Posted on 05/10/2010 11:34:22 AM PDT by WesternCulture
The largest economy on Earth is far from bankruptcy, but it is crippled.
By launching gigantic bailout solutions, The EU member countries could probably shield off any attacks by the so called "wolf packs" of international specualtors who currently are haunting finacially week nations.
But, looking at things from a broader perspective, what is gained for the EU or the world economy as a whole by such maneuvers and for how long could this development continue?
Furthermore, who gets to pay the bill in the long run?
Is it the Greek/Spanish/Italian workers of today who retire at the age of 40, or the average Northern European who works 40-50 hours on a weekly basis until the age of 65?
Anders Borg, Minister for Finance in the Swedish government, has no high esteem of Greek work ethics:
"We can not let the turbulence on the financial markets continue for a long time. On the same time it is obvious that Swedish and other tax payers shall not have to pay because Greeks choose to retire at the age of forty-something. It is unacceptable Mr Borg said to Sveriges radio."
(source: www.stockholmnews.com, www.svt.se and others)
I can easily see why he is upset.
Oh, boy. A financial soap opera.
“Oh, boy. A financial soap opera.”
- With an happy ending?
I just have this sinking suspicion that some how, at some point, one way or another, American taxslaves will be footing the bill for the European rescue. Maybe not but I won’t be surprised.
Yeah, our grandkids will have to work until they’re 75 so Spiro can retire today at 50. And we stand still for this crap? (Me, a flat tax and a solid currency now.)
I doubt it.
Greece should be systematically kicked out of the Euro common currency - for failure to be fiscally responsible.
when they are out - their currency can float to the right valuation level that matches greek productivity and stability.
Then either austerity will be welcomed, or Greece will have to sell off assets to cover debts - or they default and get an imposed austerity - because nobody will want to lend them money at any reasonable rate.
No source, no link?
Don’t worry, the socialists in our country are lazy too..... until it comes time to ram socialist legislation through Kongress or protest American values.
“I just have this sinking suspicion that some how, at some point, one way or another, American taxslaves will be footing the bill for the European rescue. Maybe not but I won’t be surprised.”
- The US and more or less all of the countries over here in Europe have huge national deficits.
Switzerland, Sweden, Denmark and Norway constitute exceptions, but although we are rich, we can’t rescue large nations like Germany, Great Britain, the US and Japan. We could rescue Greece, but what comes next?
The basic problem is that in many “rich” countries of today, people don’t wish to work, don’t wish to pay their debts and elect governments who gladly supports such a Après nous le déluge-lifestyle.
Where the formerly rich and extremely gullible Uncle Sam comes in and tosses money around to the lazy and hard working alike to delay the day of reckoning.
“No source, no link?”
- Here is a source in English:
http://www.stockholmnews.com/more.aspx?NID=5296
WTF - Retire at 40!?
If they thing the Greeks are lazy, wait `til they get a load of the French.
I think it's far more complex than that. Some people certainly have no desire to work but most just want to be paid a fair wage for a fair days work. I'm happy to work personally and I'm happy with my compensation. That's just me though. I am an exception. In most cases, labor and management are at war over "fair compensation". This war has a lot to do with why we are where we are IMO. Ultimately, (in the USA at least) it has created a deflationary spiral which is contributing to all of our problems.
“WTF - Retire at 40!?”
#####
I know of numerous American “educators” and firefighters who routinely retire in their early to mid 50’s.
On your nickel.
IMHO it is more useful to think of the "who" across time instead of across space. The correct answer is "The future's young (whose votes are never solicited), in all thse places."
Most (all?) wealthy democracies have instituted programs in which other people's children fund your retirement. This has had two big effects. First, consistent with the short-term incentive structure of politicians, benefits promised have substantially increased. Second, assuming other people's children will pay the freight, people have had far fewer children of their own, turning public pensions into a tragedy-of-the-commons problem.
Absent substantial economic growth (itself requiring lots of young people and their energy, ideas and risk-taking), the arithmetic of this is not good. How will it play out when, as in Greece (a long-time low-fertility country, like Spain, Portugal and Italy), other people's money just isn't there any more but the people expecting to be paid dominate the electorate? This is the drama beginning to play out.
>> WTF - Retire at 40!?
20 years in, right? Doesn’t that exist in the US too?
I don’t understand wht the Eu doesn’yt act against Greece and kick them out of the union. Let that be a warning to Italy Spain and Portugal as they watch Greece default and find out what austerity really means.
- From what I've found out, such things are the tip of iceberg in this context.
Alexandra Pascalidou, a “leading” Swedish-Greek PC journalist, recently reported (in Swedish media) on Evaggelismos, a major hospital in Athens.
The hospital had 40 gardeners on the payroll.
However, the hospital had no garden.
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