ECB and Inflation

[MadImmortalMan]

Greece had a 25% public sector before this came down. Foisted or not, they had to break that down.

[Crazy_Ivan80]

Forcing a country to slash civil servants and reduce compensation is not a great formula for increasing short term bureaucratic performance. 

Greece was incapable of getting the taxes collected even before the amount of civil servants was decreased. They were twiddling with their thumbs before, they were twiddling after.

Belgium is bad when it comes to government-efficiency, but compared to Greece we're Sweden.

"Greeks stop paying taxes in expectation of Syriza poll victory"
(http://www.ft.com/cms/s/0/b47c6d76-a320-11e4-bbef-00144feab7de.html)

"It's normal for the tax take to decline during an election campaign

->No, it's not normal. It's bad faith, and it's probably the thing that pissed off a great many people -who are paying their taxes, and are often paying far more taxes than the Greeks would if they could be arsed to actually pay- in regards to the Greeks. The Syriza-shenanigans only made it worse afterwards.

[The Minsky Moment]

Greece had a 25% public sector before this came down. Foisted or not, they had to break that down.

A country that fires a huge swath of its national workforce in a few years is going to have serious problems.

A country that cuts a huge swath of its national workforce in a few years, while in the middle of global financial crisis, with zero control over monetary policy, and with no possibility of currency adjustment is utterly and completely screwed.

Predictable.

[Admiral Yi]

A country that cuts a huge swath of its national workforce in a few years, while in the middle of global financial crisis, with zero control over monetary policy, and with no possibility of currency adjustment is utterly and completely screwed.

And from this we can reach the conclusion that Germany should have paid Greece's payroll for a couple years?  Forever?

[Razgovory]

No Eurozone underwent as much austerity as Greece.  So what's the message that gets sent when doing that ends in rejection and failure?

Greece apparently has 60 billion of uncollected taxes to collect. So what's the message that gets sent when you come leeching of other people's money and then calling them names when you don't get your way when you still have lots of taxes to collect but refuse to do so?

Hey, that reminds me, on the topic of leeching is Belgium meeting the required 2% military spending for NATO?

[Monoriu]

Every time people tell me Greece has cut its pension system deeply, I can't help but remember that HK does not have a public pension system at all.  I have a pension but that's a job benefit; it is not a public pension.  We let our poor seniors go through trash to look for food, and we have huge budget surpluses. 

[Valmy]

Hey, that reminds me, on the topic of leeching is Belgium meeting the required 2% military spending for NATO?

Are you suggesting we kick everybody who leeches out of NATO? Wait actually that is a great idea. Spend 2% or GTFO.

[Duque de Bragança]

Hey, that reminds me, on the topic of leeching is Belgium meeting the required 2% military spending for NATO?

Are you suggesting we kick everybody who leeches out of NATO? Wait actually that is a great idea. Spend 2% or GTFO.

That's the way Greece would stay without cooking the books 
France reaches that level as well but most members do not. 

[Admiral Yi]

Are you suggesting we kick everybody who leeches out of NATO? Wait actually that is a great idea. Spend 2% or GTFO.

He's suggesting Ivan has no standing to criticize Greece.

[Razgovory]

Hey, that reminds me, on the topic of leeching is Belgium meeting the required 2% military spending for NATO?

Are you suggesting we kick everybody who leeches out of NATO? Wait actually that is a great idea. Spend 2% or GTFO.

Well, not out, just in the balls occasionally.  Interestingly the Greeks are paying their 2%.  Belgium is not even paying half that, coasting along on the coat tails of small handful of more responsible countries.

[Valmy]

That's the way Greece would stay without cooking the books 
France reaches that level as well but most member do not. 

Even the UK is about to slip under 2% soon. FOR SHAME.

[crazy canuck]

Greece had a 25% public sector before this came down. Foisted or not, they had to break that down.

Sure but over time.  It took Canada something like 15 years to put our financial house in order and that was during generally good economic times and a low dollar. Greece has been asked to implement significant austerity measures during terrible economic times and while being bound to an expensive currency.  How did anyone expect this to end up any other way?

[Monoriu]

Greece had a 25% public sector before this came down. Foisted or not, they had to break that down.

Sure but over time.  It took Canada something like 15 years to put our financial house in order and that was during generally good economic times and a low dollar. Greece has been asked to implement significant austerity measures during terrible economic times and while being bound to an expensive currency.  How did anyone expect this to end up any other way?

HK also was in significant trouble in 2003 or so.  There was a big hole in the public finances.  Unemployment went up 2-3 times.  Real estate prices dropped by 60-70%, and a large chunk of the mortgages went under.  We don't have any control over our monetary policy either.  The HK dollar is pegged to the US dollar, and our interest rates were therefore decided by Mr Alan Greenspan, and nobody expects him to take into consideration HK's needs when deciding the rates. 

Civil service pay were cut many times.  Civil servants were let go.  The HK government sold assets in fire sales.  Fun times.  No public pension, no unemployment insurance, no help for homeowners, no change in the mortage terms, and the peg to the US dollar was maintained.  We raised taxes and cut spending, and endured a few years of 5% deflation. Fixing the public finances was top priority.  Nothing else mattered.  Everything else was sacrificed.  We just told the masses to fuck off, despite huge street protests of half a million. 

It took us less than 5 years.  It could be done.  Provided that the necessary sacrifices were made. 

[Admiral Yi]

Wasnt that when George Soros attacked the peg?

[Monoriu]

Wasnt that when George Soros attacked the peg?

That was in 98, not 03.