Posts tagged ‘Austerity’
By Yanis Varoufakis
For a while now I have been arguing that Europe’s policies for reducing the public debts of fiscally stressed member-states can be described as a Ponzi austerity scheme. In this post I attempt precisely to define ‘Ponzi austerity’.
Standard Ponzi schemes are based on a sleight of hand that creates the appearance of a fund whose value grows faster than the value that has come into it. In reality the opposite is true, as the scheme’s operator usually helps himself to some of the incoming capital while the scheme is not managing to create new capital with which to replenish these ‘leakages’, let alone pay the returns it promises. The appearances of growth that does not really exist is, of course, the lure that brings into the scheme new participants whose capital is utilised by the Ponzi scheme’s operator to maintain the facade of genuine growth.
Ponzi austerity is the inverse of Ponzi growth. Whereas in standard Ponzi (growth) schemes the lure is the promise of a growing fund, in the case of Ponzi austerity the attraction to bankrupted participants is the promise of reducing their debt, so as to liberate them from insolvency, through a combination of ‘belt tightening’, austerity measures and new loans that provide the bankrupt with necessary funds for repaying maturing debts (e.g. bonds). As it is impossible to escape insolvency in this manner..
full article at source: http://www.social-europe.eu/2013/11/ponzi-austerity-a-definition-and-an-example/
ANOBEL-winning economist Joseph Stiglitz has described the Irish ability to suck up the pain associated with austerity as ‘astonishing’.and he described our ability to deal with the pain without taking to the streets and rioting like our neighbours in southern Europe as akin to religious ideology.
“It’s like a view that you have sinned, Greece has sinned – redemption through pain. It’s almost a religious notion that if you sinned so badly, you have to feel the pain to get redemption,” he told RTE’s Morning Ireland in an interview.
He said the notion of taking billions out on economy in austerity budgets, as has happened here, was ‘totally absurd’ and that economists know it does not work.
“Why that was not understood by European leaders was beyond me.”
Columbia Uniiversity Professor Stiglitz has never been a fan of austerity and the former chief economist at the World Bank has voiced his views in the past but he said Ireland will recover…………………………
Make no mistake the gangsters who brought this misery on our people, and the crooked politicians who sold us out will pay a heavy price all in good time! We have long memories ,we are not all sheep here!
Over at the Blog of Dr. Constantine Gurdgiev I have just read his excellent analyses on the current situtiation regarding the latest budget from our hapless gombeens in the Government. I do hasten to add that I do not agree with everything he says but it is never the less an excellent piece!
Recent events have led to a significant reframing of the Budget 2014. With these, the Government is now actively signaling a more accommodative stance on next year’s cuts. Alas, the good news end there and the bad news begin. Any easing on austerity in 2014 will be unlikely to produce a material improvement in household budgets. In return, the Government will be placing huge hopes on robust growth returning in 2014. If this fails to materialise, lower austerity today will spell more pain in 2015. Like a dysfunctional alcoholic, unable to stop binging at closing time, we ignore tomorrow’s hangover.
full article at source:http://trueeconomics.blogspot.ie/
By Thomás Aengus O Cléirigh
Welcome to TAX haven Ireland, where the hard presses ordinary PAYE taxpayers have to subsidise the world’s largest corporations, the world’s largest hot money centre holding 2.7 trillion euro’s in hidden bank accounts and where not one red cent tax is been charged by our sell-out politicians who are in bed with the very crooks who are hiding their hot money down at the IFSC in Dublin.
So we the Irish have our Natural Gas stolen from us , our Oil reserves stolen from us and we nearly had our Forests stolen from us and now I hear we are about to lose the countries Gas company to vultures and pals from corrupt politicians who were voted in to office to protect our nations interest ! Instead we find these corrupt gangsters are helping hidden moneymen steal our national treasures!.
As long as the ordinary workers of this country are forced to take the burden of bailing out gangsters in our banks, corrupt corporation, and implementing policy from unelected special advisors who all have their own self interests at heart we the people are going to be bled dry. The brightest and best are leaving the country in droves and the gombeen politicians are feathering their own nests while our people are crushed under ever increasing taxes and austerity measures designed to beat down any notion of an Independent people!We have become a nation of financial debt servers !
Our political elite are all in good spirits as the latest polls are indicating the crooks running our country have little to fear of the people rising up, we are it seems a complying bunch!. With the world’s largest companies paying little or no tax, we the ordinary people are going to have to pay for all the shortcomings! For every euro these corporate leeches do not pay tax Ordinary Joe has to do without community services , a dismantled health service and diminishes educational prospects for our children. How long are we the ordinary people going to stay on our knees and allow this Austerity hell continue? While the privileged suck our country and its natural resources dry??
How long are we going to allow Merkel tell us when we can build a hospital or when and where we build our schools or when we die?
Where are the fighting Irish?? , wake up and see reality!!
- No To Irish Tax Haven (thepressnet.com)
- “Emigration” Concern as 89,000 leave in the space of a year (thepressnet.com)
- New Political Challenge to Austerity Parties Formed (theworkingclassheroes.wordpress.com)
- Dublin’s austerity drive puts upper house at risk (vietnamnews.vn)
Only a tiny 1.6% of the bailout loans goes to Greece’s state budget, the real economy and the people. The rest 98.4% goes to serve the international creditors International Monetary Fund, European Union member states and European Central Bank.
For the years 2010-20124, from the 236.8 billion euro bailout money and the 25.5 billion euro from privatizations, only 1.6 percent benefits the state and the economy.
98.4% is allocated for obligations to creditors. (source: Eleftherotypia; more details hopefully later)
I really do not understand, why any Greek should complain about it. A whole 3.77 billion euro go to Greece. For my father, for example, who spends the winter without heating and the summer without air-condition or fan because he cannot afford either the heating oil or the electricity bills after the cuts in pensions and helath care, the tax hikes and other austerity measures that make descent living impossible.
We are all proud to hand out the last slice of our bread to our creditors.
- Greeks gets 1.6% of bailout loans – 98.4% goes back to Troika (keeptalkinggreece.com)
- Cyprus and Troika now agree to steal 47.5 percent of deposits over 100,000 euros in Bank of Cyprus ! (fredw-catharsisours.blogspot.com)
- IMF approves 1.7-B euro loan payout to Greece (rappler.com)