GREECE IS COLLAPSING FINANCIAL TURMOIL

5/5/2010


Greece is headed any day towards political
and economic collapse...


Cheers..Joe

I wonder what's going on there. I read that they're rioting because of increased taxes and lowered benefits. Were the taxes so high and the benefits so generous to begin with? I never thought of Greece as a first world country, I've been there and it seemed kind of third world to me.

When I lived in Germany I mentioned an upcoming trip to Greece as part of my plan to visit most of Europe. LOL, I recall my boss (a German) saying, "I don't consider Greece to be part of Europe."

The Greece situation seems to be getting worse. Greece has always been popular to visit by the British. Not sure really, but it doesn't look good. Maybe they should give themselves to a first world country.

They could trade themselves for the Elgin Marbles.

all the bad economic news and the election. its not good for the stock market. anyone got stocks here?

Greece is in the news once again.  I have avoided talking about it hoping that the problems would be solved, however they haven’t been solved.  Fact is that the situation has worsened.  What I find disturbing is that the picture painted by the Press suggests that the fault lies with the EU.
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When the EU invited European countries to become part of the EU and use the Euro as a common currency, there were fiscal requirements to join.  Greece was accepted based on what they reported.  It wasn’t long before Greece ran into financial trouble and required money. It was learned that they lied on their application and should not have been accepted. Money was sent to Greece in the form of grants and loans and they wanted more.  A team from the EU headquarters in Brussels was sent to Greece to check the books and try to help.  Access to some of their accounting records was denied to the inspectors.  What the inspectors learned was revealing.  They discovered that thousands of people already dead continue to receive pension payments. (Received and used by relatives).  In addition, thousands were on the government payroll that didn’t go to work.  Matters got worse.  Those with money in Greek banks withdrew their money and sent it to other countries.  Billions were withdrawn.  On top of that, Greek shipping billionaires with their ships and yachts in Greek ports paid no tax.  In recent Greek elections, promises made to the people could not possibly be fulfilled, but it got the current Finance minister and President elected.  The people were promised full employment and continued benefits.  People in Europe whose taxes paid for the loans to Greece were ticked-off about this, and rightfully so.  The EU finance minister located in Brussels happens to be German and the Greek government blamed Germany for not sending more money.  Then they asked Germany for more war reparations.  That account had been closed and settlement agreed to after having paid Billions.  Then Greece threatened to go to Russia for aid if the EU didn’t send more money – a form of blackmail.  They indicated that they would give Russia access to their ports.  The US Sixth Fleet is anchored in Greece and that certainly couldn’t work.  The sixth fleet in Athens provides Greece with much money The EU requested a repayment plan that Greece never delivered.  They were given a final deadline to present a plan and it was not delivered.  When anyone borrows money (you and me included) the bank wants to know how we plan to repay it.  It appears that Greece doesn’t intend to repay the Billions sent to them.  The news showed lines of people at ATM machines withdrawing money.  The government could have placed a limit on daily withdrawals, but they didn’t.   
The government is corrupt.  I worked and lived in Greece and experienced some of that corruption first hand. 
The Greeks government said that they would hire people to collect back taxes from the citizens.  Those who were sent to collect the taxes were bribed.  How do I know this?  I have friends in Greece who know about the bribes.  The problems they have are of their own making.  Unfortunately, the outside world hears what the Greeks want them to hear and places the blame on others.  The EU has given up waiting for a plan before sending more money and the deadline is firm. 
I speculate that Greece wants to go bankrupt and then have all debts wiped out and go back to their old currency.   The citizens of Greece have demonstrated and wish to remain in the EU. 
“A fish first starts smelling at the head” and that clearly applies to those in the Greek government.  The rich still pay no taxes on their ships used for commerce as well as the yachts for private and tourist use. 
They could bail themselves out, but there is no resolve to do so.  The rich control the government.  Those who stand to lose are the working class. Even that is not a blanket situation as there are those who have money stashed abroad. 
 
Before feeling sorry for Greece. just remember that there are two sides to any given story and that the truth lies somewhere in the middle.  The Press is being used in Greece as they are often used in other countries when those countries seek to mislead world opinion.      
Spain and Ireland were also in trouble, however they submitted a plan that they followed and are now in a much better economic situation.

I know a lot more than I did.  Thank you.  I also see a parallel in the non-participation in government expenses by the extremely wealthy - just the same as in the U.S. They do all they can to hide their money also because they have the means.  Here it's the lobbyists that do the "bribing" but it still comes out the same - undue influence on the government to meet the needs of the wealthy and the lower classes suffer. It is never healthy to have an elite few with extreme wealth derived from being a citizen of a country while other taxpayers are contributing their share without relief.

I only visited Greece.  I loved my time there.  Such a difference between being a tourist and being in business.

The Greek drama continues.
 
The requirements stipulated by Brussels for Greece to receive more aid was not truthfully reported to the Greek people.  The Greek President lied to the people and made it appear that Brussels made unreasonable requests.  Yesterday Brussels published the requirements so that all would know the truth.  It exposes the lies made by the Greek government.  Problem is that not all Greeks will be aware of the lies unless it is translated into Greek and published by a Greek newspaper.  With the Government controlling the local press, it is doubtful they will learn the truth soon enough.
I just heard a CNN reporter say that the current Greek government is the worst in history.  He said that the Greek government has not done what was necessary to protect and help the people of Greece, but rather have promoted the idea that Greece is too important to fail.  They promote the idea that Greece will be bailed-out again and the people are buying into yet another lie.  The deadline for the first loan re-payment installment is today and it will not happen.  In the meanwhile, the Greek banks have no money and the ATM machines are empty.  It is normal for people to place blame, unfortunately, the blame is misplaced.