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EU: Who will hold the Troika to account for asphyxiating Greece?
The Telegraph ^ | 7/23/2012 | Ambrose Evans-Pritchard

Posted on 07/23/2012 6:41:56 PM PDT by bruinbirdman

Germany has clearly taken the decision to expel Greece from the euro, whatever the new Greek government does.

Vice-Chancellor Philipp Roesler says the "horror" of Greek exit has worn off. The markets will hardly miss a beat when the day comes.

Greece has already failed to complete 210 targets imposed by the EU-IMF Troika.

"Unfortunately it is likely that Greece will not be able to fulfil the requirements. And I say quite clearly, if Greece fails to comply, there should be no more payments to Greece. I have to say I am more than sceptical," he said.

Before we all join together to kick the Greeks when they are down, let us be clear why the country has kept missing the targets.

The Troika originally said that Greece' economy would contract by 2.6pc in 2010 under the austerity regime, before recovering with growth of 1.1pc in 2011, and 2.1pc in 2012.

In fact, Greek GDP has been in an unbroken free-fall. It did not grow last year. It contracted a further 6.9pc, and is now expected to shrink 6.7pc this year.

This was entirely predictable – and was predicted by many critics – since Greece faced an IMF-style austerity package without the usual IMF cure of devaluation. The Troika's ideology of "expansionary fiscal contraction" – which the IMF has to its credit since abjured, but the fanatics in charge still swear by – is breaking a whole society on the wheel.

The result of this Great Depression – as the Greek prime minister calls it – is in implosion in tax revenues. The budget deficit has remained stuck near 9pc of GDP despite draconian wage cuts and hospital closures.

Roughly speaking, the Troika has misjudged the scale of economic decline over three years by 12pc of GDP

(Excerpt) Read more at blogs.telegraph.co.uk ...


TOPICS: Business/Economy; Conspiracy; Politics
KEYWORDS: europeanunion; france; germany; greece; russia; unitedkingdom

1 posted on 07/23/2012 6:42:03 PM PDT by bruinbirdman
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To: bruinbirdman

Not enough people criticize the very existence of “troikas”. When the EU institutes something patterned after the NKVD, that should have induced the USA to invade Brussels and arrest every soul in the Berlaymont Building.


2 posted on 07/23/2012 6:46:47 PM PDT by Olog-hai
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To: AdmSmith; AnonymousConservative; Berosus; bigheadfred; Bockscar; ColdOne; Convert from ECUSA; ...

Thanks bruinbirdman.
Germany has clearly taken the decision to expel Greece from the euro, whatever the new Greek government does.

3 posted on 07/23/2012 9:53:50 PM PDT by SunkenCiv (https://secure.freerepublic.com/donate/)
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To: bruinbirdman

My favorite reply to this article is as follows:

In Greece, we were brought to the dead-end by our society’s blissful delusion that we had found the machines which printed money and had no need to compete with anyone for whatever we wanted. The same stagnation bred a political system that does not know how to inspire the people so that they can make sacrifices today for a better tomorrow. The politicians cannot communicate with each other for the country’s salvation: they learned their trade when things were simple, and now that the going is heavy they are lost. They wait for solutions to rain down from heaven. In effect, they remain stagnant...

By Nikos Konstandaras]

Are Greek politicians the only ones subject to these delusions?


4 posted on 07/25/2012 11:37:10 AM PDT by Mack the knife
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To: Mack the knife
"we had found the machines which printed money "

Similar responses come from Kermits along the lines of, "Right now Germany has all the machines. When they are rich enough, we will get them. Why should we work?"

yitbos

5 posted on 07/25/2012 5:22:44 PM PDT by bruinbirdman ("Those who control language control minds." -- Ayn Rand)
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