Money and Lies

You have heard of the confrontation running between Greece and EU about economic matters and maybe you’re waiting for the results of today’s referendum to know if a tiny country will refuse or not to find another economic agreement with the so-called “troika” (that’s ECB, EU and IMF).

The best thing of all this noise is about the time dedicated by media on this kind of problems. Maybe, just maybe, more and more people will start to understand to monumental mass of lies that goes around modern-day economics, starting with the money itself.

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The future lies in Greece

GREECE

This will be the last post of this year and my choice is to dedicate it to the Greeks. Yes, to the people of a country that has been almost destroyed in the last years for economic reasons, for the people who has seen everything change for the worst and left behind to pay errors committed in many places out its boundaries. It’s a tiny nation, with less than eleven millions people who found themselves deep down a national debt like never before.

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The tax war

Beneath the surface of all EU regulations, under the shadows of many thousands of different laws there’s a war, a stark conflict inside the borders of European Union. It’s an economic war, fought year after year in Bruxelles and in all the EU capitals, no matter what government is actually in power.

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It’s time to say no to recession

Last Sunday, March 2nd, AP reported of massive demonstrations held in Portugal. The basic matter is about economics, to go against the government decision to cut national budget in order to meet the objectives set up by the “Troika” (EU, IMF, WB) to resolve all the issues about debt and refinancing.

portugal demonstrations

This time the combined number of protesteers reach the one million level. It’s always a big number but became pretty impressive when you think that Portugal got a total population size about 10.6 millions. It means that one on ten has been on the streets, demanding a stop to austerity measures.

Like many other countries in Europe, Portugal is facing a growing number of unemployed, a shrinking welfare state and an economy in deep recession. In 2011 the national government stipulate a number of agreements to get an huge bailout (more than 100 USD billions). With a negative cycle in all the main economy sectors the only way to reach the planned steps (for the current government) is to cut national budget.

Four years of recession and the perspective to have at least one more is too much for the portoguese population. Political situation is hot to say the least and the pressure from the streets is becoming too high to stand for the national authorities. So it’s time to say “no”, to put an end to an agreement too heavy for this little country.

The recent examples set by Iceland, that recovers its own financial crisis by a plain refusal to pay its debt to foreing private banks (about 5 euro billions) and from Argentina, that force a massive reconsideration of its national debt in the face of IMF and WB, could drive countries like Portugal and Greece to find a strong way out the Eurozone with unexplored consequencies. Are we ready for such a scenario?

You may find an article by Iain Sullivan /AP here