2.25.10
I don’t know much about the Greek economy but recent name calling by Greek officials against the Germans whom they are likely depending on for a handout, doesn’t help their cause:
Apparently the Deputy Prime Minister, Theodoros Pangalos, called Germany “Nazi Germany” and blamed them for Greece’s problems recalling stolen gold. Basically, Greece has spent itself into oblivion (where we are heading) but the EU does not have a printing press to invent money like we have at the Federal Reserve. So EU countries must control their deficits in order to stay in the EU – that means raising taxes and cutting expenses (i.e. gov’t workers).
As you can imagine, everyone is up in arms in Greece over pay cuts and higher taxes. But what these foolish grunts don’t understand is that going back to the Drachma (old currency), which was falling for years, would bring Greece’s economy closer to Zimbabwe than to solvency. What would happen is, government workers and everyone else (also unemployed whiny students who probably collect pensions for sitting on their duffs) would cry and complain, and Greece would print money to cover all their bills and the then the Drachma would plummet and then it would cost 5xs as much for a loaf of bread and they would have chaos.
Greece is simply a cheap sneak preview of our finances if we don’t under control. This is what happens when a country can no longer print money. And blaming other countries, especially ones trying to help them, won’t help Greece. Perhaps Greece needs to be booted from the EU so that they will appreciate things more.
