Greek Death Spiral Accelerates!
- How are the Greeks going to pay back all their debts? They don’t have the ability to repay. Greece is going to default. Actually, some say they are already defaulting as they are not paying their bills. The IMF-ECB austerity plan is not designed to help the situation. It is to make things worse so that they can buy up the country on pennies to the dollar.
- The Greek sheeple should not be made to pay odious and fraudulent debts run up by private banks and Illuminist politicians. They should default and go back to their Drachma. Through the exchange rate mechanism ie. devaluation they can get back to competitiveness once again. Continuing with the Euro is a death sentence!
Greek death spiral accelerates!
By Ambrose Evans-Pritchard, http://www.telegraph.co.uk/
Another normal day at the Hellenic Statistical Authority. We learn that:
-Greece’s manufacturing output contracted by 15.5pc in December from a year earlier.
– Industrial output fell 11.3pc, compared to minus 7.8pc in November.
– Unemployment jumped to 20.9pc in November, up from 18.2pc a month earlier.
I have little further to add. This is what a death spiral looks like. It is what can happen if you join a fixed exchange system, then take out very large debts in what amounts to a foreign currency, and then have simultaneous monetary and fiscal contraction imposed upon you.
Germany discovered this on the Gold Standard when it racked up external debt from 1925 to 1929 (owed to American bankers) in much the same way as Greece has done.
When the music stopped – ie, when the Fed raised rates from 1928 onwards – Germany blew apart in much the same way as Greece is blowing apart. This is not a cultural or anthropological issue. It is the mechanical consequence of capital flows into a country that cannot handle it, as Germany could not handle it in the late 1920s. By the way, Greeks work an average 42 hours a week, one of the highest in Europe. Just want to put the record straight on that.