What is truth?

Posts tagged ‘Greek Crisis’

Greek employees: salary delays up to 12 months & “coupons” instead of “money”

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Do you remember the serfs and servants and villeins and peasants in the good old times of feudalism and the Middle Ages? If you don’t, I have good news for you! The custom of working in return of goods instead of salary revives in Greece of modern European Union and of exquisite Euro area. The results of a survey conducted by the Labor Institute of the Confederation of Labor Union (GSEE) are shocking but not unexpected. KTG has often reported in the four years of blogging about these sweet little working and payment conditions of modern Greek slaves living under the feudal law of austerity, recession and  competitiveness.

Laborers receive salary with delays of 3 to 12 months.

Laborers receive 1/3 of their salary, the rest is being paying through services like sleeping in a hotel free of charge, free food and coupons for purchases of food and other goods from supermarkets.

All above cases refer to full time job of 8 hours per day for 25-30 days per month.

Employers who cannot pay salaries give:

1. free sleep in hotels, free food

2. pay salaries with at least 3 months delay and not on monthly basis.

3. they do not pay full 13th and 14th salary (for Christmas/Easter and vacation) as obliged by the Labor Law.  They give food items and fuel coupons, instead, and force employees to sign that they have received the full bonus. GSEE estimates that one million employees have not received neither the 13th nor the 14th salary.

Young employees below 25 years old get hired with monthly contracts for part-time work of 4 hours per day and for salary of €180 per month. By 25 working days per month this could be translated into a wage of €7.2 per day! – It makes no sense here to try to identify the wage per hour…. it could be some €1.72 per hour! I remember when the first labor ‘reform’ drastically cut wages in 2011, my readers could not believe that the per-hour wage was 3 euro!

According to Labor Law, minimum wage for those below 25 years old is €480 gross for full-time work. But who cares about the laws when jobs demand is high, unemployment is dancing and cash is short because the banks have been saved but they pour not a recapitalization cent into the market.

According to Labor Hiring  statistics for January-April 2014:

From 423,174 job vacancies,

232,383 were for full time job

140,527 were part-time jobs

50,264 were rotation jobs. (sources: zougla.grnewsit.gr)

I suppose, Greek laborers will be soon allowed to pay their rent and utility bills with “food stamps” and “detergent coupons.”

It’s odd that while in 2011 ans 2012 Greeks made a step backwards to Dickens’ times, in 2013 and 2014 had a big jump back to Middle Ages.

PS :I can well imagine that in a couple of years, the Troika will complain about the shortage of labor craft and empty social insurance funds in competitive Greece.

 

middle ages

Happy Middle Age society 

Lies, Damn Lies, and Sovereign Truths: Why the Euro is Destined to Collapse!

If this article goes viral around the web, I wouldn’t be surprised if the euro tanks and several European sovereign states’ spreads blow out. I have busted several of them in another of a long series of “creative” economic forecasting schemes to fudge the appearance of “austerity”. 

Well, its official (sort of). Greece, a Greek Crisis Is Over, Region Safe”, Prodi Says – I say Liar, Liar, Pants on Fire!member of the European Union, will probably join the ranks of countries like Latvia (where policies are limited by the choice of the currency regime), Iceland (where the crisis has resulted in a very heavy external debt burden), the Ukraine (which is still affected by financial and political fragility) and a bevy of third world and emerging market countries in distress from the (not very) esteemed club of IMF financial aid recipients. What does this portend for the Euro? Well, I have blogged earlier in the year that the Euro’s credibility is now highly suspect and those pundits who dared contemplate the Euro potentially replacing the dollar as the global reserve currency now see the folly of their ways. The chances of a break-up are significantly higher and quite realistic. Credit Agricole’s currency strategist puts it succinctly:

“If Greece goes with the IMF, that says something terrible about the political process within Europe,” said Stuart Bennett, a senior foreign-exchange strategist at Credit Agricole Corporate and Investment Bank in London. “This undermines any confidence in the currency.”

Greece will probably end up defaulting on their debt, with or without the aid of the IMF, and they will probably have good company with several other EU members. I say so, and so does UBS Economist Donovan.

“I think it’s in an impossible situation,” said Donovan, who is based in London, in an interview with Bloomberg Radio today. “Europe has failed to clear its first serious hurdle. If Europe can’t solve a small problem like this, how on earth is it going to solve the larger problem, which is the euro doesn’t work. It’s a bad idea.”

How dare I make such a proclamation? Well, because I am telling the truth based upon facts and the many forecasts from the various sovereign nations are basically based upon lies, fiction and farce! As it is look at how the market is viewing the Greek tragedy:

European governments have yet to agree on how to fund any rescue for Greece, which says it will struggle to pay its debts at current market interest rates. While Prime Minister George Papandreou announced a 4.8 billion euro ($6.4 billion) austerity package on March 3, the extra yield that investors demand to hold Greek debt over German counterparts has since risen.

The spread was at 324 basis points today compared with 316 points at the start of the month. The euro fell 1 percent today to $1.3358, extending its decline this year to 6.7 percent.

I am willing to bet the “market” has not taken a strong, hard, objective look at those proposed austerity measures and uncovered the secrets that I am about to reveal. If they have, these spreads would have been blown out much wider. 

A German finance official said yesterday that both countries may agree to involve the IMF. Papandreou said March 19 that Greece, which needs to sell about 10 billion euros ($13.4 billion) of bonds in coming weeks, is a step away from not being able to borrow and may need to turn to the IMF if European aid isn’t forthcoming.

Europe’s fiscal crisis shows the need for the euro region to create a common fiscal policy, former U.K. Chancellor of the Exchequer Norman Lamont said in an interview in London today.

“That would be the logical step,” Lamont said. “I don’t think they are prepared to do that, and without doing that I think the euro is a contradiction, a currency without a state.”

Bingo! The man hit the point right on the head. There are too many chiefs and not enough Indians.

I want to visually and verbally demonstrate what an absolute joke European economic estimates have been throughout this crisis, and more importantly how politicians and sovereign states are interpreting this joke in such a way that can deliver a punch line that can most assuredly end in sever global recession, or worse. This document/blog post alone should serve to sink the Euro and blow out CDS spreads for several European sovereign. Why? Because the truth hurts and the truth is not what has been coming from European sovereign states as of late.

The IMF and the EU have been consistently and overtly optimistic from the very beginning of this crisis. Their numbers have been dramatically over the top on the super bright, this will end pretty, rosy scenario side – and that is after multiple revisions to the downside!!! We can visit the US concept of regulatory capture (see How Regulatory Capture Turns Doo Doo Deadly  and Lehman Brothers Dies While Getting Away with Murder: Regulatory Capture at its Best) for the EU, but due to time constraints we will save that topic for a later date. To make matters even worse, the sovereign states have taken these dramatically optimistic and proven unrealistic projections and have made even more optimistic and dramatically unrealistic projections on top of those in order to create the illusion of a workable “austerity” plan when in reality there is no way in hell the stated and published plans will come anywhere near reducing the debts and deficits as advertised – No Way in Hell (Hades/Tartarus/Anao/Uffern/Peklo/Niffliehem – just to cover some of the Euro states caught fudging the numbers)!

Let’s take a visual perusal of what I am talking about, focusing on those sovereign nations that I have covered thus far.


Notice how dramatically off the market the IMF has been, skewered HEAVILY to the optimistic side.  Now, notice how aggressively the IMF has downwardly revsied their forecasts to still end up widlly optimistic.

Ever since the beginning of this crisis, IMF estimates of government balance have been just as bad…


The EU/EC has proven to be no better, and if anything is arguably worse!

 
 

 

Revisions-R-US!


and the EU on goverment balance??? Way, way, way off. 


If the IMF was wrong, what in the world does that make the EC/EU?

The EC forecasts have been just as bad, if not much, much worse in nearly all of the forecasting scenarios we presented. Hey, if you think tha’s bad, try taking a look at what the govenment of Greece has done with these fairy tale forecasts, as excerpted from the blog post


Think about it! With a .5% revisions, the EC was still 3 full points to the optimistic side on GDP, that puts the possibility of Greek  government forecasts, which are much more optimistic than both the EU and the slightly more stringent but still mostly erroneous IMF numbers, being anywhere near realistic somewhere between zero and no way in hell (tartarus, hades, purgatory…).

Now, if the Greek government’s macroeconomic assumptions are overstated when compared with EU estimates, and the EU estimates are overstated when compared to the IMF estimates, and the IMF estimates are overstated when compared to reality…. Just who the hell can you trust these days???

 source link http://boombustblog.com/reggie-middleton/2010/03/14/qgreek-crisis-is-over-region-safeq-prodi-says-i-say-liar-liar-pants-on-fire/
 

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