Posts Tagged ‘crisis’

Greek debt crisis

Thursday, April 29th, 2010

I’ve been increasingly angry about the bigoted Greek-bashing attitude by people that have no idea.

So here’s some myth-bashing:
1. Greeks are lazy and live in luxury. After the introduction of the Euro, multinational and domestic cartels started increasing the prices for basic goods and services. The local producers were blackmailed into giving up their produce for pittance while the final prices at the supermarkets were sky-rocketing. Thus Athens became more expensive than London for basic goods, in just a few years. Because the salaries were about half of what an average Londoner makes, this drove the public sector pay up and a very small proportion of the private sector pay. However, especially in the case of the private sector most of salaries are still survival-only or less, especially for young people. While most people had to work two or three jobs to make ends meet, large corporations were making millions selling the same product in Greece for double the price as other European countries. In fact, with the exception of public-sector workers, for the last decade Greeks are in the top 5 most overworked people in EU27, but amongst the least well paid. Of course, basic goods are not luxury but the few that had anything to do with the big companies did actually share in some of the profits, but that’s the same in every country in the world.

2. Greeks are sneaky tax-evaders and should be punished. Corruption is rampant in Greece, that’s a fact. Greeks just adapted to a situation perpetrated by the political elite which was supported by EU members since they could use the corruption to make multi-million Euro deals – see Siemens scandal. The state of play at the moment is that the ordinary Greek doesn’t trust any politician and immediately assumes that he or she has got their hand in the “pot of honey”. This, in conjunction with corrupt public services (a misnomer as they are neither services nor public), which require thousands of extra cash to function (imagine an UK-style NHS where you need to pay to get the doctor’s “attention”) has made Greeks extremely sceptical about where their tax money is going and where it should be going instead. So, instead of paying taxes to have a decent health service you end up evading your taxes to pay the doctors under the table to look after you. It’s not right but people everywhere adapt to the status quo to survive.

3. Greeks get 14 monthly salaries for 12 months work! No, they don’t. They get a yearly salary in 14 instalments. This is not as good as it sounds for two reasons. Firstly, instead of getting more every month you get lump sums at Christmas, Easter and for your holidays, which mostly go to repaying credit cards. Secondly, now that the 13th and 14th salary is about to be stopped, you lose one seventh of your yearly salary. And it’s not as if it was that big a salary in the first place. This is almost the same as if the UK government asked people to work March and September without pay, but it sounds more acceptable.

3. Greece fudged their statistics to get into the Euro. This is a perfect example of a lie that is repeated by the media so often that it becomes the “truth”. The real truth is that Greece got into the Euro as all other countries (except Germany – perhaps) by getting some help from the Goldman-Sachs-type American financial behemoths. This was not illegal at the time, the fact is that everybody was dumping other currencies and getting Euros. Then a new government came into power and wanted to buy some F16s from the US (a deal that I am sure included some hefty bribes) and changed the rules of accounting (payment on order instead of delivery) retrospectively so that it had the money to do so. What was bizarre was that the rest of the EU didn’t object to that, perhaps there was something in it for them too. Then they changed the rules again to what they were before. The same government is mostly responsible for today’s mess and was ousted from power last October. Strangely, most of the problems started after that.

4. It’s the Greeks’ fault for electing corrupt politicians. The fact is that, as in the rest of Europe, there is a two-party political system that has entrenched itself so well into power that only a revolution would change things. Unfortunately, that’s not allowed in the EU, as such a revolution would probably be either a far-right or far-left affair. So political leaders change and keep promising to battle corruption while they end up doing the same things as before. The rest of the EU is happy to co-operate with whatever Muppet is elected as long as they are nice and quiet.

5. Why should the Germans or any other European pay? There are two good reasons for that, a moral and an economic one. The moral reason is that most of the money Greeks owe were diverted to the big European corporations like Siemens, J&J, and others too numerous to mention, and hence paid for some European jobs. These companies used the Greek status quo to charge extortionate prices for their products and services. In a country with honest politicians they would have been told where to put their products, but a few millions here and there sealed the deals. The economic reason is that if Greece defaults it’s mostly German, French and British banks that would lose their money. Instead, Europeans will get loans at 1.5-3% and give loans to Greece at 5% and make a nice little profit, while they keep selling their “superior quality” products to the Greeks at extortionate prices and keep some jobs going.

6. The IMF is involved because EU cannot handle the crisis on its own. This is a half-truth, that doesn’t explain the situation adequately. The truth is, that the EU cannot tell Greece what to do when it comes to public services and welfare and cannot ask for privatizations. But the IMF doesn’t have such restrictions. The EU (and the US) see massive privatization as a way out of this hole mostly because it suits them. They will get to buy everything for peanuts.

7. Greece should live within its means and not borrow more than it can repay. A recent study in Greece revealed that corruption and mismanagement since 1980 has cost the Greek economy €600 billion. This is double the current debt. Enough said.

What should happen now? I personally think that Greece should default, tell the banks to stuff it, put most politicians in jail and confiscate their property, forcibly drive out the big financial institutions, go back to the countryside and live the simple life growing veggies and fishing. Unfortunately, they will never let them, there’s profit to be made.

Taken from the comments at – Greek debt crisis spreading ‘like Ebola’ and Europe must act now, OECD warns

Peak Oil collapse transition scenario

Tuesday, April 13th, 2010

Peaceful scenario of the peak oil crisis:

The only thing we need to transition to is a zero-growth economy, which is going to be forced upon us. Peak oil does not mean the collapse of modern agriculture, however, and population die-off. This mantra among peak oil theorists is flawed. Bear with me here. Here’s why:

Peak oil destroys oil demand. When the price gets too high non-essential industries collapse first (airlines, car manufacturers, etc.) We’ve seen what happens then. The price of oil drops. It starts rising again as there’s some economic recovery, but eventually the price gets too high again and more industries collapse. Each collapse make the subsequent recovery smaller. It’s a bumpy down slope.

But agriculture won’t collapse during these high price peaks, because people need to eat. They will spend their last dollar on food. They will stop flying. They will stop buying new cars. But they can’t stop eating. So even if food prices rise during these brief oil-price peaks, agriculture won’t collapse. Remember also that the world food crises in many countries in 2008 was not due to the rising cost of oil (or natural gas) needed to produce food. Those amounts are marginal. Rather, it was the result of biofuels diverting cropland, and the UN and other world organizations woke up to that danger. It’s doubtful that will happen again on the scale it did in 2008. It’s doubtful economic recovery will ever increase enough to produce oil prices that high again, making biofuels competitive. Remember demand destruction REDUCES oil prices. Peak oil will over time REDUCE oil prices by destroying demand. This is such an important point.

Some important stats:

All farm machinery combined (tractors, combines, etc.) uses less than 1% of world oil consumption.
Producing nitrogen fertilizer uses less than 5% of world natural gas consumption.

As long as supply remains greater than demand and the price remains low (which is virtually assured because peak oil = industrial collapse) there will be plenty of oil and natural gas around for agriculture for a very, very long time. Even the transportation of food, which clearly uses more oil than farm machinery, will not be affected by oil depletion for these same reasons. Transporting furniture around the world from IKEA might slow down, but nobody is going to stop buying food.

Only when people are completely broke without a penny to their name will they stop buying food. But when this happens the government starts buying it for them, because otherwise the result is food riots, and that is bad for the upper classes as well.

Hence there is no imperative to localize food production. Most locations around the world can’t live on locally produced food anyway. Most States in the US are net food importers. Most countries are also.

Endgame of America – Archdruid Report

Friday, February 5th, 2010

There’s a new Archdruid Report – Endgame – as usually, this is the top important material you should all read. If your english is not perfect (I need a lot of time with dictionary to read these Archdruid Reports, quite complicated english for me), at least read the last 3 paragraphs – they are the most practical and they are the conclusion.

Scattered among the statistical noise that makes up most of today’s news are data points that suggest to me that business as usual is quietly coming to an end around us, launching us into a new world for which very few of us have made any preparations at all.

If I read the signs correctly, America has finally reached the point where its economy is so deep into overshoot that catabolic collapse is beginning in earnest. If so, a great many of the things most of us in this country have treated as permanent fixtures are likely to go away over the years immediately before us, as the United States transforms itself into a Third World country.

…be well advised to stock their pantries, clear their debts, and get to know their neighbors
…to learn a practical skill or two

I may be wrong – and to be frank, I hope that I’m wrong – but it looks increasingly to me as though we’re in for a very rough time in the very near future.

Life Update

Monday, May 18th, 2009

I am posting copy of my conversation with a friend. My life odyssey is running in circles, I am facing the money ethic problem again and being worried with Planetar crisis :)

Hey bro :)
From our last chat, I tried freelance programming for 2 weeks (1 man haven’t paid as usually, other paid very cheap, I can’t compete to Indian programmers), but I have realised as many times ago, that I am not fulfilled with this type of work. I am still trying to think up another way how to earn some money. But I am too much influenced by the human/planetar crisis, our future on this planet. I am watching videos similar to Zeitgeist, “off the grid” and similar. I feel inside that I am really more attracted by nature, instead of the computer.. but I have one very disadvantegous side of me.. and that is laziness. I must face this fact every day when I am thinking about starting some physical type of work. I don’t consider many works as needed for this planet, I think the most needed are farmers, construction workers, food producers.. something really useful for other people. But I am degenerated by years of sitting infront of computer :) I would like to be strong enough to shift my career in a day and become a farmer.. but I am only thinking and pondering, watching movies, talking with people about it and nothing happens ofcourse.. so I become fed up with myself. And I know, that to be fedup with myself, is not a very clever way of living.. many spiritual practices talk how you must first be in love with yourself.. so I am trying not to be too hard on myself.. and days are passing away and I am doing nothing, have no direction :)
But I am more and more aware, that this society, if not changed, we have like 10-20 years on this planet.. and I am aware that the near future will bring many changes and maybe they will hurt many people around us.
Maybe I have become “gloom and doom” and I take it too seriously. But I just can’t take any job, where I will earn nice money and be blind to what’s happening around me. Once you realise, that all this economic progress of each developed country is here for the price of many people starving or death.. how can you take any regular job? Like 90% of all jobs are here just for money turning around, letting the financial wheel spin.. you know. And if we are not aware.. we are helping to destroy this planet with many present jobs. You know that all.
I am doing some gardening work a little and trying to educate myself about it (permaculture).
The next month, I am having a holiday at Corsica and then I will need to decide what to do next. I don’t know at all. Still the India plays a big part in my choices.