Debt Rattle April 30 2015
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Unknown Medical supply boat Planter, General Hospital wharf on the Appomattox, City Point, VA 1865 • Negative Interest Rates Set Up World For Biggest
[See the full post at: Debt Rattle April 30 2015]As the economic siege of Greece continues, things gradually get worst. Money becomes scarce. Slowly, but steadily the pressure in the boiler goes up. Take a few days ago. In a single day the private TV stations stopped transmitting for a couple of hours, ATMs stopped giving money for a day (both due to ‘technical problems’) and Varoufakis got bullied. Oh my, BDU was busy! But despite the best laid plans of bureaucrats and mice, the chaos that this stupid sh*t creates cannot be tamed, even by a divine god-like supreme figure like Wolfy Schäuble. You see, the all-powerful meme of European Solidarity and Integration is being phased out very fast from the collective Greek soul. For them the EU is not about prosperity anymore, it’s about survival. Sure, the majority of Greeks still don’t want to get out of the EZ, not out of love, but because they fear the alternative. But do you think they will stay idle when the German and European banks come to confiscate their pride and reason for living, their houses and order them to die out of hunger? The very concept of ordering them to commit suicide is fundamentally wrong, but it does reflect how a bureaucrat would give a ‘solution’ to a problem. The resolt of these actions is that even the most of the Greek sheeple can feel where this thing goes. All this doesn’t create pressure, it creates chaos. Wrong result.
Now, more and more know that the EZ and the EU are not going to survive for long. That is why the Germans have started looting the South, as they had been doing for a thousand years in the past. Every year, the Blond King would cross the Alps on his white horse with his massive army to loot and plunder the southern lands. This time around, the plan is the same, but the players and means are different. Take for example a delusional, bitter, narcissistic old guy would give the order to his minions to sms a Reuters so-called journalist and signal the commencement of the Glorious Operation Smear Baldy With Tons Of Crap (against the FinMin Gianis Varoufakis in Riga). I am sure in German, the name sounds better and the whole concept reflects the way kindergarten politics is being done, during the Age of Merkel. But compare the majesty and might of the former with the pettiness and weakness of all the later. Do you see? This Europe has no chance. The center cannot hold, for, among others, there is no center.
TheGreekOne said “Now, more and more know that the EZ and the EU are not going to survive for long.”
Actually, longer than we think. Look how many years the stock market bulls have been running to new highs. I doubt we boomer generation will see the end to the EZ and the EU.
The “plastic only” decree for Greek resort islands may lead in various directions. Certainly, bankers want no more cash, just credit instruments, managed electronically by banks. All risk and expense falls upon the pawns.
It also sets the stage for Bitcoin…The D word in that MarketWatch article should have been deflation. Because they will never mention that either.
Thank the gods I live in a cash society; and it’s not likely to change for decades. The initial attempt at credit cards was disastrous. Besides which; outside of major cities they’re not normally usable.
I love the bit about Governmentium 312; a good chuckle for sure.
@ The Greek One, reply # 20798
Being a resident of Spain, the drama being enacted has immediate effect upon the economic climate in this country. Both main political parties seem paralysed with the fear of loss of power, neither have the intellectual resources to appear with either answer or policy programme to address the economic depression the country finds itself; make no mistake about using the word depression as related to the economic conditions, depression is what pertains. Whatever statistical information produced by the government should be taken as suspect – automatically. The austerity policy being applied assures few to none of the thirty percent unemployed will ever see another job nor the sixty percent of youth entering the labour market will ever have the where-with-all to form families of their own through their own labour. For those of middle age who have been without employment for more than two years, the future has ceased to exist, the stresses of maintaining families will eventually destroy those families given the conditions. So far, survival is depleting the resources available to the affected extended families, how much longer this drain can be maintained is the great question being lived here.
The rational approach in the face of unemployment is to sharply curtail the working age by enabling early retirement making jobs available to those entering the employment market, the cost of supporting retirement is far less than the loss of job skills and training for those entering and in the midst of their job careers and the social costs that their families pay through economic impoverishment and lack of opportunities. Poverty begets poverty, a cycle that must be halted with the greatest urgency. For those companies using employees, positive tax incentives can be provided to encourage increased hiring opportunities, as well as schemes for reduced working hours on sustainable wage rates and taking on additional workers. The efficiency of production that leaves a large percent of the population unemployed must bear the taxes on income not being paid by the unemployed. Those companies involved in labour arbitrage, the employment of external labour to profit from low labour costs must face significant fees for the importation of their goods to the home market, or ending their profits altogether. Foreign companies using underpaid labour to produce their stocks for sale must be required to surrender excessive profits gained from their exploitation of labour, or through price advantages gained thereby. Entrepreneurial profit is taxed at a rate to cover the external costs created by enterprises, labour wages are to be protected. A policy that reflects gently upon enterprises having little or no control over their markets and progressively more sternly as the enterprise captures market share to the point of severity as monopolistic share of market occurs. As long as inflation marks the growth in goods and services of the economy, the economy is being well served. Inflation of wages is not a problem under the condition that productivity matches that inflation, even price inflation as related to cost inflation for either wages or commodities used in the production of those goods. Inflation turns bitter when it is the result of market control unrelated to the effects of production, the economic power of monopoly over price and supply. Monopoly has very limited uses and should only be allowed under tightly controlled conditions and stringent limits upon profits, the economics of scale being one significant consideration amongst numerous others of meeting social needs. The ills of capitalism are multitudinous and require constant control if capitalism is to serve rather than become the master, but that follows for any social devise ever invented by the species. Each generation must learn these things anew. How good has our learning been? How well will we instruct our children of these matters?
@ Formerly T-Bear
Nice post, very well said.
Unfortunately, nobody presently in charge (mostly), is looking for solutions. Solutions run counter to intentions.
I think very shortly, we’ll see if those with solutions will be allowed a place to effect change. Tsipras and Varufakis are already running into interference from within.
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