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The Greeks Are About To Be Sacrificed At Europe's Altar
The Business Insider/The Telegraph ^ | 4-25-2010 | Joe Weisenthal

Posted on 04/25/2010 7:41:20 PM PDT by blam

The Greeks Are About To Be Sacrificed At Europe's Altar

Joe Weisenthal
Apr. 25, 2010, 9:03 PM

Ambrose Evans-Pritchard at The Telegraph has some characteristically sober observations about the state of Greece and the EU as a whole.

The nut of the piece is that typically an IMF bailout wouldn't be devastating, but when an IMF bailout comes under EU rules -- strictly speaking the Maastricht treaty with its no bailouts rules -- the effects will be quite rough.

The EU-IMF "therapy" of deflation for Greece repeats the catastrophic errors of Chancellor Heinrich Bruning in the early 1930s and must lead to a depression, he said.

Yet that is what IMF chief Dominique Strauss-Kahn is preparing for Greece, against the better judgment of his own experts. "Greek citizens shouldn't fear the IMF; we are there to try to help them," he said over the weekend. Yet a week ago he told Greece that devaluation and default are non-starters. "The only effective remedy that remains is deflation. That will be painful. That means falling wages, and falling prices. There is no other way."

[snip]

(Excerpt) Read more at businessinsider.com ...


TOPICS: News/Current Events
KEYWORDS: bailout; europe; greece; imf
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1 posted on 04/25/2010 7:41:20 PM PDT by blam
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To: blam

Coming to a country really really really close to you soon.


2 posted on 04/25/2010 7:52:05 PM PDT by GeronL (http://libertyfic.proboards.com << Get your science fiction and fiction test marketed)
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To: GeronL

We are already in a serious deflationary spiral. We don’t notice it as much as other countries, but it continues.


3 posted on 04/25/2010 7:54:01 PM PDT by muawiyah ("Git Out The Way")
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To: blam

Beware of Greeks bearing bonds


4 posted on 04/25/2010 7:54:23 PM PDT by sourcery (Government should be as powerless as possible, while still able to protect individual rights)
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To: blam

I wonder if the Russkies could move in and help out their Orthodox brethren.


5 posted on 04/25/2010 7:54:59 PM PDT by dfwgator
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To: muawiyah

Interesting that you say deflationary spiral. My husband and I were just talking about the economy this evening and thot we were seeing signs of inflation—raise in interest rates, consumer prices going up....Frankly, I see no prices going down with the exception of the housing sector. What do you see that is deflationary besides real estate? Just wondering.


6 posted on 04/25/2010 7:57:10 PM PDT by Freedom56v2 ("If you think healthcare is expensive now, wait till it is free"--PJ O'rourke)
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To: blam
The Greeks are in trouble because of social programs. They have become lazy, expecting that a check will arrive in the mail box every month forever. Afternoons siestas all night bars and clubs. The Germans are not interested in helping them continue the party Many over taxed Americans have a similar attitude towards non contributing citizens who feel they are “entitled” to a siesta check.

I think the anger should be directed at the politician who traded votes for the public dollar

7 posted on 04/25/2010 7:58:38 PM PDT by reefdiver ("Let His day's be few And another takes His office")
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To: blam
The Greeks Are About To Be Sacrificed At Europe's Altar

That's like blaming someone else for your punishment after you've committed a crime. The Greeks brought everything upon themselves by their out of control spending, unsustainable pay, pensions and benefits for their overstaffed government workers, and their constant fudging of their accounts to make it appear they were complying with EMU regulations, when they were not.
The Greeks can always leave the EMU if they think the conditions are too onerous of course. No one is forcing them to stay inside. In fact some in the German government coalition want the Greeks to leave the EMU.

8 posted on 04/25/2010 8:00:10 PM PDT by SmokingJoe
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To: GeronL
Coming to a country really really really close to you soon.

Or a state near you.
California maybe?

9 posted on 04/25/2010 8:01:43 PM PDT by SmokingJoe
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To: blam
"Greek citizens shouldn't fear the IMF; we are there to try to help them,"

If ever there were an appropriate time to quote Ronald Reagan on the subject, this would be it. Accordingly: "The nine most terrifying words in the English language are, 'I'm from the government and I'm here to help.'"
10 posted on 04/25/2010 8:02:24 PM PDT by Oceander (The Price of Freedom is Eternal Vigilance -- Thos. Jefferson)
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To: bushwon
Stocks (equities) are still lower than their peak. Home prices, in general, are responding to local market situations ~ but we are still very overbuilt ~ a 15 year surplus by many estimates.

There's a possibility this year's climate will prove as cold as last years and that will raise food prices. At the moment what you are looking at are higher prices brought on by winter temperatures in Florida, Southern Texas and California.

If you recall Nixon's wage and price control deal, you saw a phenomenon of average prices rising as low cost products simply disappeared, and comparable products previously sold at a higher price continued to be sold.

With deflation you find something similar ~ the loss of previously low priced items that are then replaced by previously higher priced items.

This is a consequence of "restocking" costs. Manufacturers lower their prices much slower than the retail side in a deflationary regime.

11 posted on 04/25/2010 8:07:45 PM PDT by muawiyah ("Git Out The Way")
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To: blam

ping


12 posted on 04/25/2010 8:08:12 PM PDT by SeattleBruce (God, Family, Church, Country - 11/2010, 11/2012 - Tea Party like it's 1773 & pray 2 Chronicles 7:14!)
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To: muawiyah

Interesting about restocking....had not heard that; however, some say that housing and to some extent stocks were in a bubble.


13 posted on 04/25/2010 8:12:13 PM PDT by Freedom56v2 ("If you think healthcare is expensive now, wait till it is free"--PJ O'rourke)
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To: bushwon
Restocking is the culprit every time. You can think you are seeing inflation, but what you are really seeing is lower priced items being moved off the market because their manufacturers simply cannot recover their investment costs through a sale.

The manufacturers then turn to higher cost items to stay in the market. They can do that as long as supplies hold out, but eventually the higher priced products disappear too.

One of the major characteristics of the Great Depression was that people had money but there was nothing to buy! Moreover, if they put it in a bank there was no interest paid!

Manufacturing ground to a halt and the government took over the home loan industry.

We are not out of the deflationary woods yet.

14 posted on 04/25/2010 8:18:06 PM PDT by muawiyah ("Git Out The Way")
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To: bushwon
Inflation or Deflation, What to Do and When to Act

Economics / Inflation
Apr 25, 2010 - 01:40 AM
By: Gary North

Have you ever seen a documentary where the herd of zebras is at the river's edge? The lions are behind them. The crocodiles are in front of them. What's a wise zebra to do?

Most of them wait. Then, without visible warning, they either run like mad or else plunge into the river.

Sometimes the lions win. Sometimes the crocs win. Most of the zebras survive: the ones in the middle of the pack.

This phenomenon is also known as regression to the mean.

It is easier to move forward than backward. Monitoring the lions at your rear is important mainly to know when to take your chances with the crocs.

What you should be looking for is a place in the river where there is a shallow land bridge. You can get across faster, and the crocs will have a harder time grabbing you.

The trouble is, you can't get onto the submerged land bridge fast enough if you're in the middle of the herd.

INFLATION OR DEFLATION?

[snip]

15 posted on 04/25/2010 8:21:37 PM PDT by blam
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To: muawiyah

I think the inflation is starting. There’s another thread today saying food is up 2 percent last month.


16 posted on 04/25/2010 8:26:25 PM PDT by sgtyork (The secret of happiness is freedom, and the secret of freedom, courage. Thucydides)
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To: blam
Interesting that George Soros has not offered to help. Well, he might, after he makes his trillions from shorting the Euro and other European currencies.
17 posted on 04/25/2010 8:28:30 PM PDT by mlocher (USA is a sovereign nation)
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To: sgtyork

Winter happened. It affected the growing areas. Nothing new.


18 posted on 04/25/2010 8:28:49 PM PDT by muawiyah ("Git Out The Way")
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To: blam

And the Gods were offended at being offered nothing of value.


19 posted on 04/25/2010 8:29:01 PM PDT by Del Rapier
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To: blam

“I’m from the government, and I’m here to help”.....

hh


20 posted on 04/25/2010 8:29:57 PM PDT by hoosier hick (Note to RINOs: We need a choice, not an echo....Barry Goldwater)
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