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View Full Version : Greece back from the brink, for now.



skuthorp
06-17-2012, 05:13 PM
"GREECE sent a sigh of relief through governments and financial markets around the world this morning by giving a narrow election victory to a party willing to stick to the country's economic bail-out agreements and defend the Euro common currency.Antonis Samaras, the leader of the centre-right New Democracy beat off a challenge by the radical anti-austerity party Syriza and immediately promised that Greece would honour its commitments to pay off its debts and restore its public finances."
http://www.theaustralian.com.au/business/in-depth/pro-bailout-party-wins-greek-election-in-cliffhanger-poll/story-fnawdwo8-1226398211533

A very narrow victory has given Greece and the Euro some breathing space but already some commentators are forecasting another election "in a few months". The anti party are calling it "A victory for fear over hope".

David G
06-17-2012, 08:58 PM
Thin ice, still. We'll see. Good news, though.

MiddleAgesMan
06-17-2012, 09:58 PM
But what does it mean for the price of gold?

I'm thinking it will make a big jump up, but is that just my wishful thinking?

Gerarddm
06-17-2012, 10:45 PM
For now is the operable term here. Greece simply doesn't have the money to repay its debt.

Waddie
06-18-2012, 01:04 AM
But what does it mean for the price of gold?

I'm thinking it will make a big jump up, but is that just my wishful thinking?

I don't know and I don't really care. Gold been good to me.... Back when I was worried about Y2K in 1999 I bought 30 ounces at $300 per ounce and thought it was expensive then.. but it's been one of the best performing investments ever... I wish I had bought a lot more.

So if it drops a little or goes up a little it's all good....

regards,
Waddie

epoxyboy
06-18-2012, 02:00 AM
For now is the operable term here. Greece simply doesn't have the money to repay its debt.


So now the euros will have to lend them another few billion, because that will make things better! I cant see how this is ever going to work, unless a whole mountain of debt gets written off.
Serious question - does anybody know if Greece actually produces anything of economic significance, beyond olive oil and tourism?


Pete

skuthorp
06-18-2012, 04:17 AM
The whole process smacks of deck chairs on the Titanic to me. Most of the worlds debts will never be paid back. At some time or other there will be a 're-set' and it won't be pleasant.

varadero
06-18-2012, 05:41 AM
So now the euros will have to lend them another few billion, because that will make things better! I cant see how this is ever going to work, unless a whole mountain of debt gets written off.
Serious question - does anybody know if Greece actually produces anything of economic significance, beyond olive oil and tourism?


Pete

Greece is a leader in:
1) Magnesium: Greece covers the 46% of total production of Western Europe .
2) Aluminum: For some years France decreased its production in aluminum and Greece henceforth is the first country in Europe in production of aluminum, used in thousands of applications.
3) Bauxite: Greece is the bigger producer in the European Union. The bauxite is used in the manufacture of planes, electric appliances, metal manufactures.
4) Nickel: Greece is the only European country with important layers of nickel. Greece has the biggest production facilities of nickel in European Union, but like other minerals is not processed there but it is exported abroad.
5) Olive Oil: Greece is the 3rd country in the world of olive oil production (15% of world’s olive oil is produced in Greece ).
6) Saffron Crocus: Greece is the 3rd country in the world of production of saffron crocus (mostly in the Kozani area) but most Greeks do not know what saffron is nor do we put it in our foods.
7) Asparagus: Greece is 5th in the world in exports of asparagus.
8) Cotton: Greece is 7th worldwide in exports of cotton and the 11th in its production
9) Tourism: Greece is the 14th country in the world in tourist arrivals (18.2 million annually)
10) Shipping: Naturally Greece is number ONE in the world in commercial shipping.

skuthorp
06-18-2012, 05:45 AM
"10) Shipping: Naturally Greece is number ONE in the world in commercial shipping."
I wonder if any of the shipping magnates pay tax in Greece?

varadero
06-18-2012, 05:51 AM
They are exempt from taxation, I guess you should ask ACB for details.

Andrew Craig-Bennett
06-18-2012, 06:20 AM
I can confirm that. The man we have to thank for this arrangement is the late Winston Spencer Churchill, who as PM in the UK negotiated a "deal" with Stalin to keep Greece out of the Soviet Bloc and later, after WW2, recommended arrangements for keeping Greece non-communist; this included encouraging shipowners to locate there by giving them advantegeous tax arrangements. There are certain obligations such as pension arrangements which do have to be complied with.

Kaa
06-18-2012, 10:31 AM
Eurozone is pretty well screwed at the moment and political games in Greece are not going to unscrew it... :-)

Kaa

PeterSibley
06-19-2012, 08:18 AM
It needed a political union well before a single currency, with 20/20 hindsight it looks insane . I wonder why some very smart people thought it would work?

Kaa
06-22-2012, 09:56 AM
http://www.washingtonpost.com/blogs/ezra-klein/wp/2012/06/21/the-euro-crisis-in-one-picture/

:-)

Kaa

David G
06-22-2012, 10:14 AM
http://www.washingtonpost.com/blogs/ezra-klein/wp/2012/06/21/the-euro-crisis-in-one-picture/

:-)

Kaa

Ok... now THAT was funny!