As the Greeks prepare to vote for a modicum of financial independence on July 5th, the amount of hatred for the Greek government in the financial press is ratcheting up.
Not sure why, except it is easy to demonize the leadership as charlatans reneging on the debt they owe. When you work with bankers, you will take their side so you can have lunch with them and gain access.
The current government did not take on this debt, it did not add to the debt with its spending. It has cut spending in an attempt to placate the Trioka overlords since it came into power.
Greek Prime Minister Alexis Tsipras and Greek finance minister, Yanis Varoufakis came to realization early on that this was a debt that never could be repaid.
Now who put the Greeks in this situation?
Here’s a list and they are all equally culpable.
- Greek leadership at the end of the last century. They wanted to be included in the euro and would do anything to get it.
- Bulge bracket banks including Goldman Sachs and Deutsche Bank. These banks re-jiggered the astronomical debt Greece already had so that the country would qualify for euro entry. Debt became an assets, assets were monetized to get over the hurdle of being euro worthy.
- German and French leadership. They needed some patsies in the euro so that the currency would not get too strong and hurt the number of Mercedes Benz, BMW and french wine being shipped overseas.
Greece should never have been included along with a handful of eastern European countries.
So now its up to the voters, who I hope will see that a little pain that comes with a No vote is better that living under the jackboot of the Germans for the next 3-5 years until the euro really implodes.
I will say this about the US jobs numbers released Thursday. Recession confirmed.
The number of part-time jobs added in June surged by 161K, while the number of full-time jobs cratered by 349K.
Its ObamaCare and the economy. Why hire a full-time worker and have to pay benefits, when you can hire two part-timers and pay nothing.
If you believe that is too partisan, then it’s the economy that is has employers not comfortable in bringing on full-time workers.
The US is still 800K short of the number of full-time workers it had in 2007. Although you here the White House talking up the jobs recovery, waitresses, bartenders and home health care workers are not equal to manufacturing and businesses in full-time jobs with benefits.
Hence we will see muted growth with the possibility of negative GDP number for the second quarter at the end of this month, which by definition is a recession. But they will change that definition to accommodate their data.
Happy 4th of July