Do Greek voters think they can just go on spending more than they earn forever?

kabayiri

Your average Chinese worker must be having a right old chortle at these stupid Europeans from his bench at FoxConn.

But then he has to quickly get back to the remainder of his 12 hour day. Still, it will be dorm time soon.

grizzly1911

kabayiri wrote: »

Your average Chinese worker must be having a right old chortle at these stupid Europeans from his bench at FoxConn.

But then he has to quickly get back to the remainder of his 12 hour day. Still, it will be dorm time soon.

And if the Chinese don't "repatriate" some of their gains form the West and help in the rebalancing period they will be on short time too.

China will fall foul of it's own success, unless it learns from our mistakes, the trouble is it is so big and has so far to go it may be too late to correct for our "benefit".

The West have to adjust but this has been building for decades lancing the boil may well kill the patient. Long term medication and care will be required.

grizzly1911

julieq wrote: »

I'm not a natural pessimist, but this looks to me like a combination of worse cases one after another.

Like any contagen this is infecting the globe. All are infected. The East may think they are imune for now but there bubble may well burst a lot quicker than they expect if they don't help find the cure.

Conrad - You could also argue that suppliers looking for ever increasing profits are more at fault than the consumer looking for the lowest price.

kabayiri

grizzly1911 wrote: »

...
China will fall foul of it's own success, unless it learns from our mistakes, the trouble is it is so big and has so far to go it may be too late to correct for our "benefit".
...

How do you learn lessons when it involves Human Nature.

Perhaps many Chinese workers have been sold a pipe dream; you know, save lots today for it will benefit you tomorrow. That isn't guaranteed now though.

I'm sure the average Greek was probably sold a pipe dream when they entered the Euro. Wealth and lifestyle like their richer North European cousins. Their fault was as much believing this vision.

It seems that in many cases it is the dream peddlers who are the guaranteed winners, and these are few in number.

WhiteHorse

ILW wrote:

Do Greek voters think they can just go on spending more than they earn forever?

Yes, and just like Ireland, Spain, Portugal and Italy, they will be allowed to continue.

Why? Because they have been bought by Germany, lock, stock and barrel. That was always the game. The Irish fell for it, and the newly independent Scotland will too.

horace_2

Greece has the E.U by the you know what. Why should they let go until they get what they want?


h

grizzly1911

kabayiri wrote: »

It seems that in many cases it is the dream peddlers who are the guaranteed winners, and these are few in number.

How very true and who is in that ring?

Greed and Power dangerous bedfellows.

Interestingly the Americans are saying the Greek issue will have severe consequences for the world economy - what like it would finally pull the rug under their printing press?

julieq

It's precisely the fact that the Chinese think nothing of doing whatever work is necessary - 12 hour days if necessary - that means they're going to take the work from people who work an 8 hour day with breaks and 5 weeks of holiday a year and a bit of slacking on Friday afternoons. It's a gross caricature to think that everywhere is essentially slave labour in battery farm factories - there is some of that, but there's also a large and motivated and growing middle class there. You only need a tiny percentage of the Chinese population to be better than us to have a vast storehouse of talent that can kick the living bejesus out of the flabby practices we've allowed to develop here around our sense of entitlement.

There is plenty of world market for what is produced in China, and that will still be true whatever happens here for the foreseeable future. Prosperity is moving away from the West but that doesn't mean we become instantly penniless. What it means in particular is that the old social contract gets ripped up one way or another, whether we like it or not. That is nothing specifically to do with baby boomers or bankers, it's to do with seismic shifts in global prosperity.

Anyway Greece looks to me likely to have it's metaphorical head nailed to a post and put on display as a warning to those trying to strike and day-of-action themselves into larger and larger spending deficits. It appears from today's events that Germany is serious about playing hardball, which is good news for everyone who isn't Greek.

1984ReturnsForReal_2

Greek referendum is on the 4th.

Possible collapse of Euro & banking on the 5th.....

Lovely....

Oh & by the way China just told the French & German bods to put away the begging bowl because they aren't getting anything.

MrRee_2

Is this the Greek vote?

A NO vote is factored into the worlds economy .......

It's Italy that's the real worry ....