tag:blogger.com,1999:blog-5882645467378797266.post7551755024338578187..comments2023-07-17T11:55:51.363+02:00Comments on ObservingGreece: Primary Surplus - The End of the Process or the Beginning of the Challenge?kleinguthttp://www.blogger.com/profile/12491174042954678023noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-5882645467378797266.post-4774659323129735092013-07-31T15:39:48.732+02:002013-07-31T15:39:48.732+02:00My point isn't that private wealth is being re...My point isn't that private wealth is being reduced by the current-account deficit, but rather from the *combination* of a current account deficit and a government surplus.<br /><br />The rest, I agree with, but I would like to point out that everything was working fine as long as prices of Greek assets were increasing in value. Whether that was sustainable or not is not something that can be concluded easily. However, we can conclude that it wasn't sustainable in the Eurozone and it's arrangements. The Greek elites should've known and foreseen that. If not, then they're idiots (or worse) and deserve punishment.Jim Sliphttps://www.blogger.com/profile/15325962115410722474noreply@blogger.comtag:blogger.com,1999:blog-5882645467378797266.post-50597631293808538562013-07-31T12:46:59.764+02:002013-07-31T12:46:59.764+02:00Yes, I agree, except that it's not only privat...Yes, I agree, except that it's not only private wealth which gets reduced by a current account deficit. A current account deficit reduces NATIONAL WEALTH. Greece reduced national wealth between 2001-10 to the tune of 199 BEUR. What made it even worse is that this 'national wealth' which had been reduced was borrowed money in the first place.kleinguthttps://www.blogger.com/profile/12491174042954678023noreply@blogger.comtag:blogger.com,1999:blog-5882645467378797266.post-84433420952323180092013-07-31T02:25:12.224+02:002013-07-31T02:25:12.224+02:00As long as Greece has a current account deficit, t...As long as Greece has a current account deficit, the attempts at a government surplus merely reduce private wealth. So, even if the government achieves it's surplus, it comes at the heavy price of the economy nosediving.Jim Sliphttps://www.blogger.com/profile/15325962115410722474noreply@blogger.com