A study in hypocrisy and political expediency

Which reminds me. Where did Almunia go? I miss his grand standing and histrionics. Anyone remember his “We don’t have a plan B because we don’t have and don’t need a plan A. No European country can default!”? Or some such asinine cerebral fart.

http://news.yahoo.com/s/ap/20100502/ap_on_bi_ge/eu_greece_financial_crisis

So, we have gone from no country can default, to no country will be bailed out, to Greece may need a few Billions, to Greece needs 45Billion Euros, to: Oh! All right, we’ll give Greece 145Billion Euros.

Great.

How far behind can Spain, Portugal, Ireland, Italy AND…. drum roll…. California be?…

Stay tuned for the next bankruptcy coming to a country or state near you.

Flashback:

https://guidoromero.wordpress.com/2010/01/31/something-is-not-confirmed-till-government-denies-it-greece/

https://guidoromero.wordpress.com/2009/03/03/eu-has-solutions-in-case-of-euro-state-default/

By the way. Who do you think this money will bail out? If you are thinking that Greece is being bailed out, you are wide of the mark.

This money will go to making whole the banks that have bought Greek bonds that allowed Greece to spend like the proverbial drunken sailor. So, once again, here are our governments riding to the rescue of the banks under the guise of rescuing a country. Greece will not see much of that money. On the contrary. Once the banks are made whole, Greece will still need a bunch of cash to sort itself out or risk a political coup d’etat.

A bon entendeur salut.

Advertisements

Tags: , , , ,

4 Responses to “A study in hypocrisy and political expediency”

  1. Something is not confirmed till government officially denies it « Guido's temple of the absurd Says:

    […] https://guidoromero.wordpress.com/2010/05/03/a-study-in-hypocrisy-and-political-expediency/ […]

  2. David W. Lincoln Says:

    As long as people conclude that governments are illegitimate, they will behave as seen here, http://online.wsj.com/article/SB124260113149028331.html and here, http://taxprof.typepad.com/taxprof_blog/2010/05/ny-times.html

    Need I say more?

  3. David W. Lincoln Says:

    When the toxic assets held by banks, pension plans, hedge funds, and anyone else either individually or however the group is arranged, when they are assessed, they will be, at best, worth half of what was shelled out for them.

    So, given the lethality of the toxic assets, we will see French and German banks go under thanks to Greek sovereign debt, British banks go under because of Spanish debt, the Portuguese will be rescued by their former colony Brazil (even though whoever is holding Portuguese sovereign debt will, at best, receive 50 cents on the dollar).

    All the while we will see governments propping up banks, because neither wants the record to show that, because of laziness and fear, they
    caused capitalism to collapse.

    I refer again to “Inside the Collapse” which aired on “60 minutes” not that long ago.

    • guidoamm Says:

      I will only take issue with your mention of “capitalism”. Capitalism hasn’t really been tried anywhere at any time. To speak particularly of the last 100 years for example, I will grant you that at the outset of the fiat monetary dynamic there was a greater degree of economic “freedom”. But, as the inflationary dynamic progresses and as government gradually and necessarily becomes the largest actor in the economy, economic freedom is inevitably curtailed. The reason is that in a fiat monetary system, not only must the state retain the exclusive right to manage interest rates but in order to maintain inflation on a positive trend the state must create and/or keep alive large economic entities in order to expend ever greater amounts of money. In turn, the necessity to expend ever greater amounts of money (remember that inflation is exponential) ensures that these sums will always go to those entities that have more influence in the political process; think unions for example or such constructs as the United Nations.

      So, fiat money precludes capitalism from the outset as does, in fact, democracy.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


%d bloggers like this: