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December 11, 2008

Some Sobering Thoughts On Greece And The EU

There are strains that can no longer be papered over


Without wanting to rehearse all the pros and cons of euro membership yet again, or debate whether EMU is a "optimal currency area", there is obviously a problem for countries like Greece that were let into EMU for political reasons before their economies had been reformed enough to cope with the rigours of euro life - over the long run.

In the case of Greece, of course, Athens was found guilty by Eurostat of committing "statistical achemy" to get into the system - ie, they lied about their deficits.

Be that as it may. Greece's euro membership has now led to a warped economy. The current account deficit is 15pc of GDP, the eurozone's highest by far. Indeed, the deficit ($53bn) is the sixth biggest in the world in absolute terms -- quite a feat for a country of 11m people.

I fear things will get much worse before they get better in a lot of places.

Posted by Mr. Bingley at December 11, 2008 07:34 AM

Comments

The euroweenies have no cause for complaint. They had the opportunity to do due diligence but were more interested in adding Greece, with its cultural history to their collection.

The problem with socialist organizations is that the poorer entities drag down the richer ones. Spain, Portugal, Greece, etc. are part of Europe. To have excluded them would have exposed their socialist utopian dream of a united Europe as a fraud.

Additionally, the union of only rich nations would have been far too difficult. The power struggles would have been too polarizing. WIth the less wealthy nations dependent on the EU for, well, for everything, the wealthy nations compete by garnering support from the less powerful members. In a way, having these countries in the EU helps them keep the union more stable.

Posted by: Skyler at December 11, 2008 09:48 AM

WELL WELL,,, NOW! HERE ARE SOME FACTS EMBEDDED IN THE PAST AND PRESENT.. HOW SAD ,,, THIS YOUNGSTER'S DEATH FUELED EVEN MORE THE SITUATION AND CREATED A "PERFECT STORM"...
Going back to my beloved country after escaping the junta of the 60s and 70s, many times I can honestly say Greeks generally are creative, intelligent (for the wrong reasons), hard working, most and above all, they are true "ANARCHISTS", with the entire meaning of this word!
By destroying private property it is not the answer. Go after the Politicians's homes which have been built illegally, go after their private businesses which have been established by briberies, go after police stations, go after the presidential structures. Go after the ones responsible.
I am the last person to say that another "junta" is needed to clear the on going corruption on any level possible, ie: all of them Polititians, all of the Monasteries, Priests, Archimandrites and Archibishops, Monks including the Vatopedion who are triving into selling and swapping properties like changing underwear and so on. Not to mention the Ziemens scandal (still unresolved & being covered up), the Zoniana canabis growers, the "Rousopoulosgate", Olympic Air Ways, Telephone company (OTE), Electric power company (DEH), the outragious and illegal "TAX MAN'S EXTORTIONS" to business, forcing the bussinesman to pay the tax man bribes (black money) suppose to protect his income tax return, "balloney"... the goverment contractors to collet and pocket the illegal toll collections on the worst roads and streets of any nation... (collect upfront toll money to fix or redo the roads, have you ever heard that being done in another country?). Do I need to go on and on? I would be here sitting for days and nights.... NO ONE has ever beeing procecuted or punished or going to jail, they all cover each other because they eat and sleep together 24/7. NO ONE is above the law. These folks are thriving on briberies on any level from the street beggar to the top of any goverment officials plus the orthodox church which church is richer for more than five Greek nations combined and pay NO TAXES by using strong arm tactics to throw people out of their homes for their personal religious gain!!! plus plus.... driving their Porche Cayennes and Mercedes Benzes!! No wonder why they build homes without building permits or without any goverment supervision by avoiding to pay the permit fees ranging from 15,000 to 20,000 euro and then turn around to sell their properties for record profits by using the system to hide all of their money, There is no planing or zoning! It is absolutely insane, just crazy!! beyond of what a human normal mind could comprehend.
When you own a vehicle with a 2 liter engine or more, the goverment wants to know where did the the money come from in order for you the citizen to afford this "auto luxury", however this does NOT apply to the TAX MAN, the CUSTOMS AGENTS, the POLITICIANS!!!. How is this really possible?? Just try to visit and stay for a couple of months to find out for yourself!!!. Any of the servises are none existant. Every goverment office is like a "litlle dictator".
If you are seeking any kind of service to be done, it is best that you grease them first by putting some euros to their side pocket!!! and if the side pocket does not get satisfied then you need to add more euros to their front pocket too!! I have been appauled and asked "how is this possible"? I was told by a local small businessman that Greece is only good for "swimming" for few weeks in the summer!! When done with your vacation go back to your adapted home country whether that might be on planet earth!! Ha ha ha ha!!!! yeah, with great regret I must admit that they have some of the most beutiful beaches there...
How do they manage to stay in power???
It is appauling.. beyond me or any logical mind!! It is the "Greek way". We are talking about the Illinois Governor? He is looking like a "boy scout" for the Greeks. Just imagine..
For example, PASOK was in power for 20 years, they used every monies available to satisfy their taste!. The current goverment of NEW DEMOCRACY is in for 5 years, not any better, cannot even control the demonstrating crouds. They are useless too!. They know only to blame one onother for the mess, where in fact they are the ones responsible. This country gave us the birth of "Democracy" and kept nothing for them selves.
I personally hope for the young Greeks to rise and to demand both political parties to be outlawed and vote these "bums" out of power. The young Greeks need to form the party to work for the people by the people for its well preserving the country's democracy and its history. I am saddened to see that my country has gone down this path of destortion. Greed and selfishness has taken over the basics.

Posted by: JP, Californa at December 11, 2008 10:13 PM

It's so crazy whats happen in Greece actually, students are figting !

Posted by: ratp at December 12, 2008 05:25 AM