Greece - liquidation proceedings?
Posted by davidmcnab 9 years, 4 months ago to Economics
Now that Greece has defaulted on IMF repayments, I guess it's time to send in the bailiffs to confiscate some assets. Sadly ironic that the in the cradle of democracy, democracy itself was abused by a voting populace unwilling to cope with the most basic realities of finance and economics.
http://www.galtsgulchonline.com/posts/37...
Jan
Kidding aside, it is quite different with Greece, since they could be taken over militarily from outside. The US, not so much.
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These two quotes reveal the why and the how of the fall of Greece. Socialism is a fraud and democracy can be dangerous. Both contain within them the seeds of their own destruction.
My guess is that they are ready to play their trump cards I.e., consorting with Russia to put in a Russian pipeline and gain revenues that way. By dealing directly with Iran (when they are no longer a member of the EU they will not be bound by the sanctions and treaties).
I read someplace that they could be back on sound economic ground within two years by withdrawing from the EU.
The EU could not bail them out again because they soon would have to do the same with Italy, Spain, Portugal, etc. It truly is a no win situation for the EU......For what its worth!
And having lived in Greece for a couple of years, I can tell you that there's not much there but antiquity. Their only real exports are olive oil and Feta cheese (both very tasty, but hardly worth an invasion). They import all their beef, oil, cars, and money. They're very prone to the looter mindset as evidenced by the public worker riots demanding more pay, etc. And don't even ask about the antiquity in their government infrastructure.
There's a full scale replica of the Parthenon in Nashville, TN. Worth visiting to appreciate what the human mind was able to create without power tools.
I really don't understand how the USA still has a space program among other things while over $18 trillion in debt.
Jan
(Dog is sleeping on the one in my office right now. He makes a nice picture.)
And, you are spot on correct about the rest of your post as well.
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But. They are THE place to go for SciFi gossip and often have breaking science articles before anyone else does.
Jan, occasionally cautious
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Or, have Macedonia take over Greece like they did a long time ago.
When the productive northern European states enticed the poorer European nations to join the EU with generous handouts, they set a ticking time bomb. Without significant cultural change, the German work ethic couldn't be injected into the poorer states, and it was destined to fail. Greece is only the first domino.
Its been overdue. Now we can watch the slow daisy chain of financial ruin over the coming years.
Democracy (ie: majority rule) is capable of hugely immoral acts - one of the reasons I am sure we (US) have a Bill of Rights.
For instance, gang rape is a democratic decision, as is voting to funnel other people's money to your interest of choice - Like yourself,
or more subtly, your industry, ethnic group, or other "worthwhile" special interest group.
It may be a good thing to see what a mess the cradle of democracy can make by seeing what happens when the "democratic process" runs out of other peoples money. But I am not really that optimistic to think the typical American voter (certainly not our politicians) will really learn anything from this.
The Facts as I found them
As I recall the IMF is The International Monetary Fund (IMF) is an organization of 188 countries, funded through a quota system and among other things is the worlds largest holder of gold 90.5 million troy ounces (2,814.1 metric tons), but is funded primarily by the US as part of that 18 trillion dollar debt. Total quotas: US$362 billion (as of 3/13/15) Additional pledged or committed resources: US $885 billion of which around 200 billion isreputedly still available
Debt relief under the MDRI-I and MDRI-II Trusts were established in early 2006 and financed from the IMF’s own resources of SDR 1.5 billion in the Special Disbursement Account (SDA). The MDRI-I Trust provided debt relief to countries (both HIPCs and non-HIPCs) with per capita incomes at, or below $380 a year (on the basis of 2004 gross national income). The MDRI-II Trust provided debt relief to HIPCs with per capita incomes above $380 a year, with financing from bilateral resources of SDR 1.12 billion transferred from the PRGT.
The Post-Catastrophe Debt Relief (PCDR) Trust was established in June 2010 to provide post-catastrophe debt relief. The Trust was initially financed by SDR 280 million (equivalent to around $384 million) of the IMF’s own resources. In 2015, the IMF expanded the PCDR Trust, transforming it into the Catastrophe Containment and Relief (CCR) Trust, to enable it to provide exceptional debt reli
Statement by the IMF on Greece
Press Release No.15/310
June 30, 2015
Mr. Gerry Rice, Director of Communications at the International Monetary Fund (IMF), made the following statement today regarding Greece’s financial obligations to the IMF due today:
“I confirm that the SDR 1.2 billion repayment (about EUR 1.5 billion) due by Greece to the IMF today has not been received. We have informed our Executive Board that Greece is now in arrears and can only receive IMF financing once the arrears are cleared.
“I can also confirm that the IMF received a request today from the Greek authorities for an extension of Greece’s repayment obligation that fell due today, which will go to the IMF’s Executive Board in due course.”
http://www.imf.org/external/np/exr/facts...
No Bailiffs Available Bailouts are in Room 51
Jan
The first time I read that, I thought "oh come on, people are smarter than THAT". Now as I look around, I see his point. There are some people who can look past the immediate gratification, (those of us here in the Gulch, for instance). But a large and seemingly increasing majority of people don't seem to be able to think past "Ooh! I can get bread and circuses!".
I'm not anti-democracy, but how do we prevent the "bread and circus" mentality from taking over? One way I thought of (although I realize it would never pass) is to limit voting to property owners (who have a tangible stake in the country/state/city they live in) and/or taxpayers (who earn the money that's being spent).