It is the Economy - Stupid.

by Ginosar  

The deep financial problems of  Greece have resulted in riots and even killings in Athens. This is the result of living with lies for a long time. The Greek for too long lived as if there is no tomorrow. Their productivity is very low. They want a very easy life, with very early retirement, and enjoy life. The problem is the Germans do not want to pay for it. And I can't blame them.


The Greek government falsify its financial data to mask its dire financial situation from the European Union. The EU and especially the German public is angry at being forced to pay to rescue Greece from major financial collapse.


The evidence in Greece were not hidden. I knew that few years ago when my daughter lived in Greece for several years and the Greeks were starting their preparations for their Olympics. There is no place here to write all the economic incompetence of Greece, but it was clearly evident then that they could not afford the ten billion dollars to prepare for the grandiose Olympics they wanted. With a very small national economy, with inability to work efficiently and productively, with incompetent management and lazy workers, you could see the writings on the walls. They were beyond their means. They could not afford this extravagance but their national pride forced them to show to the world how great Greece is. That spending beyond their means was one of the main nails in their financial coffin.



What does this have to do with global warming? A lot. First, all of us who want  greener energy and a greener economy must realize that it will cost a lot of money. Fossil fuel are cheap partially because they do not include the environmental damages they are causing all over the world-vast amounts of Carbon Dioxide -CO2 emissions that are the main cause of global warming.


We will have to make sacrifices to reduce expected damages from the global warming. We can do it. Instead of enriching hundreds of thousands of financial employees, real estate and financial analysts, we will have to redirect our country towards more energy efficient economy based on tighter rules.


We do not like rules and constrains in our country. We want to be free to do what each of us want. That is the same approach the Greeks have been taking, and we too for many decades.

The Greeks ignored reality and lived high, for a while. We have ignored realities, one of which is the "externalities," the damage caused from our wasteful use of energy. The price of energy is artificially low since we have not paid for the severe environmental damages caused from burning fossil fuels.



We have been playing similar financial games in the US and around the world for many years. We have also hidden key facts from governments, and from the public, but because our economy is so large we have been able to muddle through to date. We are not in the same sinking boat the Greeks are sailing now, but we have the same mentality when the financial institutions controlling our economy are playing unproductive financial games, grow from 6% of the US economy to 20%; produce a third of corporate income and make a very narrow section of the public very wealthy while causing millions of unemployed. And all of this false wealth have not created anything. It is based on shuffling of highly leveraged money all around, and at each stage some one is taking a percentage for profit.

 

Almost every one is angry, how could they lose their stock market gains, the inflated value of their home? Our wealth was false, it was not based on real economic gains. It was a Monopoly game.


We have forgotten that the elevation of millions of workers to the middle class created the purchasing power that elevated the US economy to such a high level.


The public does not know enough about the financial bailout, its magnitude, and potential impact on future generations. So much is hidden, so much is under the table. Congress with its revolving doors with the financial institutions, and with the cooperation of the Administration keep us in the dark.


I wonder if there is any possibility that we will grasp that the Greek financial tragedy is a wake up call for us to look at reality and strip our economy from some of the major lies, and falsehoods we have swept under the rug.


 

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