Greek Deal Is Another Dangerous Wimp-Out

Comments (10)

  1. Ivan Cohen says:

    I always find it surprising to read the endless stream of derogatory commentaries from US analysts, economists etc. on the subject of various European countries. You refer to “other irresponsible governments” and amongst them mention Spain where I have lived for a good number of years.

    There is no doubt that Spain is faced with the dismal prospect of change under the auspices of Podemos. However, the situation in Spain can be traced back to the world crisis resulting from amongst other things, “irresponsible” financial practices in the USA that were the root cause of the financial meltdown that filtered through to most countries. Yes, Spain was not innocent – the construction boom (bubble?) was a major contributor as was the dismal and incompetent performance of the Socialist government.

    Spain has been through years of austerity measures. People have suffered terribly and still are suffering in many cases on a par with the Greeks. It is a pity that nobody has bothered to explain to the Greek population that expected to retire at 50, never paid taxes, had a ridiculously low level of VAT (which was probably never remitted) that they owe the people of Spain 25 million Euros – money that if it were possible to distribute to each and every Spaniard would exceed the annual income of a very large percentage of the population.

    In closing I would like to quote Dale Carnegie who said that when you point your finger at somebody, look at your hand – there are three fingers pointing back at you. Yes as you are no doubt aware, the USA has a debt situation that on a percentage basis, makes the obligations of every other country in the world, including those with irresponsible governments pale into insignificance. But then for the present, the dollar is still accepted as a medium of international settlement. So, carry on spending and printing and throwing stones at other countries that are no doubt living beyond their means – an extreme case of the pot calling the kettle black??


  2. BJ Hall says:

    I am a retired English woman, but live in Spain – indeed, have done for the past 25 years – but your article just frightens me the way you suppose the corruption would continue and most likely affect this country too!


  3. Vicenç Ferrer says:

    Excellent article about Greece. But you should revisit your views on Spain. Spain´s deficit has been cut by cutting social services to the poorer segments of the population. Not by cutting the large, well paid and in many aspects useless central state bureaucracy while maintaining the sweetheart deals to the financial and business elite that runs Spain. The more glaring exemple is the “contract” awarded by the government to a private large Spanish construction company to build an oil storage platform, guaranteeing full reimbursement of the “private” investor full costs in the case work could not be completed. Work has stopped and the government has reimbursed full costs. The costs will be paid by all Spaniards over the next 30 years by adding it to the electric bill to what is already one of the more expensive energy costs in Europe. It is these undemocratic and ruling-elite privileges that are the root-cause in large part of the emergence of Podemos in Spain….and Syriza in Greece.


    Daisy Patrop Reply:

    Amen!! The undemocratic and ruling-elite is the problem in both Spain and Greece. Ms. Angela Mercer and her cabinet should go after the politicians who stole the money. Also, it is imperative that German government return the gold and the currency they stole from the banks of Greece during the war which amounts to $380,000,000,000,000.00 then we see who owes who. She, the angel of death, has cause the suicide of ten thousand Greeks because her bankers (modern day Gastaubo) had confiscated everything they owed. I agree, Greece should leave the EU only after Germany pays what they owe.


  4. Ajoy Majumdar says:

    Grexit is the only solution although Euroblock advantages may have to be compromised in the immediate future. Eventually, Eurozone countries, standing on their own two legs, will be beneficial for Europe in the long run.


  5. Hugo Kijne says:

    Apparently Mr. Hutchinson is blind to the fact that the euro currently is a totally flawed project, because a monetary union cannot function without re-distribution mechanisms between its members. So whether Greece stays in the Eurozone or not is not all that relevant, whether the Eurozone develops institutions and policies that benefit all its members is.


  6. jerrycollie says:

    Seriza is right: take the 95 billion$ and blow it. It is just paper and the ECB can just print more. This can go on forever, as long as the ECB does not run out of paper and pretty colored inks. Pretty soon Greek will be so deep in debt that they cannot be allowed to fail.


  7. John says:

    I have read that Greece is less dependent on imports than most, and that should help mute the inflationary impact of new weak currency. Also, some local industries like Ag would not have to compete as much with former Eurozone partners.


  8. Ted says:

    Everybody loves a really good soap opera. Keeping Greece in the Euro Zone is not so much economic as it is political, nobody wants to say the EU doesn’t always work. Greece is borrowing money to pay for previous loans and some daily expenses. Then the interest rates are up in the clouds, means even more money going out. That means less to spend in Greece on both the daily expenses and long term projects. What happens as roads fall apart or bridges become unsafe and schools start to close? That is similar to Germany eight decades ago when Hitler finally told the rest of Europe and the US that their’s was the next bus stop and issued new Reich Marks. Wild spending will put just about every country in the same position Greece is in eventually. What happens when you print so much money it loses its value? Remember Civil War greenbacks? At what point will Greece either be forced to leave the EU or have its debt written down? The IMF has already said the status quo in not sustainable and may not join the latest bail out unless there is a write down according to a Newsmax article.


  9. Ronald Gendron says:

    I have travelled to 21 countries in the E.U. & spent time in Greece proper & the Greek Islands. They definitely need to drop out of the E.U. & readopt the Drachma as their currency, since before the year 2000 or so, other Europeans considered that country a bargain place to vacation.
    If they do this, the Greek people will be able to stabilize themselves financially & their country will again become Europe’s low-cost vacation destination, thereby bringing much needed outside monetary funds to this impoverished nation!
    Lastly, the Greek people themselves must begin to change their attitude toward work, & saving money for retirement! They should remember that “GOD helps those who help themselves.”


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