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..There's a little Samuel Pepys in all of us..

Sunday, October 02, 2011

And as the world continues to turn..

The Greek Finance Ministry has announced that they won't be able to meet the deficit-cutting moves, as stipulated implicitly in the terms of their 'bail-out loans'..
No surprise there..
The country’s deficit this year is expected to reach 8.5% of GDP, or €18.69-billion ..$25.2-billion U.S.. higher than the targeted €17.1billion.. $23.1-billion.. That would have called for a reduction to 7.8%.. And, there's more.. They have a €2billion hole in their budget.. and yet even more.. that next years recovery rates won't be reached either..
Since May 2010.. Greece has been reliant on regular payouts of loans from a €110billion .. $150billion.. bailout from other Euro Zone countries.. Germany for the most part, but French Banks are heavily exposed as well.. and the International Monetary Fund.. It was granted a second €109billion package in July.. but details of that deal remain to be worked out..
The 2012 budget is projected to reduce the deficit to €14.68billion..$19.82billion, or 6.8% of GDP..
Excluding serving Greece’s debt, the budget is projected to have a primary surplus of €3.2billion, or 1.5% of GDP, meaning that Greece’s debt will stop growing, as a percentage of GDP..
Or so they'd like to think..
But with the government 'suspending' some 28 thousand public sector workers on partial pay, and an unemployment rate closing in on 15%.. they are simply creating yet more of a social vacuum..
Already, there have been sometimes violent demonstrations against the current 'austerity cuts' in most major Greek cities..
But in truth.. what has Greece to offer it's people in the way of employment..? There is no heavy industry.. in fact, beyond shipping, wind and water generated electricity and tourism.. Greece brings nothing to the table..
Once again, let us pose, as a possible solution.. true integration of the European Zone.. take those with practical skills who cannot seem to find work in Spain and Italy.. those who have been turned away from closing factories.. and rather than pouring money into maintaining a debt which cannot feasibly ever be paid.. And instead offer incentives for big business to build manufacturing plants.. employing those unemployed Europeans with work in Greece.. Simultaneously, Greek unemployed would work alongside, learning the trade so to speak..
The establishment of new industry is an absolute necessity for any economy.. and it seems only too obvious that the solution for economies the likes of Greece.. Portugal.. Eire.. Spain.. Italy.. is to attract foreign investment.. To provide true growth means expanding the tax base and reducing State expenditures.. and that means jobs.. and this is a course of action which must be made with some expediency.. for we have spawned a truly 'Lost Generation'..
The alternative is something thoroughly unpleasant to imagine.. Literally millions throughout the West living just at, or just below, what would be considered the poverty line.. The end of any vestige, if any remains now, of a 'work ethic'.. simmering unrest with any government elected to power, as the rich still get richer while the poor get poorer, accompanied by a general malaise.. ennui..
Admittedly, that's not the end of the story..
This has happened before..
Ahh.. Laetus Agricola..

Natural disasters abound..
The Philippines has been battered.. Rescuers scrambled today to deliver food and water to hundreds of villagers stuck on rooftops for days because of flooding in the the north.. where back-to-back typhoons have left at least 59 people dead..
Typhoon Nalgae slammed ashore in northeastern Isabela province Saturday.. then barreled across the main island of Luzon's mountainous north and agricultural plains.. still sodden from fierce rain and winds unleashed by a howler just days earlier.. Nalgae left at least three people dead Saturday..
Typhoon Nesat killed 56 others and left 28 missing in the same region before blowing out Friday..

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