Aren't you even aware how many billions of Euros Germany is already doomed to never see again, thanks to Greece??? Sooner or later, the German public is going to force that plug to get pulled.
Greek Gov Ready to 'Shave' Bank Accounts
- Thread starter GURPS
- Start date
Aren't you even aware how many billions of Euros Germany is already doomed to never see again, thanks to Greece??? Sooner or later, the German public is going to force that plug to get pulled.
Ha. You think I'm kidding, eh? Well, that is the TRUE beauty of electronic banking and fiat currency; wheel barrows full of cash for a loaf of bread is not a reality. If they make the cards (easy enough) and simply manage the software end of it and adjust balances as they see fit, this could be the DUMBEST thing Germany has done since declaring war on us. Which was the dumbest thing they'd done since trying to get to Moscow. Which is the dumbest thing they'd done since trying to bomb the Brits into compliance.
The ONLY thing that matters is that they control the system. From there, they can call the balances whatever they like. There will be no inflation because, with NO currency, no ability for anyone to demand more and more hard currency, it will all work out just peachy. Even if someone starts demanding 10 times what the old price was, all of that can be back tracked in the system because it's ALL digital. The ONLY thing that matters is that the transactions go through and they CONTROL that!
EOTWAWKI
Gyro economy!!!!!
You really don't like Germany huh?
LibertyBeacon
Unto dust we shall return
The Drachma doesn't need to "hold its value". All the Greeks need to do is be able to raise and lower the value of their currency relative to others to attract the level of inflow they need to meet their funding requirements -- tourism is one way this was done over the years. They don't have that ability with the Euro foisted upon them.
Tilted
..
There are other aspects of the the situation that very much would matter.
That said, they would damn sure be able to lower the value of the Drachma relative to, e.g., the Euro. But it's not clear to me how they'd be able to, reliably, raise it without creating other - substantial - problems.
Going to the Drachma would mean even greater pain for the Greeks than they're experiencing now. That's why they aren't doing it, because they sure as #### don't want to accept the stuff that the rest of the EU is forcing on them. They're accepting it because they don't have a viable alternative, and that includes going to the Drachma.
Larry Gude
Strung Out
I love Germany. I are a Germany. I'm just an anti Too Big To Fail guy and Germany was a primary beneficiary of TARP. In any event, writing this off and doing new biz is in the German's best interest. That said, my people, while noted for being successful on an individual basis, little day to day things, often get the big things...wrong.
Larry Gude
Strung Out
Larry Gude
Strung Out
How many billions have they lost unt dicking around zee last few veeks???? Huh??? Tilted and I are already in agreement; write it off. He just wants them to never deal with the again. I am all about new business and higher interest rates, real earnings.
What. New. Biz.?? Funding the generous retirement payments of 50-year-old Greeks is "business"??
Tilted
..
Rabble rouser. Natering ney bob. Pessimist.
Oh, I'm not a pessimist. I still hold out hope that the Bundestag balks or that the IMF will scuttle the deal - meaning, really, that those two entities won't get on the same page.
Oh... and you're stupid! I owed you that.
Larry Gude
Strung Out
Here is a test for you; what do those retirees do with that money?
A. They spend it
B. They spend it
C. They take a nap. Then spend it
As I've aged, the inherent shortcomings of capitalism have become more evident; pure capitalism is about spending as little as possible while taking in as much as possible; a recipe for disaster for all but the winner.
This isn't to say socialism is superior. It is to recognize that a healthy economy, how ever it governed, is about the one thing capitalism inherently opposes; spending money.
There is NOTHING wrong, at all, with generous pensions. If they're spending it.
Larry Gude
Strung Out
Oh, I'm not a pessimist. I still hold out hope that the Bundestag balks or that the IMF will scuttle the deal - meaning, really, that those two entities won't get on the same page.
Oh... and you're stupid! I owed you that.
I'm still rooting for the Greeks to pull the plug so they own it totally. Although, maybe it would be more unifying if the Germans said "nein'.
Tilted
..
How many billions have they lost unt dicking around zee last few veeks???? Huh??? Tilted and I are already in agreement; write it off. He just wants them to never deal with the again. I am all about new business and higher interest rates, real earnings.
I will say one thing, to the extent they (or whoever) is concerned about existing debt that will never get paid back... they (or whoever) should think about how much new credit they're talking about extending. (I'm sure they are, of course.)
The equivalent of another $100 billion or so? Think about how much money that is relative to the size of Greece and its economy.
I need to find the break down of existing Greek debt, you got one handy?
There is NOTHING wrong, at all, with generous pensions. If they're spending it.
So why hasn't it worked heretofore?? Why is Greece a complete and unsustainable basket case? Why would any sane person or state want to voluntarily keep pouring money down that endless rathole?
Larry Gude
Strung Out
kwillia
n/a
:
"Son, you are 29 now and still sleeping on my couch in the basement. As of today I expect you to start paying rent and buying your own groceries. Here take this money and now give me $400 back for rent and $200 for groceries so I can pay the mortgage and go shopping for us."
That. But fortunately, Greece does have a few assets to put on the block. Soon. Won't be long before Trump will have a new country club called the "Parthenon".
http://time.com/3956017/greece-bailout-selloff/
PeoplesElbow
Well-Known Member
If Greece's debt was wiped out and they were loaned new money what happens down the road when the same thing happens again?
Lemme guess: The same thing happens again?
The fundamental problem with socialism has never changed: Eventually they run out of other people's money. Always.
PeoplesElbow
Well-Known Member
Of course it happens again. Bailouts are like giving a man with a hole in the bottom of the boat a bigger bucket, erasing debt is like draining all the water out, neither one addresses the actual hole in the bottom of the boat.
Tilted
..
I'm still rooting for the Greeks to pull the plug so they own it totally. Although, maybe it would be more unifying if the Germans said "nein'.
No such luck on the German front, the Bundestag said: Ja, wir akzeptieren, dass sie weiterhin unter unseren Daumen.
I have no idea how good that translation (of my made up response) is.
I started posting about the Greek mess more than 5 years ago. I worry that, to the extent I still care about financial markets, I'll still be posting about it - or at least paying attention to it - 5 years from now.