Showing posts with label debt. Show all posts
Showing posts with label debt. Show all posts
Tuesday, December 03, 2013
Monday, May 07, 2012
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Friday, April 06, 2012
Thursday, March 29, 2012
Massoud starts walking faster as the shadows lengthen. He glances at the scratched display on his mobile phone. It's 7:15 p.m.
The sun is setting behind the large apartment buildings on Patission Street, disappearing behind the few remaining classical facades where the plaster is beginning to crumble. "For Rent" and "For Sale" signs are posted on boarded-up windows or behind sheets of opaque glass.
Massoud is in a hurry. He wants to get home before dark, because that's when the people who are out to get him come out.
The gangs of right-wing thugs, sometimes up to 20 at a time, approach their victims on foot or on mopeds, carrying clubs and knives. They are masked, faceless and fast. They appear suddenly and silently before striking.
The neo-fascists are hunting down immigrants in the middle of downtown Athens, in the streets north of the central Omonia Square. They call it cleansing.
They hunt people like Massoud, a 25-year-old Afghan from Kabul. He has been living in Athens for five years without a residency permit, even though he speaks fluent Greek. He studied geography in Kabul, but in Athens he works as a day laborer.
The gangs also hunt the dark-skinned man pushing a shopping cart filled with garbage and scrap metal through the streets. Or the woman with Asian features, who now grabs her child and the paper cup with which she has just been begging in the streets. » | Julia Amalia Heyer | Translated from the German by Christopher Sultan | Wednesday, March 28, 2012
Part 2: Violence, Drugs and Disease »
Thursday, February 16, 2012
THE DAILY TELEGRAPH: Britain should play its part to end this Greek tragedy by standing up for the underdog.
For all of my adult life, support for the European Union has been seen as the mark of a civilised, reasonable and above all compassionate politician. It has guaranteed him or her access to leader columns, TV studios, lavish expense accounts and overseas trips.
The reason for this special treatment is that the British establishment has tended to view the EU as perhaps a little incompetent and corrupt, but certainly benign and generally a force for good in a troubled world. This attitude is becoming harder and harder to sustain, as this partnership of nations is suddenly starting to look very nasty indeed: a brutal oppressor that is scornful of democracy, national identity and the livelihoods of ordinary people.
The turning point may have come this week with the latest intervention by Brussels: bureaucrats are threatening to bankrupt an entire country unless opposition parties promise to support the EU-backed austerity plan.
Let’s put the Greek problem in its proper perspective. Britain’s Great Depression in the Thirties has become part of our national myth. It was the era of soup kitchens, mass unemployment and the Jarrow March, immortalised in George Orwell’s wonderful novels and still remembered in Labour Party rhetoric.
Yet the fall in national output during the Depression – from peak to trough – was never more than 10 per cent. In Greece, gross domestic product is already down about 13 per cent since 2008, and according to experts is likely to fall a further 7 per cent by the end of this year. In other words, by this Christmas, Greece’s depression will have been twice as deep as the infamous economic catastrophe that struck Britain 80 years ago.
Yet all the evidence suggests that the European elite could not give a damn. Earlier this week Olli Rehn, the EU’s top economist, warned of “devastating consequences” if Greece defaults. The context of his comments suggests, however, that he was thinking just as much of the devastating consequences that would flow for the rest of Europe, rather than for the Greeks themselves.
Another official was quoted in the Financial Times as saying that Germany, Finland and the Netherlands are “losing patience” with Greece, with apparently not even a passing thought for the real victims of this increasingly horrific saga. Though the euro-elite seems not to care, life in Greece, the home of European civilisation, has become unbearable. Read on and comment » | Peter Oborne | Wednesday, February 15, 2012
Friday, February 10, 2012
Wednesday, April 20, 2011
THE DAILY TELEGRAPH: This week's warning about US debt is the wake-up call Obama needs – and the world needs him to act, says Martin Vander Weyer.The good news is that America has not suddenly turned into the new Ireland. The bad news is that the Obama administration is only beginning to face up to its debt addiction, in the way that Ireland and other euro delinquents have been forced to do. And Washington's prolonged debt denial is one factor that has made the economic recovery so fragile and uncertain for all of us.
In that context, the announcement on Monday by the ratings agency Standard & Poor's that it had shifted its outlook on US government debt from "stable" to "negative", which sent markets into a tailspin, may actually turn out to be helpful, like the friend who says loudly to a incorrigible drunk at a party: "Another drink, George? Or is that a silly question?" The S&P analysis is not hugely significant – it is a first downward notch on a long scale of potential debt downgrades – but it is a timely warning that the world is aware America has a problem. Uncle Sam has been able to refill his glass time after time for the simple reason that Chinese investors – banks, state agencies and exporters – choose to store the wealth they gain in international trade largely in the form of US government paper. But as iconic as the greenback and the Treasury bill may be, they do not enjoy such a uniquely elevated status as to make them immune from the processes of risk assessment that have been applied so painfully elsewhere.
The IMF says America's fiscal deficit for 2011 will approach 11 per cent – similar to the UK's – and its net debt will exceed 70 per cent of gross domestic product, which is a worse position than ours if we exclude bank bail-outs from the equation. US debt has hitherto been regarded as virtually risk-free, but if the UK and other nations are seen to be making strenuous efforts to cut deficits while America's continues to balloon then, sooner or later, investors must begin to take a more cautious view. » | Martin Vander Weyer | Tuesday, April 19, 2011
My comment:
Obama is clueless! From the beginning, it was clear to me that the man was an “empty suit.” But the American electorate would hear none of it, and got carried away with his rhetoric. Nobody even bothered to find out what he meant by “hope and change.” Hope of what? And change to what? And the mantra, “yes, we can.” What was that supposed to mean? Yes, we can what? As a result, Americans became transfixed by a man who could speak (arguably), but nothing else. Words, words, words!
Meanwhile, all Obama has ever wanted to do is spend, spend, spend. The trouble is, he hasn’t learnt one simple lesson of economics: You have to have it to spend it. None of us can go out and spend like a drunken sailor, as if there weren’t a tomorrow. How foolish that is. Profligacy is never a good thing. It will always lead to disaster.
In fairness to Obama, it’s true that he inherited a huge deficit from George W. Bush. Another profligate president. He ruined America by spending vast sums on wars which America could ill-afford, on wars which could achieve nothing to boot. But that was all the more reason why Obama should have got to work on reducing the deficit straightaway upon getting into office. Instead of that, he embarked upon a spending spree.
The Americans, too, must shoulder part of the burden of responsibility. They don’t seem to understand the meaning of the word ‘saving.’ Saving has become an alien concept to Americans. Americans prefer to consume, consume, consume. They also like to be generous with foreign aid. They give foreign aid abroad in billions, trying to buy influence and popularity. We can all see where that has got them.
In addition, the nature of politics in America is far too ideological. The Republicans and Democrats are far away from each other in political terms, so that it is difficult to find any middle ground. As a result, they cannot move forward in a meaningful way.
The future for America is looking very bleak indeed. This is a seminal moment for the US, and a seminal moment for the rest of the West. One can ask oneself but one question: Is this the start of the decline of the West? It might sound melodramatic, but it isn’t. If the US cannot save itself from bankruptcy, its influence in the world will decline. If this happens, it will no longer be the beacon of freedom. This will have serious consequences for us all. One can only fear the consequences of the eclipse of the US. Its loss of influence may have just begun.
It is to be hoped that, somehow, America will wake up before it’s too late. Bernanke’s love of quantitative easing will not solve anything. Quantitative easing is a fancy term for printing money. Turning on the printing press won’t solve anything. In fact, it will make matters worse. – © Mark
This comment also appears here
Tuesday, April 19, 2011
THE DAILY TELEGRAPH: Ratings agency cuts long-term outlook from stable to negative for first time since Pearl Harbor attack 70 years ago
Shares fell heavily on Wall Street on Monday after a leading ratings agency fanned fears of Europe's debt crisis spreading across the Atlantic by issuing a strong warning about America's failure to tackle its budget deficit.
In a move seen by Wall Street as a "shot across the bows" of bickering politicians in Washington, Standard and Poor's (S&P) said it was cutting the outlook on the US's long-term rating from stable to negative for the first time since the attack on Pearl Harbor 70 years ago.
The announcement surprised the financial markets, where attention in recent months has been focused on the problems of the weaker nations of the eurozone. Renewed speculation that Greece will be forced to default on its debts led to a sharp sell-off in the euro, but S&P stressed that the US was not immune from the sovereign debt crisis.
In New York, the Dow Jones industrial average ended the day down 140 points, or 1.1%, with the dollar weaker on the foreign exchanges and yields rising on US treasury bills. The FTSE 100 in London was down 126 points at 5870 – a drop of more than 2% – as ongoing concerns about the eurozone's debt crisis were compounded by the setback for the world's biggest economy. » | Larry Elliott, Economics editor | Tuesday, April 19, 2011
here and here
Monday, April 18, 2011
THE DAILY TELEGRAPH: America's ability to tackle its deficit has been given a strong vote of no confidence, after leading rating agency Standard & Poor's said the chances are rising that the country will lose its prized AAA status.S&P downgraded the outlook for the US government's debt to negative from stable on Monday in a clear shot across the bows of Congress and The White House.
In sharp contrast to every other developed economy, the US has increased its budget deficit in the last year in an effort to accelerate the economic recovery here.
While President Barack Obama and the Republicans have in the last month laid out plans to reduce the deficit, S&P warned that a plan needs to be agreed upon within the next two years for the US to retain its status as a top borrower.
"More than two years after the beginning of the recent crisis, US policymakers have still not agreed on how to reverse recent fiscal deterioration or address longer-term fiscal pressures," said Nikola Swann, an analyst at S&P.
The move by S&P sparked an immediate reaction in financial markets, with US government bond prices falling alongside the S&P 500. Gold prices jumped to a new record of $1,496. » | Richard Blackden, US Business Editor | Monday, April 18, 2011
Sunday, April 17, 2011
THE OBSERVER: Violence on the streets as backlash grows over Greece's austerity package and €110bn bailoutA growing chorus of voices is urging the Greek government to restructure its debt as fears grow that a €110bn bailout has failed to rescue the country from the financial abyss and is forcing ordinary people into an era of futile austerity.
"It's better to have a restructuring now … since the situation is going nowhere," said Vasso Papandreou, whose views might be easier to discount were she not head of the Greek parliament's economic affairs committee.
Other members of prime minister George Papandreou's party have said that Greece is locked in a "vicious cycle", unable to dig itself out of crisis with policies that can only deepen recession.
International fears of a Greek default rose last week after the German finance minister, Wolfgang Schäuble, refused to rule it out and markets, sensing upheaval, sent Greek borrowing costs soaring.
The normally mild-mannered prime minister has vehemently rebuffed the prospect of Greece failing to meet its debt obligations, saying restructure would not only be catastrophic for the country – blocking its access to markets for years – but also for the eurozone's delicate economy. "Our problems will be addressed in depth not if we restructure our debt but if we restructure the country," he said, announcing the "road map" that would lead Greece out of crisis.
Amid speculation over the country's ability to avoid default, a wave of civil disobedience is causing many to wonder if Greece is becoming ungovernable. Read on and comment » | Helena Smith in Athens | Sunday, April 17, 2011
Tuesday, April 27, 2010
THE NEW YORK TIMES: FRANKFURT — Europe’s debt crisis deepened still further Tuesday after the ratings agency Standard & Poor’s downgraded Greek and Portuguese debt, investors sold off government bonds amid fears of a default, and workers in those Mediterranean nations took to the streets to protest austerity measures.
S.&P. downgraded Greek government debt to junk status, saying in a statement, “Greece’s economic and fiscal prospects lead us to conclude that the sovereign’s creditworthiness is no longer compatible with an investment-grade rating.”
The ratings agency also downgraded Portuguese government bonds, but they remain well above junk status.
“This thing is getting more and more urgent and tense,” said Robert Barrie, head of European economics at Credit Suisse in London. He predicted, though, that markets could settle down once Greece manages to refinance €8.5 billion, or $11.2 billion, in bonds that mature in May. “But it’s anything but calm at the moment,” he added.
As transport workers in both Portugal and Greece went on strike against austerity measures Tuesday, the risk premium on Greece’s bonds set new records even before S.&P. announced the downgrades.
A European Central Bank official warned all euro-zone countries to cut their soaring budget deficits and suggested that Greece may need to impose even harsher austerity measures to bring its debt under control. >>> Jack Ewing | Tuesday, April 27, 2010
Thursday, March 04, 2010
TRIBUNE DE GENÈVE: PROPOSITION | Des députés allemands ont appelé la Grèce à vendre des îles pour aider à financer sa dette.
Le quotidien populaire allemand Bild révèle cette information jeudi, qu'il résume l’idée en ces termes: "On vous donne du fric, vous nous donnez Corfou".
"L’Etat grec doit renoncer à sa participation dans des sociétés, et vendre des propriétés foncières, comme par exemple des îles inhabitées", a affirmé au journal le député libéral Frank Schäffler, du parti FDP au pouvoir. >>> AFP | Jeudi 04 Mars 2010
THE GUARDIAN: Fire sale of Greek islands, Acropolis and Parthenon suggested / Greek public reacts with outrage and boycotts German goods
Greece must consider a fire sale of land, historic buildings and art works to cut its debts, two rightwing German politicians said today in a newspaper interview that is bound to exacerbate tensions between Athens and Berlin.
Alongside austerity measures such as cuts to public sector pay and a freeze on state pensions, why not sell a few uninhabited islands or ancient artefacts, asked Josef Schlarmann, a senior member of Angela Merkel's Christian Democrats, and Frank Schaeffler, a finance policy expert in the Free Democrats.
The Acropolis and the Parthenon could also fall under the hammer, along with temptingly idyllic Aegean islands still under state ownership, in a rush to keep bankruptcy at bay.
"Those in insolvency have to sell everything they have to pay their creditors," Schlarmann told Bild newspaper. "Greece owns buildings, companies and uninhabited islands, which could all be used for debt redemption." >>> Phillip Inman and Helena Smith | Thursday, March 04, 2010
BILD.de: Jetzt machen die Griechen ernst, um ihr Land vor dem Bankrott zu retten, ohne auf EU-Hilfe angewiesen zu sein!
Gestern beschloss die Regierung in Athen: Die Mehrwertsteuer rauf (von 19 auf 21%), Alkohol, Luxusgüter und Tabak teurer, die Bezüge von Staatsdienern, Rentnern, Studenten gekürzt.
4,8 Mrd. Euro soll das Sparprogramm bringen – aber bei Staatsschulden von mehr als 300 Mrd. Euro ist das nicht mal ein Tropfen auf den heißen Stein ...
Was kann die Griechen dann noch retten?
Auch wenn es vielleicht verrückt klingt: Wenn wir den Griechen doch noch mit Milliarden Euro aushelfen müssen, sollten sie dafür auch etwas hergeben – z. B. ein paar ihrer wunderschönen Inseln. Motto: Ihr kriegt Kohle. Wir kriegen Korfu.
Tatsächlich ist es der größte Schatz der Griechen: 3054 Inseln, nur 87 davon bewohnt.
Und einen Markt gibt es! Derzeit bietet z. B. das Hamburger Maklerbüro Vladi Private Islands eine unbewohnte griechische Insel an – Verhandlungsbasis: 45 Mio. Euro.
Ob die Kanzlerin morgen mit ihrem Amtskollegen Papandreou bei dessen Berlin-Besuch die Insel-Frage anschneidet ...?
Der Koalitionspartner rät dazu. FDP-Finanzexperte Frank Schäffler zu BILD: „Die Kanzlerin darf keinen Rechtsbruch begehen, darf Griechenland keine Hilfen versprechen. Der griechische Staat muss sich radikal von Beteiligungen an Firmen trennen und auch Grundbesitz, z. B. unbewohnte Inseln, verkaufen.“
CDU-Mittelstandschef Josef Schlarmann: „Ein Bankrotteur muss alles, was er hat, zu Geld machen – um seine Gläubiger zu bedienen. Griechenland besitzt Gebäude, Firmen und unbewohnte Inseln, die für die Schuldentilgung eingesetzt werden können.“ >>> jan/pro/rok | Donnerstag, 04. März 2010
Wednesday, March 03, 2010
THE WALL STREET JOURNAL: Europeans are blaming financial transactions arranged by Wall Street for bringing Greece to the brink of needing a bailout. But a close look at the country's finances over the nearly 10 years since it adopted the euro shows not only that Greece was the principal author of its debt problems, but also that fellow European governments repeatedly turned a blind eye to its flouting of rules.
Though the European Commission and the U.S. Federal Reserve are examining a controversial 2001 swap arranged with Goldman Sachs Group Inc., Greece's own budget moves, in clear breach of European Union rules, dwarfed the effect of such deals.
Predicaments of the sort Greece is facing—years of overspending, leaving bond investors worried the country can't pay back its debts—weren't supposed to happen in the euro zone. Early on, countries made a pact aimed at preventing a free-spending state from undermining the common currency. The pact required countries adopting the euro to limit annual budget deficits to 3% of gross domestic product, and total government debt to 60% of GDP.
But an examination of budget reports to the EU shows Greece hasn't met the deficit rule in any year except 2006. It has never been within 30 percentage points of the debt ceiling. >>> Charles Forelle and Stephen Fiddler | Wednesday, March 03, 2010
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