Thursday, February 23, 2017

Greece: Again

    Well, our Greek friends are up against it. again.  As the current government of Alex Tsipras tries to negotiate another bailout infusion, the Director of the IMF, Christine Laguard, stated that any funds will hinge on new policies being in place for Greece before that can happen.  What are those policies?  First, tax reform-the small tax base cannot sustain the government at its current level.  Taxes must increase and the numbers government employees must be reduced.  (makes good sense to me).  Pension reforms must be enacted-read reduced in numbers and in size.  How can the numbers keep expanding if fewer workers are contributing?
     But the biggest obstacle is the attitude and practice of politicians who are of the belief that Greece is too important a member of the EU and further that the EU/Brussels will save the country from a possible financial meltdown.  This is an ongoing struggle for Greeks: stay and maintain the status quo:: leave and plunge over the abyss.
      This tiny country of 10 millions has been existing on credit for so long, they've neglected to reform or even recognize the need for reform.  Now, the payment(s) are due and payable.  It seems that the cost of maintaining a sovereign government is expensive.  Unless those in charge keep costs under control, Greece happens: more living off the fat(?) than can be supported by the few.  Perhaps it is time for Greece to fold into the broader EU which can provide needed public services such as health and defense.   Think of how much Greece has to spend in these two areas alone.  It would be as if the City of Los Angeles had to provide a military, a state dept., a health system, a school system, etc.,etc.   It would be almost impossible.  Can it be done ?  Of course.  See Switzerland.
     Keep in mind, this is the Greece that filed charges against the head of the statistics department because the government didn't like his numbers.   Not only was he charged, but he was convicted.  Fortunately, he left before the conviction and is living in the USA awaiting to hear on his appeal.  Very sad, really, but predictable.
     The end of the story has yet to play out, and the clock is ticking.

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