Yet another ignorant lazy journalist saying it’s all the Greeks fault. Not true. Look at the numbers; they work more hours than the Germans for lesser wages and usually at several part time jobs. The austerity regime is guaranteed to destroy the country and possibly bring the Euro down with them.
Clearly the root cause was Greeks spending public money as if there was no tomorrow. Each vested interest was happy as long as they got their money. The tax system was widely abused. The banks were content to keep making shaky loans as they did in our mortgage bust. Everybody kept kicking the can down the road until the problem became too big to put off any longer. Now the Euro-mart is trying to squeeze blood out of a stone because nobody wants to take a haircut. Now Greece has 25% unemployment and things will probably get worse no matter how the end up solving the problem.
Before, the Greeks had the drachma, and only took out sovereign loans in drachmas, then printed enough to pay off their loans. So lenders never got back what they’d loaned in real money, so no lender was foolish enough to loan the Greeks anything. Then Greece signed up for the Euro, and the banks rushed to make them loans in hard currency, loans Greece has no way of paying off. But sovereign loans are sovereign. For example, in 1862, Mexico could not pay off a French loan, so the French foreclosed and made Mexico a colony. (As it happens, the French Army won’t fight without mayonnaise, and the Mexicans managed to sink the French ship bringing their salad dressing, after which the French gave up, and the Mexicans still celebrate the Sinko de Mayo.).So the Troika ordered the Greeks to stop providing state healthcare, to stop paying pensions to old people, and to lay off most government workers. After which, a lot of people who’d sold to government workers and the state healthcare workers and the pensioners also lost their jobs. Which the Greeks deserved. Sovereign debt is sacred, and must be repaid before the ordinary citizens are fed..The Greek Government BEFORE Syriza said they would hold a referendum, the Troika told them a referendum was NOT allowed, so the Greeks didn’t get to vote until the election this year that tossed out the former government and put in Syriza. Which would have been the right thing to do if the Greeks had re-elected the good government..Syriza ran on a platform with two planks: 1) Greece must keep the Euro; and 2) Austerity must end..The Troika explained that 2) was not allowed, it was totally illegal. Syriza did not listen. After five months, Syriza called a referendum. The Troika patiently pointed out that a referendum was STILL illegal. Syriza is holding the referendum anyway..The ECB cut off the Emergency Liquidity Assistance that was keeping the Greek Banks open, so they’re all closed. This was absolutely necessary. If Syriza does not honour a sovereign debt, Greeks must be made to starve one way or the other..The Troika has figured out that the Euro will be MUCH better off without Greece, so they’ll evict Greece if the Greek voters vote ‘NO’ and will announce impossible austerity conditions if the Greek voters vote ‘YES’ to staying in the Euro at any cost..Just as England and France, who avoided war with Germany in ‘38 because they weren’t ready, declared war on Germany in ‘39 because they had all the protections in place to ensure Germany could not do any damage. It’s the same now: the Troika have put all the protections in place so that Grexit can not do any damage.
The IMF Likes it that way.Taking over a country’s Finances, Demanding “Austerity”, Confiscating and selling off everything of Value and, then, leaving the country Bankrupt is the IMF’s MO..
Darsan54 Premium Member almost 9 years ago
Yet another ignorant lazy journalist saying it’s all the Greeks fault. Not true. Look at the numbers; they work more hours than the Germans for lesser wages and usually at several part time jobs. The austerity regime is guaranteed to destroy the country and possibly bring the Euro down with them.
38lowell almost 9 years ago
CORRECTION:=That WAS a bank!Clever, tho.
Theodore E. Lind Premium Member almost 9 years ago
Clearly the root cause was Greeks spending public money as if there was no tomorrow. Each vested interest was happy as long as they got their money. The tax system was widely abused. The banks were content to keep making shaky loans as they did in our mortgage bust. Everybody kept kicking the can down the road until the problem became too big to put off any longer. Now the Euro-mart is trying to squeeze blood out of a stone because nobody wants to take a haircut. Now Greece has 25% unemployment and things will probably get worse no matter how the end up solving the problem.
NeedaChuckle Premium Member almost 9 years ago
I find this especially ironic as I read an article that said the Parthenon had tons of gold in the attic back when!
WestNYC Premium Member almost 9 years ago
heh heh heh
kurt.zwicky almost 9 years ago
Maybe a Greek bank, but not Goldman Sachs. They made off with a bundle before the crash.
Mickey and Delia almost 9 years ago
Before, the Greeks had the drachma, and only took out sovereign loans in drachmas, then printed enough to pay off their loans. So lenders never got back what they’d loaned in real money, so no lender was foolish enough to loan the Greeks anything. Then Greece signed up for the Euro, and the banks rushed to make them loans in hard currency, loans Greece has no way of paying off. But sovereign loans are sovereign. For example, in 1862, Mexico could not pay off a French loan, so the French foreclosed and made Mexico a colony. (As it happens, the French Army won’t fight without mayonnaise, and the Mexicans managed to sink the French ship bringing their salad dressing, after which the French gave up, and the Mexicans still celebrate the Sinko de Mayo.).So the Troika ordered the Greeks to stop providing state healthcare, to stop paying pensions to old people, and to lay off most government workers. After which, a lot of people who’d sold to government workers and the state healthcare workers and the pensioners also lost their jobs. Which the Greeks deserved. Sovereign debt is sacred, and must be repaid before the ordinary citizens are fed..The Greek Government BEFORE Syriza said they would hold a referendum, the Troika told them a referendum was NOT allowed, so the Greeks didn’t get to vote until the election this year that tossed out the former government and put in Syriza. Which would have been the right thing to do if the Greeks had re-elected the good government..Syriza ran on a platform with two planks: 1) Greece must keep the Euro; and 2) Austerity must end..The Troika explained that 2) was not allowed, it was totally illegal. Syriza did not listen. After five months, Syriza called a referendum. The Troika patiently pointed out that a referendum was STILL illegal. Syriza is holding the referendum anyway..The ECB cut off the Emergency Liquidity Assistance that was keeping the Greek Banks open, so they’re all closed. This was absolutely necessary. If Syriza does not honour a sovereign debt, Greeks must be made to starve one way or the other..The Troika has figured out that the Euro will be MUCH better off without Greece, so they’ll evict Greece if the Greek voters vote ‘NO’ and will announce impossible austerity conditions if the Greek voters vote ‘YES’ to staying in the Euro at any cost..Just as England and France, who avoided war with Germany in ‘38 because they weren’t ready, declared war on Germany in ‘39 because they had all the protections in place to ensure Germany could not do any damage. It’s the same now: the Troika have put all the protections in place so that Grexit can not do any damage.
Mickey and Delia almost 9 years ago
http://www.huffingtonpost.com/joseph-e-stiglitz/argentina-greece-default_b_7697838.html
Tarredandfeathered almost 9 years ago
The IMF Likes it that way.Taking over a country’s Finances, Demanding “Austerity”, Confiscating and selling off everything of Value and, then, leaving the country Bankrupt is the IMF’s MO..
ConserveGov almost 9 years ago
That’s what happens when Lefties Gone Wild?