Posted on 03/03/2010 7:43:54 PM PST by dajeeps
I can't post articles from Bloomberg.com here, but on their home page they have a story about Germany's hesitation in bailing out Greece.
It says that Merkel doesn't have domestic support for the bailout and thinks that if Greece cuts enough out of its budget that they can win back investors.
Merkel knows that Greece is fubar and that financial aid to Greece is not going to change that. Merkel/Germany is looking to minmize the national default domino effect that will likely happen within this year (look at the economic situations in Spain, Portugal, the UK, France, Poland, etc., etc., etc.).
did you know that Greek government employees get two months pay as a “holiday” bonus?
Meanwhile the sales tax is being raised to 21% to help for this largess.
Nope. That’s just what the EU is telling their idiotic voters.
In reality, the EU has begun Operation Trojan Horse...which orders German private lenders to buy Greece’s new public debt.
That means that banks in Europe are deliberately purchasing toxic debt, knowing that the German government will be better able *politically* to bail out German lenders on the sly than to overtly bail out the nation of Greece.
Which just kicks the can down the road a bit...buys Greece a little time at the expense of weakening the entire European financial system further.
Why should Germans work to age 70 or 76 so Greeks can retire at 50? 21% sales tax - that will kill any economy.
Did you see Greece’s plan for cutting the deficit? They are counting on extra revenues from tax increases. Seems like sort of a pie in the sky kind of thing when their economy is a mess to begin with and all the rioting isn’t helping matters. Additionally, a government can only tax so much before it becomes counter productive, creating black markets and like kinds of evasions.
I read a story about this a few days ago where some Greek officials were saying that Germany owes them money because the Nazis looted all their gold and never paid it back. I was pretty sure at that point a story like this was forth coming.
I agree. Greece is “fubar.”
Nobody is strong enough to bail anyone out these days. Germany is smart, let them do what they can to cut spending. That’s what we have to do with California. If you keep bailing people out they will never learn.
See post #4. The bailout of Greece is being done in secret via private German lenders.
Like I said, there goes the Euro.
And Soros cashes in...
Tha ain’t their only tax either.
Ping.
But the Greek SOCIALIST govt promised to cut spending. How could the other Euro types not believe them?
It might have been on the Lew Rockwell website (sorry), but There was a cool story somewhere on the internet quite a few years back, I remember about legacy pensions. It was something like “the international order of pineal water carriers”; but I can’t find anything cached. Basically, about 1,000 years ago the folks who would run ice/snow down from the mountains to the plains before the advent of refrigeration, they formed a union, had a pension, get this, that was transferable to spouses or children?
Anyway the windup was, the government was still paying out some pensions up until the 1870s or something like that. yikes.
How can it be a secret, if you know about it? (sorry)
lol.
Must have been in Europe.
They need to slash spending and cut taxes. Getting out of the EU might be something to think about because they can still stay in the trade zone.
I know and I wouldn’t blame anyone for not helping them out. They are like the guy making 25K a year, driving a Lexus, living in a Mcmansion, sending his kids to private school and belonging to the Country Club, asking me to bail him out.
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