buureaucrats under the direction of the Banking System which remains yet as King demanding its Word be accepted as the Law.
Armstrong is of course, partially but initially correct, but the "research" should have been done before any of this started. The EU was a wet dog then and it is still a wet dog and is nothing but a US wet dream imposed on the Eropean proto-humans that infest bureaucracy, by the so-called elites known as the Masters of the Universe.
Because it never is researched and tested is the answer; such is the cult of economics M.O. and so, Armstrong is correct again.
But as the Bureaucrats work for the Banks and humanity be damned, the Eurocrats demand Blood - your blood, and by Jehovah they will have it and off with their heads in the style of the Merchant of Venice - or, IOW, the same culprits. While the "warrior-priests" tighten the thumbscrews on those that evoke their wanton sexual fantasies. Yes, this has all played out before - over and over and over again, ad nauseum.
The world needs Heretics, not ignorant pious Priests, servants and fools of the One-Eye God called "fiat".
http://verbewarp.blogspot.com.au/2011/02/economic-heresy.html
Ho diddly hum
P.S. But it sure is all interesting; even exciting and better than "Game of Thrones"..
Brilliant Aquarius - Brilliant!
I like that article is solutions based, that it demands immediate action, that seems to call for a Greek Economy that is more a closed loop system than today, that it calls for reduction of value of all debts.
From what I read and understand the plan is short and simple for the first phase and what must take place now to separate from the EU/Euro.
I have to think what is missing. Most systems probably have links to outside of Greece like Credit Cards, Revolving Credit... or at least the Tourist Buiness, Shipping Business, and the Transnationals operating in Greece.
I'm not an expert on the EU.
Question:
How many Government workers are there and how many prior government retirees and how can we put that into context to compare to other countries?
(looks like 5.4% of Greek Population are govt employed, 8.2% Greeks over 15 years of age are govt employed)
http://greece.greekreporter.com/2014/07/21/greek-public-sector-employees... (Jul 21, 2014, In May 2014 there was a further reduction, as only 590,908 employees were recorded)
- Defense employs 87,684
- Education 177,225
- Health 82,389 (doctors)
- Police Officers 62,519
- Local/Regional admin 83,996
- Finance 5,442
- Justice 15,265
- Labor 16,779
- Mercantile Marine 8.079
- decentralized admin 6,579
Population, Total for Greece
2013: 11,027,549 Persons (FRED)
Population Ages 15 to 64 for Greece
2013: 65.68133 Percent of Total (Fred)...So like 7.243 Million Working Age in Greece...
------------
(6.8% of US pop are govt employed, 8.9% of US 16 years or older are govt employed, 14.9% of all US Employed are govt employed)(But these numbers are like 6 months old)
US All Employees: Government: Federal
2015-06: 2.74 Million of Persons
US All Employees: Government
2015-06: 21.9 Million of Persons
319 Million = Total Population (FRED)
115.6 million = Total Households
2.63 people per Household
244.7 Million people over 18 years old
245 Million = Total Population over 16 years old (BLS)
147 Million = Total Employed (FRED & BLS)
- SO USA is a bad comparison and Greek population numbers are older, but would guess USA is about equal or worse in government employment. I would guess that other Countries are much lower percentages of Government Employees due to low Tax Revenue, Low Defense Employees, and The Largess of the USA.
- Social Security is a good Direct Stimulus to the US Economy, better than other Federal Spending, Good help for Velocity
- I'm sure Greece must cut a little bit from those that somehow benefited so well from the system, but maybe there is an age ceiling where you don't cut, and maybe there is a floor for benefits where you don't cut from those in Retirement or living on Pensions and all they get is $20K USD,... The place to cut seems would be those with pensions over $40 or over $60K USD
End the monopoly on the creation of "money" that allows the State to play these games in the first place.
Germany is not the problem here, it is the privately owned ECB. The ECB is using its control of the right to create money in Europe to strip all the EU member states of all their wealth. While Greece is the first domino, Germany is also in the line of dominoes and will eventually fall too if it allows the ECB to stay in charge. What the Germans are doing seems tough and unfair but Germany was destroyed by the private bankers in the 1930s and so the Germans are determined not to let money printing destroy them again. People need to wake up that the bad guys here are those in charge of the system and that is not the Germans but the Rothschild led group of private banks that own the ECB.
You are correct. But one thing I dont see in your comment is "Germany was destroyed by the private bankers in the 1930s and so the Germans are determined not to let money printing destroy them again", BUT they are more than willing to let the bankers destroy other nations. Hell they will even assist said bankers. THERE is where Germany is an accessory to the crime.
Armstrong writes as if returning to the Drachma were some kind of solution. The sad fact is, there are no solutions. The bridge is out and the train is long past the point of no return. So pull the brakes, throw the engine in reverse, and tell the passengers to brace themselves. Or not. Doesn't matter either way now. Next stop is the bottom of the ravine no matter what anyone does.
The return of the Drachma is the ONLY solution. Greece needs to reissue the Drachma, tell the EU to go screw themselves, and carry on. I am certain that the BRIC's nations, and the USA would still trade with Greece. They would recover fairly quickly. The author of this article is one million percent correct.
Prosperity comes from hard work, production and exports, not by monetary manipulation.
I thought the idea of Capialism was to get your Capital working and do as little as possible yourself.
How do you think Charlie Munger got so fat?
His capital is working and he sits on his arse.
The symbols of hard work, the hammer and the sickle, are the symbols of Communism
What are you a socialist?
Hard work?
You just don't get Capitalism (the clue is the name).
I know a guy who was quite smart in our village. He sold pieces of paper which he said bring good luck and health. He sold the paper to everyone for various debts. One farmer owed him 20 kg of rice. another owed him onions. and another owed him chickens and so on and so forth.
This guy then lived a happy live calling out his debts. Every day, he would have a feast with chickens, mutton, rice, etc.
Soon, people realised that now, they actually have less to eat and that the paper did not bring good luck as promised.
Guess what happened? People started complaining.
So our Guy paid some of the "savings" to some thugs, and asked them to educate the farmers of following agreements.
Very soon there were 49% of the village were dependant on the Guy while the rest of the village were pushed harder and harder into a bad life. Production kept going down because a lot of good and smart villagers moved far far away.
and then.....
Greece's debt is not serviceable/repayable in relation to its real current and possible GDP and revenue collection.
First steop must be to reduce debt to a level that is Genuinely serviceable and that does not shrink GDP and its growth. If this cannot be done then it becomes total default because things will simply cascade downwards.
Second step must be to trade with a currency that is competitive, or Greece get compensated through regular Transfer Payments for its losses in using a currency too strong. BUT the truth is the nature of the Greek economy is that it should never be using the same currency as Germany.
It has to sort out its debt problem first. Either there is a significant restructure that makes it possible to service and repay using real world scenarios, or if the Troika wont come to the party, the only option is nuclear default, else permanent debt poverty continues.
If it can restrucutre debt to a rational level, then it can look at currencies and or import Tariffs to make local business competitive with imports.
Obviously, that "economist" guy ain't no Nobel Prize.
My, my, my...
The german hyperinflation was caused on purpose to get out of the war reparations not gov't spending, no journalist can't say this on the media because hyperinflation boogieman is very useful political tool to whip the population to a certain direction.
DOUBLEPOST