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Wages are down & prices are up November 23, 2012

Posted by proeconomia in Main, News on Greece, On the crisis, Opinion.
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Well, tell us something we don’t know. Here is the article (in Greek) where the following numbers are given: during the two years of 2011-2012 there was an average decrease in household income of 22% with an additional 6% expected for 2013. At the same time prices on basic goods increased by 27.6% where average inflation was 6%. Who’s to blame? Higher taxes, higher energy prices and higher prices of imported goods. OK, the disfunctional market structure, the fixed mark-ups, the monopolistic behavior of food supply chains, the unwillingness to enforce competition etc. etc. are also (the most) important factors but, what the heck! Blame it on oil! But have a look at this chart as well and make your own decision…

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Even the Germans are fed-up with tax evasion November 18, 2012

Posted by proeconomia in Fiscal policy, Main, News on Greece, On the crisis, Opinion.
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Well, or so it says Sigmar Gabriel the head of German Social Democrats (SPD). In particular, the claim is that the EU and the German government just sit on the sidelines and let huge amounts being transfered out of Greece without any taxes being paid for them – and then additional funds from Europe are being asked to save Greece. He insists that monies that are owned in taxes should first be paid – by freezing Greek assets abroad until taxes on them are paid – and then every other aspect of additional help should follow. What do you think? Fair or not?! Here is the article in Greek and here it is in German.

Yeap, there is plenty-o-money! November 16, 2012

Posted by proeconomia in Fiscal policy, Main, News on Greece, On the crisis, Opinion.
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This is something we discussed before, but in case you forgot, here we go again: 3 million bank transfers were done from 2009 by persons (not companies) from Greece to banks abroad for a sum total (please be seated first!) of 33 billion euro (to understand this magnitude consider that this is about 10% of the current debt level and 15% of nominal GDP!!!). Hey, no one is saying that this is from tax evasion or something like it. It just makes you wonder…by the way the total amount of collectable back taxes is about 60 billion (of which only about 8 million are actually receivable). Here is the news piece in Greek.

What if this happens to you? November 16, 2012

Posted by proeconomia in Main, News on Greece, On the crisis, Opinion.
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I thought that you may find the following, in the wake of recent events in Greece, of potential interest (and it ain’t mine alright!)

“The Party seeks power entirely for its own sake. We are not interested in the good of others; we are interested solely in power, pure power. What pure power means you will understand presently. We are different from the oligarchies of the past in that we know what we are doing. All the others, even those who resembled ourselves, were cowards and hypocrites…One does not establish a dictatorship in order to safeguard a revolution; one makes the revolution in order to establish the dictatorship…Now you begin to understand me.” from George Orwell’s 1984.

It has, of course, multiple interpretations…pick the one you consider most suitable!

Portugal hopes to deliver success story to Merkel November 9, 2012

Posted by proeconomia in Uncategorized.
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Here is an article from Reuters regarding Portugal.

OK! Chancellor Angela Merkel is looking for a back up by Portugal to smooth out the blame for Greece’s parlous economic state. Portuguese Prime Minister Passos Coelho “will be able to tell Europe’s most powerful politician that Lisbon has launched labor market reforms, sold state assets, sharply cut spending and is edging closer to returning to bond markets next year.

“Austerity policies implemented in Europe have not been imposed by Germany’s chancellor, they are the result of too much debt taken on by European governments for too many years,” he said this week.”

What have our politicians done in three years other than imposing tax burdens to pensioners and cutting wages?

Only the Greeks can rebuild Greece November 9, 2012

Posted by proeconomia in On the crisis.
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Here is an article from the Financial Times. It is by now common knowledge that “The old system, where insiders lived off the fat of inefficiencies and debts imposed on outsiders, created an illusion of wealth always destined to end badly.”

Yes, the measures have now passed, and yes, we should stop accusing foreigners for all the pain we are going through, but, forgive me, I see no real potential or good will primarily in our own politicians but neither Europeans.

Predicting the Next Shock to the Global Economy November 4, 2012

Posted by proeconomia in Fiscal policy, Main, Monetary policy, On the crisis, Opinion.
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The second Bloomberg article, as promised. You can read it here.

ECB May Face Involuntary Losses on Greek Debt November 4, 2012

Posted by proeconomia in Fiscal policy, Main, Monetary policy, News on Greece, On the crisis, Opinion.
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The first of two Bloomberg articles, kindly sent by our colleague Constantina Kottaridi. Read it here.

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