What's all this Greece stuff about anyway?

[BrownOut]

Why do we care what the Greeks do? How can such an insignificant economy bring down the entire planet? Greece is the 32nd biggest economy in the world. Now that might not be too shabby, but it isn't exactly an economic powerhouse either. I think the state of California, and maybe a few other states actually have bigger economies! So how is it that Greece is holding the global economy hostage?

To our fine Greek members: I don't mean any disrespect. Greece is a beautiful country and the greeks are beautiful people. I just don't see how a single country has this much influence.

 

[.W4GNS]

It's a "World Economy" and a domino effect starts

 

[Mikebits]

This report may explain it.
https://abcnews.go.com/WNT/video/greece-bankruptcy-affects-savings-13862091

 

[bryan1]

After EM posted that thread about the New's stock market comp I went and joined it and man did I see just how volatile the markets are. Now just these same markets control economies. One only has look at current times to see if the mass's have the guts in these so called first world countries to try and change all the wrongs.......

Now for an analogy......

'Look at the way Microsucks has gone with it's OS's, XP was the best one they ever made and lasted for over a decade. Now with 64 bit coming out Vista was a flop and the next release 7 is an even bigger flop. So what can we expect, being forced to pay EVEN more for their stuff up's and the next release will have the same problems ( it won't work with old stuff). People are now starting to see an alternate OS that just works and is the best for the mass's.'

Now put that above quote in today's world. The US is going down the gurglar quicker than a No.2 after a hard night and the rest of the first world countries are doing the same thing. Those stand in protests in the first world countries saw a dictators response in quelling the protests

IE: the riot squad was brought in to dispel the crowd.



Look at the middle east where the mass's came out and made change happen, but in this first world we just seem to gloss over and keep living like sheep. How many times on the news do you see the govt putting new tax's on so the cost of living is that much greater then on the other hand say we have to employ off shore workers as there is no skilled workers here. Just go look at how many skilled workers are on the dole queue that are forgotten.

I mean just look the world over where living older generations are thrown on the scrap heap and the younger ones are taking over without a clue of the 'old school methods' It really is a shame.

Now in my above post I will say YES I'm one of those older generations and after 40 job applications in one month I got 2 interviews but no job after them and the reply was we found someone younger.

Where this world is going is for ONE BIG CRASH and the younger generation won't be prepared.....

All I can say is 'Be Prepared' for that said crash as without it be like a sheep one will be culled........

Cheers Bryan

 

[duffy]

The Greeks don't pay their taxes. Tina Fey made fun of this problem two years ago on SNL. The Greeks go to extreme lengths to avoid paying taxes on anything - they even pay for major medical operations in CASH to avoid taxes. All the austerity measures in the world won't fix a broken revenue stream, which is sort of like the problem we have in this country with big corporations paying little or no taxes.

 

[cobra1]

dont worry, here in the UK we pay enough tax to make up for the loss.

 

[.W4GNS]

That's of not much help, as it go's into the pockets of the Royal Family.

dont worry, here in the UK we pay enough tax to make up for the loss.

 

[ghostman11]

Greece holds the key because of there debt, it works like this... greece borrows huge sums of cash from all the major sources theese sources borrow thw cash they lent greece from the markets and hedge funds and pension pots..... Greece then dosnt service it debt, the sources it borrowed from i.e major banks cant pay what they borrowed. the banks start to fail but because they are classed as too big to fail the goverments have to prop them up. this is where we hit a major problem....the coffers are empty for the goverment it has no cash only debt and there is nowhere left to borrow from. maybe greece dosnt seem so unimportant when looked at from this perspective

 

[AL3xGR]

...

 

[ghostman11]

Italy is the one to watch, they get any worse in trouble and europe will fold in its present state and bring many others down with it includeing th uk

 

[duffy]

We don't get paid in order to pay the taxes.

*ahem* Like I was saying.

Is that a popular slogan there in Greece, AL3xGR? "I don't get paid in order to pay my taxes!" - ?

 

[AL3xGR]

...

 

[ghostman11]

Not an excuse , it's the truth.How it is to get paid less and less every day and see the amount of the money you have to pay keep increasing? Isn't is insane???

Italy is next

obviously my bias and perspective is as a UK business man. I fully agree Italy may well be next, then we are in trouble, Greece is bad enough but from a UK view point it isnt too damaging to us on its own as UK bank and goverment exposure is relatively speaking low. the real problem will be Italy or spain or heaven help us Ireland where the UK exposure is far far greater. if any of thos crumble then all bets are off regarding the survival of the euro as a currency. things are hard now but vmay very well become alot worse. rocky roads ahead but as a country/continant we have been here before and will be back again one day.
its all one huge cycle. i would also say i do have sympathy for the Greek people, the measure you have been asked to implement are a massive impact compared to how things were say 5 years ago, i particuarly think the pension age rise for you is somewhat unfair. its about time Germany and france took another Look at the thier baby the EURO and start to think of a life without it, its been a utter HASH up and i do indeed have a great deal of experiance of its affects on UK business especialy the impact on farming.

 

[jpanhalt]

its about time Germany and france took another Look at the thier baby the EURO and start to think of a life without it, its been a utter HASH up and i do indeed have a great deal of experiance of its affects on UK business especialy the impact on farming.

The Euro is not the problem, it is the cure in that it provides a certain level of discipline to national expenditures. Without the Euro what do you think the interest rate on loans to Greece, Italy, Spain, and Portugal, Ireland would be? The investors woud be considering both inflation and the risk of default. Those economies are built on loans and without loans, they would have hyper-inflation in their sovereign currency. Goods produced in other countries would simply become unavailable. That would lead to civil unrest, riots, and likely an overthrow of the government by a military regime. The world saw that scenario a few times in the 20th century, Let's hope it is not repeated in the 21st.

The fact that the loans to Greece and Italy have been or will be so greatly discounted (Greece = 50%) is a sure sign the rest of the world is willing to take a huge loss to avoid the scenario just mentioned. What's wrong with working to pay for what you get?

John

 

[andrewblog]

Tax evasion is one of the biggest problems in Italy.
Fortunately Mister "Berlusca" has just resigned and I've seen some good signal from European investment.

 

[jpanhalt]

Tax evasion or not, in Italy, 50% of the people work for the government. Italy's deficit spending relative to its GDP is huge. It is not hard to see the consequences of those two factors. John

 

[neptune]

hey every body dont sweat yourself on PIIGS debt crisis.
Because china is there to help them , chinese are offering two way trade aggriments to make some money from broke economies.
Even India is having tension over euro zone crisis because our economy are also attached (export). EU leaders are going round the world to save economies.
cause EU is the biggest power house in world, yes bigger then US.
Did you read about India's investment in UK (http://articles.economictimes.indiatimes.com/2009-06-23/news/27645847_1_uk-trade-and-investment-new-jobs-new-projects) our PM is urging us for investment abroad.

 

[Boncuk]

Greece has cheated to get member of the EU by "tailoring" government income to make the minimum requirements.

Besides many rich people don't pay due tax. Greece was very generous concerning retirement payment (90% of the last income) and a huge staff of government employees. (1 government employee for two citizens).

All those facts had been carefully hidden when Greece joined the EU. At that time Greece was almost bankrupt.

Another problem is the fact, that governments are no longer able to control their currency. That is already being done by financial speculation internationally.

Thailand's economy is going down the drain and the exchange rate of any currency is decreasing versus the Thai Baht. The EURO has lost more than 20% between 2004 and 2011 (2004 1€ was 51.5Baht, today it's 40 to 41 Baht).

Inflation here is almost 10% and fuel prices have doubled within two years.

China refuses to lift their currency value making trade more difficult.

All those problems can't be solved by pumping billions of EURO into Greece. The only fair cut for Greece would be to leave the EU and return to their former currency by devaluating it by 50%.

If politicians hesitate too long to get a good resolution of the problem, Greece will be followed by Italy, Portugal and Spain with the main financial burden on Germany.

All of those almost bankrupt nations should do their homework thoroughly and they should do it fast.

Nobody cares for a clochard living in Paris underneath a Seine-bridge. So why should the EU take care of the "clochard-countries"?

Boncuk

 

[neptune]

Thailand's economy is going down the drain and the exchange rate of any currency is decreasing versus the Thai Baht. The EURO has lost more than 20% between 2004 and 2011 (2004 1€ was 51.5Baht, today it's 40 to 41 Baht).

According to rupees used in India Euro is going stronger. 55rupees = 1€ in 2004 and now 64 rupees = 1€

inflation is rising everywhere because more people are being pulled out of poverty then ever before. and dont go on crude oil prices cause they will rise till the end of mankind.

you know US has run out of options now you know whats the best policy they have adopted... its called "time" , In a decade under US will is looking for boom period, and so is EU , so lets wait and see

 

[andrewblog]

Tax evasion is one of the biggest problems in Italy.
Fortunately Mister "Berlusca" has just resigned and I've seen some good signal from European investment.

The new government has just come to life