Πέμπτη, 19 Απριλίου 2012

Always look on the bright side of life

Today fears rise for the Spanish economy and for the Cyprus economy too. So lets sort some things out not in economical terms. Greece, Ireland, Porugal, Spain today Italy, Cyprus tomorrow suffer of huge financial problems which leads to certain conclusions. Their standard economical model is not working and the reasons could be 2 and 2 only. Either the model is not applied correctly or the model is not right from the beginning.
Lets take the first option. For sure at least for Greece that I know there is a big tax evasion money is not handled good either by the government and by the citizens. Productivity is low and there are huge problems in the organisation of the state. Greece government borrowed money that can not be paid back. Lets suppose we have some magical wand and all these problems disappear at once. All people pay taxes people become more productive and money is handled more reasonable. This will lead in not buying huge amount of weapons public education will not need private schools and the same applies for health. People will not spend money in a lot of things since as we think reasonable we do not need a super computer for every day needs nor a JEEP car to move in the cities. This will lead mathematically in bad numbers in the economy!!!! Nowadays model DEMANDS spending and over consuming and as long as you can do that everything is OK. The moment you stop doing that everything collapses.(Why stopping and how you have shortage of money is another big discussion) How can you do that then when you are short of money? But of course by borrowing money from someone else. And why that person lends you money? Because he knows that the money he lends you will return to his pocket and furthermore will be doubled. How money will be doubled? First by creating a debt and second by buying products you probably do not need. It is like paying the mafia to protect your store from mafia!!!!
I reached to the conclusion that spending in order to buy products creates the whole problem. So why not producing the products you need. Mainly for two reasons first when they give you money to grow, lets say pineapples, for 5 years of course you grow pineapples and all your farming is going to that direction. At the end of the 5 years when you are no longer paid for pineapples you are left with one product you do not need and with destroyed farming. Secondly globalised economy works in the interest of certain people who can produce with minimum cost and bring it to sell it to others that are paid highly (they are paid highly but at the same time their debt is rocketing in the sky!!!). The conclusion is that sooner or later most of the economies will face a debt crisis and this will happen either by having small production and extreme debt(Greece) either by having huge production and nowhere to sell(Germany).
What is the bright side of life then? In the next decade most countries will face huge problems like the ones we are facing in Greece. Up until now most people all over the world think that the crisis that happened in Greece is a Nemesis for all the thing we omitted to do (which in a certain degree is true) and can not face the truth that this problem is systematic and has to do with the way this system is constructed. When this crisis becomes global and with no therapy people that are supposed to do everything right will start THINKING what went wrong and surely will realise that changes need to be done. Which are these changes. I have some in mind. Off-shore companies which is a nice clever way for the rich to evade taxes should stop existing. Furthermore complicated stock market products that help to hide the problems below the carpet should also stop. 2% of the rich that keep 50% of the global economy should be distributed equally. Golden boys that earn from disasters (you can can have CDS at the same time that you do not have public debt!!! How crazy is this is like me having your car insurance and earn money when you crash and at the same build roads. Is it crazy to build bad roads so that you crash and I earn money?) is a profession with no purpose of existence. Humanity has the technology to produce, protect the planet and at the same time give a standard affordable living for all the people in China ,states , Greece, everywhere as long as not the wealth is gathered in the hands of a few. So unfortunately we have to pass the passage of suffering in order for humanity to arise and build a better world and this is something I personally see in 15 years time

Πέμπτη, 12 Απριλίου 2012

Economical Crisis myth or reality?

There are so many things said about inflation unemployment in Greece by so many experts that this article has few things to add in the area of official stats. I write this to add the human and everyday aspect of a citizen living in Greece. Crisis for the economists started in Greece in 2008 until then we were told that everything was going well. Unemployment was low growth of our economy was ok we had successful Olympics and the future seemed at least full of hope. If you could read between the lines you could see that the country was slowly decaying. The production of goods especially from the farmers was dropping, all the industry was governed from a handful of people who were also controlling the media, people were finding obstacles and red tape when they were trying to establish a job . Furthermore and more important the political parties in Greece were corrupting everything and also creating armies of voters by establishing political parties in the universities and in the working areas. All these led to a huge cut backs in the salaries in the health and educational system at the same time where political parties army supplies were maintained.
As a consequence all this in everyday life led to huge and everyday stress, depression and a constant struggle to try to live since the taxes are way up and the government is a partner to your house (the taxes are so up that you pay in your OWN house something like a rent) your job (V.A.T and insurance). In addition to all these you have a E.U cliché that Greeks are lazy corrupted non productive e.t.c. Lets put alla these in a new basis. In Greece huge majority is working two and even three job in order to get around. I never remembered my father or other people I know to be seated and the money to flow. This kind of living was for the few in the political system with off-shore companies and who were winning big time by arrangements with the state.
One funny thing is that if we take as a fact that in the DNA of Greeks is a problem the same problem seems to apply for the Spanish, Portuguese , Irish in a few months for the Italians the French and so on. So I wonder what the hell is wrong? I have reached to the conclusion that the problem is basically this. People with power(call them whatever you like banks big industries) need more power and the ability to rule worldwide especially today given the technology. They can not do this from one day to the other so they prepared all this for years. They led us to believe in statistics in the dream that we always get what we deserve and now we deserve not to have health system educational system. They tell you that your living is way above your potentials. In 2012 is a luxury to have decent health system when at the same time other people that rule the stock markets can have private jets. They tell you that you have to work 10-12 hours a day when at the same time technology is up in the sky compared with the 60s!!! How reasonable is that!!!! Anyway that was the beginning of my thoughts to be continued then…..

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