Quotulatiousness

June 19, 2011

“It is clear they are running out of options”

Filed under: Britain, Economics, Europe, Greece — Tags: , — Nicholas @ 10:29

It looks as though the British banks are starting to get very nervous about Eurozone bank defaults:

Senior sources have revealed that leading banks, including Barclays and Standard Chartered, have radically reduced the amount of unsecured lending they are prepared to make available to eurozone banks, raising the prospect of a new credit crunch for the European banking system.

Standard Chartered is understood to have withdrawn tens of billions of pounds from the eurozone inter-bank lending market in recent months and cut its overall exposure by two-thirds in the past few weeks as it has become increasingly worried about the finances of other European banks.

Barclays has also cut its exposure in recent months as senior managers have become increasingly concerned about developments among banks with large exposures to the troubled European countries Greece, Ireland, Spain, Italy and Portugal.

H/T to Elizabeth for the link.

May 15, 2011

Redefining the word “anarchist” to mean “statist”

Filed under: Economics, Europe, Greece, Media, Politics — Tags: , , — Nicholas @ 11:41

A post at the Cato @ Liberty blog, qualifies as a proper Fisking:

The Washington Post splashes a story about “anarchists” in Greece across the front page today. The print headline is “Into the arms of anarchy,” and a photo-essay online is titled “In Greece, austerity kindles the flames of anarchy.” And what do these anarchists demand? Well, reporter Anthony Faiola doesn’t find out much about what they’re for, but they seem to be against, you know, what the establishment is doing, man:

     The protests are an emblem of social discontent spreading across Europe in response to a new age of austerity. At a time when the United States is just beginning to consider deep spending cuts, countries such as Greece are coping with a fallout that has extended well beyond ordinary civil disobedience.

     Perhaps most alarming, analysts here say, has been the resurgence of an anarchist movement, one with a long history in Europe. While militants have been disrupting life in Greece for years, authorities say that anger against the government has now given rise to dozens of new “amateur anarchist” groups.

Faiola does acknowledge that the term is used pretty loosely:

     The anarchist movement in Europe has a long, storied past, embracing an anti-establishment universe influenced by a broad range of thinkers from French politician and philosopher Pierre-Joseph Proudhon to Karl Marx to Oscar Wilde.

So that’s, let’s see, a self-styled anarchist who was anti-state and anti-private property, the father of totalitarianism, and a witty playwright jailed for his homosexuality.

However you try to twist the word “anarchist” to include the Greek protestors, it still won’t fit:

Real anarchists, of either the anarcho-capitalist or mutualist variety, might have something useful to say to Greeks in their current predicament. But disgruntled young people, lashing out at the end of an unsustainable welfare state, are not anarchists in any serious sense. They’re just angry children not ready to deal with reality. But reality has a way of happening whether you’re ready to deal with it or not.

February 27, 2011

QotD: Big government and big unions

Filed under: Government, Greece, Quotations, USA — Tags: , , — Nicholas @ 11:00

The Times managed to get the salient feature of the story entirely wrong. They were not an “anti-government” mob, but a government mob, a mob of “public servants” objecting to austerity measures that would end, for example, the tradition of 14 monthly paychecks per annum. You read that right: the Greek public sector cannot be bound by anything so humdrum as temporal reality. So, when it was mooted that the “workers” might henceforth receive a mere 12 monthly paychecks per annum, they rioted. Their hapless victims — a man and two women — were a trio of clerks trapped in a bank when the mob set it alight and then obstructed emergency crews attempting to rescue them.

You don’t have to go to Athens to find “public servants” happy to take it out on the public. In Madison, politicized doctors provide fake sick notes for politicized teachers to skip class. In New York’s Christmas snowstorm, Sanitation Department plough drivers are unable to clear the streets, with fatal consequences for some residents. On the other hand, they did manage to clear the snow from outside the Staten Island home of Sanitation Dept head honcho John Doherty, while leaving all surrounding streets pristinely clogged. Three hundred Sanitation Department workers have salaries of over $100,000 per year. In retirement, you get a pension of 66 grand per annum plus excellent health benefits, all inflation proofed.

That’s what “collective bargaining” is about: It enables unions rather than citizens to set the price of government. It is, thus, a direct assault on republican democracy, and it needs to be destroyed. Unlovely as they are, the Greek rioters and the snarling thugs of Madison are the logical end point of the advanced social democratic state: not an oppressed underclass, but a spoiled overclass, rioting in defense of its privileges and insisting on more subsidy, more benefits, more featherbedding, more government.

Mark Steyn, “States of the Unions”, SteynOnline, 2011-02-26

October 7, 2010

Breaking: Historians confess they invented “ancient Greeks”

Filed under: Europe, Greece, History, Humour, Media — Tags: , — Nicholas @ 12:41

As many had suspected for years, the entire history of ancient Greece was fabricated by historians:

A group of leading historians held a press conference Monday at the National Geographic Society to announce they had “entirely fabricated” ancient Greece, a culture long thought to be the intellectual basis of Western civilization.

The group acknowledged that the idea of a sophisticated, flourishing society existing in Greece more than two millennia ago was a complete fiction created by a team of some two dozen historians, anthropologists, and classicists who worked nonstop between 1971 and 1974 to forge “Greek” documents and artifacts.

“Honestly, we never meant for things to go this far,” said Professor Gene Haddlebury, who has offered to resign his position as chair of Hellenic Studies at Georgetown University. “We were young and trying to advance our careers, so we just started making things up: Homer, Aristotle, Socrates, Hippocrates, the lever and fulcrum, rhetoric, ethics, all the different kinds of columns — everything.”

[. . .]

According to Haddlebury, the idea of inventing a wholly fraudulent ancient culture came about when he and other scholars realized they had no idea what had actually happened in Europe during the 800-year period before the Christian era.

I’m glad that they’ve finally come clean on this huge historical fraud. Especially The Iliad, which “was a bitch to write, by the way” but “it seemed to catch on.”

June 24, 2010

It’s a “Failure of its systems for monitoring”

Filed under: Economics, Europe, Greece, Politics — Tags: , , , — Nicholas @ 10:45

Austin Bay thinks he’s identified the elephant in the European parlour:

Greece teeters on the edge. The Wall Street Journal‘s Paul Hannon wrote this week that “the failure of its (EU) systems for monitoring and controlling build-ups in government debt” are why the bailout loans given to Greece by the International Monetary Fund (IMF) and fiscally disciplined EU members like Germany became necessary.

He’s right. “Failure of its systems for monitoring,” however, is a euphemism — economic diplo-speak for a very difficult word: corruption. Greek governments cooked the books (its actual deficit is twice as high as officially reported), violated fiscal agreements and borrowed money they could not repay.

Corruption lies at the dirty core of the Euro-zone’s trouble. Governmental corruption and its cohort, illicit business practices, are a pervasive, multicultural, global affliction.

Corruption coupled with systemic lack of accountability — to include personal accountability, where managers and workers let lackadaisical and lazy work practices slide — eventually produces more than anger, cynicism and financial turmoil. Even among economies in the developed world, it stunts economic productivity, robs the future and sows the seeds of armed conflict. In the developing world it undermines aid efforts, manacles fragile economies and as a result condemns millions to poverty.

The big remaining question is no longer “Will the Euro fail?” but rather “Who’ll bail out first?”

May 20, 2010

The root of the Greek economic crisis

Filed under: Economics, Europe, Government, Greece — Tags: , , , — Nicholas @ 12:07

No, it’s not the evil banks, the evil insurance companies, the evil oil companies, or even the evil manufacturing sector (take it as read that most media types think every corporation is, by definition, evil). No, in this case the reports are starting to identify the real culprit: the civil service. Mark Steyn summarizes handily:

They were not an “anti-government” mob, but a government mob, a mob comprised largely of civil servants. That they are highly uncivil and disinclined to serve should come as no surprise: they’re paid more and they retire earlier, and that’s how they want to keep it. So they’re objecting to austerity measures that would end, for example, the tradition of 14 monthly paycheques per annum. You read that right: the Greek public sector cannot be bound by anything so humdrum as temporal reality. So, when it was mooted that the “workers” might henceforth receive a mere 12 monthly paycheques per annum, they rioted. Their hapless victims — a man and two women — were a trio of clerks trapped in a bank when the mob set it alight and then obstructed emergency crews attempting to rescue them.

Unlovely as they are, the Greek rioters are the logical end point of the advanced social democratic state: not an oppressed underclass, but a pampered overclass, rioting in defence of its privileges and insisting on more subsidy, more benefits, more featherbedding, more government.

We’ve already seen that employees in the public sector have been outpacing their private sector equivalents handsomely, but the Greek civil service has it even better than most:

Greek public sector employees are entitled not only to 14 monthly paycheques per annum during their “working” lives, but also 14 monthly retirement cheques per annum till death.

Nice. I wonder how they got into that interesting arrangement? No matter, the private sector will ride to the rescue, right? Not likely:

According to the World Bank, when it comes to the ease of doing business, Greece ranks 109th out of 183 countries. If they were dramatically to liberate their business-killing economy, they might overtake Lebanon at big hit position 108, and Ethiopia at 107, and maybe Papua New Guinea at 102. And who knows? With even more radical reform, they might crack the Hot One Hundred and be bubbling under such favourable business environments as Yemen (99) and Moldova (94). Greece ranks 140th when it comes to starting a business, and 154th when it comes to protecting investors.

If it’s that difficult to start a new business, is it any wonder that so much of the Greek economy is in the underground/unreported/untaxed sector? Many media reports say that anywhere from 10% to 25% of Greek economic activity is “off the books”. A quick Google search will show a much higher range of estimates going up to 60% . . . and that might be an optimistic under-estimate.

If more than half of the nation’s economic activity is in the black market, it will take much more than adding a few auditors and inspectors to the tax department to fix the problem: an absolute majority of Greeks are actively hiding their business from the government, and any serious attempt to crack down on them will bring down the government. And that’s not even the biggest danger — the Greek government isn’t the most stable entity to start with. The government falling might be a safety valve, because the other alternative is literally revolution.

Talk about your destabilization!

March 8, 2010

This sounds familiar

Filed under: Bureaucracy, Cancon, Economics, Europe, Government, Greece — Tags: , , — Nicholas @ 17:39

The other day, I wrote:

Once upon a time (and this is becoming long enough in the past to qualify as legend), government work was less well-paid than equivalent work in the private sector. The advantage of taking the lower-paid government job was job security: government workers had a “job for life” and a nice pension at the end of it. Private sector workers got more in the weekly pay, but generally had worse pensions and more uncertainty for long-term employment.

During the last generation or so, this basic trade-off has been lost. Government workers now get better paid than their private sector counterparts, still get practically guaranteed lifetime employment, and not-just-nice-but-very-nice pensions. No wonder governments have become the employer of choice.

Clearly I’m not the only one thinking this way, as Kelly McParland makes a similar pitch:

I like they way they put “bail out” in quotations, as if devoting billions of dollars to the rescue of Greece isn’t really a bail-out. Because in union-land, it isn’t. By definition, everything a unionized worker earns is deserved, because someone, somewhere agreed to pay it — especially workers employed by the government, who make up the bulk of the protesting Greeks. And since they earned it, there’s no reason they should make any sacrifices to help the country avoid economic disaster. No, that’s for little people, who don’t have government jobs.

Canada isn’t Greece, but it’s no healthier here to have a country divided into two classes. Class One: Public sector workers with safe, secure, well-paid jobs it is almost impossible for them to lose, with generous holidays, guaranteed pensions and protection against the economic cycles that prevail in the private sector. Class Two: Everyone else.

It used to be that the people in Class Two had an incentive for risking exposure to economic ups and downs. The pay was generally better, and it was possible to spend an entire career with a successful company and enjoy a pension at the end. Not any more. If events of the past few years have proved anything, it’s that no company is too big to fail, and there’s no guarantee benefits promised when you were hired are likely to be there when you leave. If the pension goes splat, like so many have, you’re on your own.

While the incentive to face the risks of the private sector have diminished, life on the government payroll has never been better. After all those nasty cutbacks imposed by Finance Minister Paul Martin, the Conservatives were elected in 2006, and have been spending wildly ever since. All the staff reductions have been reversed and the public payroll is bigger than ever. Salaries have largely caught up with private sector levels, and the pensions are just as rock solid as they’ve ever been. And you can’t be fired, short of indictment for murder.

At some point (and that point may be sooner than anyone believes), growth in civil service has to stop: there won’t be enough non-civil service jobs to pay for all the rest. Especially as government jobs become more and more attractive over their private sector counterparts. Why not take a job paying more money, with longer vacations, guaranteed pensions, and no risk of losing the job? You’d be crazy to take a job anywhere else, wouldn’t you?

February 16, 2010

The (looming) Greek default

Filed under: Economics, Europe, Greece — Tags: , , — Nicholas @ 12:56

Tim Cavanaugh dispenses with the careful-to-avoid-blaming-anyone information being peddled by most reporters:

If you ever start thinking no place could suck harder than the good ol’ U.S.A., just look to the glory that is Greece. The Greek government is responding to its self-inflicted debt crisis by doing just about every single thing wrong.

That might not be clear from most of the media coverage. To comprehend any of the popular descriptions of Greece’s public debt problem, you need to be a yes man as mindless as the guy whose job it is to keep saying “Certainly, Socrates… You’re quite right, Socrates…” in the Platonic dialogues.

The New York Times blames the investment banks that held a gun to the crowned heads of Europe and forced governments to take on more debt. The Guardian says it was deregulation and privatization of state enterprises that caused public spending to, um, increase? (Just go with it.) Greek tax collectors say the problem is that tax collectors need to be paid more. And because he knows that being able to print your own money always encourages fiscal responsibility, Paul Krugman says it’s because Greece went off the drachma too soon. (That problem may be working itself out faster than anybody planned.)

But the beauty of Greece’s looming default is that it is a totally straightforward story of uncontrolled public spending and the determination of governments to run up impossible debts. In this case, as the above Times article spells out, those debts were run up in duplicitous ways that in fact violated the public debt rules of the EU from which Greece is now trying to get a bailout. Your worst nightmare of a wastrel American politician — call him Barack Schwarzenegger — would have a hard time mismanaging state finances this badly. Since getting on the euro in 2001, the Greek government has apparently been fudging its budget statistics, a practice countenanced by both conservative and socialist governments. To its credit, the current government kicked the current crisis into high gear when it released a deficit-to-GDP number of 12.7 percent — double the previously announced figure, and by far the highest in Europe.

Read the whole link-laden thing.

February 11, 2010

Greek underground economy: “Vlacha means stupid”

Filed under: Economics, Europe, Greece — Tags: , — Nicholas @ 08:56

Greece has a thriving economy . . . but it’s not the official, tax-paying one:

The Greek government is trying to recover billions of euros lost to tax evasion as part of its austerity programme, but as the BBC’s Malcolm Brabant finds, many Greeks see it as their right to keep as much black money as possible.

A good friend of mine bent my ear with a vengeance on the day the Greek government cranked up its austerity programme another notch.

“My husband is thinking of writing the word vlacha on his forehead in very big letters,” she said.

Vlacha means stupid.

Her husband’s name is Stelios and he is anything but a stupid man.

Stelios is a leading cancer specialist whose dedication to saving lives is such that he rarely takes time off, or holidays.

But he has come to the conclusion that he is stupid because he has been honest.

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