What I believe in is a firm economic foundation. Something a country, a nation, can build the next level on. There are traditional Economic fundamentals that need adhering to for this to occur. Looking to our current crisis we can see what we did 30 years ago is impacting today. This means we need to be mindful of what we do today because it will be impacting on our economies in 30 years time. The first example is of borrowing from our children.We are sitting in one of history's worst economic crises and few people have not been affected with most people heavily affected. Economic cycles occur and are part and parcel of economies, but these chronic recessions are from system failures, deviating from the fundamentals.The US of A is the world's leading economy. What it does affects the rest of the world who continually keep an eye on it's situation if they want to get ahead. Needless to say much of the world can and have independently gone to pot on their own.



Saturday, July 16, 2011

Greece and Other Porkers

Greece and Other Porkers




These nations are tied, by their own volition, to the Euro. They joined the club of generally socialistic minded nations.



All European nations have had their crisis, some have acknowledged the problems and bulldozed reforms and implementation of cuts.



Look at those nations in the EU that have pulled through and one can see that they were over the top with social spending but also had considerable production going. The welfare is abused to an extent but not horrendously. Even with reforms there too many people freeloading.



Reflect on the other countries. Greece. Wow they managed to stumble to a first bailout. Greece had a ghastly history of abuse and ease of living. Its production is way below par. They tightened up pension ages etc and the socialists/communists went ballistic with riots, blaming banks and everyone but themselves. No one can live on borrowings for ever, the bill will come and it did.



The first line of reforms got them a bail out. However the riots that arose from those reforms shows that the people are not serious about their part in saving Greece. They seriously have compromised tourism and major income streams. Now they are trying to attain further bailout with nominal real change and the weight of the issue is the damage of them defaulting on other nations and institutions.



So with several other porkers following Greece, what can be done. There are three options, keep bailing them out, let them reform properly or just drop them in their own shit. Unfortunately the second option won’t happen unless they want it to so it is probably cheaper to drop them in their own mess and see how they can clean up. Their billions owed is not going to go away and piling on more debt will drag others down later.
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