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The Greek Economy Is Finished! A Quarter Of Firms Shifting Abroad
Capital controls imposed by the Greek government are taking a heavy toll on Greek businesses, according to a new report from Endeavour Greece. With over two-thirds of respondents reporting a "significant drop in revenues," and 1 in 9 firms forced to suspend production due to shortages of raw materials (unable to buy due to capital controls), the problems created by The Greek government's action seem asymmetric as almost a quarter (23%) of firms are now "planning to transfer their headquarters abroad for security, cashflow, and stability reasons."
Endeavour Greece, a non-profit group that supports entrepreneurs, found that 58 percent of the 300 companies it surveyed between July 13 and July 17 reported a "significant impact on their operations caused by the limitations imposed to cross-border transactions."
"Many of these companies cannot import raw material or have access to foreign services and infrastructure," the group said in a statement, adding that 23 percent "plan to transfer their headquarters abroad for security, cash flow and stability reasons."
More than two thirds of the companies – 69 percent – reported a "significant drop in turnover," with 11 percent forced to decrease or suspend production due to shortages of raw materials.
Greece imposed a raft of capital controls on July 29, closing the banks and restricting cash withdrawals in a bid to prevent a disastrous bank run from draining money out of the financial system.
Banks reopened on Monday and restrictions on cash withdrawals have been partially relaxed, though the capital controls remain in place.
Endeavour Greece reported that businesses were facing "significant impediments" due to the continuing ATM limits, but on "a smaller scale."
Nearly half of the companies – 45 percent – said they had been forced to postpone payments to suppliers.
This offers little hope for a silver lining as the nation is hollowed out. As Jeffrey Sachs notes, the formula for success is to match reforms with debt relief, in line with the real needs of the economy.
A smart creditor of Greece would ask some serious and probing questions. How can we help Greece to get credit moving again within the banking system? How can we help Greece to spur exports? What is needed to promote the rapid growth of small and medium-size Greek enterprises?
For five years now, Germany has not asked these questions. Indeed, over time, questions have been replaced by German frustration at Greeks’ alleged indolence, corruption, and incorrigibility. It has become ugly and personal on both sides. And the creditors have failed to propose a realistic approach to Greece’s debts, perhaps out of Germany’s fear that Italy, Portugal, and Spain might ask for relief down the line.
Whatever the reason, Germany has treated Greece badly, failing to offer the empathy, analysis, and debt relief that are required. And if it did so to scare Italy and Spain, it should be reminded of Kant’s categorical imperative: Countries, like individuals, should be treated as ends, not means.
Creditors are sometimes wise and sometimes incredibly stupid. America, Britain, and France were incredibly stupid in the 1920s to impose excessive reparations payments on Germany after World War I. In the 1940s and 1950s, the United States was a wise creditor, giving Germany new funds under the Marshall Plan, followed by debt relief in 1953.
In the 1980s, the US was a bad creditor when it demanded excessive debt payments from Latin America and Africa; in the 1990s and later, it smartened up, putting debt relief on the table. In 1989, the US was smart to give Poland debt relief (and Germany went along, albeit grudgingly). In 1992, its stupid insistence on strict Russian debt servicing of Soviet-era debts sowed the seeds for today’s bitter relations.
Germany’s demands have brought Greece to the point of near-collapse, with potentially disastrous consequences for Greece, Europe, and Germany’s global reputation. This is a time for wisdom, not rigidity. And wisdom is not softness. Maintaining a peaceful and prosperous Europe is Germany’s most vital responsibility; but it is surely its most vital national interest as well.
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Are the Greeks happy their votes didn't matter? They will have to be beggars for bare essentials of life just to pay the debt game?
Have they no pride? Humanity? They now stand as a conquered, humiliated country.
Die in place, or die running?
Not to Fret - Just as long as the Banks get their's
We are all greeks!
We are not. Greeks are like the trailer trash outside of Bristow, TN.
Bristow is in VA.; perhaps you meant Bristol, TN?
There are a fair number of really lost people in Barstow, CA as well. Being homeless sucks. Being homeless in the desert sucks more.
Greece is hot too.
Greece will be fine. The citizens just have to learn how to bow to their new German masters. Saurkraut and sausages for everybody.
Are the Greeks morons?
Why do they want to remain in the eurozone subject to this chaos?
It doesn't make any sense at all.
Is this the start of economic ethnic cleansing - to leave a land with no people?
Yep... Just like Detroit.
Good luck to Germany getting anything from Greece now that they turned into one big Detroit!
it makes sense when the quest is total control. one world currency/banking center cashless. moar programming of the masses and the paridym shift will be in place. next will be some shocling event to take moar liberty. ps. i thought greeks had some moxy. hmmm guess not.
Controlled Demolition of the Greek Economy
Nun Herr Myer, genau das, was es kosten wird, um die Akropolis auf dem Berchtesgaden zu bewegen,
und wie schnell können wir es schaffen.
delete "incredibly stupid" and insert "intentional"
It is easy to romanticise a grexit from a theoretical perspectiveas it makes sense long term.
The fear propaganda is blasted 24/7 on tv and radio and perpetuated socially.
Too many depend on the current system continuing to get their next meal or simply keep their gvt post or oligarch status. So they choose slow death over sudden eliminayion.
But yeah, like everywhere, there are morons in greece too. Especially after years of braindrain..
Ps-- over the past 30 years or so and especially the last 5 greece has killed the goose that lays golden eggs so grexit will not be like i eland; it will be rough, but must be done for future generations and so ereignty. It still has dirt, sunshine, beaches, mountains and shipping.....
It makes sense for the greek which do have savings. If they leave the EUR they will be subdued by their central bank. They new drachme will loose around 30 - 50 % of it's purchasing power within a month and that will not be the end. The greek national bank will start printing money. Or do you believe they will introduce a money and not a fiat-paper-sheet?
it is called being cornered - damn if i do and damned ....
politicians are part to blame as they know wtf is happening, but the majority are to dim to
fully grasp wtf is happening. AND IF I TRY TO KEEP IT SIMPLE AND EXPLAIN, the blank lost look almost every time. or the wtf is wrong with you look, compiracy stuff.
and that concludes with the fact that:
merica in the same situation, only titanic proportions.
iceberg ahead, oh well get a drink at the fed fiat bowl and party on dude.
just fucking hopeless JFH.
This is precisely what I projected on ZH two days ago and also a couple of weeks ago that if Greeks are not allowed to depreciate their currency (and by extension all the goods and services that they produce) but continue to be forced to sell their goods and services to the rest of the world at the SAME price as that of Germany then there is simply no viable short term solution.
In the long run, couple of years down the road, Greeks will EVENTUALLY default AGAIN because no where in the world anyone has been given loans to repay their past loans to the same group of people AND SURVIVE thereafter.
It is simply not going to happen. But the future IMPLOSION of the Greeks and the Italains and the Cypriots and the Portuguese will be phenomenal. You may notice that I purposely skipped Spain because I believe that Spain is undergoing a mini renaissance by keeping their real estate low for whatever may be the reason and is able to attract more investments, more tourism and certainly have 5 times more population that that of Greece or Portugal plus their language connectivity to Latam and Philippines is very uniquely Spanish and cannot be replicated by any other EU nation that is keeping Spain alive!
You may read more here.....http://www.zerohedge.com/news/2015-07-19/streets-athens-will-fill-tanks-...
Spain is France; Greece is Portugal and Ireland. The perifery will burn first, but remember, it is already up in flames.
What is needed is larger and stronger central governments to force rich people to subsidize those who lack the greed gene that drives rich people to work and save.
Holland is right!
Can we still say "workers unite" when they really don't want to work?
If workers really did unite the moochers would starve. Those at the top and the bottom.
If workers really did unite the moochers would starve. Those at the top and the bottom.
Just so you know...I am going to steal that line, OK?
Greece is not an island ! (like Cyprus) So many can just get up and walk across the north or eastern borders. Or maybe a skip over to Italy. There are so many options to move around in the EU. Maybe go to Germany or Belgium. Done.
So will Greece become the workers leper colony?
It will be replaced by young poor working for travel, hotel, vacation industry...for minimum wages, drinks, and bed. The Greek economy will take many notches down and then the EU will take its house cut off the top before it gets to the people. If tourism becomes firmly established (like 90% of the Greek economy), similar to Las Vegas, it might work out but will be very long to get better. In the meantime they will have plenty of cheap labor coming over from Africa. Eventually it might work out, but not too much better than PR.
"Germany has not asked these questions."
this is about colonialism in Europe - Germany wants only certain business in the colonies the rest was for the motherland just as England did in Africa, Asia, India colonies - dont develop - just have them make raw materials - England took all the banking and money with them after the independence of Ireland in the 20's - they were devastated - no outside investment
In this case tourism only for Greece
the end game is Murder by Neglect for most of the population and the rest will have no jobs outside of the travel business - so they need to get out
the real estate is going to get really cheap!
Greeks are fucking morons - they should have slit the throat of every politician and walked on all the debt - stood on their own feet - and blow up the system
Greece is not an island !
WTF go look at a map, I guess all those Islands in the Aegean don't count.
They don't. Most Greek population is in and around Athens.
Sure. I'm only here to share.
Voluntary distribution.
Oldwood you seem to have it backwards, stronger centralized governments have forced labor to subsidize the rich. Bailing out the banks on the backs of the taxpayer, inflating asset prices and enriching those who have it instead of allowing capitalism and price discovery from occuring. In this country ZIRP stealing from savers and the retired to continue bailing out the reckless gamblers TBTF, Privatized profits then socialized the losses. It goes on and on over and over.The game is fixed the officials our government the fed the banksters and politicians from both parties have rigged the game and picked the winners and losers.
So, what are you going to do about it?
Probably have a cigar and some whiskey and observe the proceedings. An observant but detached fatalism seems to be the healthiest mental state for me.
Hey, same as me. Except wine rather than whiskey, and some Chemdawg 4.
Life is good. Banksters don't bother me.
wtf can one do?
opt the fuck out to a certain degree.
debt free, and free to roam about, a preppers dream.
or get at least be 100 miles from a major population center.
and relax and get down to it....
split wood, ect
garden, ect
reload brass, ect
mend the shit gone bad, ect.
mind my own business, and fuck the rest
unless it is a like minded neighbor...
I fret from 4-5 pm on Wednesdays.
If I remember.
Centralized governments in conjunction with financialists pass ALL costs to the taxpayer/consumer. There is no escape other than to minimize our engagements in the corrupt system. Self sufficiency is the only alternative. Otherwise you are a dependent, even if you live by the strictest conservative principles. The money in your pocket is theirs.
"America, Britain, and France were incredibly stupid in the 1920s to impose excessive reparations payments on Germany after World War I."
alright, hold on just a damn minute here... did the person who's quoted even bother to read history or Wilson's Fourteen Points? Did he bother to notice that, although Britain was interested in reparations, they were more interested in keeping Germany a strong trading partner post-war?
you want to lay the revenge motive on someone for the Treaty of Versailles? look no further than France... to this day they're jealous of what the Germans have accomplished economically right at their very doorstep... they don't want to do that themselves, fuck no, that's WORK, they want to TAKE that from Germany... it was so then, it is such now...
edit: oh yeah, not to mention that the US never ratified the damn thing... sheesh...
THIS.,..IS.....NOT....A....DESIGN...... FLAW....REPEAT.....GET IT!?
And they are just figuring that out after 10 years or so?
The dull tools in the shed will not even speak to the Greeks.
All hail the mighty Y-Anus!!! Fucking guy makes Hugo Chavez appear to have been an expert in euclidian geometry.
It is possible he views this as a necessry step to an eventual Icelandic type Grexit. " The game ain't over till the fat lady sings"
He can view it anyway he likes. He can pontificate until the cows come home. Until then, the reality is that he pussied out and fucked his countrymen.
Well with the "Banking Cabal" and "Murder Inc." surrounding you and threatening your family; I wonder what you would do? You get the point, but neither of us would get ourselves into such a position in the first place.
"neither of us would get ourselves into such a position in the first place."
so are you sayin he has much bigger sac...
Yasu
And if the Germans forgive the debt, what does that mean for derivatives? And are they supposed to loan more after forgiving existing debt? I wouldn't, but I'm a hater.
Lol
The fuckers haven't paid any debt. All they've done is borrow more to pay debt.
They haven't had any money in years and they're still milking the EU. That's why the Germans want it to hurt.
Meanwhile....:
"ATHENS, Greece (AP) — Greek authorities say a boat carrying 150 to 200 migrants has been located adrift in the eastern Mediterranean Sea, and two merchant ships have reached it to offer help or evacuate the vessel if necessary."
So what you are saying is that Greece's solution is in cheap illegal labor?
Soon Greeks will be moving to North Africa for jobs.
Shit always runs downhill.
While everyone that can get on a boat moves to Greece to run their vacation economy...which is all that will remain very soon. It will be Club Med everywhere, on every island, but few Greeks will be serving drinks and turning down beds. Its the same in California hotel and cruise industry, and all vacation industries. The only remaining companies will be employment agencies and hotels.
Fuck Deutschland Uber Alles.
Finally I see white people go down...
Nothing like a fool who takes the "race" bait...hook, line and sinker.
Duude! Where you BEEN the past 50,000 years! There are, and always have been far more white slaves than there exist non white people.
Imagine how many companies would be moving out of Greece if they didn't take the bailout and the banks remained closed indefinetly.
If I impair your ability to make money, I am not reasonable to expect you to be able to repay me. What part of this are they missing?
I should not loan you any more money. I certainly should not shut down your economy by shutting down your banks. I made that necessary by threating your banks in the first place. There would not have been a bank run if I did not threaten to take your deposits from you.
Are you going to tell me they did not think of all this?
You have to leave the host's heart beating if you expect to get more blood out of it. This is so dumb, unless you just want to harvest and sell the host's organs.
Everything points to us not, even yet, having the whole story. It does not add up unless they are just stupid. I don't buy it that.
They are sacrificing Greece to the God of Finance as a warning to Spain and Portugal and perhaps to Italy and France. Ireland for now has toed the line..
Italy for sure. Schaüble sees Germany-France-Belgium-Luxembourg-Netherlands as the core, full-fledged members. Italy is not "disciplined" enough.
The thing you're missing is that there are people involved in these decisions. Except they're not really people. They're dangerous sociopaths, and they used to work for (and are still heavily invested in) Goldman Sachs.
Also: "You have to leave the host's heart beating if you expect to get more blood out of it."
Not if you have life insurance, in the form of outrageous amounts of CDS's, betting heavily on the death of the host. Again, Goldman Sachs.
Too much at once and you must consider counterparty risk...they may not pay off.
This is really good news for the moving industry.
If they get paid upfront.
Greece is a picture of exactly how the Central Banks, via debt mechanisms (enslavement) ruin nations. They have done it several times in throughout US history and the last Patriot that stopped it goes all the way back to Andrew Jackson.
https://www.youtube.com/watch?v=waetWPG_W7o
The Federal Reserve Bank Conspiracy Explained - Century of Enslavement----------------------
Best documentry on the Federal Reserve history and as the saying goes "All wars in recent history (150 plus years) have been "Bankers Wars"" and they have much blood on their hands, but they will ultimately pay in eternal damnation as will all who deny such a great salavation offered by our Creator.
BTW - no nation wants out of the EU more than Germany; this may very well be the way they do it by allowing the EU to implode on itself. Time will reveal all.
optimist
ALL YOUR GYROS ARE BELONG TO US...
There is no reason why the ECB who owns most of the debt will not restructure it. Clearly it will help them monetize Europe... Furthermore the cost of restructuring it over 50 years is minimal and will do much in improving the cashflow situation of Greece. The only issue, I think, is how misguided are the austerity measures imposed on Greece as it can only cause more recessionary / depressive economics on the Greek economy and make the cashflow situation worse. Interestingly in a 0% economy, the key parameter is cashflow and EU has yet to resolve from whose pockets they will take the 80 Billion additonal bail-out? Key dates are Aug 7-20 as Greece will need cash...
You may be correct to an extent, but you must remember that Portugal, Spain, Italy and France combine to make a very large debt flotilla looking for an ECB rescue; therefore the austerity pain must be great on Greece as a warning to keep that flotilla from docking.
I'm amaze how many people here blames the greeks, speaking nonsense, ignoring the reality of sovereign debts not only in Europe and the way the Eurozone is working, under the control of few people detached from Humanity. Most people in southern Europe is living in fear, a control tool to dominate and ensure slavery.
The greeks, however, are very close to have nothing to lose and that's when fear desappears...
These idiots have been bailed out 3 times in 5 years. They can't even make the lowered new payments on their past failed bailout payments. Greek leaders knew they couldn't pay these debts, but they accepted them to keep things going as long as possible.
The Greeks voted to join the Euro Deathzone. Then they compounded the error by continuing to elect leftists.
This is called bad luck.
Wait, did they really? I don't remember that. I remember key people who were paid by Goldman Sachs to orchestrate (and get conpensated handsomely for) cooking the books to gain them entrance into the Euro voted for it. But did the people want this? It's an honest question, because I don't remember it going down anything like that, and my google-fu is failing me.
No, the banks that made bad investments in Greece got bailed out. Greece still needs to pay back these bailouts, with interest. The banks got off the hook while the EU taxpayer got on it in case Greece defaults (that is wy Greece is not allowed to default cause then the taxpayers might find out they were screwed by the EU/ECB). Not one thank you from these banks. The Greek might collectively made a mess of their country but the banks happily provided them the credit while everybody knew that Greece was a basket case. Taxpayers should not pay for the losses of private investors.
http://www.economonitor.com/blog/2013/06/corruption-eurostyle-ecb-chief-...
"A new story by Financial Times shows that Draghi and the ECB had far more to hide than the Greece scandal. It appears Draghi was directly involved in arranging similar, much larger transactions for Italy while Draghi was the director general of the Bank of Italy, in 1999. Draghi then went to Goldman. The FT also reports that Draghi’s deputy on these deals, who left the Bank of Italy in 2000, returned as director general in 2012 with Draghi’s support."
Thanks for this. Just follow the money trail and you will always end up with the giant squid. Goldman also helped the previous Greek governments to cook the books so they got into the Euro. GS got a billion dollars for their services. Samaras -the PM that replaced G-Pap after he proposed a national referendum on the previous bailout orchestrated by Van Rompuy, Merkel and Sarkozy- always was/is an GS man.
"German leaders, the IMF, and the ECB knew they couldn't pay these debts, but they lent them more to keep things going as long as possible." There, fixed it for you!!!!!!!!!
Everbuddy likes fishin fo dat cheeps credits but doan likes it when dat hook gets cot in dey ass.
Can't see many Greek companies upping sticks and moving west with the greater costs and competition.
I wish Golden Dawn were half as nutty as Right Sector who wouldn't eat the Politician's shit.
These losers deserve whatever they get
Actually they "voted" to reject the bailout and basically leave the EU. And this is what happens when a population is not allowed to own guns. Hard to stand up to the banksters unless you start shooting.
global taxes, global terrorism, world government, what am i missing.
.
accountability?
.
good day to be a "hero".
And yet they refuse to leave the euro. Fancy that.
Whoops!
Stick a fork in it.
Germany does it again. Three times in a row. Pretty scary people.
Could you get some facts straigt or is it beyond you capabilities? Explain to me in simple words. Why does Greece have all the debts?
And how could Germana do anything by itself if Greece would not have this debts?
You can't and you make it dirt cheap for yourself. Don't thing, don't argrue just blame. Find you scape goat and that's it.
Great, that leave the pensioners, sick, civil servants and children to pay for €360B+ loans from German Banks.
Oh, wait...animal spirit! </sarc>
Who came on this idea?
Fuck the EU!
Fuck the Fed.
Sorry, but this is nothing but wishful thinking, because Greece is in Detroit mode now. This is where socialists boost their political power, by driving away private sector people and their capital. This is a process that feeds on itself, and no recovery is possible. Once you allow the FSA to form a dominant voting block, the only thing you can do, is wait for that generation to grow old and die off.
That ANYONE in Greece is still against 100% DEFAULT, exit EU, exit euro proves that humans are utterly, totally, completely beyond hope.
A whole lot of very terrible who spent decades setting this whole thing up are making a whole lot of money.
socialist regime in greece BOOSTS economy AGAIN - YIPPEEE!!!!!!!
exactly what they want, greece will be a hangout for german oligarchy without those pesky greek people being in the way, the EU IMF etc all want fecking hanging i am ashamed to be a human being, things are only going to get worse for everybody except the banksters, i am glad i am nearing the end of my days on this shithole, i feel sorry for the next generation, they MUST wake up
Yesterday it was Cyprus, today it's Greece. Tomorrow it could be Spain, Italy, France or even Great Britain -- or all four.
I can tell you why Germany is treating Greece so badly in one swift quote:
“You have not anchored Germany to Europe,… You have anchored Europe to a newly dominant, unified Germany. In the end, my friends, you’ll find it will not work.“ – Margaret Thatcher
The Fourth Reich has landed.
Among other places, you can find a bit of info on it here: https://glblgeopolitics.wordpress.com/category/the-fourth-reich/
If someone is to blame then the Greeks. They have taken all the debts they could get their hands on. Very easy not debts, no trouble. Many debts, much troubles. Life is not difficult and if it comes to debts its very easy.
You can't prove me wrong, why don't you blame the greek politicians which have collected all that debts?
Today it is Greece, tomorrow it will be the U.K, or the U.S. That will be when I really start breaking out the popcorn!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
I'm not joking. For too long the willfully ignorant masses have taken too much for granted. Become decadent, docile, indifferent. I don't have empathy for them. I have empathy for people like the East Timorese, who were slaughtered by Suharto and his mates like GHW Bush
90% of german managers are for close ties to BRICS.
US does not want and occupies Germany since WWII.
What does Germany do?
Detonate a greek bomb to get rid of Americans in Europe.
The Greek bomb should bring alsoother countries to detonation, let American gringos forget EU and EUrope and Germany........
Simply Germany wants to weaken the EU and NAto and US.
Germany wants to get free even, if it costs the EU and EURO Project.
Does anyone else find it ironic that the Germans are demanding of the Greeks, what the world demanded of Germany after WWI?
I find ironic that the comparison is made where there is no comparison to make
Germany after WWI lost territories, overseas and ancestral, had to pay up in coal, iron ore, steel, gold, silver, grain, potatos and foreign cash, after being starved for nearly one year, from armistice to peace through a physical embargo
Greece... just got more credit. It's position, in regard to WWI, reminds me actually of the UK getting more and more credit from the US then that of Germany
There is no FUCKING comparison between a war aftermath and the fat lazy greek pigs that have been EATING WHAT THEY DIDN'T EARN FOR DECADES. All be cause of a socialist welfare state
LETS MAKE THIS SHIT CLEAR ONCE AND FOR ALL !!
Anybody who still had any assets in Greece by now deserves to lose every cent, so forgive my lack of sympathy.
The table's a treat. Basically what remains of the business commnuity have only one policy priority---the lifting of capital controls so they can do what they should have done five years ago, namely cash out and run like hell. They want a do-over, not reform. They're no longer even all that interested in forcing their competitors to pay taxes.
That improving education is precisely nobody's priority says it all. That would, in other circumstances, be a sound investment in Greece's future. Problem is, Greece has no future.