H A P P Y C H R I S T M A S !!!
Thursday 23 December 2010
Monday 13 December 2010
Too little too late? Or is it?
Well it's certainly a small step for a normal human being, a giant leap for a Greek politician: Greece's communist-socialist government has introduced further, some say adventurous, cost-cutting legislation in one long bill. The bill covers various different topics, ranging from civil servants' pay to working hours and sectoral collective agreements (virtually void).
To whit:
a) It spreads poverty even further amongst the civil servants: i.e. cut their salaries (and their bonuses? Bonuses are often 80-120% of official salary), rather than lower their number.
Result: now, you HAVE to moonlight! And you HAVE (by law) to do it in grey or black!
b) It keeps minimum wages intact, and preserves union power;
c) It raises temporary employment term to 36 months -- but temporary employment is only permitted in case of exceptional, unforeseeable, and transitory needs, so impracticable in Greece anyway.
d) It cuts salaries (such as these cuts may be) across the board. SO how does the cop on the beat compare to the myriad of civil servants scratching or knitting in a warm back office??? Or the soldier with the same office "servant"???
The result is to spread the alarm everywhere and to demotivate everyone involved.
Given Greece's unenviable track records of messing things up, it's amazing anyone outside the country is willing to listen to well-worn excuses any more.
Maybe we should all just take an aspirin and board the first plane out of this mess. Rats leaving the sinking ship??? Right, well I'm not the one to steer it into the iceberg in the first place; in fact many were warning of the iceberg, ever since it alighted on the horizon! Some, even before that.
So why is it that in Greece, it's always the passenger's fault -- never the captain's???
Friday 10 December 2010
Greece's sovereign debt, Act 3, Scene 2
In which Geoff Papandreou (prime minister of US - Swedish origin) and his government of merry amateurs pretend to resist the authority of evil IMF;
And their cronies all over the village clapped furiously at this display of heroism;
And the media, in unison, stroked the government's fanny and applauded very much;
(Someone forgot to tell the them, the feudal lords have sold out!)
The evil IMF sends over emissaries to subdue the patriotic insubordination;
In a fit of rage, the Grand Vizier himself flies over to Greece and addresses the feudal lords;
The lords respond, they know not what to do, they fear a big to do from their chattel called the civil service;
The ask the Vizier, would He do it instead? And he said, "aye I will be your doctor";
The feudal lords requested for some delay, to get their act together well this time and prepare to leave the country, taking with them their jewels and their bullion;
No, said the evil IMF, not before you implement change...
"Please, no", said the local lords, "this burden is too heavy for us and we will be to blame!" "Let us at least save our vassals and our chattel, and let the privates take the brunt!"
And so it was that private sector unemployment reached its all time high before the next one next week and the public sector remained complete...
Don't forget to tune in for our next episode!
And their cronies all over the village clapped furiously at this display of heroism;
And the media, in unison, stroked the government's fanny and applauded very much;
(Someone forgot to tell the them, the feudal lords have sold out!)The evil IMF sends over emissaries to subdue the patriotic insubordination;
In a fit of rage, the Grand Vizier himself flies over to Greece and addresses the feudal lords;
The lords respond, they know not what to do, they fear a big to do from their chattel called the civil service;
The ask the Vizier, would He do it instead? And he said, "aye I will be your doctor";
The feudal lords requested for some delay, to get their act together well this time and prepare to leave the country, taking with them their jewels and their bullion;
No, said the evil IMF, not before you implement change...
"Please, no", said the local lords, "this burden is too heavy for us and we will be to blame!" "Let us at least save our vassals and our chattel, and let the privates take the brunt!"
And so it was that private sector unemployment reached its all time high before the next one next week and the public sector remained complete...
Don't forget to tune in for our next episode!
Monday 6 December 2010
On the 6th day of Xmas.... the Greeks' "father authority syndrome"
...school's OUT again.
No, not really, but some Athenians are demonstrating all over Athens in memoriam of two years since the untimely death of a school boy from (unintended, we would like to believe) police fire.
Some time later, in similar fashion, a policeman died and two more were injured during an attack on their precinct.
No Athenian seems to find that fact particularly moving. No demonstration.
Speculating on this I come to an obvious conclusion: Greeks need something or someone to demonstrate against. I think Greeks feel oppressed by their everyday existence and demonstrating is their way of getting some temporary respite from the unbearable burden of being Greek...
So, in Greece, we revel in actions of defiance and love to demonstrate against oppression. Accordingly, when there is no visible oppression (because political authoritarianism there is in Greece) and there is no visible cause, people feel obligated to fabricate a cause. And there will always be an obliging ruffian somewhere to provide an excuse for a cause! Hence the demonstration today.
On the other hand, Greeks do not seem to have developed a national social feeling: the idea of one standard (one law, one yoke, etc) for all does not seem to enjoy much popularity in the country.
In this light, perhaps the best would be many official causes: one for each Greek interest group. There are many of those -- literally, one for each citizen. They are sanctioned by Greek TV, probably Europe's most propagandist, and weak and change-averse governments.
The most vociferous of these interest groups are typically the least populated: left wingers and 60s communists. There used to be the 70s socialists (this guy for example) but "social" in Greece is now just a byline for a political party. Indeed, most if not all of the erstwhile "socialists" have become stinking rich and can't be bothered with demonstrating. They no longer feel "oppressed". This man leads the bunch.
So wealth is an antidote to demonstrating. Hence we conclude that those demonstrating are not, of themselves, wealthy.
But what is the underlying reason for which Greeks will demonstrate at any occasion that offers itself?
One reason would be that Greeks are romantics, ready to support the cause of anyone who, in their eyes, is less fortunate than themselves. For the more fortunate, they would still demonstrated -- but against rather than for.
I believe there is a common denominator to all this activism, and the Greek oppression mania: I am oppressed therefore I am.
I think Greeks are heavily into Bogey-Man resistance: it's a psychological state whereby adults, primarily male, never manage to accept, endorse and subsequently get over the paternal authority. Thereby they act like thwarted adolescents throughout their adult life unto their middle age: most demonstrations, seen through this point of view become palatable.
In getting to the streets, most Greeks are demonstrating against the paternal authority they never got over. I.e. they are shouting against their fathers. It is called congenial father syndrome (CFS). It is a congenial matter, perhaps there is a drug for it?
A second hellene - neurosis is the random feeling of injustice; another name for this pathology is greco-victimism syndrome (GVS).
The short description follows:
Whatever happens, wherever, the Greek is a victim of an injustice. Swindling. This is called neohellenic - swindle syndrome: NSS
Put another way, "Just deserves" never are!
No, not really, but some Athenians are demonstrating all over Athens in memoriam of two years since the untimely death of a school boy from (unintended, we would like to believe) police fire.
Some time later, in similar fashion, a policeman died and two more were injured during an attack on their precinct.
No Athenian seems to find that fact particularly moving. No demonstration.
Speculating on this I come to an obvious conclusion: Greeks need something or someone to demonstrate against. I think Greeks feel oppressed by their everyday existence and demonstrating is their way of getting some temporary respite from the unbearable burden of being Greek...
So, in Greece, we revel in actions of defiance and love to demonstrate against oppression. Accordingly, when there is no visible oppression (because political authoritarianism there is in Greece) and there is no visible cause, people feel obligated to fabricate a cause. And there will always be an obliging ruffian somewhere to provide an excuse for a cause! Hence the demonstration today.
On the other hand, Greeks do not seem to have developed a national social feeling: the idea of one standard (one law, one yoke, etc) for all does not seem to enjoy much popularity in the country.
In this light, perhaps the best would be many official causes: one for each Greek interest group. There are many of those -- literally, one for each citizen. They are sanctioned by Greek TV, probably Europe's most propagandist, and weak and change-averse governments.
The most vociferous of these interest groups are typically the least populated: left wingers and 60s communists. There used to be the 70s socialists (this guy for example) but "social" in Greece is now just a byline for a political party. Indeed, most if not all of the erstwhile "socialists" have become stinking rich and can't be bothered with demonstrating. They no longer feel "oppressed". This man leads the bunch.
So wealth is an antidote to demonstrating. Hence we conclude that those demonstrating are not, of themselves, wealthy.
But what is the underlying reason for which Greeks will demonstrate at any occasion that offers itself?
One reason would be that Greeks are romantics, ready to support the cause of anyone who, in their eyes, is less fortunate than themselves. For the more fortunate, they would still demonstrated -- but against rather than for.
I believe there is a common denominator to all this activism, and the Greek oppression mania: I am oppressed therefore I am.
I think Greeks are heavily into Bogey-Man resistance: it's a psychological state whereby adults, primarily male, never manage to accept, endorse and subsequently get over the paternal authority. Thereby they act like thwarted adolescents throughout their adult life unto their middle age: most demonstrations, seen through this point of view become palatable.
In getting to the streets, most Greeks are demonstrating against the paternal authority they never got over. I.e. they are shouting against their fathers. It is called congenial father syndrome (CFS). It is a congenial matter, perhaps there is a drug for it?
A second hellene - neurosis is the random feeling of injustice; another name for this pathology is greco-victimism syndrome (GVS).
The short description follows:
Whatever happens, wherever, the Greek is a victim of an injustice. Swindling. This is called neohellenic - swindle syndrome: NSS
Put another way, "Just deserves" never are!
Wednesday 1 December 2010
It's the first day of Xmas! May God Bless...
...Greece.
Because if He does not, who will??? Anyone???
The Greek government knows not its right hand from its left.
Private spending has reached an all time low -- until the next all time low, that is.
Growth is not around the corner, probably not around any corner as things stand.
If one is to read Paul Krugman writing in the NYT about Spain, "a catastrophic bank crisis (...) seems plausible for Greece and increasingly possible in Ireland"
Oh my.
Can anyone help?
Greek government officials and related bodies need not apply.
Because if He does not, who will??? Anyone???
The Greek government knows not its right hand from its left.Private spending has reached an all time low -- until the next all time low, that is.
Growth is not around the corner, probably not around any corner as things stand.
If one is to read Paul Krugman writing in the NYT about Spain, "a catastrophic bank crisis (...) seems plausible for Greece and increasingly possible in Ireland"
Oh my.
Can anyone help?
Greek government officials and related bodies need not apply.
Tuesday 23 November 2010
AND, the show goes on...
Previously, on "The Greek resistance (to its sovereign debt)": the Socialist government offers to protect its citizens against more austerity; municipal elections are fought; the light at the end of the Socialist tunnel is announced headily.In the following episode, season II, of the TV series, a bout of heavy vocalising breaks out after the elections. The Greek Socialist government defends its position as promised to the People (a government that keeps its promises even if it doesn't) and fighting breaks out with multiple announcements from various Socialist ministers bandying chaff on TV & the press.
Despite the efforts, the powers that be, the demons, are not appeased -- the IMF /EU demons.
All Public Sector jobs will be saved, all nationalised companies salaries will be kept. At the expense of the Private sector -- but it's a dirty job and someone's got to pay for it!
It's going down like a charm!
Whether or not Greeks fall for the sod-all amorality of their politicians -- their politicians revel in their insouciance.
Never has so much bullshit been bandied by so few, as is done today in Greek politics, by the Greek political oligarchy!
And "democracy" is originally a Greek word?
But then, so is autocracy and foolocracy (φαυλοκρατία)!
It's from the latter two that Greece suffers, not the former.
Thursday 18 November 2010
Invest in Greece (the oldie but goldie, in its latest guise)
This time round, Greece's socialist government took their non-socialist predecessors' version and remastered it (using music industry lingo) as their own product:* fast track for strategic investors
* special treatment
OK. It's a lot like the music industry's "best of" rehashes.
A) So the way to putting up my money is now paved with less red tape - presumably.
B) Equally presumable, is that money can be made, other investments bearing testimony to this fact -- albeit, the last foreign investment took place a very long time ago...
What else am I looking at as an incoming investor?
1) Setting up a company in Greece is a relatively painless, if lengthy, procedure for a socialist and business averse country.
2) License. Extremely difficult to obtain. Very costly. Even costlier if one wishes to accelerate the procedure: kickbacks have to be distributed to civil servants from numerous agencies & ministries. Briefly, this is the way it goes: you set up the company, employ the people (as required often by law), and file for the license. Filing requires a large number of documents and controls by numerous government agencies; the need for some of these documents surfaces unexpectedly along the way.
Meanwhile, the company must be already set up -- after all, who is to receive the license if not the company?
As an example, licensing a photovoltaic park may take anywhere from a minimum of 22 months to eternity.
Licensing a temporary employment agency, 24-36 months.
In all cases, the money required is deposited and the company set up...
The delays above can be shortened if the investor appoints a top level Greek politician as partner -- but that is an added cost in and of itself.
Of course there are simpler cases: opening a small importing business or a small shop (non-food, non-pharma, non-medical sector), for example. But then, you are not a strategic investor, are you?
In other words, the motto to strategic investors is, "we welcome your money, pay up front please". "Now, what else do you want?"
3) People. Greece has a healthy executive market with a good 14% of the population holding some sort of university degree. Salaries tend to be high compared to most other countries, especially at mid and high management level. At entry level, minimum income is reasonably low at 800 euro, but certain professions (e.g. engineers, accountants...) and industry sectors (e.g. banking) command higher bases. There is also a plethora of statutory "bonuses" in addition to the set base. One of the best is the "degree" bonus: anyone holding a uni degree is entitled by law to 20% extra on account of that degree.
This excellent incentive dates back to the Public Sector in the 50s where it was offered to attract more qualified personnel.
4) Labour law and regulations and reporting. Labour law in Greece is extremely complex, while the reporting (much of it in hard copy still) is repetitive, time consuming and compulsory -- strict fines apply for delays.
There are few on-site controls, but such as they are they usually entail a fine -- just for good measure. The fine can later be taken to administrative court and annulled.
Of course, a faster settlement method is the kickback: less hassle, no fine just a small consideration.
Complexity is evident in day-to-day operation and requires commensurate extra personnel and bonding with local labour authorities to keep up. As an example, a sales rep must have the recruitment card on him during working hours -- or a fine can apply. An extraordinary change in a shift must be recorded and submitted to proper authorities in advance (how, since it is by definition "unexpected")?
5) Taxation changes annually. Mostly, the changes from one year to the other are small, nevertheless keeping up requires the services of an experienced fiscal consultant.
6) Capital markets: as Franklin Templeton recently became one of the largest independent investors at Athens Stock Exchange, making the case for capital investment in Greece.
True, taxation has risen from 10% on capital gains, to 40%; on the bright side, however, none of the above 1-4 apply if capital are your markets and you MUST invest in Greece.
After this wordy report... the watch-phrase seems to be:
Investing in Greece? Watch for the hiding!
Exception: ONLY if the investment does NOT require operation, does NOT involve buildings, does not require recruiting people. So,* Invest in Greece only in non-productive projects, capital markets, real estate.
Wednesday 17 November 2010
Bullshit talks, money walks: Greece's socialist government
The Greek minister of "competitiveness", could aptly change his name from Goldson to Behappy-son: he announced an expected free fall in the country's inflation from near 6% today to around 2,5% tomorrow. He "sees" this coming.Wow, isn't that good to know! Although actual inflation is rising, we can all smile and pretend it isn't!
On the other hand, what can you do when you're given the job of "Minister of competitiveness" -- in Greece, of all places. The only communist paradise on earth and, more specifically, a country where competitive, profit, are bad words in the ears of the powers that be. Poor man!
Meanwhile, the Germans are pissed at the Greek Premier's poetic scolding of German euro-politics, while Austrians are miffed at Greece's not reaching (not even close) the agreed financial targets.
Meanwhile again, the Greek Finance Minister hailed Eurostat's downwards review of Greek sovereign debt by +2 extra points as "this confirms what I've been saying all along".
This is outstanding communication tactics -- not because of the originality involved, the Soviets used the same tactics in the 60s -- because of the incredible credulity of the Greek people. Either it is credulity or it is indifference.
The only hope for this country is that a new generation of Greeks breaks away from the reign of the usual oligarchy with its supporting administration, and stops voting for the pompous, expensive, asses that are most Greek politicians. Then things can start to move to a kind of normality, where ministries and gov agencies are really operating...
It doesn't seem likely, unfortunately: the administrative system has collapsed -- or so it seems to those (like myself) who have no notion of how it used to be, say, 25 years ago, when the going was good and things were simpler. When the going gets tough, the difficulties show....
One ministry (finance) cannot come across or get a reply from another (competitiveness). Most of the cross-functional talk is done in corridors, but only ministers (i.e. politicians) walk the corridors, and they know little about their respective ministerial function: in Greece, ministers and their deputies (i.e. cronies) change all the time. Most ministries have no idea what the others are up to. The prime minister is away most of the time, and his deputy doesn't want to delve in details.
Most Greek politicians have never held a job, anyway, they do not know what it is to live in that daily professional routine. Nor do they know what it is to actually achieve something, and how to go about "achieving".
The bottom line may be, although we certainly hope it is not, that it is still business as usual: an expat friend is owed 4k euro as a tax return. His local tax people intimated in so many words that he could receive same, cash in hand, by simply visiting them with advance warning; cost of this service, 400euro.
Monday 15 November 2010
School's out again: Greek municipal elections
...Because that's what these elections are all about, really.
Except for two things, probably known by many but nevertheless confirmed for all:
a) By his own admission, the Greek minister of finance is a failure ("If there were need for new austerity measures, that would mean I've failed". There is a need, so he has failed.)
b) Greek politicians, municipal or other, could not give a damn about their country: while new austerity is in the making, NO GREEK politician has even intimated at Public Sector unemployment (i.e. eliminating useless parts of the public sector -- committees, obscure agencies, 2004 Olympics agencies, etc).
The brunt of the austerity is borne by the private sector -- what little is left of it.
Oh yes, this past weekend the second round of municipal elections was held in many municipalities in Greece.
It was a glorious, sunny week-end in most parts of the country and children & civil servants had no school Friday preceding & Monday following.
Except for two things, probably known by many but nevertheless confirmed for all:
a) By his own admission, the Greek minister of finance is a failure ("If there were need for new austerity measures, that would mean I've failed". There is a need, so he has failed.)
b) Greek politicians, municipal or other, could not give a damn about their country: while new austerity is in the making, NO GREEK politician has even intimated at Public Sector unemployment (i.e. eliminating useless parts of the public sector -- committees, obscure agencies, 2004 Olympics agencies, etc).
The brunt of the austerity is borne by the private sector -- what little is left of it.
Oh yes, this past weekend the second round of municipal elections was held in many municipalities in Greece.
It was a glorious, sunny week-end in most parts of the country and children & civil servants had no school Friday preceding & Monday following.
Thursday 11 November 2010
It's all about missing school: Municipal elections in Greece.
...Not much else to say, really.
Except that Greeks, such as actually voted (i.e. half the voting population), fell for the socialist PASOK Inc's slogan of, "vote for me -- or suffer a freeze in your accounts".
Following the elections, which are an opportunity for civil servants & teachers in particular to enjoy long weekends, part two of the movie "Greece sovereign debt crisis" is scheduled to hit the screens.
Brace yourselves -- or simply take the first flight out.
Greece's communist regime has had its hey day, it seems.
Except that Greeks, such as actually voted (i.e. half the voting population), fell for the socialist PASOK Inc's slogan of, "vote for me -- or suffer a freeze in your accounts".
Following the elections, which are an opportunity for civil servants & teachers in particular to enjoy long weekends, part two of the movie "Greece sovereign debt crisis" is scheduled to hit the screens.
Brace yourselves -- or simply take the first flight out.
Greece's communist regime has had its hey day, it seems.
Thursday 16 September 2010
Who's the smartest?
Some time ago, I looked into schools in, "Schools in Athens, district of Attica".
In an article published a week ago Macleans, the Canadian magazine, reproduces a study conducted by the Bertelsmann Foundation on the quality of education and life-long learning.
Greece is a country known for political platitude and soviet-style political propagandists. All its politicians agree, education is crucial to the future and, in support of this belief it would seem the country's present socialist government renamed its ministry of education to "...education, life-long learning and....".
So how does the country fare in this study? Not very well, despite the politicos' concern.
Not surprisingly, Greece is at the bottom of the list.
I.e. education in Greece sucks. Let alone life-long learning: we don't do that here. We drink freddo and smoke ciggies instead.
For those who still insist on wasting time learning, that leaves two alternatives -- apart from moving out of the country, that is:
* private education (maybe)
* self-education
In actual terms, the educational level of Greeks is surpisingly "normal". The educational level of many Greeks is in sharp contrast with the abysmal level of the Greek educational system (called a "system" in extremis).
Drawing an elementary conclusion, it would seem that Greeks are champions of self-education!
In an article published a week ago Macleans, the Canadian magazine, reproduces a study conducted by the Bertelsmann Foundation on the quality of education and life-long learning.
Greece is a country known for political platitude and soviet-style political propagandists. All its politicians agree, education is crucial to the future and, in support of this belief it would seem the country's present socialist government renamed its ministry of education to "...education, life-long learning and....".
So how does the country fare in this study? Not very well, despite the politicos' concern.
Not surprisingly, Greece is at the bottom of the list.
I.e. education in Greece sucks. Let alone life-long learning: we don't do that here. We drink freddo and smoke ciggies instead.
For those who still insist on wasting time learning, that leaves two alternatives -- apart from moving out of the country, that is:
* private education (maybe)
* self-education
In actual terms, the educational level of Greeks is surpisingly "normal". The educational level of many Greeks is in sharp contrast with the abysmal level of the Greek educational system (called a "system" in extremis).
Drawing an elementary conclusion, it would seem that Greeks are champions of self-education!
Monday 13 September 2010
(DIS) Invest in Greece...
Why?
Because the government and administration of this country, do not want you to operate in Greece. They tell you so, but you aren't taking the hint!
You ARE however invited to consider the country, so do come and visit us and join us; we will throw a huge party for the event. We like parties...
We like parties, and you are a most welcome justification for a few extra do's...
Back to (dis)investing. In case you have not got the message, this is the way it goes: this man, Geoffrey "Yiorgos" Papandreou, currently Prime Minister of Greece, invites you to
Because the government and administration of this country, do not want you to operate in Greece. They tell you so, but you aren't taking the hint!
You ARE however invited to consider the country, so do come and visit us and join us; we will throw a huge party for the event. We like parties...
We like parties, and you are a most welcome justification for a few extra do's...
Back to (dis)investing. In case you have not got the message, this is the way it goes: this man, Geoffrey "Yiorgos" Papandreou, currently Prime Minister of Greece, invites you to
invest in Greece. You are welcome and you can qualify for incentives (poor) if you do invest undefined, "large", sums of money.
On the other hand, THIS man, Something Chrisohoidis, now minister of commerce etc, tells you that certain multinationals' way of operating in Greece and their high pricing tactics, will not be tolerated. 
"I.e., we'll raid them and fine them a few pennies each time"! Carrefour, a french hyper market chain, was fined Euro: 13.5 mill for having identical pricing in its outlets...!!! Accordingly, Fnac, the french non-food chain and Aldi, a German, packed their bags.
So: Which man's advice do you go for?
Geoff 's or Something's?
Your call!
(Bulgaria has 10% standard tax rate for investors. Cyprus 7%. Greece 33%)
Thursday 9 September 2010
Beware of Greeks bearing bonds...
...is the title of an article in "Vanity Fair" by Michael Lewis, an american writer and financial columnist. It is 7 pages long and an interest and often humourous read. The three outtakes below indicate an unusual understanding of the present day Greece status quo and (no surprise) say it all.
"(4) Oddly enough, the financiers in Greece remain more or less beyond reproach. They never ceased to be anything but sleepy old commercial bankers.
Virtually alone among Europe’s bankers, they did not buy U.S. subprime-backed bonds, or leverage themselves to the hilt, or pay themselves huge sums of money. The biggest problem the banks had was that they had lent roughly 30 billion euros to the Greek government—where it was stolen or squandered. In Greece the banks didn’t sink the country. The country sank the banks.
(p. 7) In Athens, I several times had a feeling new to me as a journalist: a complete lack of interest in what was obviously shocking material. I’d sit down with someone who knew the inner workings of the Greek government: a big-time banker, a tax collector, a deputy finance minister, a former M.P. I’d take out my notepad and start writing down the stories that spilled out of them. Scandal after scandal poured forth. Twenty minutes into it I’d lose interest. There were simply too many: they could fill libraries, never mind a magazine article.
(p. 8) No success of any kind is regarded without suspicion. Everyone is pretty sure everyone [else] is cheating on his taxes, or bribing politicians, or taking bribes, or lying about the value of his real estate. And this total absence of faith in one another is self-reinforcing. The epidemic of lying and cheating and stealing makes any sort of civic life impossible; the collapse of civic life only encourages more lying, cheating, and stealing. Lacking faith in one another, they fall back on themselves and their families. The structure of the Greek economy is collectivist, but the country, in spirit, is the opposite of a collective. Its real structure is every man for himself. Into this system investors had poured hundreds of billions of dollars. And the credit boom had pushed the country over the edge, into total moral collapse."
Need we say much / any / ... more?
"(4) Oddly enough, the financiers in Greece remain more or less beyond reproach. They never ceased to be anything but sleepy old commercial bankers.
Virtually alone among Europe’s bankers, they did not buy U.S. subprime-backed bonds, or leverage themselves to the hilt, or pay themselves huge sums of money. The biggest problem the banks had was that they had lent roughly 30 billion euros to the Greek government—where it was stolen or squandered. In Greece the banks didn’t sink the country. The country sank the banks.
(p. 7) In Athens, I several times had a feeling new to me as a journalist: a complete lack of interest in what was obviously shocking material. I’d sit down with someone who knew the inner workings of the Greek government: a big-time banker, a tax collector, a deputy finance minister, a former M.P. I’d take out my notepad and start writing down the stories that spilled out of them. Scandal after scandal poured forth. Twenty minutes into it I’d lose interest. There were simply too many: they could fill libraries, never mind a magazine article.
(p. 8) No success of any kind is regarded without suspicion. Everyone is pretty sure everyone [else] is cheating on his taxes, or bribing politicians, or taking bribes, or lying about the value of his real estate. And this total absence of faith in one another is self-reinforcing. The epidemic of lying and cheating and stealing makes any sort of civic life impossible; the collapse of civic life only encourages more lying, cheating, and stealing. Lacking faith in one another, they fall back on themselves and their families. The structure of the Greek economy is collectivist, but the country, in spirit, is the opposite of a collective. Its real structure is every man for himself. Into this system investors had poured hundreds of billions of dollars. And the credit boom had pushed the country over the edge, into total moral collapse."
Need we say much / any / ... more?
Monday 6 September 2010
Get Greece back...
...dot com.
Not that Greece had been lost -- or, if it has or had, that happened long ago. But Greeks woke up to that fact recently.
Now, a few people got together and set up a network on social media, hoping to wake the others from soporific government propaganda and deep apathy.
Unsurprisingly, the site is called "getgreeceback dot com"; so is the facebook.
The proposal is to get out on the street; no shouting, no noise, no nothing except in the words of the visionary: "get (our) country back, ... no IMF, ...no people we did not vote for..."
I would immediately add, get rid f the people you voted for, keep the IMF people. They're better than your politicians, more efficient, much cheaper.
Not that Greece had been lost -- or, if it has or had, that happened long ago. But Greeks woke up to that fact recently.
Now, a few people got together and set up a network on social media, hoping to wake the others from soporific government propaganda and deep apathy.
Unsurprisingly, the site is called "getgreeceback dot com"; so is the facebook.
The proposal is to get out on the street; no shouting, no noise, no nothing except in the words of the visionary: "get (our) country back, ... no IMF, ...no people we did not vote for..."
I would immediately add, get rid f the people you voted for, keep the IMF people. They're better than your politicians, more efficient, much cheaper.
Wednesday 14 July 2010
Spain won the world cup.
By beating Germany, and then Holland in the finals.
I.e. they won the cup by scoring a grand total of two goals -- which is two more than their opponents scored.
So Spain won.
I thought "football is a game where two team play against each other and, in the end, Germany wins."
This time it is Spain, despite valiant efforts from both of the other contenders.
Three cheers for all, after all!
I.e. they won the cup by scoring a grand total of two goals -- which is two more than their opponents scored.
So Spain won.
I thought "football is a game where two team play against each other and, in the end, Germany wins."
This time it is Spain, despite valiant efforts from both of the other contenders.
Three cheers for all, after all!
Sunday 27 June 2010
Germany's D.....z or S...... or both...
...have done it again.!
Or, "How do you ensure your national football team wins ?"
By ensuring off-sides (i.e. off game limits) goals count, and by ensuring that opponents' goals do not.
How do you do that? Well, maybe a question to the expert kickback corporations, D-Benz or Siemens would provide the answer!
The above is a panoramic view of Dachau, a well-known traditional German holiday escape reserved for foreigners who thwart them.
Or, "How do you ensure your national football team wins ?"
By ensuring off-sides (i.e. off game limits) goals count, and by ensuring that opponents' goals do not.
How do you do that? Well, maybe a question to the expert kickback corporations, D-Benz or Siemens would provide the answer!
The above is a panoramic view of Dachau, a well-known traditional German holiday escape reserved for foreigners who thwart them.
Thursday 24 June 2010
Council decision 2010/320/EU of 10th May -- or what Greece agreed to do to get bailed out...
In May the EU Council agreed to provide the much-needed bail-out, thereby offering a solution to the matter of Greece's sovereign debt problem.
This decision comes with some duties on either side: one side promises to provide bail-out money (EU partners & IMF) while the other vows to implement certain deficit-curtailing measures.
Salient bits of this decision are reproduced below.
This decision comes with some duties on either side: one side promises to provide bail-out money (EU partners & IMF) while the other vows to implement certain deficit-curtailing measures.
Salient bits of this decision are reproduced below.
| Having regard to the Treaty on the Functioning of the European Union (TFEU), and in particular Article 126(9) and Article 136thereof... |
|
Monday 14 June 2010
Why didn't they ask Evans?
Would you recruit this person...
...as your Director of Finance?
Probably not. His working experience ends as a financial analyst.
Or this person as your chief buyer?
Probably not, this one has absolutely NO work experience.
Chances are, if you did recruit her, you'd go bust -- but before you did, your suppliers will have their field day! Now she's proposing a new purchasing manual to impose on hospitals in Greece. They are notoriously behind in their payments, 3years and a few billion Euro behind, in fact. The new purchasing procedure promises to make things a bit worse.
Why didn't they ask Evans", one wonders. Evans is a category buyer at a major food chain in Greece. He lives in Athens. He is easily join-able. And, most importantly, HE KNOWS THE JOB, for goodness sake!
...as your Director of Finance?Probably not. His working experience ends as a financial analyst.
Or this person as your chief buyer?
Probably not, this one has absolutely NO work experience.Chances are, if you did recruit her, you'd go bust -- but before you did, your suppliers will have their field day! Now she's proposing a new purchasing manual to impose on hospitals in Greece. They are notoriously behind in their payments, 3years and a few billion Euro behind, in fact. The new purchasing procedure promises to make things a bit worse.
Why didn't they ask Evans", one wonders. Evans is a category buyer at a major food chain in Greece. He lives in Athens. He is easily join-able. And, most importantly, HE KNOWS THE JOB, for goodness sake!
* Greece's Prime minister looks and acts like he is running a NGO.
* Most of his ministers sport a gravitas looking and acting like adolescents entrusted with responsibility by their parents.
* They play at being grown ups, hoping to get a good mark from their parents.
* Some, more hard-core, ministers are in full pre-electoral regalia.
* The government’s communication tactics include the non-stop television-based, subject-matter deflecting propaganda – Soviet style.
Is the country in danger of disappearing for lack of competent resources in its government?
Greece's present government is, indeed, faced with a tough job.
Its executive cohorts however, have shown that they have neither the skills-set, nor the stamina, nor the experience to tackle the job. To this day, the only immediate-term effective cost-cutting measure they have taken is to leave their bills unpaid!
If it is true that “When the times get tough, the tough get going”, then this country is going nowhere fast.
Wednesday 2 June 2010
Someone, anyone, HELP!
Things are getting worse. Do-gooders in Greece are making things worse. So are do-baders, but no-one expects them to do any better.
Someone please guard Greeks from their law-makers!
And please, God, someone, anyone, shut their ministers up and keep them away from f*&^% TELEVISION.
In the three months since the country went unofficially bust,
* unemployment has risen by 45% mostly because a new labour law outlaws all flexible labour and introduces labour union control on recruitment;
* government induced inflation (increase in petrol tax and VAT) is running at 4,5%;
* buying power has fallen further by about 11% for all civil servants, due to pay cuts;
* the ministers seem to follow their own personal route, each supremely unaware of, or uninterested in, what the other is doing;
* the ministers and other politicians still spend much of their mornings on morning shows on television, supporting their individual campaigns and common party lines;
* taxation is so volatile that it changes by the month; on the other hand, all agree that:
- growth is the only way out of this tunnel, and,
- investment is the road to growth
* No one seems to notice that, legally speaking, Greek lawmakers do not welcome investments; only investors' money.
* the Prime Minister is... out there somewhere, supremely unaware of what's going on?;
They are keeping the hood on the state run and champion loss-making Organisation of Greek Railways ("OSE" which services an unimpressive 25% of the country’s territory) which thereby continues its own “creative” operating style, losing a cool €: 1 bill / annum.
They are sending out "control teams" from the labour authorities to impose fines at will and whim -- or receive kickbacks instead;
They are complicating bureaucracy so as to make absolute conformity impossible: to whit, in order to operate as a temp agency one needs a license. In order to obtain a license one needs to operate an agency.
And, best of all, the Greek government has officially stopped all tax returns and VAT returns and other payments. BUT, for payments due, it does not accept clearance and charges 1.5% interest / month.
The country's creditors, perhaps? In Greece, now more than ever, money talks!
Tuesday 25 May 2010
Views and reports from afar: Canada
The following appeared in Maclean's, one of Canada's widest reaching and prestigious papers.
It is written by Mark Steyn, an eloquent writer and defender of the English language spoken & written correctly...
Sundry comments in brackets are mine.
From the Times of London: “The President of Greece warned last night that his country stood on the brink of the abyss after three people were killed when an anti-government mob set fire to the Athens bank where they worked.”
Thus wrote eloquent Mr M. Steyn.
'''One reader commented the following:
John Gordon says:
In the Paris Reparations Agreement of 1946 the German war crimes against Greece were billed at 7.1 billion US dollars. A few years later, under the threat of the oncoming Cold War, Germany was already needed by the Allies in the struggle against communism. For this reason, it was agreed in the London Agreement of 1953 that the recognised reparation demands against Germany should be postponed – until a final settlement in a later peace treaty.____Germany also during occupation (1941-1944) was given a mandatory loan from Greece (yes from Greece to Germany) to the size of 3,5 billions USD.____A total sum of 10,6 billions USD at 1938 prices, not today. Even at a modest interest of 4%, this money accounts to 130 billions USD, half of the total debt of Greece!__This war reparations does not take into account the cultural objects stolen of Greece stolen during occupation, neither the massacres of civilians – over 300,000 Greeks died during the occupation and ensuing civil war.__Before the minister of economy of Germany says that Germans are not liable of the faults of Greeks, he should pay back the faults of his ancestors, money that was lawfully is to be given to Greece, and then half of Greek debt will be paid. '''
OK, this was along post.
It is written by Mark Steyn, an eloquent writer and defender of the English language spoken & written correctly...
Sundry comments in brackets are mine.
''Not just their Big Fat Greek Funeral
MARK STEYN: As lazy, feckless, corrupt and violent as Greece undoubtedly is, it’s not that untypical.
Thursday, May 20, 2010 8:00am
From the Times of London: “The President of Greece warned last night that his country stood on the brink of the abyss after three people were killed when an anti-government mob set fire to the Athens bank where they worked.”
Almost right. They were not an “anti-government” mob, but a government mob, a mob comprised largely of civil servants. That they are highly uncivil and disinclined to serve should come as no surprise: they’re paid more and they retire earlier, and that’s how they want to keep it. So they’re objecting to austerity measures that would end, for example, the tradition of 14 monthly paycheques per annum. [Not quite: the cheques are simply annual income divided by 14] You read that right: the Greek public sector cannot be bound by anything so humdrum as temporal reality. So, when it was mooted that the “workers” might henceforth receive a mere 12 monthly paycheques per annum, they rioted. Their hapless victims—a man and two women—were a trio of clerks trapped in a bank when the mob set it alight and then obstructed emergency crews attempting to rescue them.
Unlovely as they are, the Greek rioters are the logical end point of the advanced social democratic state: not an oppressed underclass, but a pampered overclass, rioting in defence of its privileges and insisting on more subsidy, more benefits, more featherbedding, more government. [Not quite: it's not"the advanced social democratic state" that's the problem. Early retirement, etc, is chicken feed compared to big state contracts for construction, medical and pharmaceutical supplies, and especially defence equipment contracts. It's an elite that has enjoyed these kickbacks privileges primarily, and the '' advanced social democracy'' is an eye blinder used on the rest of the population. Hence the use and role of Unions in Greece. To keep a lid on things.
The elite is, of course, civil servants' and other Union leaders, politicians and their entourage of 10.000, and a few business tycoons.]
Who will pay for it? Hey, not my problem, say the rioters. Maybe those dead bank clerks’ clients, assuming we didn’t burn them to death, too. The problem facing the Western world isn’t very difficult to figure out: we’ve spent tomorrow today, and we can never earn enough tomorrow to pay for what we’ve already burned through. When you’re spending four trillion dollars but only raising two trillion in revenue (the Obama model), you’ve no intention of paying it off, and the rest of the world knows it. In Greece, the arithmetic is starker. To prop up unsustainable welfare states, most of the Western world isn’t “printing money” but instead printing credit cards and pre-approving our unborn grandchildren. That would be a dodgy proposition at the best of times. But in the Mediterranean those grandchildren are never going to be born. As I pointed out in my bestselling hate crime America Alone four years ago, Greece has one of the lowest fertility rates on the planet—1.3 children per couple, which places it in the “lowest-low” demographic category from which no society has recovered and, according to the UN, 178th out of 195 countries. In practical terms, it means 100 grandparents have 42 grandkids. Greek public sector employees are entitled not only to 14 monthly paycheques per annum during their “working” lives, but also 14 monthly retirement cheques per annum till death. Who’s going to be around to pay for that?
Welcome to My Big Fat Greek Funeral. As to every profligate Western politician’s enduring faith in mass immigration, what hardworking foreigner in his right mind would move to the Hellenes? According to the World Bank, when it comes to the ease of doing business, Greece ranks 109th out of 183 countries. If they were dramatically to liberate their business-killing economy, they might overtake Lebanon at big hit position 108, and Ethiopia at 107, and maybe Papua New Guinea at 102. And who knows? With even more radical reform, they might crack the Hot One Hundred and be bubbling under such favourable business environments as Yemen (99) and Moldova (94). Greece ranks 140th when it comes to starting a business, and 154th when it comes to protecting investors. They cannot mitigate their deathbed demography through immigration, because, even more so than Canada and the rest of Europe, the only foreigners with any incentive to head there are those who either want to lounge around on welfare or plot jihad at taxpayer expense. In my “alarmist” book I put it this way:“Projected public pensions liabilities are expected to rise by 2040 to about 6.8 per cent of GDP in the U.S. In Greece, the figure is 25 per cent—i.e., total societal collapse.” (My emphasis)
[Add to the above, the most obvious drawback: labour legislation in Greece, practically forbids temporary employment, part-time employment, occasional employment, home employment, contractual employment, and complicates overtime. It also institutes humongous fines immediately payable -- say, 30.000 euro on a point of bureaucracy regarding one employee's holiday.... But a passenger ship that does not execute its scheduled trip may be fined 1.750 Euro! Porn is in the low VAT category, but baby milk is in the middle category]
Four years on, thanks to Obama in Washington and business as usual in Athens, the situation has worsened. Yet in a sense the comparison is academic: whereas America still has a choice, Greece isn’t going to have a 2040. The mob is rioting for the right to continue suspending reality until they’re all dead. After that, who cares?
Greece has run out of Greeks to stick it to. So it’s turned to Germany. But Germany too is in net population decline. The Chinese and other buyers of Western debt know that. If you’re an investor and you don’t, more fool you. Tracking GDP versus median age in the world’s major economies is the easiest way to figure out where this story’s heading.
Traditionally, a bank is a means by which old people with capital lend to young people with ideas. But the advanced democracies with their mountains of sovereign debt are in effect old people who’ve blown through their capital and are all out of ideas looking for young people flush enough to bail them out. And the idea that it might be time for the spendthrift geezers to change their ways butts up against their indestructible moral vanity. Last year, President Sarkozy said that the G20 summit provided “a once-in-a-lifetime opportunity to give capitalism a conscience.” European capitalism may have a conscience. It’s not clear it has a pulse. And, actually, when you’re burning Greek bank clerks to death in defence of your benefits, your “conscience” isn’t much in evidence, either.Let us take it as read that Greece is an outlier. As waggish officials in Brussels and Strasbourg will tell you, it only snuck into the EU due to some sort of clerical error. It’s a cesspit of sloth and corruption even by Mediterranean standards. On my last brief visit, Athens was a visibly decrepit dump: a town with a handful of splendid ancient ruins surrounded by a multitude of hideous graffiti-covered contemporary ruins. If you were going to cut one “advanced” social democracy loose and watch it plunge into the abyss pour encourager les autres, it would be hard to devise a better candidate than Greece.
And yet and yet . . . riot-wracked Athens isn’t that much of an outlier. Greece’s 2010 budget deficit is 12.2 per cent of GDP; Ireland’s is 14.7. Greece’s debt is 125 per cent of GDP; Italy’s is 117 per cent. Greece’s 65-plus population will increase from 18 per cent in 2005 to 25 per cent in 2030; Spain’s will increase from 17 per cent to 25 per cent. As lazy, feckless, squalid, corrupt and violent as Greece undoubtedly is, it’s not that untypical. It’s where the rest of Europe’s headed, and Japan and North America shortly thereafter. About half the global economy is living beyond not only its means but its diminished number of children’s means.
Instead of addressing that basic fact, countries with government debt of 125 per cent of GDP are being “rescued” by countries with government debt of 80 per cent of GDP. Good luck with that. Alas, the world has deemed Greece “too big to fail,” even though in (what’s the word?) reality it’s too big not to fail. And the rest of us are too big not to follow in its path:
“Another reform high on the list is removing the state from the marketplace in crucial sectors like health care, transportation and energy and allowing private investment,” reported the New York Times. “Economists say that the liberalization of trucking routes—where a trucking licence can cost up to $90,000—and the health care industry would help bring down prices in these areas, which are among the highest in Europe.”
Removing the state from health care brings down prices? Who knew? This New York Times is presumably entirely unrelated to the New York Times that’s spent the last year arguing for the governmentalization of U.S. health care as a means of controlling costs.
The EU is now throwing an extra trillion dollars at countries which by any objective measure are insolvent, and are unlikely ever again to be anything but—at least this side of bloody revolution. How do you grow your economy in a remorselessly shrinking market? That’s to say, Greece is a land of ever fewer customers and fewer workers but ever more retirees and more government. How do you increase GDP? By export? Where? You’re entirely uncompetitive; you can’t make anything at a price any foreigner would be prepared to pay for it. More to the point, foreigners already own your debt, and just servicing that in the years ahead will gobble up around 10 per cent of GDP—which you’ll have to try and make up domestically. How? You’ve got some of the lowest productivity rates in Europe, and a “workforce” that would rather rouse itself to murder bank tellers. [Not quite; one of the reasons Greece is un- everything, is that employment is so expenbsive. In open parlance, a quick way to reform the country would be, a) to eliminate Unions and discredit them (i.e. expose them for what they are, self-centred vote peddling Komsomols) in the eyes of the people and b) eliminate all labour law and regulations except for the basic definitions of employment, social security, and income tax. For starters.]
Greece, wrote Theodore Dalrymple, is “a cradle not only of democracy but of democratic corruption”—of electorates who give their votes to leaders who bribe them with baubles purchased by borrowing against a future that can never pay it off. The future is now here, and the riots will spread. ''
Thus wrote eloquent Mr M. Steyn.
'''One reader commented the following:
John Gordon says:
In the Paris Reparations Agreement of 1946 the German war crimes against Greece were billed at 7.1 billion US dollars. A few years later, under the threat of the oncoming Cold War, Germany was already needed by the Allies in the struggle against communism. For this reason, it was agreed in the London Agreement of 1953 that the recognised reparation demands against Germany should be postponed – until a final settlement in a later peace treaty.____Germany also during occupation (1941-1944) was given a mandatory loan from Greece (yes from Greece to Germany) to the size of 3,5 billions USD.____A total sum of 10,6 billions USD at 1938 prices, not today. Even at a modest interest of 4%, this money accounts to 130 billions USD, half of the total debt of Greece!__This war reparations does not take into account the cultural objects stolen of Greece stolen during occupation, neither the massacres of civilians – over 300,000 Greeks died during the occupation and ensuing civil war.__Before the minister of economy of Germany says that Germans are not liable of the faults of Greeks, he should pay back the faults of his ancestors, money that was lawfully is to be given to Greece, and then half of Greek debt will be paid. '''
OK, this was along post.
Friday 7 May 2010
The "Troika" saves Greece & its government. How 'bout the Greeks?
A chant, commonly heard on the island of Mykonos, Greece.
"Olli Rehn,
don't touch my Cayenne"
O. Rehn is the European Commissioner for Economic and Financial Affairs. The cayenne is a type of pepper and also a model by a car manufacturer named Porsche. It is of course, the latter which is referred to in the chant.
Greeks, even the ones driving Cayennes (price new: Euro 80-110k) are under the misapprehension, and the media and their government are quick to confirm, that it is Commissioner Rehn, the bad IMF, President Barroso, and other hidden forces out there dictating austerity to the poor Socialist government of Greece which, in turn, cannot but conform. Because Greece needs the bail-out money!
I.e., there is no doubt that Commissioner Rehn dictated increase of VAT by 5 points and the inclusion of food in the high VAT rate! Perhaps he even contributed a recipe or two!
It is evident that Mr Thomsen from the IMF indicated that specific civil servants' pay must be cut across the board, he probably even chose these by name...
By the same token, it must be the same bad guys who suggested that wages be cut in the private sector too (why?) but the valiant Greek government resisted...
Or, even further, it must be they (referred to as "Troika") who imposed a law where all employment be restrictively put under labour union supervision and control, contingency labour be restricted, and temporary employment impracticable...
While, by the end of this year, redundancy will be simplified. So on one hand you lose your jobs, on the other hand legislation makes sure there are no other jobs to be had!
Is it stubbornness, or are Greeks incapable of waking up, what on earth are these people doing?
The country is bust, and the average pension in Greece was 765 euro/month before the cuts. Some people worked hard all their lives and contributed; they are going to lose part of their pension. Many fought in WW-2. Not all Greeks are lazy; indeed few are. These people will suffer.
* Despite everything, and when all is said and done, the civil service has remained the same in size and people and efficiency; new committees are being set up to supervise recruitment in the public sector...
* Access to jobs in the public sector has become more bureaucratic...
* Access to the dole has been boosted!
* Access to jobs in the private sector has become much more restricted... (as of this week!)
* A number of jobs has been eliminated by law.
* The money-market seems ready to dry up.
Does the Greek Premier cat know what his ministerial mice (especially the labour ones) are doing? As Mr Papandreou comes across as a decent person, the answer to the question seems to be: most unlikely!
Maybe Greece would have been much better off if, indeed, Commissioner Rehn, President JE Barroso, the IMF Greece team were as involved as they are made out to be...
Ultimately, Greeks deserve better.
"Olli Rehn,
don't touch my Cayenne"
O. Rehn is the European Commissioner for Economic and Financial Affairs. The cayenne is a type of pepper and also a model by a car manufacturer named Porsche. It is of course, the latter which is referred to in the chant.
Greeks, even the ones driving Cayennes (price new: Euro 80-110k) are under the misapprehension, and the media and their government are quick to confirm, that it is Commissioner Rehn, the bad IMF, President Barroso, and other hidden forces out there dictating austerity to the poor Socialist government of Greece which, in turn, cannot but conform. Because Greece needs the bail-out money!
I.e., there is no doubt that Commissioner Rehn dictated increase of VAT by 5 points and the inclusion of food in the high VAT rate! Perhaps he even contributed a recipe or two!
It is evident that Mr Thomsen from the IMF indicated that specific civil servants' pay must be cut across the board, he probably even chose these by name...
By the same token, it must be the same bad guys who suggested that wages be cut in the private sector too (why?) but the valiant Greek government resisted...
Or, even further, it must be they (referred to as "Troika") who imposed a law where all employment be restrictively put under labour union supervision and control, contingency labour be restricted, and temporary employment impracticable...
While, by the end of this year, redundancy will be simplified. So on one hand you lose your jobs, on the other hand legislation makes sure there are no other jobs to be had!
Is it stubbornness, or are Greeks incapable of waking up, what on earth are these people doing?
The country is bust, and the average pension in Greece was 765 euro/month before the cuts. Some people worked hard all their lives and contributed; they are going to lose part of their pension. Many fought in WW-2. Not all Greeks are lazy; indeed few are. These people will suffer.
* Despite everything, and when all is said and done, the civil service has remained the same in size and people and efficiency; new committees are being set up to supervise recruitment in the public sector...
* Access to jobs in the public sector has become more bureaucratic...
* Access to the dole has been boosted!
* Access to jobs in the private sector has become much more restricted... (as of this week!)
* A number of jobs has been eliminated by law.
* The money-market seems ready to dry up.
Does the Greek Premier cat know what his ministerial mice (especially the labour ones) are doing? As Mr Papandreou comes across as a decent person, the answer to the question seems to be: most unlikely!
Maybe Greece would have been much better off if, indeed, Commissioner Rehn, President JE Barroso, the IMF Greece team were as involved as they are made out to be...
Ultimately, Greeks deserve better.
Monday 3 May 2010
While my guitar gently weaps...
Speeches were made for political expediency (unashamedly!) by the Prime Minister of Greece and crocodile tears were shed following the announcement of the first batch of austerity measures on Sunday 2nd May.
"Sniff, it's their fault (the ubiquitous "others" again) not ours";
"Sniff, patriots, simple people are ready to up their whole salary to help (good, because I won't -- what, you crazy?)".
"In these times we will pull through together (you put up the money and I'll do the clapping). "
Amen,
Amen,
Amen.
Instead this man should have said:
- The ones called upon today to foot the bill are mostly those who benefited little, benefited indirectly, or not at all from the spending spree we politicians started at the country's expense decades ago;
- For years, we the politicians have been hoodwinking you with simple communication techniques; we have successfully appealed to your emotional side;
- We have been deceiving you -- but of course politicians are hardly expected to tell the truth, are they?
- Those who have benefited greatly are not much affected by this crisis; they have enough stashed away to survive and retain their lifestyle -- albeit with some changes. Changes are exciting.
- Do you all know that ever since my father's reign, we have lived well beyond our means, we have turned many EU subsidies to personal profit, we have bought votes;
- We have lost part of these subsidies because we never actually applied for them! Why? Because while the interested parties were fighting over the split deadlines were lost -- so the loot is gone!
- Some of you rallied to this racket patiently hoping for your turn to share the loot! You are the ones who accepted the racket as a means to make a quick buck;
- Rather than rely on work to create wealth, net worth in Greece was gained the back door of state subsidy or state contracts -- which we, the politicians, controlled; Either that or you inherited real estate! So why work? It did not lead anywhere.
- Basically, we spent money but created little or no wealth! No added value.
A longish comment in the Economist ("Comments on Europe's sovereign debt crisis: Acropolis") deserves the extra attention it commands.
"The question that will go unanswered in the whole crisis, is what would have been different had the German government rescued Greece in a more timely fashion. It is one thing to demand more efficient state spending and investments to spur economic growth and give advise how to achieve that. (Which I would agree with.) It is quite another to just demand indiscriminate cuts in government spending and increases in taxation to sooth the population of Germany and the other EU countries. Instead of holding a useless grudge against Greece, a real solution addressing the economic imbalances within the EU would be best for all concerned."
"The question that will go unanswered in the whole crisis, is what would have been different had the German government rescued Greece in a more timely fashion.
I think not all that much. The austerity measures placed on Greece are unreasonable, unjustifiable and have no way of achieving their goal of repaying the debt. Austerity measures are tantamount to collectively putting Greece into a debtor's prison. (...)
Putting a debtor into prison only works, if the debtor in fact *has* the money, but refuses to pay it. But more often than not, the debtor has spent the money in one way or another and no matter how long you let him rot in prison, will not be able to pay it back. If your desire is to get your money back and not to shame the debtor, then you'd rather help him find a way to earn it back.
Placing austerity measures on a country with the hope of its debt being repaid, assumes that its expenditure is somehow so grossly in excess of its needs, that reducing expenditure alone will easily be enough to pay it back. But this is not at all the case. Even if Greece decided to cut *all* its military expenditure in order to repay its debt, the Greek deficit would merely be diminished from its current 13% of GDP to 9%.
Extravagant expenditure alone cannot account for the deficit and cutting expenditure will do nothing to effectively diminish it, not to mention do anything in the way of repaying Greek debt. [Presumably the writer refers to standard expenditure, not extraordinary cash outflows of all kinds. If so, he is wrong. There are holes that can be easily identified and plugged. To name but one, OSE, the state run railway, loses Euro: 1 billion per year.]
Trying to repay Greece's debt through austerity measures - increased taxes and decreased spending - is a laughable proposition. There are exactly two ways in which Greece can repay its debt.
1) Inflation. This will be impossible unless Greece gets out of the Euro area and also undesirable for all involved.
2) Economic growth. But this will require increased spending, reduced taxes and growing wages - quite the contrary of the austerity measures required from both the IMF and the EU (with Germany in the front line) and almost impossible to achieve so long as Germany follows the doctrine of keeping its real-wage growth below increases of productivity in order to dump its products on other markets - which is impoverishing its own people and those abroad.
The other options to resolve the issue are debt forgiveness, debt restructuring or default. All of which amount to the same.
Wednesday 28 April 2010
Andreas Papandreou would be proud -- but he's dead. Greeks are alive but miserable.
Never since the '60s has Greece been headline news as now! Then it was Sirtaki, Sophia Loren on Hydra, Greek kefi (Later, in the '80s, noises from a premier Andreas Papandreou (father of the current premier @ the same name) renewed lukewarm interest in the country, as the man amusingly referred to terrorists as "freedom fighters" and incessantly frustrated Americans & US policy in public (he was a US citizen) , there was something to say.
Since then, not much -- until now, that is. ever since Greece voted its Socialists back to power in October 2009, Greece has hit the headlines.
Not directly because of the Socialist government; rather, because of its huge debt and a reported ethical lassitude that hit the news very hard.
Andreas Papandreou, the father of the current premier, is reportedly the man who led Greece onto the path that led to the financial and ethical bankruptcy of today
He is also the man who first in Greece used the media to practise Goebbels type propaganda with Soviet euphemisms in official statements; for example, the tax increase in the current austerity plan in Greece is called "Measures to re-establish justice in taxation"... Since his time, politicians particularly those of Socialist persuasion, have been able to hoodwink Greeks into believing that the earth is flat.
* That others are all the root of all evil; not "us".
* That successive Greek governments will hoodwink "others" into lending us money for nothing ("...and the chicks for free" said the song).
* That others made us goes into a spending spree...
Anyway, Greek governments since the 1980's continued in Andreas Papandreou's glorious footsteps and now we have two important money men travelling to Germany to meet up with the chancellor for the sake of Greece. And other matters no doubt.
Because as we all realise, now is the time to pay the bill and "others" have to lend us the money. Not only that, but it is a lot of money: at least half total estimated public debt! The money-men DID think of Greece's near future in their proposed rescue plan.
And all must pay back money some have pocketed.
And Greek television still stars its politicians!
Goodness, the Romanians would have hanged them, and Romanians are known to be temperate people!
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