Friday, March 16, 2012

Summing Up All That Is Wrong With Greece and the parasitic 1%....


Summing Up All That Is Wrong With Greece and the parasitic 1%....

We are not picking on Greece today but in the shadow of Lagarde's (and Thomsen's) comments on how shiny everything is in Greece but risks remain, we thought this anecdote-and-analysis discussion between RGE's Megan Greene and CMC's Michael Hewson was so timely as a follow-up to our previous discussion in December. From her experience in a coffee-less and book-less cafe/bookstore in Athens to a succinct perspective on debt sustainability, competitive issues, elections, and implementing structural reforms, the discussion is a quick-and-dirty way to grasp that it's all about the politics and less about the economics. Greece has a reputation for having done nothing since the initial bailout but that is not true - it has undergone quite dramatic fiscal adjustments. But critically Green points out the much more important 'change that the Greeks can believe in' is the structural reforms - and unfortunately there really has been very little progress. Simply put, until Greece sees a whole new political class (who are not inherently captured and self-dealing) that are capable of implementing the kind of structural reforms necessary to improve Greek competitiveness, Greece will never reach sustainability. This leads to her conclusion (spoiler alert) that what it will take (given that all political parties are at the heart of it the same in Greece from Euro adoption and product ad labor reform perspective) is for Greece to exit the Euro. Quite unapologetically, Megan notes the political 'spring' in the youth that is building in sound and fury and feels that this new political class will not succeed until Greece has hit rock-bottom - though this could take a while as mindsets shift from Euro-friendly to Austerity-unfriendly with perhaps post German elections in 2013 as a catalyst with an amicable divorce.

After the first 7:30 ,focused on Greece, they go on to discuss the LTRO strengths and weaknesses - well worth staying on for...

and at around 10:00 she discusses the Spanish elephant in the room (and the Italian political instability over the next year)....

"Greece defaulted last week. Markets still rally. What collapse?"

Be patient. As commented before, the default or "credit event" was done in a timely manner (timely for certain parties). Many have/had thought Greece would go a long time ago but the can was kicked over and over again. What collapsed? As TD has been pointing out in a play by play exposé, certain psychologies are at play and collapsing. A perfect example is the recent threat about-those-foreign-law-greek-bonds

A similar psychology was at play with Germany as a whole. They (German tax payers) sure as heck didn't want to continue to foot the bill for other failed EU states, thus while acting like they wanted to save Greece, Germany really wants them out.

Now we'll see how Spain, Italy, and Portugal get treated next. I think TD should get great credit for daily play by play threads on this. I don't know why someone would call for Black Monday. It will happen but give it time. I find it fascinating that Rubin gives the EU less than 1 year and stated specifically that the EU probably bought less time then most think. But it won't happen tomorrow....

Here is where the parasitic 1% have their problem. What they have “sold” the American public as the spirit of the nation is now in direct opposition to reality. In fact, it has become so obviously untrue that the population is waking in drove to the truth and the truth is that we have a utterly corrupt, sociopathic minority running the nation like a giant criminal syndicate for their own power and money. Therein lies their weakness however. They have no philosophy. These guys are actually so twisted that all they think about is how can they keep growing their money and power. Furthermore, they are operating under an exposed playbook of control. Just take a look at Obama’s, Sarkozy's, Cameron's and ALL the Zioconned criminal Western world's approval ratings..... They are plunging to depth never seen in History..... They are plunging despite fabricated economic numbers and biblical stock market rigging to make things look good. They are plunging because people are waking up and seeing all of this for what it is. A gigantic scam. All the signs I see point to increasing desperation on their part and exponential awakening on the part of the meat of the bell curve. These guys are toast and what we should now be focusing most of our attention on is what kind of society we want when this one collapses. Hopefully the other side of the bell curve can influence the debate for the first times in five thousand years. That is my hope and my vision of the future....


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