Dear Friends,
It seems to me that continuing to bail out Greece is the height of stupidity and can only result in a greater fall when the inevitable fall comes. Lets face it, the Greek model is unsustainable… put simply. It cannot work and any one with half a mind knows it. To continue to bail out a country that has no ability to pay, no interest in paying and wouldn’t pay the money back if it could is ludicrous. The truly laughable thing is that we all are involved, every one of us, you and I.
The problem with Greece is not it’s debt to GDP ratio but it’s spending to income ratio. Greece spends more than it can possibly take in without diminishing GDP even further than it’s onerous and dodged tax system does today. But, with a strong anti capitalist element in power, (communists, Fabians, etc…) culturally and politically, the ability of the Greek government to reign in spending is limited. So the problem will only grow until there is no ability of the World to bail out Greece. Then… oh well.
The very fact that there is a need for a bailout presupposes bad fiscal management. Lets face it, we are not talking about Greece bailing out Finland now are we? Greece is wealthy in many ways, it has a thriving tourist industry, it has a temperate climate, a large and well educated population and it has a magnificent history. The problem with Greece is the communists have so polluted the cultural ethos that Greece has been rendered, by the anti capitalists, mortal. At least this government…
Look at the attitude of the Greek on the street. When ever the media, that I am aware of, ask a Greek on the street what they think, they all act annoyed that anyone would have any problem bailing them out, and again… They display in full color the poisoning of the Greek cultural ethos by the communists. That there will be a fall is unquestionable, how disastrous it will be, is dependent on how far it is taken. The higher you climb a tree that is being cut down the farther you will fall with it.
But it is not only the Greeks in that tree. It is the rest of Europe along with the common currency. A fall of great magnitude would precipitate many other dominoes falling. If the Greek fall is done soon then others may not be drawn in. If however, others continue to climb with Greece, then the fall of the Euro will be assured. Which is unfortunate…
I say stop the bailouts. They are masking a growing problem with the welfare state. The people who espouse communist ideas must be forced to live under the consequences of them. As long as they can be masked by bailouts, they continue corroding the ethos of many other people, they will continue to wreak havoc on people’s lives. India is another country coping with a strong communist cancer. Now it is localized but any cancer can metastasize. The anti capitalist cancer spreads because people don’t recognize it for what it is.
If Greece is denied a bailout it will assuredly default on some of it’s debts. It will have to cut spending because it will not even be able to borrow the money it gives away, oh sorry, redistributes… The Greek government will become the example of why communist ideology is so corrosive of economics in a country. Any ideology that fosters an indigent society is a cancer of societal ethos.
But if Greece does default, on some or all of it’s obligations to it’s creditors, then their interests will be damaged. Some of it’s creditors are German Nationally owned banks. Some are actual capitalist firms and some are hybrids. (To be up front I own stock in at least one bank that will be affected). Those banks that invested in Greek debt seeking the high interest rates that the risk made possible should take the haircut. A truly capitalist country allows the corrupt and degenerate to decay and collapse so that new and vital business can rise to take it’s place.
The real problem is that the anti capitalists in Europe have put the Europeans in a catch 22 situation. The leaders are dammed if they do and dammed if they don’t. When one finds themselves in that situation, it is best to do what will turn out best in the long run, not what minimizes pain in the short run.. Those of us that are adults know well that life lesson. I wonder if those that are smarter than us do too?
