Skip to comments.Greece is at the epicentre of a new euro crisis – and its chaos will spread
Posted on 05/09/2012 12:24:52 AM PDT by bruinbirdman
Contagion risks are back with a vengeance. With Greece edging towards the euro exit gates, pressure is building in familiar territories. Yields on Portuguese sovereign debt have spiked even more rapidly than those on Greek debt. Spanish and Italian borrowing costs are creeping up. The markets are pointing to another imminent euro crisis. And, once again, Greece is the epicentre.
Members of the far-Right party Golden Dawn, who have made large gains in the Greek
elections as the country's austerity bites
The people of Greece know what they dont want they dont want any more austerity. If another election is called to sort out the mess of last weekends result (the talk is of holding one on June 17) and the result is again a roughly 70pc vote against austerity, it will probably mandate the government to ditch the bail-out.
That would mean a euro exit, a return to the drachma, a massive devaluation, and a default on the remaining private sector debt. If that is what the people of Greece do want, it carries enormous risks.
It would create unbearable tensions across Europe. The European Central Banks holdings of Greek sovereign debt would suffer losses, which would largely be transferred back to Germany. Even the original 109bn bail-out might face a write-down, which would leave British taxpayers taking a hit.
The last thing Greece could afford, though, would be to alienate the International Monetary Fund also part of the original bail-out. The country is running a primary deficit, which means it spends more on public services than it raises in taxes even excluding interest payments. The balance has to be borrowed but, having defaulted on creditors, Greece would have locked itself out of the markets.
If it called for IMF assistance,
(Excerpt) Read more at blogs.telegraph.co.uk ...
“The people of Greece know what they dont want they dont want any more austerity.”
The rats were promised FREE CHEESE! if they voted for the left. Now they have run out of other people’s money to spend, and the rats still want the cheese.
The second problem with socialism - what happens the day after you run out of other people’s money.
No, I am not speaking of the obvious which is that the condition which Greece now finds herself has been brought upon her by the people themselves, by their own cupidity, rationalized by socialist dogma. Socialism trades lies for power, telling people that they can kill the golden goose and have the eggs too; that they can repeal immutable economic laws of supply and demand, consumption and production, just as they can with impunity repeal laws of human nature. "From each according to his ability and to each according to his need" (sentiments we hear frighteningly repeated but in softer language by the Obama campaign) ignores powerful tendencies in human nature which ultimately must destroy any system upon which it is based. If there is no incentive, no disincentive, there will be no responsibility.
Worse, there will be no check on excess, no postponement of gratification, no saving, no thrift, no entrepreneurship, no risk-taking, no adult management of capital relative to the social net. We all know that the Greeks have granted themselves unrealistic public welfare, pensions, work habits, redistribution of wealth, etc. until they have simply crashed and economy based on the narrowest of foundations: olive oil and tourism.
These observations are too banal to warrant repeating here except it is not banal but extraordinary to note that the Greeks have learned the obvious lessons from their experience.
But we can learn the lessons, we can learn that socialism kills but we can also learn the less obvious lesson: It is human nature not to learn your lessons.
The Greeks are in the streets setting fire to their cities, shedding blood, turning to Nazis and Communists, opening themselves ultimately to the man on horseback. They are explicitly blaming austerity rather than excess for their predicament. They are foolish in the extreme but they are not unique.
One need only look at the violence and madness in Wisconsin, the dreary corruption in Detroit, the departure through the looking glass in California, to understand that we have seen the Greeks and they are us.
The important lesson: Do not believe that a crisis can be exploited and not let go to waste. That opportunity is for the revolutionaries, the street brawlers like the Nazis, the communists in Berlin in 1919 such as Rosa Luxemburg, the occupy movements, the Bolsheviks-the modern Democratic Party in America under Barack Obama. The din is always too loud to hear the voice of the austerity or the voice of reason. Put another way, the lesson is that we cannot afford to see the nation spiral down into a condition of chaos such as we might well see in Greece and confidently expect the people to turn to virtuous, button down, freshly scrubbed, rational, prudent, high-minded Republicans with conservative values.
That is contrary to human nature. The populace will always prefer to go to the Kingfish, to the politician who tells them that others are at fault and that he has the solution which requires no pain, no sacrifice, no postponement of gratification, and certainly no admission of fault.
This is the danger which Obama represents. This is the danger of sitting on your hands in this upcoming election.
Ask the ancient Athenians.
Far right??? Those guys are Nazis. They're Socialists. That may make them to the right of Communists. I don't know how.
It would be like referring to Rosie O'Donut as the anorexic one when she's standing next to Michael Moore.
The Nazis were left-wing, big-state totalitarians. They were national socialists.
The Communists were left-wing, big-state totalitarians who wanted to export their beliefs. They were international socialists.
They’re as different as chalk ... and chalk.
GREAT POST !
Did you know we have another Bank not ever mentioned?
Attached to this release are tables presenting FFB July loan activity and FFB holdings as of July 31, 2011.
FEDERAL FINANCING BANK
JULY 2011 ACTIVITY
I have always tried to comprehend and categorize the differences between Fascism and Communism.
That was in my younger years when I was certain that there had to be differences....either too fine and sophisticated for me to grasp or else, too blunt and obvious to be true.
I am convinced NOW, that totalitarianism in whatever name it takes or is given is all the same.
Dehumanization, either with or without the complicity of the governed/ruled is the absolute and ultimate result.
Tyrants live for this and pick up any cudgel at hand, in order to coerce and hold humanity in submission.
The historical lexicon is filled with a myriad of ‘isms’ bearing out the variety and force of cudgels available to unscrupulous and unprincipled monsters who succeed in this.... it is also a record of the greed and gullibility of whole generations who, time and time again, pawn their humanity and willingly choose abject subservience, in return for material, immediate, concrete (and very often TEMPORARY) benefit!
First off, Athens was NOT anything we would call a democracy. It flipflopped from tyranny TO democracy and anything possible in between. There is much in Greek history to forever prove “democracy” a false unworkable system—hence our Constitutional Republic.
Re present Greece: NOBODY is mentioning the absolute FLOOD of Muslims entering Greece from the East. Your ‘Nazi’ bunch is the ONLY one opposing this.
“When you outflow exceeds your income, your upkeep becomes your downfall”.
It is extraordinary the way leftists NEVER can learn that they simply advocate an impossible system.
Despite the very obvious lessons demonstrated in N. Korea, Detroit, Greece, Cuba, the Soviet Union, California etc., they just keep biblically returning to their vomit.
That’s right, the Communo-Fascists, and the backing and coming of the Massachusetts Mandate Man to stealth tax individuals and small business, or start another War.
The people on the street are rioting over the prospect that austerity decrees that they may need to go out and find a job (or find a real job if they work for government). That job would likely be somewhere outside Greece.
If the Greek welfare state collapses, then that means ... they will need to go out and find a job. Meanwhile, they hope to defer the need for another year.
The eu bailout was never to help greece (or itally, spain, portugal, ireland).
The eu bailout had only ONE goal, bail out socialism.
I have always tried to comprehend and categorize the differences between Fascism and Communism.
The difference between Fascism and Communism is just a piece of paper.
Communism simply confiscates land and factories, and puts bureaucrats in charge of running them.
Fascism passes regulations which the nominal owners of land and factories must obey.
In simple terms:
Communism will confiscate the milk cows from their owners and install bureaucrats to employ the farmers to milk them, then bureaucrats take care of distributing the milk.
Fascism will give bureaucrats the power to make regulations for the owners of the cows dictating purchasing feed, feeding the cows, milking them, and distributing the milk. The owners have a piece of paper saying they own the cows, but all decisions are made elsewhere.
In both cases, bureaucrats (not farmers) make the rules -— which is why milk is in short supply in both cases.
The Communists were left-wing, big-state totalitarians who wanted to export their beliefs. They were international socialists."
IOW all Socialists are Communists but not all Communists are Nazis.
control of your car..your roads...your phone...your home..your children...your education...your health....your food...and yes, your death....
the idea of some shallow little peep squeak who's never washed a dish or raked a lawn telling me what to do is just enraging to me...
I've seen amazingly little of that, considering the circumstances and the number of people affected. A couple square blocks burning and a few hundred rioting people out of a country of over 10 million population. Remarkably well behaved, really. It may not last.
But you gotta love the fact even the Nazis (Socialist totalitarian jerks) hated the Commies to the point they’d kill their own children to avoid that fate.
No wonder the left wing facist loving assholes in America like Joe Kennedy Sr. loved Hitler.