Greece: 'There's No More Left To Cut', page 2
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ATS Members have flagged this thread 17 times


reply posted on 8-2-2012 @ 02:20 PM by Aloysius the Gaul
Originally posted by theubermensch
reply to
post by Aloysius the Gaul



The 14th salary works like this: Greek workers get their annual salary in roughly 14 installments. On top of 12 monthly payments, employees receive double their paychecks in December, right in time for Christmas consumerism. They also receive half of their monthly spending in the spring to shell out on goods for Easter. Then they get another half-salary boost in July, before their traditional summer vacation. But the 14th salary system isn't the problem with the Greek economy, says Elias Papaioannou, an expert on international economics at Dartmouth College, "it's just an alternative way to distribute."


money.cnn.com...

13th and 14th is good for the economy. You want them to have only enough for basic needs?


Dreamland - a monthly paid salary is 12 payments - anything over that is a bonus - google search

The rest of the world understand this and Greece's economic system is, obviously, not immune to reality either.



reply posted on 8-2-2012 @ 02:23 PM by Eurisko2012
reply to post by Aloysius the Gaul



They have 2 choices: More band-aids or solve the problem.

What do you think they should do?


reply posted on 8-2-2012 @ 02:59 PM by Aloysius the Gaul
Originally posted by Eurisko2012
reply to
post by Aloysius the Gaul



They have 2 choices: More band-aids or solve the problem.

What do you think they should do?


solve the problem - stop spending more than they are earning, and pay back their debt. Simply replacing Euros with Drachma will not do that - all that will happen if that is all they do is that the Drachma will become the "Zimbabwe Dollar" of the 2010's.

Increasing productivity, creating more wealth, cutting their expenditure to fit their income - these will accomplish it.

Nothing else.

Originally posted by LightSpeedDriver
Like any country that got saddled with an even larger debt thanks to IMF/World Bank/Some Other Bunch of Evil Money-Grabbing Bastards ever helped? Ooops, I mean bail out of course...


that is simplistic nonsense - there was a reason they needed a bailout - they were spending more than they weer earning.

The bailouts did/do not increase debt - they require creditors to write off 10's of billions of Euros worth of debt
edit on 8-2-2012 by Aloysius the Gaul because: (no reason given)



reply posted on 8-2-2012 @ 07:57 PM by theubermensch
reply to post by Aloysius the Gaul





Why should they be allowed to over-borrow and get away with it? do you think you or I would be allowed to? Or is it OK for them to do it because they are a country?


We can go file for bankruptcy.
Greece should be allowed to do the same.
Corporations do it all the time too.


reply posted on 9-2-2012 @ 05:44 PM by Aloysius the Gaul
reply to post by theubermensch



They can if they want to - it is the "default" thing that everyone is talking about happening if the bailout did not happen.

But they also know that that will be even worse than an austerity package - it will involve pretty much exactly the same scenario for a putative drachma - no one will trust it, no one will be willing to accept it for trade - it will be worthless and to do any business Greece will still end up paying massive interest rates to borrow currencies that people will accept and the citizens will be paying billions for a loaf of bread.
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