Greece downgraded to CCC by S&P, Greek MPs plan their getaway!

Thrugelmir

ILW wrote: »

Still cannot figure out what "austerity" means in this case.

Every man, women and child takes a haircut. Be it a cut in wages, pensions, and taxation at a level which funds the state. Along with a fall in asset values.

vivatifosi

Well I might as well post it first... According to early editions of tomorrow's FT Greeks are turning to gold as a hedge against what's going on in their economy (cue the inevitable ramping posts).

Greek citizens are emptying savings accounts and buying gold as they brace themselves for the possibility of a sovereign default and a run on the banks...

...Sales of gold coins have soared as savers seek a safer and fungible source of value.

“When the global financial crisis started, our sales of coins to investors overtook bullion for the first time,” said Harry Krinakis, at Sepheriades, a Greek precious metals trader. “Now the sales ratio has reached five to one.” Tomas, a computer technician, has exchanged his euro savings for gold coins: “I keep them at home just like my grandmother did in the second world war.”


I've gone for a very limited snip from article to keep in line with FT's copy and pasting policy, but I think you get the gist...


http://www.ft.com/cms/s/0/c986823e-9bf8-11e0-bef9-00144feabdc0.html#axzz1PwsiYpIi

globalds

Few ...Luckily the Greek parliament has voted for the austerity budget .....

That's it then all the problems are over ......



.........aren't they ?


EDIT

It seems they have only agreed to a new cabinet ..Oh well ..all hands back to the pumps.

mystic_trev

They got bills, they're multiplying, and they're losing control.

ManAtHome

globalds wrote: »

It seems they have only agreed to a new cabinet ..Oh well ..all hands back to the pumps.

Or, the half-dozen who claimed not to back the shafting of the people they are supposed to represent have decided to back the shafting of the people they are supposed to represent - could be 'interesting times' for some.

Thrugelmir

Debts of 30,000 Euro's a head.

ILW

ManAtHome wrote: »

Or, the half-dozen who claimed not to back the shafting of the people they are supposed to represent have decided to back the shafting of the people they are supposed to represent - could be 'interesting times' for some.

In what way are they being shafted, is it just not being allowed to retire on full pension at 55 and living way beyond their means?

Or possibly being expected to pay their taxes?

globalds

ILW wrote: »

In what way are they being shafted, is it just not being allowed to retire on full pension at 55 and living way beyond their means?

Or possibly being expected to pay their taxes?

So if you worked for a company that paid you a great wage and offered an early pension scheme then it came to light after ten years that the company could not afford to keep it promise who would you say was at fault ?

The company or the employee ?

Greek individuals have been sold a lie and are bound to be upset when the rules change.

Generali

globalds wrote: »

So if you worked for a company that paid you a great wage and offered an early pension scheme then it came to light after ten years that the company could not afford to keep it promise who would you say was at fault ?

The company or the employee ?

Greek individuals have been sold a lie and are bound to be upset when the rules change.

It shows the power of the Corporate State lie that once people realize they've been duped they take to the streets and riot, AFAICS in an attempt to keep what can't be afforded.

Ultimately you either have to pay for yourself or pursuade someone else to pay for you. The welfare state is based on the idea that the minority of rich people who pay most of the taxes will be happy to continue paying for everyone else indefinitely. It appears that tax payers in Greece don't want to pay up any more and the majority don't like it.

Degenerate

kbrumann wrote: »

The Euro-Zone overall (or on average) is doing pretty well. Debt across the Euro zone is lower than in the UK or the USA. So it is just a question of the Northerners (FR, NL, DE, FI) willingness to bail out the fringes (Greece, Portugal and Ireland). So far it has been working pretty well.

As the realisation dawns on the Northerners that in order to hold the Euro-zone together, the bail-outs to the fringes will need to become perpetual subsidies, I suspect that willingness will evaporate.

The Anglo-Saxon press (fearing the demise of the US Dollar as the global currency for reserves and trade) has been announcing the end of the Euro ever since its inception. When a Pound Sterling bought €1.40 or US$0.85 was worth a Euro, the Euro was named "Toilet Currency", soon to be flushed away. Today Sterling buy €1.13 and the Yanks have to give US$1.40 for one Euro. When reading the British and American press is seems the Euro's demise is even nearer.

Don't hold your breath!

When someone holds up the excessive PPP exchange rates of a currency as an example of it's success, it's a sure sign of economic illiteracy. The pound has been doing very well for us at it's low PPP exchange rates since November 2008.

The Euro will break up because of the damage it is wreaking on member economies. The currently excessive PPP exchange rate is just one part of the problem.