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Rostkowski's comment about Greece from people who will pay nothing


Harry
2 Jul 2011 #1
Speaking in Warsaw, Mr Rostowski, a British-born economist and academic, suggested that not enough was being done to boost Greek GDP, and that too much focus had been put on cutting spending and increasing taxes.

"It's clear that everybody has made mistakes over the past year and a half," he told reporters. "We've all been behind the curve."

Pity that any idiot can see that it's not increasing taxes: it's getting cuunts to pay theirs.

Do feel free to explain why the taxes we pay should subsidise Greeks who don't want to pay theirs.
legend 3 | 664
2 Jul 2011 #2
I dont know much about this area but I will say the
PIGS countries are causing trouble...

That is Portugal, Greece, Spain, and Italy.

en.wikipedia.org/wiki/PIGS_%28economics%29

That has some of the basics in it.

Basically those member nations of the European Union who after a decade of overspending are poised to fall into a catastrophic debt crisis.
Its already happened to Greece. And to be honest I dont think the EU should pay them LARGE amounts for the problems.
Daisy 3 | 1,225
3 Jul 2011 #3
My cousin lived for years in Greece, but lost his business recently. he told my uncle (his father) that teh Greek people are a lot to blame for their own problems. He has many Greek friends and loves the country, but he said he has never come across such a lazy bunch of people.

Some years ago funding was given for a new road to be built where he lives, it would have improved tourism in the area, while creating jobs in the meantime building it. The money was taken, but the road has never been built. He said there are many more examples of this across Greece. He feels sorry for the hard working Greek people he knows who are being let down by their countrymen.
grubas 12 | 1,390
3 Jul 2011 #4
PIGS countries are causing trouble...That is Portugal, Greece, Spain, and Italy

No mister, it's PIIGS.Add Ireland to your list.
southern 75 | 7,096
3 Jul 2011 #5
The problem in Greece is the incompetent middle class.I have analyzed it many times.They were developed by EU funds and now Europe wants to save their asses because they have connected them with euro.

These people have not hesitated to sell greek national property of 300 billion euro to pay for their debts.There are strong reactions and by the time folks put their act together their future is limited.I give them 6 months.Such is the interval they bought by EU.
rock - | 460
3 Jul 2011 #6
I think European countries have to give even their ass to Greece.

Greece deserves to fcuk them.
Grzegorz_ 51 | 6,161
3 Jul 2011 #7
Greece should be simply allowed to bankrapt. But then banks (especially German and French) would loose a lot on their bonds... and this is what's all about, not about helping some Greek guy... besides, foreign corporations will buy a lot of privatized assets for half the price...
skysoulmate 14 | 1,295
3 Jul 2011 #8
Personally I think Greece should be forced out of the Euro for let's say 5-10 years; print new, temporary Drachmas at the initial 1 drachma - 1 euro rate and pay all salaries and pensions with the new currency. Keep the loans and savings in euro for now until people want to withdraw then pay out at the drachma rate for the specific day. (otherwise you'd create a run on the banks)

Within days of the new currency's introduction it would probably drop some 20-30%, maybe even more. However within a year or so businesses, tourism, manufacturing, etc. would be returning with a vengeance as Greece would become the new, de-facto low-cost country of Europe (for nations within but also outside of the euro zone).

The country would default on many loans but it would restructure and move on, just like Argentina did a decade or so ago. Once the tax system has been reformed and overhauled, when the economy is in good shape all over again they should lock-in the new drachma-euro rate (by then probably some 40% cheaper than at the reintroduction) and let Greece back into the Euro zone, but only then. In a way this would be more difficult for the Greek population as the massive devaluation would hurt the poor segments of the population (massive devaluations cause massive inflations) but in the long run it'd speed up Greece's recovery.

The ECB fears this solution of course as it'd open up Pandora's box by implying to other, "less frugal" nations that overspending is ok, "if things get out of control we can always leave the euro, restructure and do it all over again..."

No easy solutions for sure...
southern 75 | 7,096
3 Jul 2011 #9
print new, temporary Drachmas at the initial 1 drachma - 1 euro rate and pay all salaries and pensions with the

Actually they should print it at the fixed 2002 price 1 euro:320 drachmas.

Within days of the new currency's introduction it would probably drop some 20-30%, maybe even more

If it were to fall only 20-30% it would be good.The fear is that it will fall 300% this means that everyone will make 3 times less deadly for public servants and the middle class.
skysoulmate 14 | 1,295
3 Jul 2011 #10
Actually they should print it at the fixed 2002 price 1 euro:320 drachmas.

Why? By now Greeks are used to the euro pricing, keep it simple and remember that this would be a temporary currency. They'd probably create a new name for it to avoid any confusion with the "old" drachma. How would "temporary drachma" sound in Greek? Or "emergency money"?

If it were to fall only 20-30% it would be good.The fear is that it will fall 300% this means that everyone will make 3 times less deadly for public servants and the middle class.

It would be very volatile for weeks, maybe months but if Argentina is any guide the initial devaluation was in the 20% range. Things got worst before they got better for sure but if Greeks are unhappy with the current measures maybe they should try a new drachma for a while? Very, very quickly most people would realize that the current reforms are not as bad as a new, and quickly devalued Drachma would be.

Also, supposedly there are already plans for printing new bills if needed and it can be done fairly quickly. Both Germany's Bundesbank and Sweden's Riksbank helped the Baltic states and also Croatia and Slovenia (not sure about Ukraine?) to print their new respective banknotes once they became independent. In Estonia's case it went from placing the order, designing and printing money for the whole country in less than 2 weeks. (I'm talking about the first batch of bills).
peterweg 37 | 2,319
3 Jul 2011 #11
remember that this would be a temporary currency.

There would be no chance of the Greeks ever re-entering the Euro. They only got in the first time by fabricating the figures. The country is completely unsuited for membership and probably will be for the next 30+ years


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