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Squeaky Wheel is Greece

In Consitution, Economics, Foreign Policy, Politics, Social Issues, Tax on May 10, 2010 at 10:42 pm

When your children waste their money, and you want to let them learn a lesson from it, you just give them more to waste right?  Well that is the Greek formula.  Quote from the CIA:

In April 2010 a leading credit agency assigned Greek debt its lowest possible credit rating; in response, the International Monetary Fund and Eurozone goverments pledged more than $160 billion in support of Greece over the next three years.

Opinion “C” is: So let that be a lesson to all you socialist nations inept at economics.  You have nothing to fear.  Except when the United States of America adopts your same poor money management skills.  Reminds me of when Superman wanted to convert from Hero to Human.  There was no one to save the world then.  I wonder if the U.S. can reverse the transformation in time?  Time is running out.

Numbers on Spain, Greece and more.

https://www.cia.gov/library/publications/the-world-factbook/geos/gr.html

The economic content changes…so here is what was listed at the time of this article:

———————

Greece has a capitalist economy with the public sector accounting for about 40% of GDP and with per capita GDP about two-thirds that of the leading euro-zone economies. Tourism provides 15% of GDP. Immigrants make up nearly one-fifth of the work force, mainly in agricultural and unskilled jobs. Greece is a major beneficiary of EU aid, equal to about 3.3% of annual GDP. The Greek economy grew by nearly 4.0% per year between 2003 and 2007, due partly to infrastructural spending related to the 2004 Athens Olympic Games, and in part to an increased availability of credit, which has sustained record levels of consumer spending. But growth dropped to 2% in 2008. The economy went into recession in 2009 and contracted by 2%, as a result of the world financial crisis, tightening credit conditions, and Athens’ failure to address a growing budget deficit, which was triggered by falling state revenues, and increased government expenditures. Greece violated the EU’s Growth and Stability Pact budget deficit criterion of no more than 3% of GDP from 2001 to 2006, but finally met that criterion in 2007-08, before exceeding it again in 2009, with the deficit reaching 12.7% of GDP. Public debt, inflation, and unemployment are above the euro-zone average while per capita income is the lowest of the pre-2005 EU countries; debt and unemployment rose in 2009, while inflation subsided. Eroding public finances, a credibility gap stemming from inaccurate and misreported statistics, and consistent underperformance on following through with reforms prompted major credit rating agencies in late 2009 to downgrade Greece’s international debt rating, which has led to increased financial instability. Under intense pressure by the EU and international market participants, the government has adopted a medium-term austerity program that includes cutting government spending, reducing the size of the public sector, decreasing tax evasion, reforming the health care and pension systems, and improving competitiveness through structural reforms to the labor and product markets. Athens, however, faces long-term challenges to push through unpopular reforms in the face of often vocal opposition from the country’s powerful labor unions and the general public. Greek labor unions are prepared to strike over new austerity measures and continued widespread unrest could challenge the government’s ability to implement reforms and meet budget targets, and could also lead to rioting or violence. In April 2010 a leading credit agency assigned Greek debt its lowest possible credit rating; in response, the International Monetary Fund and Eurozone goverments pledged more than $160 billion in support of Greece over the next three years.

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