Thursday, November 03, 2011

The Greeks Are Being Had

Greek Prime Minister George Papandreou has struck a deal with ministers to step down and hand power to a negotiated coalition government if they help him win a confidence vote on Friday . . . . The source said Papandreou admitted he had made a mistake in calling on Monday for a referendum on a bailout package

If you read between the lines, the other nations said to him, “how dare you end the game when we have agreed to anti the money up for you to play?” PM Papandreou was born in the USA of Greek parents. I’ve listened to a few interviews he has given and he impresses me as someone who wants the best for Greece and is quite in tune to what will happen next.

The referendum would have avoided a collapse of the Greek government. If the Greek electorate made the decision, the chance of revolution was slim. You made your bed, now sleep in it. The trouble is, Greek politics are so corrupt, that the masses will not tolerate the austerity measures for long. Europe has rewritten Greece’s loans. Greece is going to pay for things already consumed for the next 10 years. The lenders want their money. It’s a little like going a restaurant, and discover you owe for all of those that ate before you.

The other interesting fact is that the IMF is involved in this mess. The most powerful man on the board of Governor’s is Tim Geithner with 17 percent of the vote. And the way it works, if Tim says no, the no’s have it. We have had the Fannie and Freddie Mae fiasco, what’s a little Greece to fry it all in? The Germans and the French are not going to bail out the “lazy Greeks.” They are the ones owed the money. So with an IMF bailout, the Germans and French don’t take the big hit, the US---AKA IMF (Daddy big bucks) does.

The Chart below shows who's in charge at the IMF, kind of a FYI thing.

Greek Prime Minister George Papandreou tried to save Greece by telling the creditors to go fly a kite and it should have worked out at an acceptable level for the Greek citizens. The new austerity measures pose a serious choice for Greece; pay retirement benefits or pay the debt? The military will end up taking over the government and their youth will abandon the country for jobs in other lands.

The real question to ask is: “Where is the REAL money coming from to pay for all of this?” I don’t have a clue. It’s a little like trying to hustle a hooker for a payday loan. What do you have that she needs—absolutely nothing!


frakrak said...

Jim great post, have you done any research on the IMF and Iceland (post 2008)? Now there is a story that needs to be told!

Have you read the steadily multiplying stories of "We are the one percent, and we provide the Jobs" hitting the internet lately?

That isn't Capitalism as I remember it.

The thing I don't get with the occupy Wall Street movement is they don't have an alternative worked out and a valid reason for how we all got to this point!

Have you read anything that would reddress structural imbalances in our global economy? Other than buy gold or silver?

Or get economies producing "goods" again instead of "services"?

Why is wealth concerntration a good thing in a capitalist system?

Should the profit motive be slightly modified to accomodate a maturing economy?

Yes I do know the unions have caused all this, but how could we have competed with a dime an hour anyway? Have you noticed when all your industrial infrastructure pulled up its stakes and moved off-shore the big discussion foistered on the public was Globalisation? Who talks about that anymore?

Hey I haven't got my PhD just yet in economics but I knew 20 years ago this would be the end result!

Jim in San Marcos said...

Hi Frakrak

Iceland looks like they are doing just great, whereas the rest of the world is knee deep in political BS.

The Wall Street Movement is one of those mystery events. The group has no focus and anyone can join. Its more of a media fed social gathering. The more people the merrier. The masses are reaching out for a Woodstock moment.

I do think that government regulation and taxation of business has lead to the flight of production to foreign shores.

The major thing that hasn't sunk in here yet, is the fact that many of the jobs lost in the US are never coming back. Technology has rendered them redundant. We have absurdity chasing reality. A tattoo artist can make more money than a dentist.

Survival and the pitfalls of retirement are the issues of the day. Taxing the rich seems like a viable option, they are the only ones with any money left.

The world is trying to push on a door to open it. All Iceland did was take a step backward and pull on it and it opened.

Just how far can we kick that can down the road? As you suggest, no PhD is needed. Common sense seems to be in short supply worldwide.

Tyrone said...

Greece has a wee bit o' gold. Perhaps we need a serious price adjustment to rebalance things.
But what price can set things right, assuming it could work?

frakrak said...

Jim there will be a big announcement between U.S. and Australia in the next few days, the world is repositioning quickly now, which will mean more reliance on your friends ...
I have read that Europe needs close to 40 trill to keep it from meltdown?
What happened to the big announcement from Germany and France last week on solving Greece's debt problems?
I was eagerly poised to put my deck chair away:)

Jim in San Marcos said...

Hi Tyrone

I think when you take a "Democracy" like Greece and put it in a blender, what you have left is a little hard to work with.

Democracy didn't work, for all the wrong reasons. And somebody is going to pay. The Military will take over the country and teach those BS-ing politicians a thing or two.

Jim in San Marcos said...

Hi Frakrak

Don't put away the deck chair, it's a good flotation device (if its made out of wood).

My next post is about Germany and France, so I'll say no more for now.

frakrak said...

Jim I have included a link for those that maybe confused with general economic theory:

Anonymous said...

Meanwhile, in Oakland, film maker Michael Moore gave a speach talking about what a horrible place the U.S. is, and the lack of opportunity because of the greed of the rich.
Mr. Moore, has a net worth in excess of $50,000,000., all made in this horrible country.