Greece and their economic collapse

[Kirkland Laing]

Portugal as well, they aren't on solid ground at the moment either. What has happened in Greece, the riots and what not just goes to show you what happens when the people start voting themselves benefits. The politicians say they'll bring more, the people vote for them, and it's a never ending cycle of raising taxes and raising spending to at least try and cover your ass.


....but I suppose this is all Capitalisms fault eh Kirkland, that evil Capitalism has struck again....in Greece no less

Greece is actually the only country in trouble that did this. Spain and Ireland were both running large budget surplusses before the 2008 meltdown. Italy was running a primary surplus. The main problem these countries have is that they're locked into a currency at an uncompetitive rate and they're unable to devale and can only regain competitiveness by crushing internal deflation. Although I'd have more success explaining string theory to a sheep that trying to get you to understand what's going on in europe.

[Kirkland Laing]

The eurozone problem explained in one graph.

euro in one graph.jpg

[Master]

The eurozone problem explained in one graph.

euro in one graph.jpg

Can't read it. Is it saying Germany benefited from it and the rest have not?

[Kirkland Laing]

The eurozone problem explained in one graph.

euro in one graph.jpg

Can't read it. Is it saying Germany benefited from it and the rest have not?

German investors pumped all their money into Greece, Spain, Portugal, Ireland etc. looking for higher returns than they were getting at home. This created bubbles on those countries and pushed up labour costs, making those countries uncompetitive against Germany. Now these countries have to regain competitiveness to bring the eurozone back into equlibrium. The best way to do this is for germany to inflate their economy while those other countries inflate more slowly, but Germany won't do that and is insisting on massive internal devaluations in those countries. But the austerity policies that these countries are using to try and devalue are making their problems even worse and creating depression-like conditions. So it's all fucked.

Things may change now as election results have created a French-led Latin bloc of countries who are rebelling against the austerity policies and trying to change Germany's mind. But don't hold your breath.

EDIT: Can't find the graph on the internet.