tag:blogger.com,1999:blog-5882645467378797266.post3268365918654003890..comments2023-07-17T11:55:51.363+02:00Comments on ObservingGreece: Mohamed El-Erian: The Five Mistakes of the New Greek Governmentkleinguthttp://www.blogger.com/profile/12491174042954678023noreply@blogger.comBlogger47125tag:blogger.com,1999:blog-5882645467378797266.post-121958149322193712015-04-03T18:53:10.311+02:002015-04-03T18:53:10.311+02:00@V. Yes, I can also recall in the 2000s that the t...@V. Yes, I can also recall in the 2000s that the tv stations (including ERT) had not paid any social insurance for their employees for about a decade -- and neither Pasok nor ND did anything at all about it.<br /><br />Basically, all of these state revenue issues (and of course excessive borrowing) are explicitly the behaviour of the Pasok and ND governments of the last two decades. What is so disgusting is that the world media (in cahoots with politicians) has chosen to attack Syriza which has no culpability at all. They have inherited a massive structural problem -- which the eurozone has no interest in helping to solve -- and the attacks on them are primarily ideological.<br /><br />And now the Greek media turn on Syriza, too. I hope that Tsipras takes them to the cleaners, and makes a serious attempt to establish the rule of law that Pasok and ND deliberately undermined. That might give the right wing governments of Europe (along with their own promotion of tax evasion and criminality) something to worry about.Guest(xenos)http://www.mmo.grnoreply@blogger.comtag:blogger.com,1999:blog-5882645467378797266.post-17475396503862884362015-04-03T09:47:21.468+02:002015-04-03T09:47:21.468+02:00@ Xenos,
I hpoing as well, because the media righ...@ Xenos,<br /><br />I hpoing as well, because the media right now is now starting a war against Syriza although they are also trying to "sound" nice because the approval rating of the people for Syriza is very high. I have jumped many times to conclusions for Syriza and in the end they prove that their actions are appropriate. I am hoping indeed what i state above will be strongly supported as to attack tax evaders.<br /><br />The war of the media suddenly started on Syriza has just begun because Syriza openingly stated that one of the biggest tax evaders of all are the media itself. One mp stated on a MEGA tv new show that MEGA owes huge taxes to the goverment leaving the presenters flaberrgasted. Basically they shit their pants, because no government ever stated this openly.<br /><br />I was listening to Trangas this morning, he is extreme right but he supports the gorvernments actions because he says things as they are.<br /><br />What has been openly said is that the media from 2009 has not paid one cent. Neither for the permits to run their media corps, nor back taxes. It is estimated that the whole media sector owes over 1 billion to the government. Basically most are hugely bankrupt. Media is required to pay 2% taxes annually on generated turnover, which amounts to the above stated figure. <br /><br />The reason other gorvenments have not done anything is because if they bankrupt, their tax burdens would disapear meanwhile 1000's of media workers would go to unemployment. How to handle such a case? The whole thing is proprsterous.<br /><br />As i am aware only one company booted and that was ALTER channel. It was made an example of but the rest are doing nothing. Only Skai and Real fm are fairly run businesses. The rest are bankrupt.<br /><br />Sincrely,<br /><br />VAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-5882645467378797266.post-85409176930830538072015-04-02T14:54:51.646+02:002015-04-02T14:54:51.646+02:00@V. I spoke with an old friend in Athens yesterday...@V. I spoke with an old friend in Athens yesterday, who confirmed the general depression of the country. With SDOE, what has always amazed me is that no Greek government ever creates jobs for actually-needed tasks: they persist with this nonsense that state jobs are political favours rather than a functional thing that is essential for the State.<br /><br />I had hoped that Tsipras would be able to break away from that tradition: so far, it seems not.Guest(xenos)http://www.mmo.grnoreply@blogger.comtag:blogger.com,1999:blog-5882645467378797266.post-38730289205674772462015-04-02T09:14:57.287+02:002015-04-02T09:14:57.287+02:00@ Both Xenos and Mr. Kastner.
I really enjoy read...@ Both Xenos and Mr. Kastner.<br /><br />I really enjoy reading your debates. It is really interesting.<br /><br />On the downside, i am feeling quite depresse today. Although the reform lists has a multiple amount of measures which will fight tax evasion, that which is not stated is how they will do it. Syriza that is. <br /><br />two points listed are the evaluation of the known tax evader list and the 2nd are the inter country agreements with switzerland to open accounts in switzerland to tax money that has not been taxed.<br /><br />The first point there where some programs and news last night depicting the SDOE, (tax office which chases tax evasion.) only has 30 person working cases. they have only 11 cases in the work out of 12,000. With the personel that they have it will take them 24 years to review all cases. This is a good point as to why our creditors do not believe in this stated figures. What syriza should state is that they will get these missed taxes by employing a minimum of 200-300 new personel at this office to combat tax evasion. otherwise nothign will come from this.<br /><br />As for the swiss accounts, all countries have gone and made agreements with swiss banks have collected missing taxes. greece has yet to do this. Instead of going to russia to make deals, they should be going to switzerland to speed up the process.<br /><br />If both of the above plus other tax evasion chasing methods are not addressed, i am afraid we will be at square 1 or even -10, once again where the average "shmo" will foot the bill and bailouts will continue.<br /><br />very frustrating.<br /><br />a deal will be struck up but i fear it is i and the average guy who will pay once again.<br /><br />Thanks guys for your nice dialogues.<br /><br />VAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-5882645467378797266.post-69037505563680098662015-04-01T22:02:45.922+02:002015-04-01T22:02:45.922+02:00haha! Well, I hesitate to say that none of that ha...haha! Well, I hesitate to say that none of that has changed-- but certainly there is a high degree of continuity with today. I was actually referring to management of economic and political issues -- where the resemblance going back to the mid-19th century is just so strong...<br /><br />I must say, though, that my readings led me to the conclusion that in the 19th century and turn of the century the most independent and incisive analyses of polity, society and economy usually came from Americans. The British accounts are either too deferential to the Greek monarchy, or too arrogant and snobbish (like the EB article of 1911). The French accounts also suffer from arrogance and nationalistic beliefs; the Germans seem far too detached from the Greek situation to make any sense of anything.<br /><br />So, the continuity applies not only to the Greeks :-) The greatest difference maybe is with the USA, which seems to be a pale version of its former strongly independent and critical thinking.Guest(xenos)http://www.mmo.grnoreply@blogger.comtag:blogger.com,1999:blog-5882645467378797266.post-45792570891546293782015-04-01T17:34:49.725+02:002015-04-01T17:34:49.725+02:00@ Xenos at 1.32
Read this and tell me how much has...@ Xenos at 1.32<br />Read this and tell me how much has changed since 1911:<br /><br />http://klauskastner.blogspot.co.at/2013/12/encyclopedia-britannica-1911-on-greeks.htmlkleinguthttps://www.blogger.com/profile/12491174042954678023noreply@blogger.comtag:blogger.com,1999:blog-5882645467378797266.post-25370324679804827932015-04-01T13:32:26.061+02:002015-04-01T13:32:26.061+02:00@V: I agree with all of this. What is interesting ...@V: I agree with all of this. What is interesting for Greece (in most countries actually) is to read the older history of economic structure and management, and see the patterns and cultural continuities. I have managed to collect some rare texts on Greece authored over the period 1832-1920 -- and marvel at how so little has changed! This continuity can be a good thing, but usually it impedes rational solutions to major problems -- a sort of socio-political stubbornness or inertia. Conservatism, I suppose. Guest(xenos)http://www.mmo.grnoreply@blogger.comtag:blogger.com,1999:blog-5882645467378797266.post-16940797101473931152015-04-01T13:27:50.445+02:002015-04-01T13:27:50.445+02:00@Klaus: this is a terminology issue. From my earli...@Klaus: this is a terminology issue. From my earlier career lecturing comparative politics as well as economics, I consider all of the governments across the EU to be right or centre right. This is on the basis of economic and social policies, rather than nationalism-populism (the latter can be left or centre anyway). The historical evidence is that most of Europe has shifted to the Right in recent decades. For example, I would not anymore cast the UK Labour Party as Left; I would be more inclined to place them as Centre or Centre-Right even. (Of course, there are elements in all parties which are to hte left or right, but I am talking about the leadership and controlling interests that would form a government.)Guest(xenos)http://www.mmo.grnoreply@blogger.comtag:blogger.com,1999:blog-5882645467378797266.post-61405310445930774512015-04-01T13:07:45.078+02:002015-04-01T13:07:45.078+02:00@ Xenos at 9.48
I don't believe you have ever ...@ Xenos at 9.48<br />I don't believe you have ever answered my request to name those right-wing EZ governments you referred to. Other than Greece which has a right-wing, nationalist/populist (if not racist) party in the governing coalition, I can't think of any other EZ government which has right-wing elements but, then, I don't know all of them.kleinguthttps://www.blogger.com/profile/12491174042954678023noreply@blogger.comtag:blogger.com,1999:blog-5882645467378797266.post-89616215955594976872015-04-01T11:36:05.943+02:002015-04-01T11:36:05.943+02:00conitnued....
Sell of the secondary airports of g...conitnued....<br /><br />Sell of the secondary airports of greece and the small ports. I guess as to better manage the flow of tourists into greece. yes i am for this. but this not huge. The secondary ports are. Airports bring the masses but the secondary ports on each island bring the Yachts. Where there are yachts there is money which left in the greek economy.<br /><br />I get quite annoyed that i see the port of korthion Andros nearly finished, paid by greek tax payers only to be fire saled to a private owner, but if this brings in wealth then it will all be worth it.<br /><br />Faliro Airport. This is just disgusting site. It really needs to be sold off and used for toursim and commercial use. This will help the attika turnover to boost growth. Meanwhile doing this will push the contractors of Attikh odos to finish the unfinish roads to Glyfada and to rafina to be finished allowing tourists and local citiezen to zip around not only athens but all of attiki. <br /><br />Toruist sitting in a hotel in glyfada coming in from the airport 20 minutes away, going to the acropolis and the delfous on the 1st day alone. Road infrastructure allow better time managment of tourist agencies to handle their flocks of people. In and out fast and to the islands. <br /><br />Just so many things. <br /><br />Now i am annoyed, we are really inefficient. so many opportunities and we are discussing BS. maybe i shoudl run for a politicians or an advisor of some party. All the run after are big fish when the little fish is what feed you provide growth and probability of success. a big fish can get away.<br /><br />Sincerely,<br />V.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5882645467378797266.post-89945802530927080112015-04-01T11:27:21.434+02:002015-04-01T11:27:21.434+02:00...continued
fom xenos point of food industry.
w......continued<br /><br />fom xenos point of food industry.<br /><br />well this is good export but not a powerhouse. It can be a major point but not now. Swat analysis. Excellent produce and fish quality at a low price, short ime period before consumption and high transportation cost in relativity to the value of the product, advatages our 9 month good weather for all year production, threats eu regulations of exports limitations.<br /><br />See we have all the greatness to produce good food. the draw back is the actual value versus the size of products is very small. we are restricted to send product by trucks and boats which reduces the life of the end product. also there is some lack of knowledge to consolidate large quantities for big sales as farmers are still not grouped properly. One value item of the produce is olive oil but still there huge room for improvement. <br /><br />One infrastracture that would help this industry.... ha ha ha is the building up of OSE train and cosco ports. <br /><br />Lets make a map. Crete one of the large exporters, need to issue ships to be loaded, with climate control all timed at the point of ripening of the products. To fill a ship of tomatoes and time it properly is quite huge task. Then the ship goes through the medi up into the atlantic and ends up in the uk or northern greman ports. Totally inefficient.<br /><br />By comparison with a Cosco port and A private OSE train depot going to eu. We reduce the need to ship full ships. Each producer can be allowed to ship a refrigerated container to pireaus onto the train hub to eu. To all customers. Good product, in a good time, allowing for longer shelf life of product and creating a consumer demand for greek products. With this infrastracture many will realize the need to invest in agricultre for sales to eu or exports. increasing this market size will allow for more train units to increase efficiency of the train costs themselves. more trains runs more turnover. so on and so on.<br /><br />Until then greek producers of food goods will remain a smal markt share in europe. demanded for good quality but rarely found.<br /><br />conitnued...<br /><br />V<br />Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5882645467378797266.post-25989145178966378922015-04-01T11:15:08.730+02:002015-04-01T11:15:08.730+02:00@ Xenos,
I agree with you that regardless of the ...@ Xenos,<br /><br />I agree with you that regardless of the political parties of the eu nations being "socialistic" "center" or "right/left center" there actions are indeed neo liberism. I am also always routing for the underdogm but you can't help admire the true powers as well. <br /><br />@ Mr. Kastner<br /><br />Ofcourse i read your articles on Cosco. I have contributed to them. I have even believed in this before the crisis. meaning i always believed Greece can become a port hub for europe. easily. One good thing did come out of the crisis is the sale to cosco. And especially cosco, because from all the actions of countries in the the crisis of Greece only china "cosco" has submitted a formible weapon for Greece in relation to infrastructure. Sure the Chinese cosco will profit from this but they have provided growth in this sector IN GREECE and provided jobs and have the patience to wait out the political instability to further grow on this. If i had the time or if i was a part of the government i would focus 100% of my energy and time in the sale of the 2nd port of pireaus and the one in thessaloniki. Publiclly own ports simply can not be handled on a private sector environment. I can state a minimum of 100 positive aspects simply off the top of my head what greatness the sale of the ose and ports would provide for Greece. <br /><br />I do not know why they are doing Malakies and wasting time. It is so key for Greece and we are focusing on all problems and even the problem of debt is small by comparison. SO MANY POSITIVES just so many. Greece over night would become a powerhouse in europe. Sometimes i fear this is simply not wanted. Not just by our politicians but by our competitors in europe. Make a new thread on cosco and OSE and i will find the time to contribute my ideas. Real world ideas in relation to this. Mr. Kastner i am unaware if you have the "weight" to throw your opinion in directions which affect Greece but if you do. Please tell them the NO 1 priority for greece is nothing which they are discussing. Selling of the 2nd port of pireaus, 3d port in Thessaloniki and selling of OSE to a company that wants to transfer goods through greece to europe is. If the technocrats or the politicians or wealth managers do not care about greeks but do for their pockets this actions is worth their investment. Greece will improve in competiveness, be a hub for europe, meanwhile the advantages created by this will provide economical sources to the people to pay off their debt to other countries.<br /><br />continued.....<br /><br />V<br /><br />Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5882645467378797266.post-47859816594708211912015-03-31T21:58:12.604+02:002015-03-31T21:58:12.604+02:00@V
I just read your last post, about competetiven...@V<br /><br />I just read your last post, about competetiveness (I had missed it, in the wealth of information here!).<br /><br />I agree that Greece has competitive sectors; I also think that some Greek agricultural produce is of phenomenal quality and value for money. We have had these discussions here before, actually. My view is that Greece has always lacked government institutional frameworks to promote exports and production -- largely owing to the primacy of politics over economics. There is also a serious problem across southern Europe of lack of economy of scale, with too many small family firms, and not enough medium and large ones. Greece is the worst case in the eurozone for this, I think.<br /><br />Neverthless, there is a lot of potential for the Greek economy -- as there always was. Realising that potential when political parties are not interested, or even see it as against their own interests, is the big challenge. This requires socio-political change -- not economic reforms. This is where the Troika failed to understand anything at all about Greece.Guest(xenos)http://www.mmo.grnoreply@blogger.comtag:blogger.com,1999:blog-5882645467378797266.post-32461297051777686352015-03-31T21:48:17.117+02:002015-03-31T21:48:17.117+02:00Postscript; the political framework of Europe is v...Postscript; the political framework of Europe is very right wing indeed. There is a pathetic centre left government in France, which is incapable of doing anything -- let alone solving the eurozone crisis. There is another centre left government in Italy, which most Italian academics seem to disdain. Even including these two, almost all governments across the EU are neoliberal in orientation. We await the inevitable rising up of leftist intellectually based parties like Podemos, or indeed any anti-austerity new parties. Sadly, there will also blossom anti-European parties and very right parties such as the Front National.<br /><br />But left? No, Syriza is on its own, for the moment.Guest(xenos)http://www.mmo.grnoreply@blogger.comtag:blogger.com,1999:blog-5882645467378797266.post-12279402819548421142015-03-31T21:42:32.961+02:002015-03-31T21:42:32.961+02:00@Klaus. Of course, I have no competence in the iss...@Klaus. Of course, I have no competence in the issue of sovereign debt, and I readily defer to your knowledge. The only question I would raise is this: although there are no precedents for first world sovereign debt forgiveness, is this not because of unprecedented circumstances? First, and foremost, Greece is barely a first world economy. Secondly, the handling of the global banking crisis created conditions that have not been seen since the 1930s. Economic textbooks do not even cover the issue of deflation (unless recent ones have been amended) since depression and deflation were thought until now to be historical issues, or confined to the LDCs.<br /><br />As for a credible plan, I do support the idea (as I have stated on many occasions). There are two issues here, perhaps: would the Germans actually play ball if such a plan was proposed? And is the Syriza government politically able to put forward such a plan, without actually disintegrating as a party and government? My fear is that the answer to both questions is in the negative. Guest(xenos)http://www.mmo.grnoreply@blogger.comtag:blogger.com,1999:blog-5882645467378797266.post-23957091413235072482015-03-31T20:22:11.082+02:002015-03-31T20:22:11.082+02:00@ V at 2.47
You must have been reading my passiona...@ V at 2.47<br />You must have been reading my passionate articles about Cosco a few years ago...kleinguthttps://www.blogger.com/profile/12491174042954678023noreply@blogger.comtag:blogger.com,1999:blog-5882645467378797266.post-19943394953642198882015-03-31T20:20:20.067+02:002015-03-31T20:20:20.067+02:00@ Xenos at 2.53
Allow me to give you some educatio...@ Xenos at 2.53<br />Allow me to give you some education how sovereign debt ought to be handled, whereby this education would be best used by EU elites who, back in 2010, had simply no knowledge of sovereign debt problems elsewhere in the world. Before 2012, it was absolutely unheard of that sovereign debt of a first world country would be forgiven after only a couple of years of crisis and without one-time destruction. The long-term cost in terms of principle and precedent of Greece's haircut cannot be estimated at all at this point. So let me correct you. Forgiveness of sovereign debt of a first world country is absolutely NOT normal (there is no precedent for it) regardless how bankrupt the country may appear. Sovereign debt always needs to be 'regularized'. When a country is bankrupt, regularization means stretching maturites until forever and lowering interest rates towards zero (i. e. a haircut in disguise).<br /><br />I would argue that the Eurozone has for months now given signals that it is prepared to do that with Greece. But where I could agree with you is that the EU elites don't have all that much concern for the Greek people.<br /><br />Please name to me specifically those Eurozone countries which you deem to be governed by right-wing governments. <br /><br />The debt issue will probably not come to peace until there is some promise that a Greek government has a credible plan. That applied to the previous governments and it will apply to the current one. Let me suggest the following: if a Greek government came forth - with full support of the opposition - with the unisono, irrevocable and convincing commitment to implement the McKinsey plan "Greece ten years ahead", I think Greece could have from the Eurozone everything it wanted to have.<br /><br />It doesn't have to be the McKinsey plan but a plan it has to be!kleinguthttps://www.blogger.com/profile/12491174042954678023noreply@blogger.comtag:blogger.com,1999:blog-5882645467378797266.post-67021930675403472532015-03-31T14:53:38.459+02:002015-03-31T14:53:38.459+02:00@V: Thank you for your kind words. I have the Gree...@V: Thank you for your kind words. I have the Greek habit of usually siding with the underdog, against powerful interests.<br /><br />@Klaus: I do not disagree with your last comments about the tragedy of the euro (and some delusions that Greece acquired with cheap capital and an over-valued currency). Nor do I disagree with your comment that the EU (or even the eurozone) is not anywhere near as integrated as the USA in certain respects -- of which labour mobility is clearly one. <br /><br />What do I think should happen? Setting aside the unlikely event of a full fiscal union, with richer countries transferring their surpluses to the poorer... The primary issue is for Greece and others to have a stable political and economic environment. That is not possible until the debt issue is sorted out. It is very clear that the majority of right wing eurozone governments do not support this idea -- despite the fact that debt forgiveness is normal and inevitable where the borrower cannot realistically pay. In fact, the northern countries are concerned ONLY with protecting their banks and the euro itself. They have no concerns for the Greek people.<br /><br />The solution? The only solution is for the debt to be managed (there are several options, but I am not expert on this issue); for Greece to provide some safeguards that it will not engage in massive borrowing again; for emergency measures to protect against poverty (which Syriza is sort of doing); for the creation of a stable environment; and for a number of focused select reforms that would benefit both the average working Greek and employers. These doubtless are the reforms that are needed -- not the ridiculous marketisation blanket reforms of the Troika. <br /><br />Maybe you are saying that Varoufakis needs to develop such ideas: do not expect it from him, this is not his area. There are others in Syriza with more experience with domestic economies and issues such as competitiveness and development. I imagine that they are all waiting for the political issues to be resolved -- because as every development economist knows, stability of the general environment is a basic premise for serious economic reforms and attracting FDI.Guest(xenos)http://www.mmo.grnoreply@blogger.comtag:blogger.com,1999:blog-5882645467378797266.post-32130981388786285252015-03-31T14:47:53.943+02:002015-03-31T14:47:53.943+02:00@ both Xenos and Mr. Kastner,
I would like to bri...@ both Xenos and Mr. Kastner,<br /><br />I would like to bring a point which xenos mentioned in his above rebuttle. Greece not being competative. In general sense and on paper the greek economy may not look like it is competitive when you look at imports and exports. I have stated this many times in the past that we should get a real analysis of what is being imported and what is being exported.<br /><br />From my personal experience the truth is much further away from what this generalization states. Unfotunately, i can not go into detail as to substantiate this, but i am well aware that there are numerous sectors in Greece which are very compatitive through studies made.<br /><br />Through these studies (cost crunching) it has been proved in specific sectors that we are indeed more compatitive that our high end industrial strengths of German, UK, Italian and French. Likewise we are more competitive than our "lower industrial competitors of Bulgaria, Turkey, Portugal and Poland.<br /><br />It is these sectors which are "pulling the weight" of exports and are providing real jobs in the privat sector. If these sectors can continue with political stability and left alone to grow further the outlook of Greece would look very strong in the next 3-5 and 7-10 years down the road. <br /><br />It is in these sectors where knowledge and efficiencies copied by our counterparts, coupled with low wages allowed us to grow. Further infrastructure and new businesses created can help this further growth. Even though Greece does not have or has very little own "raw material" manufacturing and needs to import these goods, does not mean that the manipulation from the specific industries do not make the Greece sector non competitive. Based on this fact alone we have proven that we are even more efficient and even more competive with this drawback. Something like Japan on a smaller scale. <br /><br />Granted these sector only represent a fraction of the whole GDP of Greece, but it is a good basis. And with coupled structural changes and some large investment projects like OLP, Cosco further enlargening their hold on the container ports and the sale and rebuilding of the OSE (trains), nothing will hold us back. These two last infrastructure investments are key for Greece and i have stated this multiple times in the past.<br /><br />Why? Well if we are more efficient in manipulation of end products and saved from imports through trains from EU rather than trucking and shipping, meanwhile using the same transport to export, no multinational company would dare not invest in factories in Greece. The logistics of products is a key factor in costs. Especially when you deal with trains you deal with less beuracracy less worker, less worker costs. Actually it would force trucking industries to become even more competative.<br /><br />I really wonder if real governments look at such aspects of business on the real economy rather than just talking.<br /><br />The day OSE (public trains) and Cosco get that 2nd port, is the day (plus 1-2 years) Greece will begin to see the light. debt at 180 or not.<br /><br />VAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-5882645467378797266.post-26950715842370566462015-03-31T14:06:30.362+02:002015-03-31T14:06:30.362+02:00@xenos,
I enjoyed your last thread very much. we...@xenos,<br /><br />I enjoyed your last thread very much. well put.<br /><br />@ Mr. Kastner<br /><br />Nice thoughts and comparisons.<br /><br />VAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-5882645467378797266.post-29067479137512541162015-03-31T12:23:43.363+02:002015-03-31T12:23:43.363+02:00@ Xenos at 11.54
When I read your lecture (which, ...@ Xenos at 11.54<br />When I read your lecture (which, in theory, is not a wrong lecture), I suppose a feel a bit similar as 18 Finance Ministers feel when the 19th of them lectures them on how the Eurozone should work. And I can see how they tire and ask "Why don't you tell us how Greece WILL work". <br /><br />Varoufakis' standard answer is well known: during the US depression, there is nothing that Ohio could have done on its own. I think one ought to be a bit careful when comparing the Eurozone to the USofA as a currency union. There are a couple of major differences. One is that Americans are geographically much more mobile than Europeans because when they get on the plane in Boston to fly to San Diego to take up a new job, they are still in America when they get off the plane in San Diego (same language, same TV programs, more or less the same infrastructure, etc.). In fact, the American who lost his job in Bosten may be enthusiastic to move to a better job in San Diego whereas the Greek who has to leave Greece hurts.<br /><br />And then there is the acceptance of different living standards throughout the US. Do you hear Americans in Alabama complaining that they are not as well off as Americans in Arizona or Florida? Not much, because if they felt that way they would move. But bear in mind that there are HUGE differences in living standards among areas of the US. And as regards poverty: there are areas in the US where there is real poverty and humanitarian strain. Not as much as right after sub-prime blew up but still. I don't know how often I have been asked by Greeks why a Greek doing the same job as a German should not be able to afford the same living standard. Well, you ought to answer his question. The tragedy of the Euro is that it gave Greeks the illusion of a living standard which the Greek economy was far from justifying. It's my old story of the poor man who hit a jackpot. Just keep re-reading it.kleinguthttps://www.blogger.com/profile/12491174042954678023noreply@blogger.comtag:blogger.com,1999:blog-5882645467378797266.post-49483195486375509662015-03-31T12:16:42.406+02:002015-03-31T12:16:42.406+02:00In continuation to the above....
i miss wrote and...In continuation to the above....<br /><br />i miss wrote and really wanted to write. "I am not against reforms..."<br /><br />I would like to also add some thoughts based on personal experience. Working for large multinational, i was transfered for some time to a small subsidiary within the group. As most of the top managment. What we tried to do is to apply large multi national managment and ways of working to the small company. The result was great organization but failed end result. The way of working for a large company simply can not be correlated to a smaller business. My thoughts of this also brings me to a question i have had in my mind for quite some time.<br /><br />Troika, Germany, USA, France, UK and experts from these countries trying to advise or help Greece. I can not help think of the correlation of my personal learning on a country level.<br /><br />Can reforms, ideas and managment of a large country be applied to that of a Greece? Ofcourse everything is analogical scaled but is this a practical method of understanding?<br /><br />I guess that zdf program also implies something similar, or at least that there is no real understanding of the greek economy. <br /><br />It is also why i agree with Mr. Kastner's stament to Varoufakis, that he should formulate country plan. Who better than a Greek who knows our system better. meanwhile he should then explain the why's and why not's and do's and do not's to his counterparties. Something Kapodistria did in his time.<br /><br />As a whole i like what Syriza says, that reforms should be owned by us. Not by foreigners. It remains to be seen how successful they will be.<br /><br />Sincerely,<br /><br />VAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-5882645467378797266.post-33224897679617839872015-03-31T11:54:58.034+02:002015-03-31T11:54:58.034+02:00/cont
In this political crisis of Europe, Greece i.../cont<br />In this political crisis of Europe, Greece is addressing a political crisis of Europe. As you point out, it is not very concerned with reforming its economy -- seeing that as either medium or long term, or maybe not even an issue. If Greece were outside the eurozone, this would be the most pressing issue likely to confront them. At this time, it is not.<br /><br />The option of euro exit -- with Greece going it alone -- is not a feasible one. I cannot see any hope for the country down that route; the only choice would be to leave the EU and form a dependent alliance with a powerful country such as Russia or China. That would create a geopolitical crisis of such magntitude that the Greek economy would be a side-issue.<br /><br />The option that you are proposing, which is to conform to Germany's demands, is not an option. Germany has preyed in a parastic fashion on the weaker countries of the eurozone. This actually happened owing to the neoliberal dogma that politicians from all of Europe were vomiting and continue to vomit at every opportunity. One element, for example, was the belief that by pegging monetary policy to Germany the weaker economies would all be disciplined into becoming like the German economy, else they would deteriorate. No actual mechanism specified -- just this stupid propaganda. Indeed, this remains the underlying axiom of the Troika and the German government -- that all it requires is "reforms" and then economies will compete with Germany. The "reforms" consist of little else than selling off of state assets (for no clear reasons), deregulation of markets (again, for ideological reasons), massive cutting of wages and pensions, reduction of the state sector; massive increases in tax collection and state revenues, etc. None of these makes any contribution to economic development, nor in my opinion to help create an environment where FDI would see Greece as attractive and stable.<br /><br />The primary problem with the Greek economy is political -- both European and domestic. Solutions to economic problems will not come about with technical fixes, since the underlying structures are now so unstable and negative. Syriza seems to be addressing only the political problems -- partly for these reasons, and partly because there is probably no agreement within the party about what to do with the domestic economy. That is the basis on which they were elected, and that is what they are doing.Guest(xenos)http://www.mmo.grnoreply@blogger.comtag:blogger.com,1999:blog-5882645467378797266.post-54681601770290483562015-03-31T11:54:42.879+02:002015-03-31T11:54:42.879+02:00@Klaus and V: What you both have written is approp...@Klaus and V: What you both have written is appropriate for a national economy, with its own currency and its own political management. This is also all that Keynes (to my knowledge) ever considered. His paradigm was the national economy within an international framework.<br /><br />This view completely ignores everything that has happened since 2000.The result of eurozone membership -- controlled and pioneered by France and Germany -- was to construct a political framework (highly inadequate, of course) for economic relations between the eurozone member states, with its own central bank (the ECB) to issue currency and supposedly control monetary issues.<br /><br />Such a framwork can work in only one of two ways. Either you set the membership criteria so tightly that the economic differences between countries are minimal; or, you accept the idea that the monetary union is also a fiscal union of sorts, and should be seen as analogous to the USA or any country with massive regional differences. In the latter case, the weaker regions (owing to low competitiveness and/or innovation) will exhibit declining production alongside increased consumption, increased unemployment and a balance of trade deficit. <br /><br />Since Germany and France chose to ignore the expert advice to select the first option, it was and remains their responsibility to manage the eurozone appropriately. They refuse to accept any responsibility at all for their actions. What were those actions? Let us be clear: they knew full well that was has actually happened was more or less inevitable. They knew that the weaker economies of the eurozone would fail, while Germany would reap the benefits of a lower currency. France had the usual grand delusions about a new Roman Empire, with a common currency.<br /><br />When we reached this inevitable point -- triggered by the global banking corruption crisis -- Germany chose to blame Greek politicians for what had been expected. This was their first reaction, subsequently dropped when more than half the eurozone failed, and now revitalised as a left Greek government demands a rethink of the terrible eurozone mess.<br />Guest(xenos)http://www.mmo.grnoreply@blogger.comtag:blogger.com,1999:blog-5882645467378797266.post-66164216562536279332015-03-31T09:22:46.438+02:002015-03-31T09:22:46.438+02:00....continued
Our creditors are not completely wr.......continued<br /><br />Our creditors are not completely wrong in what they instill on us. The only wronging from the start was naming all of these changes as austerity rather than logic. The creditors are wrong from their side as they failed to come into greece and study the problem and force specific downfalls of the greek system to be stamped out. The Eu is a major blame for this, throwing us tons of cash and debt without help solve the foundations. Meanwhile if Greece was at the bottom of the barrel the EU did nothing to help "massage" ND to keep change going. (They left him out to dry giving the impression that the troika, really does not care for greece other than that they get their money. <br /><br />An excellent example of this was satyred on the zdf die anstalt german channel. https://www.youtube.com/watch?v=_QimxVuicZU<br /><br />It was a breathe of fresh air seeing this. These are the Germans i love. These are the germans which indeed show the greatness of the fatherland. And to be completely honest i believe that more Geramns love and have concerns as friends to greece, than greeks loving germans. The show made me cry not for the for the idea of the show behind it and the stresses that i feel, but for the greatness of germans who actually do care for the wellbeing of greeks and Greece as a whole.<br /><br />I only wish more powerful germans on a political and financial level can actual care for greece in the way that they expressed this. If this was the case, the "greek problem" would be solved indefinately. <br /><br />Germans need to know one thing when negotiating with Greeks and that is to show care and concern. A greek will give you everything then.<br /><br />....Even back in the 80's and today i live like my grandfather lived. Frugal and happy, but i had the previlage of growing up in the USA and having the time to see and understand the negative aspects of debt over a long period of time.<br /><br />@Xenos, don't get me wrong i also agree with many things you state and you both have nice imput on this blog.<br /><br />From the trenches in Greece,<br /><br />V<br /><br />Anonymousnoreply@blogger.com