Summary Of Greek Reform "Pledges"
Anti-German Mood Heats Up in Greece
For Greece a tear, for Brussels a blush
Greek death spiral accelerates
We learn that:
Greece's manufacturing output contracted by 15.5pc in December from a year earlier.I have little further to add. This is what a death spiral looks like.
Industrial output fell 11.3pc, compared to minus 7.8pc in November.
Unemployment jumped to 20.9pc in November, up from 18.2pc a month earlier.
It is what can happen if you join a fixed exchange system, then take out very large debts in what amounts to a foreign currency, and then have simultaneous monetary and fiscal contraction imposed upon you.
Germany discovered this on the Gold Standard when it racked up external debt from 1925 to 1929 (owed to American bankers) in much the same way as Greece has done.When the music stopped – ie, when the Fed raised rates from 1928 onwards – Germany blew apart in much the same way as Greece is blowing apart. This is not a cultural or anthropological issue. It is the mechanical consequence of capital flows into a country that cannot handle it, as Germany could not handle it in the late 1920s.
By the way, Greeks work an average 42 hours a week, one of the highest in Europe. Just want to put the record straight on that.
I previously posted a link to the EU's Nigel Farage: Nigel Farage Is On Fire
Here is his latest, succinctly describes the situation in under 2 minutes.
Some previous posts come to mind
"A Global Financial Crisis of Epic Proprtions"
Youth Unemployment In The EU
Austerity will involve cutting military budgets, pensions and some charismatic officers getting forced early retirement on reduced pensions. Now add reduced social welfare to those youths and you get no hope, no future, no cash. A powderkeg. All it needs is charismatic leadership offering hope and a future (add patriotism and nationalism).
How do you think Franco, Hitler and Mussolini got traction? The stage is set and only fools can't see we are back in the 1920s