If you were witness to the perfect storm that hit the U.S. financial markets yesterday, there are many places where you can point a finger. But the issue that is still the most troubling is Greece and the other PIIGS in the frying pan. Greece is turning out to be no better than many sub-Saharan African nations where the current regime is just incapable of properly running the country. The unavoidable could come from what has been seen this week, which would only create a self-fulfilling prophecy of a local crash (which could spread) and would be unfair to many. Imagine if nations just outright begin to boycott Greece until the leaders can prove 100% that they will run their finances properly.
The current financial system in Greece under the election promises of the socialist regime is not just not working. These policies are literally bringing Europe to its knees. If you are an American, going to Europe is going to feel almost cheap now after the crash the Euro has seen. The Greek Tragedy is bad enough that now France and Germany may have credibility issues for even allowing Greece or any of these little PIIGS into the Eurozone in the first place.
The notion that rioters fire-bombed a bank and murdered individuals is atrocious. How many nations (outside of sub-Saharan Africa) have an average work week of close to 30 hours, have a retirement age so young, and have benefits to all in the manner that Greece does? Few. And what about all the blatant tax evasion from the citizens?
The CIA World Factbook lists Greece’s population as of a year ago as approximately 10,737,428. The life expectancy is listed as 79.66 years, yet its retirement age has run from 58 to 61 according to most sources and may soon be 63.
How the hell can a country of 10 million affect the state of things this much? Actually, that is simple… Greece may just be a prelude to Portugal, Spain, and elsewhere. The $144 billion tab thrown around this week comes to $13,411.03 per citizen.
A boycott would deal a fatal blow to Greece’s existing regime, and it would do severe damage for more than just the boycott period. Greece is a beautiful country, with a history deeper than almost any existing nation. It is effectively the world’s oldest democracy. There are many first and second generation Greeks in America. Yet here we are.
Americans did not come up with the replacement for French Fries as Freedom Fries by accident. America was a very poor example of a broken system of borrowers biting off far more than they could chew and one with the money supply open like a fire hydrant. The scary issue is that Europeans have a much higher chance of boycotting or at least pushing back much harder against Greece as a nation over its fallout. If you were an American visiting Europe in 2001 to 2007, you may have noticed a far less warm reception from many Europeans than in prior years. The E.U. is being far to slow to act here over Greece, just as if the lessons of America’s TARP bailout were not even looked at.
A boycott would cripple this already broken nation. The spillover would likely spread, and this would just prove the domino theory that knocking down one will lead to the knocking down of many (or all). A boycott would be an awful solution. What happens in desperate times? Awful decisions get made. The worry about the reaction to any move often gets discounted. That would mean yet a further tourism drop off, no Greek olive oil and feta cheese, and ultimately imagine the worst… if giant shipping interests suddenly do not want any ships flying under a Greek flag.
Still, how could anyone be faulted for saying “I refuse to support anything and everything in that nation until they get their act together.” Food for thought, in a very unpleasant meal.
Maybe it is time to review some puns in THE NEW GREEK FINANCIAL TERMS.
JON C. OGG
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