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Greek retiree refuses to eat from the garbage, publicly commits suicide
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The Mana Legend
Banned
But I thought America was the only one with problems.
BobsRevenge
I do not avoid women, GAF, but I do deny them my essence.
Fuck him, banks need more money.
D
Deleted member 81567
Unconfirmed Member
America is king compared to Greece's problems.
TheMan
Member
ComputerMKII
Banned
That's pretty boss. I agree with his decision but I would lack the courage to do the same.
Austerity for Greece is like a medieval doctor bleeding a patient. He doesn't improve, so you decide he needs to bleed some more. None of the countries that have tried austerity has had it work for them.
cutmeamango
Banned
Should have sold the gun and bought some sandwiches.
Invisible_Insane
Member
Greece needs a reset button. Or they need to leave the Euro. The austerity is depressing their economy without creating much hope of growth.
TheMan
Member
In theory, how exactly is austerity supposed to help a country like greece?
Invisible_Insane
Member
Cutting government spending leads to private sector "confidence," which drives investment.
Yep.
So they can pay the interest on loans lent out by multinational banks which means it'll be swell for Greece in the long run.
cuevas. PhD.
Member
More and more the world needs this:
Terrorism? Uhm...
sans_pants
avec_pénis
and people have the audacity to blame greece's problems on socialism
Austerity will trickle down just you wait
Pollux
Member
It's the same old selfish idiots who come into every economic thread and claim the entire world (economy) needs a 'reboot'. Best to just ignore them.
BobsRevenge
I do not avoid women, GAF, but I do deny them my essence.
In theory, the budget is treated like a family budget. Not enough revenue, drop spending. This is supposed to increase confidence because it shows you are willing to make sacrifices to pay off loans, meaning its safe for more loans to be made in the future.
Unfortunately, revenue involves the multiplier of government investment, and when you cut that revenue decreases, leading to further spending cuts to compensate.
It's a positive feedback loop of rape.
And it doesn't inspire investor confidence because it is a spiral towards insolvency and any savvy investor will realize that.
You might be the only one. Not even sure what you're trying to imply with that post.
TheMan
Member
so the alternative would be to get a bailout in hopes that this would stimulate the economy and allow greece to pay back the old debt + bailout? but no one wanted to give greece the bailout cause they were already in a very bad way? Do i have it right?
More and more the world needs this:
A collapse of that proportion won't have any negative effects at all.
Dechaios and Angry Fork need to get together and share their crazed theories on how to restart the system. Maaaaan.
Pollux
Member
That's not my opinion...I was just commenting on what the .gif was from and why they were blowing up buildings.
Austerity will trickle up first, helping the job creators, then trickle back down, helping the poor, then trickle back up, bringing the poor along with it to a new level of wealth. Everybody wins.
Austeritylia is a great land, she is.
No.
Sorry, multi-quoted the wrong one.
Inflammable Slinky
Member
The alternative was to leave the euro and reissue the drachma to devalue their currency so that they can pay off their debts.
Yes that would have majorly sucked, but at least it would have been a solution to the problem, rather than just selling off parts of the state to give the banks more money.
Keep in mind the "bailout" is just bailing out the loans that French and German banks lent out.
cuevas. PhD.
Member
What is actually happening in Greece? What has their central bank done to help the situation?
http://www.nytimes.com/2012/02/20/opinion/krugman-pain-without-gain.html
Specifically, in early 2010 austerity economics the insistence that governments should slash spending even in the face of high unemployment became all the rage in European capitals. The doctrine asserted that the direct negative effects of spending cuts on employment would be offset by changes in confidence, that savage spending cuts would lead to a surge in consumer and business spending, while nations failing to make such cuts would see capital flight and soaring interest rates.
It didn't quite work out.
Inflammable Slinky
Member
Oh they've done plenty to allay the concerns of the capital investor and to repay the financial institutions in Europe.
Oh, you meant to the people. Jack shit.
BobsRevenge
I do not avoid women, GAF, but I do deny them my essence.
The alternative is for them to cut off their banking system and socialize it to make efforts to fix it before re-privatizing with new regulations (after leaving the euro, naturally).
Also defaulting on loans that would have a high risk of failing if the banks didn't think they could get away with it on the backs of innocent people. Which they are.
TheMan
Member
I don't understand how devaluing their currency would have helped.
Inflammable Slinky
Member
They could easily repay their loans in the now-devalued currency since they can print at will. Yes this causes inflation but it beats deflation. Also a nation gets alot more leeway to deal with economic problems if it can print money.
I think some just want chaos for chaos sake.
Invisible_Insane
Member
BUT CONTAGION
For the uninitiated: the hysteria about Greece has almost nothing to do with the size of its debt, but rather the fear that if it were to set a precedent for getting rid of its debt by leaving the Euro, then other countries would follow suit and the Euro would collapse. So the "sensible" alternative has been to loan Greece more and more money on terms that make it increasingly less likely to be able to repay it.
High finance!
cutmeamango
Banned
Greece's problems come from not being tall enough to ride the rollercoaster. And still embarking.
ItAintEasyBeinCheesy
it's 4th of July in my asshole
Hrmmm perhaps the beginning of something. I can see more people offing themselves over this.
That's pretty much a one way ticket to hyper inflation. No one and absolutely no one will trust a currency that was forced to be created, because a country couldn't pay their debts. The new currency would be worth shit. Might as well file for bankruptcy straight away. At least you can still be in eurozone, which contrary to popular belief has been very important to these smaller countries in the euro zone.
Invisible_Insane
Member
...huh?
I know we're all mad about the banks making poor decisions with mortgages, but where these investors lent money to a government, don't you think they deserve to get that money back?
cuevas. PhD.
Member
Yep, they'd end up getting rid of their currency and probably have to switch to the euro exclusively.
A country can file for bankruptcy has happened a few times before.
Though if they default, the eurozone would probably kick them out anyway. >_>
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