Thursday, January 26, 2012
So the "big boys" think they can solve the world economy
(oops this isn't Friday get back in your folder kitty. Okay I'll do a two fer this week)
This just amazes me. At a meeting in Davos, Switzerland some of the worlds' richest people (including 70 billionaires) are getting together to discuss the world economic crisis. One of their topics is income inequality. One of the suggested solutions will floor you. One billionaire said that business should be more profitable. Yeah right pal we know how that works. The worker lands up working less hours making less with less benefits or worse with no job at all.
Then there's the Greek debt problem. Here's a quote from one of the brainiacs on our side of the pond:
Unless official lenders come to the rescue, it appears likely that Greece will default on Mar. 20, because it simply doesn’t have the €14.4 billion ($18.5 billion) that it owes bondholders on that date. “It is just a matter of time before the whole house of cards falls apart,” says Robert L. Rauch, a partner at Gramercy, an emerging-market investment manager in Greenwich, Conn.
So the solution by them is to borrow yet more money and throw it at a sinking ship. Let's say they cover the $18.5 billion. Then Greece would owe $37 billion. Greece is facing draconian cuts to basic programs as well as massively higher taxes (29% for everyone) and more lay offs. That'll sure get their economy going won't it? First they lay you off then they try and tax you to death whether you're working or not.
A better way might be to forgive half the debt. Then take up a collection and have them start rebuilding their infrastructure. Another idea would be to diversify their economy. Their largest source of revenue is tourism which is in the pits of late. While their at it they might just want to slap a 30% tax on all the millionaires who are hiding their loot in off shore accounts and under the guise of multinational corporations. This is sounding quite familiar.
The thing is and this ticks me off the most is that we've been down this road before. The Great Depression was caused by all the usual suspects in the economic game. We know what it took to get us out of that then so we should know what it will take to do it again. Back then it was lack of regulation and gambling by Wall Street, the same as today. And to date we still haven't put regulations in place to fix the problem. Anybody see a perp walk by any of these crooks in three piece suits? No we haven't.
A couple of last things, we know where the money went. We know who's trying their damnedest to protect the wealthy. They may try and pander to the ignorant and stupid because after all they called the rest of us lazy and overpaid but this time they won't win with 91% against them. Even many of the tea party woke up and saw they'd been used.