What the hell is the Greek People's Problem?

Sounds nice and in a closed system you are probably close to right, but the government makes the money.

The problem in Greece, is the Greeks no longer make their own money, and are beholden to the EU.

There is no math when the only thing backing a dollar is faith in the government.

 

Correct - the difference is that Greece can't print (inflate) their way out - they HAVE to borrow. Which is similar to the state problems in this country.

However, our federal government is trying to inflation (print) their way out.

Greece still needs to do the math on their spending, interest, liabilities - to make SURE they can pay down their debts - or at least cover the interest.

However - in the 20+% range - I think they are going to default eventually, of course ECB and others could continue to toss money down that hole.

 

I would say: What hell is the greek police and greek government problem? Why they do this:
http://puntsdevista.wordpress.com/2...contra-el-saqueo-en-unas-imagenes-de-impacto/ ?

Is it what you understand for a democracy? Don't make me laugh.

Later you ask why we fight for a real democracy?

 

U.S. gov't can print and inflate its currency. But it is not a way out. The reserve currency status of the USD will not last forever, especially when major rising economies move away from the dollar.

 

100% agree. No nation in the history of civilization has printed (inflated) their way to prosperity.

I think after another round of QE3 we will see the USD drop below 50% reserve status.

 

WOW!!!......Dejavue​

 

kilgram,

If you examine the photographs closely, the police are applying first aid to the protestors who were injured by bricks and stones that were thrown and tossed indiscriminately by other protestors!

 

If you look at the global picture, the way Americans are able to enjoy high standard of living without working for it like people in rest of the world do, is because of the reserve currency status of the USD. The USA literally exports her debt to foreign nations who hold US treasury bonds.

 

If other nations had a problem with this they would stop trading with the US. There must be some reason for their continuing to trade with the US.

 

Are you trolling? LOL

 

They trade with US because OiL trades are predominantly made in US dollars. US dollar dominance of Oil trades was reason behind Iraq War, behind U.S. antagonism towards Iran, and towards China.

 

There is huge amounts of $US permanently circulating outside the US, more than enough to pay for OPEC oil. It may have been the case a few decades ago that nations were forced to trade with the US to gain $US to pay for oil but not any longer. Most oil producers buy more from the EU and China than from the US so they actually spend more $US in bilateral trade with these places than these nations need to pay them for their oil. There are also a some large oil and gas producing nations that now accept payment in Euros or barter agreements, Russia and Iran for example. .

 

You are absolutely correct, Prohobo.

Have you noticed most socialists, like those in Greece, have a very bad habit of blaming everyone else for their national setbacks and economic failures?

The fact these people did not stay in school and develop their professional skills or were not willing to go the extra mile to obtain that promotion has nothing at all to do with it!

The fact they are not successful in life is somehow always attributed to the fault of the "Man".



"Please stop telling me the fact you are not successful and wealthy is somehow the fault of the "Man"!

 

Agreed - however I never thought that China would start saber rattling for a new currency, informally allying with the other big emerging markets (BRICS), convincing the IMF to issue primary debt issuance in the 100s of billions.

At this point we have FAILED at being able to export MORE debt. The Fed right now is our last card - their QE policies is like the "clean-up" hitter. It is taking down the balance at the auctions. Under QE2 80% of our long-term debt was purchased by the Fed.

Remove the Fed and who would buy the balance?

At 1-3% on a devalued currency is NOT attractive to ANYONE!

China's not stupid - and I think we are hoping they are.

 

Usually it is the "Have's" that are blamed by the "Have Not's".

The problem is when a country decides to offer social services they are becoming a business and thus needs to be run like a business. When they are not - and they IGNORE their balance sheet - you get a GREEK Situation!

Their answer is Tax the Rich MORE! That never works...

 

Actually they are giving money to the rich.
They already killed wellfare and will privatize or already privatized everything and greece isnt getting better.


And the french and germans are giving them money while forcing them to buy weapons.

 

Unfortunately they haven't cut enough in the last two rounds of austerity and EVEN IF THEY CUT EVERYTHING - they have run on decades of borrowed money.

Just like with GM, they are borrowing money JUST TO PAY INTEREST. When you get to that stage in the economic model it equals game over.

 

Most bankers that I have known are usualy greedy and/or stupid, or both.

They handout money in easy times as if there is no tomorrow and, when things get toug, they blame the customer and hastily withdraw the funds, leaving the customer high and dry.

And they have been doing it since time immemorial

 

We already tried that. In 1944 (FDR) we has a 94% tax rate for the rich.

It doesn't provide the growth and stability we needed, so we lowered it.

 

Same problem as everyone else Capitialism is collapsing as globalisation dominates all Nations!

Stalinism betrayed the working class and social democracy is reactionary!

 

Greece isn't collapsing because of "Capitalism."

It's collapsing because it's entitlement programs have accumulated massive debt that it can't pay.

 

Where does Capitialism actually exist then evidently you think nowhere!

has it diappeared?

 

In the West, in Asia and many other parts of the world.

 

You're wrong. Is mainly collapsing for the corruption. Not entitlement programs. And also because the last government applied some neoliberal principles, and it helps to increase the debt of a country. But I repeat the main problem in Greece is the corruption.

You prosecute the corruption there, and you reduce the debt without many problems.

 

This describes the US as well, doesn't it?

http://en.wikipedia.org/wiki/Economy_of_Greece#The_Greek_economy

And, of course, like Greece, the US is close to default on its debts.