Three Charts That Confirm Greece's Death Even After Restructuring

Tyler Durden's picture

Perhaps after today's budget miss in the Hellenic Republic it is time that the focus shift from the reality of a pending #fail for the voluntary PSI (for all the reasons we have at length discussed no matter how many headlines the markets tries to rally on) to a post-restructuring real economy reality in Greece. Whether self-imposed by devaluation or Teutonia-imposed by Troika, austerity is in the cards but there is a much more deep-seated problem at the heart of Greece - a total and utter lack of innovation and entrepreneurship. As Goldman's Hugo Scott-Gall focuses on in his fortnightly report this week "the competitive advantage of innovation is one that developed markets need to keep" and in the case of European nations that desperately need to find a way to grow somehow, it is critical. Unfortunately, Greece, center of the universe for a post-restructuring phoenix-like recovery expectation, scores 0 for 3 on the innovation front. Lowest overall patent grant rate, lowest corporate birth rate, and highest cost of starting a new business hardly endear them to direct investment or an entrepreneurial dynamism that could 'slow' capital flight. Perhaps it is this reality, one of a Greek people perpetually circling the drain of dis-innovation and un-growth, that Merkel is starting to feel comfortable 'letting go of'. Maybe some navel-gazing after seeing these three doom-ridden charts will force a political class to open the economy a little more, cut the red tape (after a drastic restructuring of course) and shift focus from Ouzo, Olive Oil, and The Olympics. We also suggest the rest of the PIIGS not be too quick to comment 'we are not Greece' when they see where they rank for innovation.



As if these were not bad enough, via Wikipedia, we also note the following three fun facts about the glorious Mediterranean nation:

Greece has the EU's second worst Corruption Perceptions Index after Bulgaria, ranking 80th in the world, and lowest Index of Economic Freedom and Global Competitiveness Index, ranking 88th and 90th respectively.

Quite impressive...and no wonder 5Y CDS held their high cost of protection even when immediate credit event triggers were doubted...sooner rather than later they will default again unless something drastic changes and our admittedly premature discussion of more violence is becoming more and more likely every day as social unrest seems the only catalyst for change in a surreal world of central bankers, banks, and politicians.

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JPM Hater001's picture

"Greece has the EU's second worst Corruption Perceptions Index after Bulgaria"

It just keeps coming.  Again...Did I mention it's a game to cheat the government in Greece?

AUD's picture

That's fair enough. Everybody should cheat the government, after all the government has been cheating everybody else for close to a century at least.

Oh regional Indian's picture

Hey Greece/Ireland.... I have innovation enough for both of you. 

Shame, that so many have to suffer when the answers are ALL HERE.




Oh regional Indian's picture

Typical of narrow minds that abound. Down arrows.... even more fascinating.

Yet not one genius has even bothered to ask something like "Hey, can you prove any of this?". 

But got to dig deeper, find some financial arbitrage opportunity, stare at some more charts, go round eyed... funny funny people. 

Well, y'all remember ori, okay?

And missed opportunities. ;-)

Be clear soon enough.


Oh regional Indian's picture

nice, more down arrows. Go for it folks.


First they ignore you, then they abuse you, then they fight with you, then you win! 


CharlieSDT's picture

Dude, I like your commentary on ZH, but astrology is retarded.

Oh regional Indian's picture

Charlie, we can leave astrology aside for a minute. Or for-ever.

I'm talking innovation. Electric Cars with Qudruple range, aircraft that fly longer/safer/quieter, radical new bicycle, wind-power, properly applied, a new shoe, a new understanding of the human body, or bio-mechanics. On and on.

That is what I've been saying here and generally. 

Enough for a nation to pull it'self out from a greece like situation, show the middle finger to the oligarchs and make life better all around. 

But everyone prefers that such radical change comes to them via someone else. 

It's too painful to shatter old delusions. Or so it seems anyways.


Oh regional Indian's picture


A New Shoe.

We went that that far wrong on the path of technology. 


trav7777's picture

dood your a genios.

only "TPTB" stifling all of your miracle inventions is causing you to be a babbling nobody on ZH

francis_sawyer's picture

When you can come up with a nice flying carpet I'll pay more attention...

Piranhanoia's picture

Your reward is that you can think ORI,  keep it up.  Even on this site, there seems to be a lack of the ability for creative and unencumbered thought.  As you can see, they feel threatened by letting their minds wander, but get really hostile when you challenge their beliefs.

chindit13's picture

I’m looking for some new underwear.  Actually, it’s old underwear that for reasons unknown has gone out of style.  I used to buy these really comfortable powder blue Pima cotton boxers that…how can I say…let a man be a man.  Really comfortable.  A few vendors used to sell them, like Neiman Marcus, Nordstrom and Saks.  Everybody but Saks stopped, and even Saks changed the design so the old fit is gone.  Plus, I’ve always kept in shape, so the waist is still 32”.  Geez, try to find that size in the US in anything, especially if one is tall to boot.  Can't be done.  Maybe if I ate another hundred cheeseburgers.  Is it too much to ask to have a comfortable pair of boxers?  We can send a man to the moon (or Arizona desert for the conspiracy crowd), but can’t we make a comfortable pair of boxers?  I don’t mind paying up.  If I remember correctly, they cost $32 a pair, but well worth it.  Truth be told, I’ve actually started growing my own Sea Island cotton in a secret and undisclosed location (no kidding), I’ve located some folks who know how to turn the cotton balls into thread, and others who have a loom and can weave the fabric.  Very low tech but high quality. There is no length to which I will not go for comfortable boxers.  Everything in life stems from a free and comfortable fit right where it counts.  Perhaps I can put a Zerohedge logo on them and sell them at the ZH store?  No way I'm going Eurotrash or French Canadian and wearing bikini briefs in a black mesh!  Boxers=freedom.

Just having fun, ORI.  Hope you can smile.  Namaste.

GovtMediaLiars's picture

I'll probably regret this but...I'll bite.

I've probably heard a million differen plans to achieve a "post-scarcity" utopia. It is usually being espoused by some mindless, collectivist drone type. But not always. 
I've yet to be even mildly swayed by any of these arguments that I have so far come across but I remain a (reasonably) open mind in all things.
(though tbh most of the dozens I have either read up on independently, or been "preached" to about  by others don't amount to much more than lots of bare assertions with some imaginative dreaming thrown in. Rarely do they even reach the level of making an actual "argument" in my experience).

What have you got?


Oh regional Indian's picture

Well GML, i've laid it all out on the linked post above.

Contact details and everything. 

What I've got. Hmmmmm......... it really depends. Whatever area you speak of, if it involves technology is some real way, I've got something direct or tangential.

And each "thing" goes in three phases, retro-fit, re-fit and re-new.  

Do get in touch if called. Not sure who you are are what you do, but i'm open to discussions all around.


Treason Season's picture

He's not a dude. He's a guru swami wannbe looking for kool-aid drinkers tragedy waiting to happen.

BandGap's picture

ORI - chill.  Here, an up arrow, I appreciate your take in the mix of things.

BTW - that blog doesn't exactly flow.

Oh regional Indian's picture

;-) Bandgap, this is seven years on, so I'm a little worn. Not making it hard, but not easy either. Fancy presentations, slick graphs and projections? Lead to the same old same old, no? Been there, done that. 

Perhaps getting to a mother-lode should be a little hard? 


trav7777's picture

yeah, your site is a mother-lode all right...a lode of bullshit

adr's picture

What, you don't believe in pyramid power or renderings without any real engineering or applicable design?

IrritableBowels's picture

"remember ori.."

Does that mean you're going away?

jeff montanye's picture

speaking of innovation, the patent chart gave me pause: percent granted?  out of what, applications?  what about the rate of application?  shouldn't the focus be on something like patents granted per 100,000 population or something like that?

Town Crier's picture

A psychopath moves sequentially in three modes: rescuer, victim, abuser.

HedgeAccordingly's picture

with death.. comes new life.. or something like that .. 

euro bidding again tonight & dollar -

TruthInSunshine's picture

This is the core problem with most of the Eurozone Members, to varying degrees, the UK, and sadly and increasingly, the United States, as well (we're snoozing).

The United States had been an innovator and incubator of new business models, products, a leader in R&D and a vibrant petri dish of entrepreneurship up until as late as the mid 90s (although in diminishing fashion), but at an overlapping period, beginning in the 1970s, financial services and banking (as well as the entire FIRE complex) became Deep Capture machine, and finance/banking interests expanded their influence in Congress greatly, culiminating with the diastrous The Gramm–Leach–Bliley Act (Financial Services Modernization Act of 1999), and the expansion of the financial/banking sector as producers of an ever increasing share of U.S. GDP, much in the fashion as what took place in England.

But most Eurozone Members are far worse, with massive, bloated government even by our standards (though we're doing well in catching up), a cradle-to-grave welfare mentality, and entitlement programs that there productivity and demographic patterns can't possibly sustain.

This is why Germany & the minority block of solvent Eurozone Members who have their financial house in order (and Germany had to go through the painful process of reunification with the former East Germany just 24 years ago, which cost them a fortune) are shooting themselves in the foot, and head eventually, to try and prop up the current Eurozone in anything remotely close to the shape it now takes.

The proposals on the table are not going to resolve the defects that caused the crisis. Germany can post all the personnel in Greece (and Portugal, Ireland, Spain, Italy and France, too) that it wants to, and it won't change anything. There's not going to be any material repayment of loan packages (especially with the economic contraction underway and getting worse) or reformation of the system because it's more about culture than anything else.

The common currency zone of Europe allowed the perpetually indebted to borrow beyond their means, with the deficits and debts papered over by phony accounting, periodic bubbles in real estate and other assets (Spain is a prime example of this), for a time being, while the idealogues proclaimed "see, it's working out well!," until everything was exposed, in a factual matter and unequivocally, for the broken system it is.

Now, it's either print at warp speed and suffer massive debasement of living standards anyways, with the inevitability of having to return and do this againa and again, because the underlying defect causing the problems can't be 'fixed,' or cut the losses and recognize reality and wind it up as a failed experiment.

knukles's picture

See, I toldja so.
Just goes to show what the World Bank knows.  The charts are about Europe and they have the US in them.  Betcha they were made for a CNBS presentation.
Like this morning on CBS radio's MarketWatch.  They reported a rally on Wall Street with the Dow up 36, the NasDick (I don't remember) and the S&P up 4 because of the good news out of Europe concerning Greece.


Gonna go do my TurboTax return tonite on the TimmyGetitupyer Edition....

Oh and PS...  Which one of the Fed governors was it that holds $1.0+MM in GLD?  Does that news make him a suspected turderust, too?  And what about the Fed/Treasury, because they own a lot of the traditional barbaric relic.

Lost in Pabulumistan

Harlequin001's picture

'The charts are about Europe and they have the US in them.' Yes but they also have New Zealand, Brazil and Australia and others. It's 'take your pick' time depending on what point you wish to make...

'Which one of the Fed governors was it that holds $1.0+MM in GLD?' Never thought I'd feel good to see investors lose money but you know what, when GLD finally folds it will be to a wry smile on my face...

Babushka's picture

Corruption preception index,  Index of Economic Freedom and Global Competitiveness Index  made by and using statistics from organizations like the World Bank, the International Monetary Fund and the Economist Intelligence Unit, African Development Bank, the Asian Development Bank, the Bertelsmann Foundation.

Hmm.. I am sure those guys know everything about corruption in end of days that how they achieved own economic compettitiveness and freedom while establishing themself in Asia, Afrika, South America and Greece.

Good sourcing Tyler!!! Bravo!!! Sarc/off

Seer's picture

I think that you're still running from the TRUTH...

As long as the premise is based on perpetual growth on a finite planet it doesn't matter WHAT is done, it will STILL end up in collapse.

To state one of only TWO major events in the 1970s is a clear indication of this blind eye.  The other event that people miss is that of peak US oil production, of it then going going over the top of the parabola, from being a net exporter to a net importer.

"Innovation" and such is only as good as the physical resources available to apply toward such ideas and processes.

The fact that ALL wars are about resources should be a clear indication that the fundamentals are ALWAYS based on the PHYSICAL.

battle axe's picture

For the love of all things holy, will they please let Greece go so that they concentrate on the big problems, Spain/Italy.

bob_dabolina's picture

"the competitive advantage of innovation is one that developed markets need to keep"

Have the Greeks considered colonizing the moon like the winner of the South Carolina primary has passionately suggested?

Alpha Monkey's picture

Can olive oil be used for rocket fuel?

economics1996's picture

No but its a great lubricant.

AC_Doctor's picture

Hail Frick'n Caesar!  Do you think the BLS birth/death model adjustment is actually stolen from Greece or a solar system far, far, away or should is most of Greece going to become "The Hood".  Bob D. should comment on this...

chump666's picture

Greece is a zombie, should have never been allowed into the EU. 

Yeah the violence will get intense now. 

Mr Lennon Hendrix's picture

The EU should have never allowed itself.

Kiwi Pete's picture

It was never a good idea economically. The currency Union was just done for political reasons. In fact the only reason a currency union works in the US is because you all speak the same language. Thus when Detroit goes tits up you can all move elsewhere for jobs. Arguably it would be better if Mitchigan had it's own currency and could devalue against California. It's a bit more difficult to jump ship when the only language you speak is Greek.

Sandmann's picture

The Us used to have regional interest rates set by local banks. It now has a central interest rate but has Federal Transfer Payments and Pentagon Contracts to re-balance regional differences. So you might say a Currency Union is only possible with a Uniform Welfare State which is what the ECB is creating de facto, copying the US innovation of Welfare for Wall Street.

cranky-old-geezer's picture



The currency Union was just done for political reasons.

Actually it was done for banker reasons.  It allowed bankers to steal wealth form productive people, lend it to unproductive people, and make a profit (fees and interest) from the loan.

It's the same thing happening here in America.  The Fed steals wealth from productive people, lends it to unproductive people (the government ...and banks now), and makes a profit (fees and interest) from the loan.

You have to have a central bank and an unbacked fiat currency to do that.  A currency the central bank can print at will (and dilute its value). 

20 years after America went off the gold standard completely, bankers in Europe saw how successful the Fed was at stealing wealth from the American people, lending it to the government, and making a huge profit in the process.

They wanted the same ability so they hatched the idea of a European monetary union, a common (unbacked fiat) currency, and a central bank.

No, governments didn't come up with it.  Bankers did.  Just like bankers here in America came up with the idea of an unbacked fiat currency controlled by a central bank.

Governments in Europe went along with it because they benefit from it.  They get to borrow massive amounts of wealth from the people without their consent.  And they never have to pay it back.

Same thing here in America. The government went along with it because they get to borrow massive amounts of wealth from the people without their consent.  And they never have to pay it back.

There's just one little problem.  Eventually the government borrows sol much wealth from the people they're reduced to poverty.  The economy collapses, and the nation slides into anarchy.

That's where Europe is now. 

That's where America is now.

RiverRoad's picture

US oligarchs were also firmly behind the idea of the EU as a way to move their profits out of a US currency that had to be devalued in order to compete with rising third world economies.  It was all so convenient:  Those European vacations, wining and dining were great while it lasted; now they want their money back stateside and still untaxed to boot (GE, etc.)

Rynak's picture

Actually, besides of central wealth control, a deciding aspect about the currency union... and the one that escalated the bipolar structure.... was that a currency union REMOVES some tools from individual govs.. not just control of the de/inflation of the own currency, but also things like tarrifs.... economically, the "big thing" about the currency union, was to remove borders... to remove the ability of individual nations, to regulate the attractivity of imports and exports from specific other nations.... via the currency union, the members stopped being able to decide with whom to trade.

This is relevant for the pusher/junkie setup.... if a nation begins a price war, and starts to produce below sustainable costs... other nations in the union cannot shield themselves from that, but are forced to either participate in the race to the bottom, see their large corps leave the country, or both.... same the other way around:  if a country lives on credit and printed money, other countries are not able to isolate themselves from that... instead "since they're all in the same boat", they force-share the burden.

While the currency union may have made trade easier, it also removed most national tools to isolate destructive tactics and parasites.

Ghordius's picture

Blablabla - the european currency union was a RESPONSE to the last Currency Wars - now we are at the possible beginning of the next currency wars and this is the reason why ICELAND wants IN the eurozone

15. August 1971 - Germany fed up importing inflation from the US, France asking for it's gold back, and Nixon showing the finger to all allies and partners by saying: it's our reserve currency and your problem

The whole ECB/EUR stuff is just a bloody Dollar-Hegemony-Mutual-Protection Scheme. A if-you-do-it-then-we-are-not-going-to-lose-advantages-just-like-that counter-racket.

Shhheeeessh, for a blog full of geezers you seem all very forgetful - where were you 1971? Under drugs?

GO ON YOUTUBE and watch Nixon's 4 minutes speech as he trashed the Bretton Woods Agreement. LEARN from it.

falak pema's picture

Nixon's knee jerk to de Gaulle's 'exorbitant privilege', started globalisation thread, but in the wake of peak oil uSA, great society spend and Vietnam war; all of which made him say "our money your problem' and start the fiat pump. Pure hegemony play, he even told Japan to F.Off with its exports and put tariffs on their imports, obliging them to develop outsourced new tiger regional economy. They thrived on it like Germany on value added.

That made it even worse for US trade balance, especially after oil hike. Kissinger got his job cut out in ME and we were right into OIL LOBBY/Israel/ PAX Americana- petrodollar/Bilderburger Metternich NWO exclusive club/ China ping pong construct. 

It paid off to stop cold war; it fed fiat pump especially when RR/LT played at being Lady Chatterly and world gardener in FIRE deregulation WS binge. 

ENter EURO zone to counter this trend...time line Kohl/Mitterrand deal 1983/84.

Ghordius's picture

I'd say Sandmanns', cranky's and my response are not mutually exclusive, by the way.