I had wondered if Greece would take the bait and bite on the "bail out" if that's what you can call it. Come to find out the European financiers threw in one last $380 million condition (translate more job cuts) to the agreement. And now Portugal is waiting at the trough for it's third turn at covering its' debts. No details yet as the banksters are waiting to see how the Greek deal goes even though that deal was signed. (Correction the deal has not been signed yet as I first read.) In digging into Portugals' background I find the usual suspects. Corruption and an inflated investment bubble that popped leaving regular people to face the rounds of austerity programs lavished on them by their government.
What amazes me is how patient people around the world really are at present. One would expect riots in the street with a few heads hanging from pikes. In reading the news this morning, started writing this last night, I find some minor clashes in Greece, but now even the police realize that they are going to receive a financial thrashing with lower wages and pensions. From the Greek news:
Even the police, who have repeatedly clashed with protesters since the crisis broke out more than two years ago, announced resistance to the creditors' demands.
"As we can see you are continuing this destructive policy, so we warn you that you cannot make us fight against our brothers," the Greek Police Federation said in an open letter to the troika.
Portugal is in no better situation having taken two bail outs already and now set to take a third. For a second there I though loan sharks were illegal until I remembered we have our "pay day loans" those 300%+ loans almost guaranteeing perpetual servitude.
A rather astute observation from a professor living in Portugal:
It will be difficult for Portugal to save its way to prosperity. Their attempt to rein in the deficit by reducing government spending while simultaneously raising all types of taxes may prove ineffective in the end. I hasten to add that no one, not a foreigner like myself and, no, not even the “policy elites” here in Portugal, knows for sure what will be the ultimate outcome. That is inherently unknowable. But given the enthusiasm shown by rating agencies for punishing countries no matter how responsibly they try to act, Portugal can depend on facing higher borrowing costs in the future as a result of continued and unrelenting bank and sovereign debt ratings downgrades. How then do the Portuguese outrun lighting?
But I think the analogy is a bit wrong there. It's more like, kindly attach this ball and chain to your ankle while we lower you into the water.
There doesn't seem to be any bank fails of late and why should there be when most are making out like bandits.
5 comments:
Re: I can haz riot? All those consistent doses of social numbing are finally paying off. Or they spiked the water.
What, no link?
Stop worrying so much about what is going on over there, nothing we can do about it.
Funny thing is the dosages aren't working over there. Either they're wising up or the drugs wore off.
Better worry about what's going on over there cause it's headed our way.
You're more up on what's going on in Europe's troubled countries than I am. I do get the impression the approach is to keep sticking it to people who lack money, so as not to cause those who do have money any expense or inconvenience. If they keep going with that, one or more of those countries is likely to wind up with a revolution followed by a strong man who tells the banks and EU where they can go and what they can do with imposed austerity. That's what happened in the 1940's-1970's in Latin America, sometimes followed by things like nationalizing foreign-owned industries and seizing foreign assets.
You can't stop it from heading our way so there ya go.
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