Market Currents
"Not since Napoleon will a leader have served a more pointless 100 days," writes the FT's Lex...
-
Sunday, November 13, 2011, 9:40 AM ET"Not since Napoleon will a leader have served a more pointless 100 days," writes the FT's Lex column of Greek PM Papademos. With elections set for Feb. 19, his purpose is to preside over the passage of austerity reforms demanded by the EU/IMF, but then what? Already in depression-like conditions, the economy is set to deteriorate even more, likely overwhelming any attempt at reducing the budget deficit.
Other date
Latest Global Articles
This news story has 50 comments:
I think your numbers are wrong. Italian debt to GDP is 120%, the average borrowing cost is about 4%, therefore about 5% of GDP for debt servicing and tax revenues are around 43% of GDP, so more like 8 or 9 times...
I think we are already in the long run. You think we are in the short run.
The trajectory of our debt problems, the structural debt, the off balance sheet obligations, potential nightmare scenarios of higher interest rates on debt service, aging population, unskilled work force and weak economic growth seems to say we are not just getting started on this problem but rather we are way far into it.
Unlikely, the United States is still in deep slumber and self-denial.
Do you know that Italy's interest cost spiked from 4 to 7% in WEEKS?
What happens if Americas goes to just 5%?
Yeah it is all free. Now walk us through all the downside of that strategy.
The smart ones are going offshore an out of dollars !
Dem politicos are SAYING all is well an on the right road ! Republicans telling the truth an stop the spending and follow Greeks an Italians ,but,that is not the message Americans want to hear.
Funny, both new non electd PMs will try an tell there people to do the right thing,but, that won't happen in the US.
Me, a very little IRA an savings in CDs & Bonds in foreign countries ! And, Yuan an REAL savings accounts. BRICS are rising an EU & US $s will slowly fall. So, I choose China's Yuan and Brazil REAL and not Russia and India is a bit difficult as I live in LA.
And, hopefully my IRA will be used to build my B&B on my beach lot an that is how I am walking through! And, as my greatest fear for all on SA an the USA is the "reserve" going away. I am sure it's 2-3 years and not 20 as Sec Geitner promises. All we need is the BRICS all to follow China an trade dollar less with OPEC an the IMF's hand will be forced to use the SDR basket with 8 currencies not 4 And, poof it will be done ! BRICS are demanding it for 6 months LOUDLY an not China;s Yuan as reserve! CHINA does not want that an how SA ers are saying that is bazar! IMHO. lol, gb
Not true. How about PapaDimos, also known as President Dimitri Medvedev of Russia?:) 4 pointless years.
By then we just might be like Greece.
Plus, what would you or anyone done differently? Keep up the same crap that got us into this mess? A continuation of voodoo, reaganomics which Obama has done by not letting the Bush tax cuts expire.
You're a deluded fool Wyo. Obama is as good a republican as anyone the republicans have. Embrace him and enjoy further spend and borrow reaganomics buddy.
You are all the same; when too stupid to write any thing intelligent, call the other person names.
Go back to your OWS demo.
The answer 7footMoose gives in the post below:
"as to doing different, he spent the first two years of his term with his party having a majority in both Houses of Congress and the good will of a newly elected Presidency. During that time he spent much of the good will and cost his party one of those Houses of Congress passing a worthless 2300 page healthcare bill. "
is not an answer.
Can some conservative please explain what they would have done differently? I really want to know. I know what a real liberal would have done - nationalize all the insolvent TBTFs until they could be sold off in smaller pieces.
By the way, I really like the irony in:
"when too stupid to write any thing intelligent, call the other person names."
We need to put our own short-term interests aside and do what's best for our kids and grandkids. Those of you in your 50's and 60's and 70's, I ask; what truly is your legacy? 15 trillion in debt, huge unfunded public programs, huge unfunded pension plans, 1.4 trillion annual deficit, 600 billion annual trade gap, complete reliance and dependency on foreign oil for which we pay over 1 billion daily for the 19 million barrels we use every day (and to think few actually support mandating higher MPG vehicles and taxing gross polluters like the Hummers/big useless trucks), the de-industrialization of America that YOU sat by and watched unfold, doing nothing for the last 20 years as the corporations sent millions of jobs to Asia and South America. Well, you may have bought that Mercedes, at the cost of slowly destroying this great country. Was it worth it?
It may make things worse before better, but eventually we will feel the pain one way or another. So far, for the first time I'm taking Ron Paul much more seriously and listening to his specific plans in more detail.
As for pointless days in office. Well, name a recent success created as a result of any politician in USA. Yea, I think they are neck and neck with Greece.
Re your last, that wasn't name calling it was stating fact.
As for doing things different, lets see------
1.Not start off the Obama presidency with speech after speech demonizing the very people who are supposed to hire and creating class warfare to further the liberal agenda.
2.Not pass the ruinous health package.
3.Not put ideologues in power positions to attack business, such as at the EPA and NLRB to name two.
4.Not spend an overwhelming percent of the stimulous bill on creating favor with the unions;not lying about the shovel ready projects that were to be funded; not give billions to companies like Solyndra; and, just yesterday it came to light another half billion to one of his big donors in a no bid contract for a small pox vaccine that is not needed.
5.Not sue the very states you took an oath to support because you don't like a state passed law.
Etc....Etc.....
That's just for starters. I think you get the point.
Once the decision was made to socialize the debt, the banks should have been nationalized, but the politicians are corrupt and beholden to them. I would have let them fail. A true conservative would have demanded liquidation. Similarly, politicians are corrupted by the defense and oil industries. It would take enlightened despotism to tackle these problems. Entitlements are also out of control for the same reason. Politicians exchanging favors for votes. I am not hopeful and believe we are headed down the drain.
And it is killing our country to keep centralizing every issue in WDC. Why bother with the 50 state concept.
Any money spent on stimulus should have been a rebate check to tax payers and let them spend it. Let the states fund their own highways if they think they are worth driving on.
TARP money was all paid back with interest so why bother rehashing that chapter. Except for GM and AIG which were not TBTF banks in case you could not tell the difference. And a lot of small banks received TARP so size was not the final qualification.
Please elaborate. Some first hand, on site reporting would be very welcome (at least by me).
My real question is how much are you being paid to repeat the same silliness under different screen names Wyo dude.
No different screen names are used by me.
As to why, because Obama is the worst president this country has ever had. He took a bad economy and has run into the ground.
BTW, it isn't silliness. The future of this country is dependent on it.
So, just go back to your KooL Aid and enjoy the OWS wherever you are.
One senator can stop a piece of legislation in committee. it takes 60 to pass just about anything now. Considering the lame republicans and the democrats that vote with them like Nelson, Obama has done a fabulous job.
That being said, I do wish he had the kahunas and conviction of Bush. That's where Obama fails.
I would love to see that columnists achieve anything close to what Napoleon did.
Arguably the new interim government in Greece is anything but a pointless exercise. As the following commentaries by Greeks illustrate, it is a chance to establish reconciliation between Greece and her EU partners and restore greater cohesion within Greek society for the times ahead. Obviously savage domestic austerity will alone be largely counterproductive and cause great suffering but with an enhanced sense that Greeks are doing their bit a broader based program, supported by Greeks and Europeans alike, to rebuild the Greek economy as well as steadily reduce the national debt by economic growth, partial but controlled default and IMF/EU/ECB participation will begin to seriously address the problems.
The following give some sense of what is hoped for:
http://bit.ly/tyqlFt
http://bit.ly/w3y1fA
http://bit.ly/rIFML6
http://bit.ly/v2gckc
So, all the talk by Merkal about the managed default an the installing of a mechanism to remove countries was for a reason an Greece is just the first to use that reason. This is a scam to buy time an Greece will still exit the EURO early next year ! gb
The trying out of everything else can take a while.
In the meantime, Republican Perry wants a cruisade against Iran. However the question is not if this is desirable, the question is who will pay for it.
That is Merkal's comment as clear as day said she/they would manage Greece's default an there putting in the mechanisms to remove countries from the EURO. Like I said months back an continue to say ! This is a time buying scam an the Greeks will print early next year when they find out they not only will have the austerity cuts ,but, will need to work for 20% of there old pay an out they will go ! gb
more than noticeable the entire 21rst century. Lastly, currency devaluation will occur as government tries to make interest payments in lessered valued currency. This increase in class conflict will catalyzed the creation of new forms of government not previously imagined after a period of about 15 more years.
US would continue to collapse as long as the marxists and radicals remain in power. We need to learn about the Greece mistakes, and layoff at minimum 3M state government jobs.
But sometimes somebody just beats me to it, and it makes me sad.
Wow. The level of ignorance of that statement is just...indescribable.
At least be more general and say "the Democrats" are responsible for the crisis, as that has some (limited) basis in fact.
How could Obama cause a crisis whose seeds were sown well before he held any national office?
Some people's fixation with Obama has become quite unhealthy. It's literally distorting reality for them.
Bold statement. No other variables contributed to the cause of the economic crisis? Some Republicans are excellent at speaking controversially, and without much thought.
Best luck to the Greeks!