|Athens: Not Happy|
So for the second time the state of
is in a state and requires a sub until some mythical payday somewhere in the far-flung future. Not far behind in the queue for more dosh are the other countries that have already had a fiver slipped their way . Greece
So what is going on?
Well to me a mere lay-person it seems that the €uro zone of the EU has painted itself into a corner and - being run by professional politicians - they are not going to admit defeat and do a U turn (although the tories could probably teach them how). From how I look at it this is a problem that cannot be solved by more loans. To be brutally frank, the Greeks need to be forced to default whether they want to or not and not only that but also excluded from the €uro and also expelled from the EU and as quickly as possible. This serves two purposes - it gets rid of the €uro zone's weakest link and allows
to reinstate it's own currency and sort itself out. Greece
The proposed austerity package is utterly pointless and will achieve absolutely nothing (except make the banks richer). Everybody seems to know it and the markets rose today not on a belief that a second bail-out will work but because they are actually gambling that it won't and are now even more convinced it won't and as a result feeling more confident.
The problem the ECB/EU has got is that it is caught in the headlights like a rabbit and cannot see beyond keeping
Plan A is I think, that
Plan B is what they see as the only alternative - the immediate expulsion of
So from their perspective they are trapped - no matter what they have got to stop this at
But Plan A isn't going to work either. Look for example at this mad scheme to sell-off
As an example, take
's railways. Total income approx €100M. Wage bill alone just over €400M. So a private investor will have to cut wages by more than 75% before they can even afford to buy the guard a flag, a whistle and a hat. Their airports are in much the same state as is their arms industry, their power generation and their water. Nobody is going to buy their assets until after the country has gone bust. Greece
|Who Get's A Spanking?|
Greece goes under - which I now believe it will, (even the treasury is planning for it) then it becomes only a matter of time before others follow them. Take UK for example. A default is a mathematical certainty. Their Banks owe €260Bn - taxpayer -funded Govt loans €32Bn, the Irish Central Bank €52Bn, NAMA toxic loans €37Bn, ECB is owed €129Bn, and they owe us £10Bn. Their tax-payer base - including people working part-time at near minimum wage, is only 1.8M people. Get a calculator and work it out - it is physically impossible for so few people to pay off so much money unless they ramp up company tax significantly AND have an economic boom to surpass the last one AND it isn't based on debt and even then it's doubtful. If they don't increase tax revenue by a huge amount we'll never get the money back. It's as simple as that.The ECB knows this which is why it is insistent they increase company tax as a precursor to any more money or better terms. Ireland
And there are other countries in just as bad a state.
Anyway, that's how it appears to me. I find the amount of money being thrown at these countries staggering. Where's it all going? Straight into the bank's back pockets is where. These countries are just being used as funnels - brown envelopes if you will. This is how they have bailed the banks out - by allowing them to sell their bad debts to us, charge as a fee for doing it and then add interest. And when these smaller countries go under, the banks will just heap it all and more onto the next ones up the food chain and sooner or later it will be our turn until eventually the banks don't owe anyone anything and we are in debt to them for generations and paying for the privilage in compound interest.
Anyway, that's how it looks to me.