So the Greek Prime Minister George Papandreou has the Euro Union offered bailout package up for public referendum he has. Oh does this conjure up visions of Marie-Antoinette the Queen consort of Louis XVI when she was told that the French populace had no bread to eat? As “let them eat cake” then rang throughout the land as her words echoed in time.
As is this what George is doing now? Well just think of it this way, you have a populace who have become accustom to suckling from the “social tit” and stubbornly refuse to be weaned off in leu of the alternative. Yes, Greece is a fascinating micro economic drama for the rest of the world to watch has its coming your way next (most likely).
As just pick up an Economist Magazine and flip to the back and look at the Current Account data, as Greece is sitting at a -30 billion. Then look straight to the top and what do you see? Yes it’s the United States of America “The” Super Power and what’s the number? Ok, go ahead read it aloud for everyone to hear, what is it again? Yes your right -469 billion, whoa is that a big number or what?
What, I can just hear those “social tit” sucklers out there saying, “hey wait a minute, the ole US of A is SO much bigger then Greece, no fair!”. Well to that I say, run your finger over the page to the part where it says Budget Balance of GDP and you will see its -9.1%. Now, run your finger down to Greece and what do you see? Yes, that’s right, -9.1%, so their “budget” which got them to where there at today is the same ratio as the US of A.
Question, does anyone see that as a problem? Then look at some of the major Asian economies, or oil producing countries and what do you see? Yes, those are big numbers and it means we (the US as well as most western countries) are becoming [hard] cash poor. In cash “poor” I mean out of cash, as in the days of old say the 60s we were pretty much a closed economy where a dollar spent in the US stayed in the US. Yea there was Japan, however they were small fry and they bought their resources from the west so most of the money came back anyway.
Then the 70s came with it the growth in foreign oil which was a one way trip for the dollar as unlike the Japanese example there was no reason for this money to come back. Save for maybe the occasional tank or fighter jet for the kicks of the local government. Now we’ve moved past oil to daily goods from China and again unlike the Japanese example, China isn’t buying the natural resources from us. Instead they are coming from Africa and South America, so again the money in this open loop system is not coming back to the western countries.
Is this a problem you bet especially as consumption’s aren’t tailing off to match this reduced volume of cash. This is why you are seeing growth in social programs which in turn are simply speeding up the enviable…