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[civil] "Greece moves closer to eurozone exit after delaying €300m repayment to IMF "

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  • Beware of Greeks bearing gifts.

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    • Originally posted by N35t0r View Post
      We did end up breaking parity with the dollar, and it was what helped end the crisis (that, and ballooning commodity prices (esp. soybean) led to several years of important economic growth).
      And what will Greek export and to whom? China is slowing down now.
      Without spending cuts you will just end up with a cycle of inflation. BTW, is it legal to talk about inflation now?
      “It is no use trying to 'see through' first principles. If you see through everything, then everything is transparent. But a wholly transparent world is an invisible world. To 'see through' all things is the same as not to see.”

      ― C.S. Lewis, The Abolition of Man

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      • Tourism?

        The difference between before and after devaluation in commodity prices was negligible. The country still experienced a boom after devaluating (and dropping all austerity measures), but it took about 7-8 years to reach pre-crisis levels. In any case, austerity measures imposed by the IMF only led to a bigger hole, while the underlying problem was another.

        In fact, the large amount of growth post-crisis led the government to overly rely on printed money, which the economy could cope with while we were growing at 7-8%, but which has led to ~30% inflation in these past couple of years of no growth. And, since it's an election year, there is no way in hell that the government is going to cut its spending.
        Indifference is Bliss

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        • They have maybe four or five hours left so what are the odds of a last minute deal which at least gets then to the referendum date? The deal offered by creditors was actually much more generous than expected yet the stupid Greek academic still stormed out in a huff and refused to negotiate for two days because his little feelings were hurt that the other side didn't just surrender and give him everything he wanted with no strings attached.
          Try http://wordforge.net/index.php for discussion and debate.

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          • There's a thin line between tough negotiating and idiocy.
            It's almost as if all his overconfident, absolutist assertions were spoonfed to him by a trusted website or subreddit. Sheeple
            RIP Tony Bogey & Baron O

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            • Originally posted by pchang View Post
              And what will Greek export and to whom? China is slowing down now.
              Without spending cuts you will just end up with a cycle of inflation. BTW, is it legal to talk about inflation now?
              Their single biggest export is refined gasoline, which is priced in dollars for raw materials so a devalued Greek currency won't help much there. Lower production prices could help the Greek agricultural sector but it will take a year or two to scale up so there will be little immediate effect there. The big things which lower currency really helps, namely manufactured goods and services, are two areas Greeks produce very little of so don't expect big growth there right away.
              Try http://wordforge.net/index.php for discussion and debate.

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              • Originally posted by pchang View Post
                And what will Greek export and to whom? China is slowing down now.
                Without spending cuts you will just end up with a cycle of inflation. BTW, is it legal to talk about inflation now?
                Their single biggest export is refined gasoline, which is priced in dollars for raw materials so a devalued Greek currency won't help much there. Lower production prices could help the Greek agricultural sector but it will take a year or two to scale up so there will be little immediate effect there. The big things which lower currency really helps, namely manufactured goods and services, are two areas Greeks produce very little of so don't expect big growth there right away.
                Try http://wordforge.net/index.php for discussion and debate.

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                • Dude, it's Greece, tourism and shipping!

                  [edit:] Also, devaluation will make a dent on imports, which will also help trade balance.
                  Last edited by N35t0r; June 30, 2015, 14:32.
                  Indifference is Bliss

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                  • Tourism might become more attractive IF vacationers aren't turned off by the civil disorder which is coming, the shortages of imported goods, the shut down banking system, etc... I think they are going to find the bad images on the news each night discourages people from visiting.

                    Shipping's main operating costs are labor (which has to be competitive with what other shipping companies pay) and fuel which is priced in dollars. A lower local currency won't help them as much as one might think.

                    Now, manufacturing and services are really helped by local currency weakness but, again, Greece produces little for export in those sectors and it will take time to build up those sectors just like with export agriculture. Long term? Yes, the devalued drackma will help those sectors grow but in the short to medium term there are no quick fixes. That is why it is better to avoid this sort of chaos by being responsible and not being ****ing idiot spend thrifts.
                    Last edited by Dinner; June 30, 2015, 15:45.
                    Try http://wordforge.net/index.php for discussion and debate.

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                    • No, I did not steal that from somebody on Something Awful.

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                      • Don't count on agricultural products without European subsidies... (not the bailouts)
                        "Ceterum censeo Ben esse expellendum."

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                        • Maybe Bill Gates should just buy Greece and run it as a hobby.
                          Of course it will never be profitable, but that´s not something one would expect from a hobby, after all

                          Or perhaps the Walt Disney Company could buy greece and turn it into some kind of greece history amusement parc.

                          All cities will be restored to the form they had 2300 years ago and the greece inhabitants have to wear clothes from greece classics all the day, as well as have to practice fighting as a phalanx.
                          And every year there would be recreations of great historic battles of the greek city states
                          Last edited by Proteus_MST; June 30, 2015, 16:10.
                          Tamsin (Lost Girl): "I am the Harbinger of Death. I arrive on winds of blessed air. Air that you no longer deserve."
                          Tamsin (Lost Girl): "He has fallen in battle and I must take him to the Einherjar in Valhalla"

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                          • Originally posted by The Mad Monk View Post
                            Could anything show how delusional and discounted from reality you average Greek has become like that chart? They have their heads so far up their own butt holes they don't know which end is up. They certainly don't have a clue about how hard working and productive other people are.
                            Try http://wordforge.net/index.php for discussion and debate.

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                            • or it could show how effectively certain stereotypes and myths are diffused, and how eagerly they are lapped up by the less intelligent members of society.
                              "The Christian way has not been tried and found wanting, it has been found to be hard and left untried" - GK Chesterton.

                              "The most obvious predicition about the future is that it will be mostly like the past" - Alain de Botton

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                              • No, Greeks might work long hours but they don't produce much of value. That is the heart of their economic problems.
                                Try http://wordforge.net/index.php for discussion and debate.

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