Sunday, May 09, 2010

Siesta States

Not really siesta states, but siesta countries, Greece, Spain and Portugal.

These are very different countries if compared to Germany, Netherlands, Belgium, the three Scandinavian countries and to a slightly lesser extent France.

Your German is so wondering why they have to prop up a country like Greece. I wonder why too.

How on earth did these siesta countries gain admittance to the EEC or whatever it is now called? They are just not at all compatible. Countries need to have a clean financial history before admittance, not be corrupt and buyers of votes to the extreme.

Why did the EEC pump so much money into Ireland, to the point where it was absolutely booming but without any sustainable foundation?

As for Iceland, governments are suppose to protect and look after their citizens, not open their country to the financial wolves.

Where do we go with Britain? Generally the English don't seem to like being part of the EEC and they certainly don't want Euros as their currency. What they especially don't like is there open borders to Europe, not so much to do with northern Europeans coming and going, but with Eastern Europeans having open access to Britain. It will be interesting to see what the incoming government will do about that problem.

Right, it is not the EEC anymore. European Union is the go now.

Conjecture everywhere, but is Greece really only the first domino? I have heard that even Brussels is in financial strife too.

The EU is often accused of being over regulating and bureaucratic. Seems it wasn't so good with rules and regs when it was investigating Greece for admittance.

I am sure of two things.

The lessons learnt from the world financial crises will be good for up to one generation, and then it will all happen again. It may not even take that long, given how snouts were never really pulled from the trough.

Who pays for the financial mess? The poorest and the honest workers of course. Don't we all love capitalism.

PS This is a draft but it has hung around for long enough and I don't have anything else to quickly post.


  1. oo ... not sure about your second last sentence. Everyone pays ...

    Poor workers are not necessarily honest. Who did all the rorting of the pink batts. Folk who were in like Flynn.

    I don't know much about the waves of entry to the EU over the last 30 years. But shall read as this week goes on. For what I glean thus far, Greece in particular is burdened with an older population that does not contribute to the economy any longer. It also has a limited range and depth of resources on which to trade on world markets. I believe it is called living beyond ones means.

    I will read more, it is an important issue. Suffice to say that I moved my super to cash during last week - not soon enough, but as soon as I could.

  2. Maybe we'll see the collapse of the EU and the Euro, who knows how far it will go. All I know is that Germany isn't exactly in a good place either, according to friends who live there. All of it could have far reaching consequences. We need a crystal ball!

  3. Julie, of course you are right about workers and honesty. Notwithstanding, you must be aware of the gap even in Australia now as to what the less well off pay in taxes compared to the well off. Greece has a lot of retired people of a young age on generous pensions. Vote buying from the past. Singapore, a tiny island with no resources manages to be successful. Tourists pour into Greece, and bring in so much money. Does the government see this money? No, dodging taxes is a national sport in Greece.

    A friend put her super into cash a couple of years ago for a time when the GFC started. I don't really understand and it is not something I need to know about, but she was happy with her call.

  4. That is interesting about Germany Fen. The German gov is smart though. The German companies are clever and aggressive. It may be a very bureaucratic country, but it has good processes. It is in no one's interest to have the EU fail, so I don't think it will happen.