Posts Tagged ‘ government debt ’

An “Austrian” economist’s advice for Greece and the EU

July 14, 2015
posted by

Richard M. Ebeling The Daily Bell
by Richard M Ebeling  

"Greece's and the European Union's economic and political crisis will not be resolved through a new debt deal between the government in Athens and the European authorities. It will be merely one more stop-gap 'solution' to a problem whose nature is endemic to the current ideology and politics of State-Power and collectivism. Its real solution requires something deeper and more comprehensive: a revival of the classical liberal ideal of individualism and the economics of free-market capitalism." (07/14/15)

http://tinyurl.com/opj7kyy  

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It’s not just debt: Government spending and easy money fuel the Greek crisis

July 13, 2015
posted by

Frank Shostak Ludwig von Mises Institute
by Frank Shostak  

"[I]t is not debt as such that is behind the current crisis in Greece. Large government outlays and strong increases in the money supply are being ignored in most analyzes of the Greek crisis. Since early 2000, the underlying trend in the growth momentum of government outlays was heading up with the yearly rate of growth closing at 45.5 percent in March 2009. Since then, the trend in the growth momentum has been declining." (07/13/15)

http://tinyurl.com/oqwuet6  

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Greece today, America tomorrow?

July 13, 2015
posted by

Ron Paul The Daily Bell
by Ron Paul  

"Despite all the handwringing over how the phony sequestration cuts have weakened America's defenses, the United States military budget remains larger than the combined budgets of the world's next 15 highest spending militaries. Little, if any, of the military budget is spent defending the American people from foreign threats. Instead, the American government wastes billions of dollars on an imperial foreign policy that makes Americans less safe. America will never get its fiscal house in order until we change our foreign policy and stop wasting trillions on unnecessary and unconstitutional wars." (07/13/15)

http://tinyurl.com/p7a8boc  

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What Germany and Greece tell us about the future of Europe

July 13, 2015
posted by

Libertarian Alliance Libertarian Alliance
by DJ Webb  

"Greece weakened its hand by refusing to countenance an exit from the eurozone. Only by threatening to leave the euro and repudiate its debts entirely -- thereby crystalling in excess of €300bn in losses elsewhere in the eurozone, plus untold billions in credit default swap liabilities (insurance against a Greek default sold as a financial instrument) -- could Greece negotiate from a position of strength. That would require a willingness to undergo initial pain in the transition to a national currency, before fully regaining national control over their economic affairs." (07/13/15)

http://tinyurl.com/p9nafc3  

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The Greek deceit

July 13, 2015
posted by

Liberty Unbound Liberty Unbound
by Wayland Hunter  

"It's remarkable to me, the degree to which reporting on the continuing Greek crisis is sympathetic to the Greek government, whose intention is to continue stiffing its creditors, and hostile to the 'hardline' states (such oppressors as Germany, Finland, Slovakia, and Slovenia), who want to obtain some assurances that if they increase their subsidies to spendthrift Greece, the Greek government won't continue to lie to them." (07/13/15)

http://libertyunbound.com/node/1435  

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Greece: Regime agrees to tax hikes, cuts in pension spending

July 10, 2015
posted by

Miami Herald    

"Greece's government has agreed to longstanding demands by creditors to impose sweeping sales tax hikes and cuts in state spending for pensions. In the text of proposals sent by Athens, and seen by The Associated Press, the government concedes to demands it had previously resisted, mostly on moving various categories of goods and services to higher sales tax rates. The proposals were sent in a last-ditch effort to reach a deal with rescue lenders after the country's [politicians'] previous program expired and missed repayments to the International Monetary Fund, and Greece was forced to close banks to prevent their collapse under the weight of mass withdrawals." (07/09/15)

http://tinyurl.com/oj2ay36  

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O’Malley has right solution for Puerto Rico’s debt crisis

July 9, 2015
posted by

John Nichols The Nation Blog
by John Nichols  

"Puerto Rico is not Greece. But the United States commonwealth is confronted with a debt crisis. It faces the threat of a brutal round of austerity cuts, which could make a bad circumstance dramatically worse. If ever there was a moment that called for enlightened leadership that recognizes both the economic and social challenges facing the Puerto Rico, this is it. Former Maryland governor Martin O'Malley heard that call as the crisis began to come into focus last month and declared, 'As a nation we must help our fellow US citizens not only because it's the right thing to do, but because our region's economic stability depends on it.'" (07/08/15)

http://tinyurl.com/nnfy53r  

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Greece: Regime submits “rescue deal” request

July 8, 2015
posted by

USA Today USA Today    

"Greece has submitted its request for a rescue deal in the first step toward getting a new bailout. Michel Reijns, spokesman for Jeroen Dijsselbloem, the president of the Eurogroup of finance ministers, said Greece submitted the request for a new support program from the European Stability Mechanism on Wednesday morning, the Associated Press reports. ... On Tuesday, European leaders told Greece to reach a new bailout agreement with its creditors by Sunday or face bankruptcy and expulsion from the euro currency system." (07/08/15)

http://tinyurl.com/ogk9uwu  

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Greece’s IMF collapse shows America what default looks like

July 7, 2015
posted by

Heartland Institute Heartland Institute
by Kyle Maichle and Emily Zanotti  

"Americans can learn from the Greek default. The United States faces an $18 trillion national debt and a federal budget deficit of $439 billion, brought on by unprecedented government spending. As global financial experts struggle to pinpoint the exact genesis of Greece's troubles, it's clear excessive borrowing and unsustainable spending habits are to blame. The United States, with a debt to gross domestic product ratio of 71 percent, may have time before it faces a Greek-style economic collapse, but it's certainly repeating Greece's financial mistakes." (07/006/15)

http://tinyurl.com/owv9h79  

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Think Greece can’t happen here? You’re wrong

July 7, 2015
posted by

Michael D. Tanner Cato Institute
by Michael D Tanner  

"Most Americans look at the rerun of the Greek euro crisis with something between smug amusement and condescending disapproval. When will those profligate Greeks get their economic house in order and stop looking to others to bail them out? But, should people living in glass economic houses really throw stones? After all, just like Greece, the United States government has been living beyond its means, running up an enormous debt that will eventually need to be repaid." (07/06/15)

http://tinyurl.com/qjk22cg  

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EU bureaucrat: Greek voters “not legally correct” to tell us to go f–k ourselves

July 7, 2015
posted by

The Telegraph [UK]    

"Greece's referendum was not 'legally correct,' the European Commission has declared. Valdis Dombrovskis, the Latvian-born EU vice president responsible for the euro, said the vote had 'complicated' the work of the creditors and had left the Greek government in a weaker, not stronger, negotiating position. A write-down of Greece's [politicians'] €380 billion (£270 billion) debt mountain is now 'off the table,' he said." (07/06/15)

http://tinyurl.com/ordt7vu  

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Washington’s role in Puerto Rico’s mess

July 6, 2015
posted by

Cato Institute Cato Institute
by Nicole Kaeding  

"Puerto Rico's governor announced this week that the small island territory would be unable to repay its $70 billion in outstanding debt. The commonwealth is in its tenth year of a depression and is losing its tax base as thousands of residents relocate to the mainland for better economic opportunities. The Puerto Rican government, which has spent wildly, is principally at fault for the crisis. But Washington, D.C. deserves a large portion of the blame for Puerto Rico's mess." (07/03/15)

http://tinyurl.com/nmz8x9h  

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Greece: Poll shows two sides neck and neck before referendum

July 3, 2015
posted by

Lompoc Record    

"The brief but intense campaign in Greece's critical bailout referendum ends Friday, with simultaneous rallies in Athens for 'Yes' and 'No' supporters in what an opinion poll shows will be a very close race. ... Prime Minister Alexis Tsipras called the referendum last weekend, asking Greeks to decide whether they should accept creditor reform proposals in return for vitally needed bailout funds. He is advocating a 'No' vote on Sunday. But those proposals are no longer on the table after negotiations with European creditors broke down last weekend and Greece's bailout expired on Tuesday, meaning the country no longer has access to the rescue loans. The 'Yes' campaign says the referendum is in fact a vote on whether Greece wants to remain in the euro and in Europe. The government rejects this as scaremongering, saying a 'No' vote will put it in a better bargaining position and will not lead Greece to leave the eurozone." (07/03/15)

http://tinyurl.com/q5fvupt  

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The euro and Greek blackmail

July 1, 2015
posted by

Alberto Mingardi EconLog
by Alberto Mingardi  

"It might be worth remembering that, when Tsipras won elections a few months ago, the Greek situation certainly wasn't all happy -- but the IMF was estimating positive growth for this year. A few months of socialism and reckless blackmailing attempts by the European creditors have stripped Greece of any hope of returning to growth, however feebly, and have brought the country to the edge of disaster." (06/30/15)

http://econlog.econlib.org/archives/2015/06/the_euro_and_th.html  

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Too little too late for Puerto Rico’s debt crisis

July 1, 2015
posted by

Frank Worley-Lopez The Canal
by Frank Worley-Lopez  

"A crisis like the one Puerto Rico currently faces can be used by opportunistic politicians like Garcia Padilla to get elected or for his opponents to get their electoral revenge. It can also spur movements like ours to change the way things are done in a real substantive way." (06/30/15)

http://tinyurl.com/naucw4f  

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Greece: Regime will close banks for six days, impose limits on withdrawals

June 29, 2015
posted by

The Washington Post Washington Post    

"Greek citizens on Monday woke to shuttered banks and a closed stock market at the beginning of a fateful week that may determine whether they will be able to hold on to the euro currency. European markets were tumbling sharply after Greek leaders early Monday closed banks for six business days and imposed strict limits on ATM withdrawals, in a bid to stem bank failures as an international bailout was set to expire Tuesday. Greece's creditors and its leaders were poised to keep talking about whether there was any way to pull back from the brink of economic collapse amid anger and recriminations on both sides." (06/29/15)

http://tinyurl.com/omzkbkb  

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Puerto Rico: Padilla warns that politicians can’t pay bills they ran up

June 29, 2015
posted by

Fox News    

"Puerto Rico's governor believes the U.S. territory will not be able to pay back its $72 billion public [sic] debt, a spokesman told the Associated Press late Sunday. Gov. Alejandro Garcia Padilla's spokesman, Jesus Manuel Ortiz, confirmed that the island's government is seeking to defer payments while negotiating with creditors." (06/28/15)

http://tinyurl.com/oh5bdyn  

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Greece: Regime offers new proposals to avert default

June 23, 2015
posted by

Reuters    

"Greece took a step back from the abyss on Monday with the presentation of new budget proposals that euro zone leaders welcomed as a basis for a possible agreement in the coming days to unlock frozen aid and avert a looming default. European Council President Donald Tusk, who chaired an emergency summit of leaders of the 19-nation currency bloc, called the Greek proposals 'a positive step forward.' He said the aim was to have the Eurogroup finance ministers approve a cash-for-reform package on Wednesday evening and put it to euro zone leaders for final endorsement on Thursday morning." (06/22/15)

http://tinyurl.com/ob2t5h6  

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Euro falls amid Greek standoff, dollar up ahead of Fed

June 16, 2015
posted by

Reuters    

"The euro fell on Tuesday as it appeared more likely that debt-stricken Greece would default or have to leave the single currency, while the U.S. dollar rose at the start of a meeting by the Federal Reserve. Stocks mostly rose on the day, with shares in both Europe and the United States rebounding after a two-day decline, though the uncertainty surrounding Greece limited gains." (06/16/15)

http://tinyurl.com/o5u7p6t  

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Should we dump the euro?

May 26, 2015
posted by

Mises Canada
by Frank Hollenbeck  

"The Greek drama continues to unfold with the risk of a 'Grexit' becoming increasingly likely. Yet, a large majority of the Greek people want to keep the euro. This would force the Greek government to live within its means, which isn't a bad thing. With anti-austerity parties gaining strength continent wide, Greece may be the first, and not the last, to leave. Yet, the problem in Europe is not the euro, but excessive government regulations, spending, and taxation." (05/25/15)

https://mises.ca/posts/articles/should-we-dump-the-euro/  

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Interior minister: Greece hasn’t got cash for IMF repayment

May 25, 2015
posted by

Reuters    

"Greece cannot make debt repayments to the International Monetary Fund (IMF) next month unless it achieves a deal with creditors, its interior minister said on Sunday, the most explicit remarks yet from Athens about the likelihood of default if talks fail. Shut out of bond markets and with bailout aid locked, cash-strapped Athens has been scraping state coffers to meet debt obligations and to pay wages and pensions. With its future as a member of the 19-nation euro zone potentially at stake, a second government minister accused its international lenders of subjecting it to slow and calculated torture. After four months of talks with its euro zone partners and the IMF, the leftist-led government is still scrambling for a deal that could release up to 7.2 billion euros ($7.9 billion) in remaining aid to avert bankruptcy. " (05/24/15)

http://tinyurl.com/mszwafh  

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Why government deficits and debt do matter

May 20, 2015
posted by

Richard M. Ebeling The Daily Bell
by Richard M Ebeling  

"Politicians have been able to offer more and more government spending to special interest groups to obtain campaign contributions and votes in the attempt to be elected and re-elected to political office. They can offer benefits in the present in the form of new or additional government spending, but they no longer have to explain where all the money will come from to pay for it. The 'costs' of that deficit spending is to be paid for by some unknown future taxpayers in some amount that can be put off discussing until that 'some time' in the future." (05/19/15)

http://tinyurl.com/myjvpvd  

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Greece: Debt deal within next week, says Varoufakis

May 19, 2015
posted by

BBC News BBC News [UK state media]    

"Greek Finance Minister Yanis Varoufakis has said he expects an agreement with the country's international creditors within the next week. Greece is fast-approaching bankruptcy and is due to make a payment of 1.5 billion euros to the International Monetary Fund (IMF) on 5 June. Mr Varoufakis told Star TV a deal with creditors was 'very close' and denied the country might leave the eurozone. Another currency is not on our radar,' he added. The Greek government, EU and IMF have been locked in negotiations over economic reforms they say must be implemented before the latest 7.2 billion-euro tranche of the country's bailout fund is released." (05/18/15)

http://www.bbc.com/news/world-europe-32790726  

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The welfare state needs abolition, not “reform”

May 7, 2015
posted by

Doug Bandow Cato Institute
by Doug Bandow  

"The United States is effectively bankrupt. Economist Laurence Kotlikoff figures the government faces unfunded liabilities in excess of $200 trillion. Making the programs run more efficiently would be helpful. But only transforming or eliminating such programs will save the republic. The left likes to paint conservatives as radical destroyers of the welfare state. If only." (05/07/15)

http://tinyurl.com/kxxdagj  

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How the Republican budget cons conservatives

May 7, 2015
posted by

Our Future
by Bill Scher  

"In March I asked 'Are Republicans Insane Enough To Propose a Balanced Budget?' because balancing the budget in 10 years without any tax increases would mean embracing politically suicidal cuts. The answer: Yes, they are! Republicans not only proposed it, they passed it, with the support of every vulnerable incumbent senator up for re-election next year. I've already discussed the risk this radical budget puts on those swing-state Republicans. But there's another risk to the GOP. That the conservatives in the Republican base soon realize this budget is a con." [editor's note: Yes, you're reading that right. This genius thinks that ONLY TAKING TEN YEARS to start spending less than they take is a mark of "radicalism" among politicians - TLK] (05/07/15)

http://tinyurl.com/logw52a  

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