Sunday, 19 June 2011

It's all GRΣΣK to me, ...

... or is it Greece and Ireland and Portugal and Spain and Italy and Belgium, because each country is top heavy with debt.

In each case we are discussing the debts accumulated by the political leadership of each country, seemingly acting in isolation this past decade, but in fact following a "big government" agenda so often found amongst left leaning administrations that wish to push buttons in all areas of life, but each button costs a great deal of money.

Acting much like children in a candy (sweet) store, the politicians were acting out the Dutch "Tulip mania" of the early 1600's, the first recorded economic bubble, the politicians were certain that economic growth in their respective countries would outstrip government spending.  Unfortunately the intrinsic values of the asset base of each country in question, had been compromised by a herd mentality where politicians had become herd members, a herd that believed that prices (taxation) can only rise.

Today the countries in question are finding it difficult to sell probity to their respective populations, people riot in the face of austerity, whilst the politicians look for wriggle room from countries not in the same situation.  The people of Britain are being asked to fund the activities of the countries in question, even the poorest of the poorest part of Britain will be asked to bail out the governments of indebted lands.

The upshot is the prudent countries can either support the spendthrifts or let them sink in their ponds of indebtedness, I say let them sink soonest so as to rise like a phoenix in a few years time much as Russia did following its default in 1998.

Bye, bye GRΣΣCΣ, welcome back Athens.

1 comment:

  1. John - Be wary of Carwen, he is a Socialist, and played a major part in the Assembly Government over the last 13 years.

    For all his weazel words - This is a man who won't cross the picket lines of those trying to derail the necessary reorganisation of Public Services.