[ExI] cyprus banks

[Mirco Romanato]

Il 19/03/2013 00:35, spike ha scritto:

> Andrew I have a question from your comment.  The Greeks are trying to
> instill austerity measures, which are highly unpopular.  One school of
> thought holds that it will make the Greek economy worse.  What is the
> alternative?

The problem is the austerity is for the wrong people:
1) they raised already high taxes on indebted people
2) they didn't cut government spending at all or just a little
3) they didn't reformed the laws so to allow people to do productive
works with less costs, more competition, etc.

This is true for Greece, Italy, Spain, France, Germany (in a lesser
degree) as is true for US, Canada, Japan and so on.
The difference is one of degree.

> There are some remarkable parallels between the USA and Greece.  The
> sequestration could be interpreted as US-style austerity, a very mild
> version of it.  The US federal government is borrowing 40 cents on every
> dollar it spends.  Clearly this is not sustainable, so what is the endgame?
> Commentary by Europeans welcome please: if we extrapolate current trends,
> where does this lead?  What happens?  The government insists it cannot cut
> anything, and they already raised taxes.  So what happens then?

They raise taxes again and again.
They stop, delay every payment of their debts.
They print, print, print.

Until stuff start disappearing from markets, people start working
illegally so they don't pay taxes and are not bothered by taxmen, riots
in the streets will be common and generally police will be vary to
bother people too much because the people is very hungry, angry and
trigger happy.

We, in Europe see this in many immigrants from East Europe.
Mainly good people, but they react very violently when they think to be
screwed up.

The fruits of socialism.

Mirco