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Post time 2015-7-2 14:35:27 |Display all floors
What is the purpose of your fighting the Troika if you are unwilling to give your people the dignity, the responsibility, the rights, and the power of issuing your own national sovereign currency?

Render unto the EU the Euros that are EU's, and Drachmas to the Greek people that belong to them.

Capital controls are not enough.  They are a temporary measure, until the Drachmas are printed, and ready to replace the Euros that are missing.  Greeks need to trade in Drachmas, unless Tsipras himself has no faith in the value of the Drachma without the Euro.  This is wrong.  The Drachma is the pledge of a Greek to another Greek that his goods and his services are honored and will be repaid when he presents the Drachma to oneself later on for the goods and services that one can provide.  The Drachma is a monetary SOCIAL CONTRACT that is ESSENTIAL TO THE NORMAL FUNCTIONING OF EVERY ECONOMY.  To protect the Drachma, Greece must erect protective TARIFFS against imports that compete with domestic factories and workers, and accept the tariffs other European countries apply to her goods and services in return.  That is called MUTUAL RESPECT AND MUTUAL BENEFIT.

Surrendering to the Euro all prospects of issuing a sovereign Drachma is not independence . . . it is capitulation.

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Post time 2015-7-2 15:22:41 |Display all floors
This post was edited by mixamixa at 2015-7-2 09:58

The Greek people are ungrateful bunch of people living in the past. Greece owes 300 billion euros. 190 billion to EU tax payers and the rest to IMF, ECB and Greek banks.

Greece owes this money because it spent more than it collected taxes. When the banking crisis started in US 2008 the investors started to price risk more careful and it was impossible for Greece to borrow money. At the same time all the lies by Greece government regarding Greece statistics surfaced. No one wanted to give Greece more money. Grece had to roll old debt like all governments and the only source willing to borrow was Greece's eurozone partners.
When someone borrows money he usually wants to be sure he will get it back. Greece refused to sell its assets but agreed to make changes to spend less and collect more taxes.

Greece was doing well, deficit was gettig smaller and GDP started to grow again. Then the Syriza party won the elections. The Greeks are free to elect whoever they want to lead the country but the result of this election was that the growth stopped, many of the reforms were halted and investors left.

No one, not IMF or EU taxpayers are willing to give Greece more money unless they change their ways and stop blaming others for the problems they have created themselves.

Who borrowed the money? Greece
Who spent the money? Greece
Who elected the government to run Greece? The Greeks
Who lied to EU to be accepted into the Euro system? Greece and Goldman Sachs
Who have spent more money than they have acculated with tax? The Greeks
Who is blame for this mess? Greece

The only way out of this for Greece is start collecting taxes like other European countries, stop spending money you don't have, work like people in North Europe and elect the right people to run the country.

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Post time 2015-7-2 23:06:20 |Display all floors
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Post time 2015-7-4 08:48:16 |Display all floors

At least China understands that it must be an international reserve currency in order to sustain such a rapacious system of parasitizing the world with.  What China failed to understand is that it cannot issue enough Yuans as an international reserve currency to satisfy its needs under the IMF's SDR regime, which itself is less than 4% of all reserve currencies of the central banks of the world, and of which, China's quota cannot exceed 6% as a developing country, equating to a 0.24% share of the international reserve currency pool, an underachievement compared to its current share of 2.7% of the reserve currencies of the world without the benefit of being accepted by the IMF as a component of the SDR's it issues.

China's course of being the most cost-effective manufacturer of the world, due to its having the largest manpower resource, would have expanded its share of the reserve currencies of the world to 5% and thence 10%, 20%, and 30%, if it had persisted in the economic course set by Deng and the past administrations.  Instead, it chose to artificially overvalue the Yuan by using up its foreign currency reserves to buy Yuans with, a total waste of China's hard earned dollars, which to makes matters worse, made all Chinese goods and services overpriced in dollars abroad and in yuans at home, resulting in the RECESSION HITTING THE MANUFACTURING SECTOR OF CHINA THAT IS THE GOOSE LAYING ITS GOLDEN EGGS.

China's economic team is the FOX in the chicken coop, and right now, the chicken are dwindling alarmingly in numbers.  The latest Markit Manufacturing Index PMI for China is 49.4, which means CONTRACTION.  Labor-related strikes are exponentially increasing too.  It seems that corruption in China may no longer be endemic or epidemic, which can still be controlled, but rather it may be intrinsic at the core, and ineradicable.

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Post time 2015-7-4 09:46:43 |Display all floors
seneca Post time: 2015-7-2 23:06
To common working stiffs such as myself, Mr Tsipras is a gambler who bet on money he borrowed from ...

There is no need to be so harsh on Tsipras........he just came into the picture with the liabilities there already.

He bets that a no vote will give him a stronger hand to ask for discounts and hair cuts from creditors...................I don't think so.

The reality is that there is no painless solution when a problem has festered to this stage.

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Post time 2015-7-4 09:54:34 |Display all floors
This post was edited by abramicus at 2015-7-4 09:56
revolt Post time: 2015-7-4 09:46
There is no need to be so harsh on Tsipras........he just came into the picture with the liabiliti ...

We will see how the THEORY OF CAPITAL ACCOUNT SURPLUS as practiced by Greece ends up, because this is the same model they have sold to China's economic team - open up capital accounts in order to get rich - which Greece did, in increasing the standard of living of its people for so long with inflows of Euros over the past decade or more.  But like Greece, and unlike America, China will not be able to pay for these inflows by using its own currency (Greece has none, and China's Yuan is not accepted by other governments as payment for Chinese debt, even if the Yuan should be accepted as a component of the IMF's SDR's in the future).  Greece is the economic model of new China, called the "new normal", on a smaller scale.  Call Greece the "canary in the mine" for the much bigger economy of China.

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Post time 2015-7-4 09:54:42 |Display all floors
This post was edited by abramicus at 2015-7-4 10:05
revolt Post time: 2015-7-4 09:46
There is no need to be so harsh on Tsipras........he just came into the picture with the liabiliti ...
Oh yes, Tsipras is merely doing what he can.  He does not have much to work with.  All he can do is threaten to default on all the rest of the 250 billion Euros that Greece owes (he just defaulted on 1.7 billion Euros owed to the IMF, which does not faze the Troika, not yet).  The Euro's value as an international reserve currency will take a hit, but it can absorb this loss, nonetheless.  And it will bounce back.  Tsipras, and 75% of all Greeks, do not want to discontinue using the Euro, because it has superior purchasing power, more stable purchasing power, and greater exchangeability as a medium of trade.  But they cannot pay back their debts in Euro.  China has been sold a similar piece of shit by some Economic Hit Men, who have been hinting that China can achieve the same personal standard of living as the West in ten years or less, by opening up its capital accounts, i.e., let the foreigners own China, by having China borrow from foreign banks in foreign currency denominated loans.  They have succeed beyond their wildest dreams.  China borrowed nearly 3 trillion dollars in the past 3 years, in foreign-denominated loans, already, and it is just beginning to "LIBERALIZE CAPITAL ACCOUNTS".  When China matures into a full-grown Greece, it would probably owe the world some 500 trillion dollars!

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