The chaos in Greece is a fascinating demonstration of what happens when the utterly corrupt and the patently stupid work together, and then against each other. Much like American politics, everyone is so busy taking sides that they forget both sides are wrong.
On one side are the Greeks, specifically their incompetent government and delusional voters. Greece has been so mismanaged by its government for decades that it’s comical, with the spending and debt being staggering in its vastness.
Here are just a few items. They spent $10-15 billion that they didn’t have just for the Athens 2004 Olympics. They have a massive, government run train system that constantly runs near-empty trains. Hundreds (if not thousands) of Greeks pretend that they’re blind so they can get EU welfare checks. When Greece initiated a tax on swimming pools, thousands of Greeks used big tents to cover up their swimming pools so they wouldn’t have to pay the tax, while still screaming for government pensions and/or welfare checks. Amazingly, the government-supported pension retirement age in Greece was 58(!) up until 2007. And get this: in the late 90s, the socialists passed a law that a member of parliament can’t be prosecuted for any crime while serving in office(!). Haha! On and on the stupidity goes.
So, shock of all shocks, Greece is now essentially bankrupt, has no money, and it’s now mathematically impossible for them to pay their debt.
Of course the US is just as indebted as Greece was up until just a few years ago. The difference is that our corrupt Federal Reserve can print money out of thin hair, temporally keeping the corpse alive. Greece is part of eurozone, and is thus forced to use the euro, a currency it can’t print. So unlike us Americans, Greece is screwed right now (as opposed to us, who will be screwed later).
On the other side of the issue are the corrupt bankers and eurofascists of the European Union (which I call the GBEO, or Germany Bails Everyone Out), the European Central Bank, and the IMF. These banker fascists want the EU to encompass and control all of Europe, finally realizing Hitler’s dream of a unified Europe under a small elite, only using banks and bribes instead of tanks and guns. As such, they wanted every country to be a part of the EU as possible, no matter how screwed up the countries were.
Knowing that Greece was a mess, they didn’t care. There’s even evidence to suggest that the ECB (specifically Goldman Sachs) knew Greece was clearly headed for disaster but they covered it up so they could join and stay within the EU anyway. The IMF knew damn well that Greece couldn’t repay their loans as late as 2011 (and likely much sooner) but they kept loaning them money anyway, with German and France taxpayer dollars (and/or money printing).
In the big recession of 2007-2008, the EU socialized the loans the private banks made to Greece, the bankers got rich, and European taxpayers got stuck with the bill. Isn’t that nice? That EU is such a good deal for you Europeans!
Recently, the corrupt eurofascists told the morons in Greece that they needed to cut back more on their spending if they wanted more banker bailouts, and on Sunday, the people of Greece said ‘Hell No’.
Now, Greece may actually leave the EU (which would be a good thing, since the EU is bad), the Greek death spiral continues, and the EU is panicking. Greeks want money they don’t have, and the EU doesn’t want any countries to leave the EU (thereby delegitimizing the entire EU, aww).
It’s a huge cluster fuck, but this is what eventually happens when you let governments hand out mountains of cash they don’t have to lazy or dishonest citizens, and when you let big, corrupt banks control your monetary polices. There can’t be any other result than disaster.
Meanwhile, Puerto Rico teeters on default and the Chinese stock market has lost $3 trillion in less than three weeks…
Interesting times ahead. Fasten your seat belts.
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Not going to be pretty, personally I think things will go south for the US as early as late summer, though maybe the worst will be held off until the next president is in place. Do you think Greece should just default?
I don’t think 100% default is an option for them, but I do think they should leave the eurozone and start printing their own money. It will be really tough for them for a year or so if they do this, but long term it will be better for both Greece and the EU. (“Good” meaning I hope the EU breaks up.)
The EU was doomed to failure from the moment it began, and I said that 15 years ago. Europeans love the welfare state, but they are also strongly nationalist in ways Americans don’t understand. Germans (for example) have no problem with having guns to their heads forcing them to bail out poor Germans living in Germany.
But having guns to their heads forcing them to bail out idiots in some distant foreign country? Ooooooooo, they don’t like that at all.
Thus the EU will not work long-term.
Which is a good thing.
I have been waiting for this post a loooong time…
I agree with what you say because I live in Greece. If you need any more information feel free to email me. Pension at 58? That came only recently. I know a lot of people (specific sectors of public servants or early pensions for some mothers at late age) who got it at 45.
I have 2 questions for you right now:
1) If the EU breaks up, will this favor the US or not?
2) I can understand your opinion about getting out of EU or printing money. Some say it will be better in the long run (I have disagreements though, Greece’s economy depends almost exclusively on agriculture and tourism, there is NO industry. The last businesses fled out of the country for better taxation). But for young people who live there now (in their most productive years) what can they do? There is no money and no jobs, so how could someone work towards goals like the ones you recommend (setting up a business, investing etc)?
3) What is your opinion about dating in Greece (and its women:) )? How does the mentality of the people here and the financial state of things affect the way women and men behave? (this might be more appropriate to discuss in your other blog)
I would really like to discuss these things with you. Greece is different than the States where you mostly live and do business.
Good god…a lifetime government pension at age 45…
That’s hard to say because I don’t know what will happen to the greater EU as soon as Greece leaves.
Likely the markets will take a hit for a while, and then the dollar will rally. Every world crisis means good things for the US dollar, since that’s where everyone goes when crisis hits. People incorrectly think the dollar is safe.
I think the EU is destined to break up eventually (or lose a lot of its members) regardless. That will take a while though.
You’re forgetting shipping. Greece has a vibrant shipping industry, one of the best in the world, because it’s not taxed. (That’s what happens when you don’t tax things; they do very well and everyone prospers.)
I have no advice for young people in Greece as a whole. As you said, Greece is going to be a very, very rough place to live for a while, regardless of euro or drachma.
For an *individual* young Greek person, my advice is always the same: If where you live sucks, MOVE! If I were in my early 20s in Greece right now I’d get the fuck out of there and probably move to Germany (or similar).
Poor economies generally lead to longer relationships and more provider hunting.
It is. But it’s also a harbinger of things to come for many other Western countries. The US included.
I do not know enough details about the status of things in shipping, that is why I didn’t include it. I think though that most of the ships belong to offshore companies (owned by Greek people). If I get it, local taxation rules are unimportant.
Agree on both of these.
Well the Greeks hate paying tax, but it gets worse:
I pressed him about Syriza’s mooted plan to clamp down on tax evasion with “undercover tax inspectors,” including tourists, who could be wired up and sent round to retail businesses, building up evidence of improper practices.
He wasn’t thrilled:
It’s the wrong problem… The problem isn’t finding the shops or corporations evading tax. It’s really doing something about it and having the will, for example, to close them for a month.
If you can’t do that for social or political reasons, because it’s unacceptable, it makes no difference if you’ve found them.
They are NOT prepared to even enforce tax collection!
Also I heard there are only, ONLY 7 registered (with state tax department) Millionaires in Greece (other countries have hundreds of thousands).
A few more things.
1. It would be GREAT to do a business in Greece – cheap desperate labour. The only concerns would be governemnt taxation of your business, but if you’re employing many Greeks and threaten to leave the govenment will cave in.
2. Dating there would be amazing – you can live like a millionaire and the girls who want a successful man, well there aren’t any (except the tax dodgers that made it large).
3. Social breakdown, and/or crime are really the only concerns, however it seems like a relatively stable educated place (though I imagine gangsters will have already made moves to use Greece as a trafficking route – they’re usually the first to spot good business opportunities).
4. If you are Greek, then you are a member of the European Union – move to another country in the EU immediately!