October 6, 2011
Greece

This whole Greece debocale is the most absurd thing I have ever witnessed. First, these loans/bailouts are the biggest waste of time and money. America did the same thing with private institutions, but these companies were in the business of making money, not spending money and had the ability to pay it back. Take this example. Greece is a luxury speedboat and enjoys many amenities. As long as its moving across the ocean (solvent government and its programs) and has a steady supply of gas to power its engine (money from taxes, etc.), everything stays status quo. Then one day the speedboat notices it is low on gas and does not have enough to keep going. So a larger boat (EU, IMF) is willing to lend some gas to allow the speedboat to keep going. But if the speedboat doesn’t change its speed or downgrade to a smaller boat, it will always need some sort of assistance to keep going. This is fundementally flawed, as either Greece needs to change their ways or has to submit to the consequences of default. Greece is a socialist state, and has huge welfare programs. Civil servants can retire in their 40’s with a pension. The military spends vast amounts from an arms race with Turkey. I get that Greece is between a rock and a hard place though. If they threaten to raise taxes or change/cut programs, the people revolt or strike. But they need to do this in order to get their government back on track. This bailout money can not come forever. In a way though, I’m happy this is happening. It shows how a huge government fails and will bankrupt a country. Hopefully America will not follow in its footsteps though.

  1. obamareallysucks-blog-blog posted this