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Old 03-05-2010, 01:20 AM   #9
peaceandlove
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Join Date: Sep 2008
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Default Re: Bailing out the Greek economy futile, says FRENCH banking chief

Greece Gets Told To Bite It

Thursday, March 4. 2010
Posted by Karl Denninger

Greece is now whining that their "austerity" should bring gifts - from Germany: http://www.bloomberg.com/apps/news?p...d=az5SbvZ.sR9A
“We have fulfilled to the utmost all that we must from our side; now it’s Europe’s turn,” Papandreou told his ministers, according to an e-mailed transcript. “It is a historic moment for the European Union.”
No it's not.

Honest accounting is its own reward. So is fiscal prudence.

You're owed nothing Greece.

More importantly, there's no money. Not just there - here too. Witness the layoff/hirebacks in California and New Jersey's new governor - the latter who told the truth for the first time by a state politician in 30 years.

You wouldn't know it from the pumper brigade on Tout TV, of course. They claim it's all getting better.

Really?

Borrowing and spending 9% of GDP by the government to falsely inflate final demand is "getting better"?

No, it's hiding the truth, and while it can continue for a while, just as you can do the same thing if you lose your job, continuing to run up your plastic until your credit card company figures out that you lose your job and will never pay them back, so can governments.

Unfortunately instead of solving the problems in our economy and financial system - which would have resulted in the bankruptcy of some very powerful people and firms - we decided to lie.

Just like Greece, just like Italy, just like the rest of the world.

Politicians are very good liars. Indeed, it's pretty much all they do.

But irrespective of how much you want to lie, or how much you do lie, at the end of the day when there is no money left what your "balance sheet" says you have is immaterial.

Only cash pays the light bill my friends, and the cash is insufficient to cover the demands of those who want to suck on that government tit.

This is math - not politics.

SOURCE: http://market-ticker.denninger.net/a...o-Bite-It.html
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