The morning papers brought my admonitions to the fore.
The Greek people really are fed up. They are voting whether or not to pull out of the EuroUnion.
"You cannot cut wages, fire people, raise property taxes and call it a solution." Slim
The Markets Fell on the Anxieties of the EuroCrisis.
EuroFund cannot receive charity from China.
MF Global down on EuroCrisis.
Some EuroCrats Concede the Need for Economic Development and Growth.
Austerity Alone Cannot Solve the Crisis
"Analysts saw lack of measures to boost economic growth as Achilles Heel."
(Slim is validated.)
Germany worries about hyper-inflation while the rest of the world worries about a recession.
Bond Markets are off.
Italy Sliding Fast.
G 20 Leaders Heading to Cannes will pursue (push for) Growth. (At Last--Epiphany!)
Even in Pakistan: Pakistan Agents part of US Plan for Afghanistan.
"It is a universal condition: We refuse to accept that all alliances and enmities are transitory." Slim Fairview from The Quotations of Slim Fairivew
Alors! Aussitôt! Lire mon blog!
Bon Chance!
Slim
(Mince)
Maybe I will be offered a job by the EuroCrats.
slimfairview@yahoo.com
Copyright (c) 2011 Slim Fairview
Showing posts with label Greece debt bailout failure crisis trojan horse european community failure. Show all posts
Showing posts with label Greece debt bailout failure crisis trojan horse european community failure. Show all posts
Tuesday, November 1, 2011
Friday, October 28, 2011
Slim Was Right EuroCrats Were Wrong
Cheers and Skepticism Greet EuroDeal. They always do. The Elation over a deal, the Deflation over the details. Plus ca change...
The Headline in the WSJ: "Will it Work." Well, does it ever? No?
Another quote from a EuroCrat was very disturbing. Very. "The implementation challenge is higher than the design challenge."
Translation. It was easy to come up with a plan. Implementing the plan will be difficult.
Why?
For one reason, there are few details. There are always "few details." Why? Because there are no details.
How can you implement a plan if you don't know what you are supposed to do? Yet, the process goes on. And that word keeps cropping up. Process. This is a process problem.
Herein, I am validated. Again. Repeatedly.
"Analysts saw lack of measures to boost economic growth as an Achilles Heel."
How often must I say it?
Cut Wages, fire people, increase property taxes--that is not a plan. That is not a project. That has not worked. That cannot work without an Economic Development Strategy. A polite way to say projects. I referenced that several times. It is on my monograph about China's success. I won't put the link here. Google it.
The next disturbing statement: Governments don't know if investors will respond well to the "Insurance Plan." Already the news on that matter is not good. "Default insurance market takes hit." I am guessing no one saw that coming. "There are no unintended consequences, only unwanted consequences." Slim Fairview
EuroPlan. Try it and HOPE it works. That is a plan. That is not a project. EuroCrats need to think in terms of Projects not Plans.
The Beefed UP bailout Fund has a critical flaw. Beef up the fund and hope this would be enough to help out OTHER debtor nations. Did this help Greece? No? You need a new and/or expanded approach.
The Next Move: New Fund Plan. Go to Asia for Investors. Go to Brazil for Investors. Go to PetroStates for Investors. This is not, I repeat NOT a strategy to resolve the EuroCrisis:
THIS IS A PONZI SCHEME. How far down the line do the EuroCrats intend to take this strategy?
Quote from a Greek Citizen: "Greek people are ashamed and angry." To the Greek Government. The People are Angry. The People are Rioting. Witness the Path of the Trajectory.
To the EuroCrats:
"Those who forget history are doomed to repeat it." Santayana.
"Those who never learned history are doomed--period!" Slim Fairview
The problem with the EuroCrats? They cannot see the present.
"That you cannot predict the future is not the proper rebuff to the person who tells you to get off the tracks because a train is coming. In this case, "the" train is coming.
History is approaching quickly and you cannot see it. The EuroCrats are like the man who drives into a tunnel, sees two headlights approaching, and says, "I'll just drive between those two motor cycles." Hey, Guys. I borrowed that joke from Bozo the Clown. It seems not to be a joke, now.
There are more than enough monographs on my blog to point you in the right direction.
http://slimviews.blogspot.com
Bon Chance!
Regards,
Slim
slimfairview@yahoo.com
THE HEADLINE: SLIM WAS RIGHT THE EUROCRATS WERE WRONG
Well, not yet. However, follow the progression of the tag lines:
Read my blog today or hear it from experts in a month or two.
Read my blog today or hear it from experts in a week or two.
Read my blog today or hear it from experts in a day or two.
Read my blog today, or read it in the Wall Street Journal tomorrow.
Then again, Don't bother asking me. Everyone always doesn't ask me.
Copyright (c) 2011 Slim Fairview.
Monday, October 10, 2011
Oops! EuroGlitch
Chancellor Merkel: Why use German taxpayer money to bail out a French bank competing with a German bank?
Here is the metaphor.
Imagine Germany as the lead man climbing a cliff.
France is the number two guy.
France is being pulled down by number three.
France asks Germany for help.
Germany won't help because France might get to the top first.
France falls and pulls Germany down with her.
Is Merkel the problem?
Some things work and some things don't work.
"Austerity impedes the growth necessary to expand the economy beyond the debt load" -- Slim Fairview
"Expansion can come only from the growth arising from economic stimulus." --Slim Fairview
"Everybody knows what everybody knows." --Slim Fairview
Perhaps more people in the EuroZone should be scanning my blog.
Regards,
Slim
PS Sometimes it is tempting for the strong to cut off the weak member. Other times it may be better for the weak to cut off the strong member.
Slim
slimfairview@yahoo.com
Copyright (c) 2011 Slim Fairview
Here is the metaphor.
Imagine Germany as the lead man climbing a cliff.
France is the number two guy.
France is being pulled down by number three.
France asks Germany for help.
Germany won't help because France might get to the top first.
France falls and pulls Germany down with her.
Is Merkel the problem?
Some things work and some things don't work.
"Austerity impedes the growth necessary to expand the economy beyond the debt load" -- Slim Fairview
"Expansion can come only from the growth arising from economic stimulus." --Slim Fairview
"Everybody knows what everybody knows." --Slim Fairview
Perhaps more people in the EuroZone should be scanning my blog.
Regards,
Slim
PS Sometimes it is tempting for the strong to cut off the weak member. Other times it may be better for the weak to cut off the strong member.
Slim
slimfairview@yahoo.com
Copyright (c) 2011 Slim Fairview
Tuesday, September 27, 2011
The EuroCrats' Trojan Plan
The EuroCrats have a plan--Destroy Greece!
This is what the experts had to say in today's NY Times.
Policy makers want to put Greece on a path toward reducing its debt load to just below 100% of its GDP within this decade so it can wean itself off taxpayer bailouts.
The Hope is that much of that reduction would come through revived economic growth.
(They get paid to say things like that.)
This plan has the same academic substance and efficacy as the "policy of analysis past:
They supported the 110 Billion Euro bailout for Greece on the assumption that the Greek economy would grown. Then they recommended imposting sanctions on Greece to punish them because their "assumptions" were wrong.
Next we learn that German Officals (et. al.) are not opposed to increasing the rescue funds power to leverage its government guarantees.
This sounds like they are not willing to be part of the programme to put money into the rescue fund but will be one of the co-signers on a loan if the fund wants to borrow money to increase its size. Some ideas don't need any comment. This is one of them.
Next we notice how the market is responding. (In real life.)
1. Greek 2-year notes are at 69.7% because investors "concluded" default is inevitable.
2. Investors worry that the 440 Billion Euro Bailout is insufficient.
3. Heavy bank investment resulted in a heavy bank-stock drop.
"Money is not a substitute for management."--Slim Fairview
Investors invest to make profits. Not to mitigate their losses. Leveraging the stability fund is analogous to the margin buying immediately prior to the Crash of '29.
Robert Burns surely knew what he was writing about. He must have been writing about the EuroCrats.
But Mousie, thou art no thy lane,
In proving foresight may be vain:
The best-laid schemes o' mice an' men
Gang aft agley,
An' lea'e us nought but grief an' pain,
For promis'd joy!
At some point in time, the EuroCrats must realise that the process is not working. Thus, Change the Process. However, NB, at some point in time, the Greeks will realise that the process is not working. When that happens the resentment and not the debt crisis will spread to Ireland, Portugal, Italy, Spain, et. al.
You cannot see growth in Greece if you make every effort to impede growth and keep the Greek people shackled to poverty by keeping the Greek people shackled to poverty programmes.
That you cannot predict the future is not a proper rebuff to the one who tells you to "get off the tracks, the train is coming".--Slim Faiview
Bon Chance!
Slim
slimfairview@yahoo.com
Copyright (c) 2011 Slim Fairview
http://slimviews.blogspot.com/2011/09/greece-problem-solution.html
This is what the experts had to say in today's NY Times.
Policy makers want to put Greece on a path toward reducing its debt load to just below 100% of its GDP within this decade so it can wean itself off taxpayer bailouts.
The Hope is that much of that reduction would come through revived economic growth.
(They get paid to say things like that.)
This plan has the same academic substance and efficacy as the "policy of analysis past:
They supported the 110 Billion Euro bailout for Greece on the assumption that the Greek economy would grown. Then they recommended imposting sanctions on Greece to punish them because their "assumptions" were wrong.
Next we learn that German Officals (et. al.) are not opposed to increasing the rescue funds power to leverage its government guarantees.
This sounds like they are not willing to be part of the programme to put money into the rescue fund but will be one of the co-signers on a loan if the fund wants to borrow money to increase its size. Some ideas don't need any comment. This is one of them.
Next we notice how the market is responding. (In real life.)
1. Greek 2-year notes are at 69.7% because investors "concluded" default is inevitable.
2. Investors worry that the 440 Billion Euro Bailout is insufficient.
3. Heavy bank investment resulted in a heavy bank-stock drop.
"Money is not a substitute for management."--Slim Fairview
Investors invest to make profits. Not to mitigate their losses. Leveraging the stability fund is analogous to the margin buying immediately prior to the Crash of '29.
Robert Burns surely knew what he was writing about. He must have been writing about the EuroCrats.
But Mousie, thou art no thy lane,
In proving foresight may be vain:
The best-laid schemes o' mice an' men
Gang aft agley,
An' lea'e us nought but grief an' pain,
For promis'd joy!
At some point in time, the EuroCrats must realise that the process is not working. Thus, Change the Process. However, NB, at some point in time, the Greeks will realise that the process is not working. When that happens the resentment and not the debt crisis will spread to Ireland, Portugal, Italy, Spain, et. al.
You cannot see growth in Greece if you make every effort to impede growth and keep the Greek people shackled to poverty by keeping the Greek people shackled to poverty programmes.
That you cannot predict the future is not a proper rebuff to the one who tells you to "get off the tracks, the train is coming".--Slim Faiview
Bon Chance!
Slim
slimfairview@yahoo.com
Copyright (c) 2011 Slim Fairview
http://slimviews.blogspot.com/2011/09/greece-problem-solution.html
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