^What I don't get is why the ECB seems intent on debasing the Euro.
Weakening the Euro for the purposes of creating inflation seems like a terribly short-sighted policy. Something else has to be going on.
Quote: (01-26-2015 07:18 AM)VolandoVengoVolandoVoy Wrote:
The real problem Spain was/is facing was a combination of an entrenched system of laws that were hostile to business, along with a rapacious political class interested only in corruption, and an elite that could give a fuck and had no interest in putting their capital to work in any productive way. Are many Spanish bureaucrats and public workers lazy as fuck and incompetent? YES! But they are not the majority of people. Most people were very willing and eager to work, but their country and system failed them. I suspect the situation is similar in Greece.
Quote: (01-25-2015 06:00 PM)poutsara Wrote:
I am no economist and maybe my analysis is crap but...what if Greece leaves the euro zone?
Greece can't control its monetary policy while in the EU.
The main industry in Greece is tourism, followed by shipping and some others.
Cheaper money in Greece would benefit tourism and their other homegrown industries.
Leaving the EU would be bad precedent to the big players in Europe and their central banks because but it may be good for Greece and its people - but I might be wrong. We will see.
Either way, Zito Hellas.
Quote: (01-26-2015 05:10 AM)Tex Pro Wrote:
^What I don't get is why the ECB seems intent on debasing the Euro.
Weakening the Euro for the purposes of creating inflation seems like a terribly short-sighted policy. Something else has to be going on.
Quote: (01-26-2015 04:54 AM)Handsome Creepy Eel Wrote:
Živi zid wants to put an end to this by:
- giving the central bank the ability to print money and lend directly to the government
- conversion of all debts to local currency
- introducing a controlled short-term bout of inflation (printing) of local currency, with which to wipe out or reduce old debts
- introducing a 100% reserve rate to stop the banks from grabbing their share of money during this process
Again, as far as I can tell, all of those are sensible solutions.
After its completely unknown presidential candidate achieving a staggering 17% of the vote last month, Živi zid is currently being massively attacked from all sides. It is simultaneously being proclaimed to be ultra-left, ultra-right, feminist, LGBT, fascist, catholic, taliban, populist, nationalist, anti-people, destructive, keynesian, neo-liberal, and so on. All of the other parties in existence (including all major media) have united against it.
The whole thing is very worrying and just confirms my belief that Živi zid's ideas are right.
Quote: (01-26-2015 09:53 AM)lowside Wrote:
I'm watching this unfold closely, and I like what I see. I doubt anything will happen though, just another politician wanting to be in charge. They might get a better interest rate, they might get an extension, maybe some other measures...but that's it.
What I really would like to see is Greece leaving the eurozone and default on its debt. We haven't had a Western economy default since a while. Would be interested to see how that would play out nowadays and how the powers that be would react.
None of this is going to happen of course. Also the Greek think they have a choice, which they haven't. So not much is going to change I think.
Quote: (01-26-2015 10:01 AM)Sonsowey Wrote:
Once again: textbook macroeconomics says that focusing on deficit reduction in a depressed economy, where the zero lower bound constrains the effectiveness of monetary policy, is a very bad idea. And although nobody will believe it, textbook macro has actually been a very good guide to the economy since the financial crisis...
Quote: (01-26-2015 09:57 AM)bojangles Wrote:
Quote: (01-26-2015 09:53 AM)lowside Wrote:
I'm watching this unfold closely, and I like what I see. I doubt anything will happen though, just another politician wanting to be in charge. They might get a better interest rate, they might get an extension, maybe some other measures...but that's it.
What I really would like to see is Greece leaving the eurozone and default on its debt. We haven't had a Western economy default since a while. Would be interested to see how that would play out nowadays and how the powers that be would react.
None of this is going to happen of course. Also the Greek think they have a choice, which they haven't. So not much is going to change I think.
It's exactly what I want too, I want Greece to leave the eurozone and the EU. I want it to default on its debts.
Of course I expect Russia to come to the rescue at that point and draw Greece into its Euroasian zone hopefully.
Quote: (01-26-2015 07:18 AM)VolandoVengoVolandoVoy Wrote:
Of the people who claim the fundamental problem is that Greeks are lazy and don't want to work, are you currently living or have you lived for an extended period of time (1yr plus) in Greece?
Quote: (01-26-2015 02:25 PM)Sonsowey Wrote:
Molyneux says that the Austerity in Greece has been a farce, comparing it to someone eating 10,000 calories daily cutting it to 9,600 and calling it a "starvation diet". Greek spending has actually shrunk by more than 20% during this recession. Taking away spending during a recession caused the economy to tank even harder.
Debt to GDP increased precisely because of Austerity deepening the recession
Firing public employees, slashing government spending, all caused a depression to become even worse, and despite government spending dropping rapidly, tax revenues have dropped even more rapidly due to the very austerity worsening a pre-existing recession.
Greek government spending: