FINANCE A LA GRECQUE: THOUGHTS ON GREECE

“NO TAXATION WITHOUT REPRESENTATION”
REPLACED WITH
“YES, TAX THE OTHERS TO SUPPORT GREECE”

The American revolutionary cry “no taxation without representation” – has been revolutionized by the new Greek communist government: “tax the EU without representation”.

It is Greece’s position that the cost of operating the Greek socialist economy and socialist state should be taxed to the other member states of the EU.  Good ole’ King George III must have been Greek.

KEYNESIAN ECONOMICS GREEK STYLE:
A NEW WAY TO PRIME THE PUMP (aka ASS – BACKWARDS)

Keynes’ ‘prime the pump’ with government spending when the private economy does not properly function to get the economy going again – has been revolutionized by the new Greek communist government – prime the pump with other EU governments spending for the Greek state !

The new Greek communist government demands an end to austerity. It demands expanded government spending to stimulate the economy. Only trouble, the Greek government can’t print any government “paper” that anyone will exchange for real money. To make matters worse, it can’t print its own money (forget whether anyone would accept it).

But, the new Greek communist government is wonderfully inventive . First, it will print “paper” and sell it to Greek government banks; and Greek government banks will in turn borrow against this paper from the ECB under the Stability Facility. Second, it will print “bonds” and then let the other governments of the EU (through ECB purchases) buy these bonds that no one else in the world will buy from it. Equally inventive is that it will then “allow” the EU states to eat their bonds since they can’t be repaid.

NEW GREEK COMEDY: “I COULDN’T HELP MYSELF”
SPEND MONEY I DIDN’T HAVE – SO
THE EU IS RESPONSIBLE BECAUSE IT DIDN’T STOP ME

The old chutzpah saw about the poor boy who murdered his parents and then asks for mercy because he’s an orphan – has been revolutionized by the new communists – to be a serious (rather than laughable) rule of law: that a debtor is not responsible if a creditor believed the debtor’s lies about creditworthiness and lent the debtor money.

The new Greek communist government takes the position that those banks and private lenders who lent the money that Greece consumed for their living are responsible for the irresponsible borrowing practices of Greece. And, to add insult to injury, the lenders were responsible for letting Greece live beyond its means on that borrowed money. So, since they are responsible; Greece is not responsible to repay the debt – because Greeks are hurt by the repayment.

INSIDE THE NEW TROJAN HORSE:
A MODERN MENO’s NEW/OLD LESSON IN MORAL PHILOSOPHY

It seems ‘the more things change, the more they remain the same.’ Take the new Greek communist government for example.

In Plato’s Dialogue, Meno has this take on what it is to be virtuous and excellent: a man who can manage the business of the city-state so that he benefits his friends, harms his enemies – and avoids any harm to himself.

The new Greek communist government has let their “Virtues” out of the Horse and achieved Classical Greek Excellence:

* Lie and cook the books about your credit-worthiness.
* Use this to enter into a mutually beneficial borrowing club partnership (Euro zone, EU).
* Then borrow more money from strangers (private investors) than you can ever repay.
* Then use the money to live beyond your means.
* Then get your EU partners to force the private investors to take a 50% loss.
* Then get your EU partners to lend you more money and promise to change your ways to repay your EU partners.
* Then again, make sure that you borrow more money from your EU partners than you can ever repay.
* Then not live up to your promises and continue to live beyond your means.
* Then when the jigs up, play Samson and threaten to bring down the EU.
* Then divide and conquer – get other debtors to side with you against the rest of the EU.
* Then threaten to politically kill all the politicians in your partner EU countries who want you to repay – unless they take a haircut.
* Then take up with the Russian Bear, the avowed enemy of the EU, which wants to get a piece (or pieces) of the Europe and the EU; and which wants to continue to hold on to the EU hostage by their oil and gas jugular.
* Then force those politicians to take an EU haircut to save the EU partnership.
* Then gloat and glory in those EU politicians being wiped out anyway by their taxpayers who then have to pay for all of Greece’s 320 billion Euro borrowings used to live beyond their means.

See – manage your business to benefit your State to the tune of hundreds of billions of Euros; call your friends who helped you your enemies and harm them to the tune of those hundreds of billions of Euros; and the cherry on the top, get away without a scratch with billions of fresh Euros in Russian money, billions in Russian subsidized oil and gas, and to boot 400 millions in renewed Russian trade.
(Oh, and then plot to turn around and do the same down the road to the Russians.)

Greek moral philosophy is alive and well !

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This entry was posted in budget, communist, ECB, ECRUPEAN CENTRAL BANK, EU, EURO CRISIS, Europe, EUROPEAN CENTRAL BANK, EUROPEAN UNION, Greece, Greek debt, Greek government, HAIRCUT, Keynes, No Taxation Without Representation, Plato, Prime the Pump, Putin, Taxpayers, The Meno, Troika, Tsipras and tagged , , , , , , , , , . Bookmark the permalink.

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