Wednesday, February 19, 2014
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Recession at 3 5 in Q2 the greater situation right now
The second quarter of the year had a severe recession of 3.5% - officially. Unofficially it is probably higher than 7%. Most sectors experience contraction of over 10-15%. The only "good" thing affecting the recession indexes is the trade balance which has less imports than Q2 2009.
Initially, when the government published its budget in year-end 2009, it had forecasts for around the same GDP. Then it revised it to -2% and then to -4% with the IMF+EU memorandum. It may go higher than that still.
Ordinary people are struggling with their daily expenses, taxes, reduced business etc. A lot of cars are left parked while people dont have money for gasoline. Big taxes have hit a rate of diminished returns and government income projection is failing due to over-taxation and recession. People simply cant give what they dont have.
Expenses are higher, taxes are higher, consumption is lowered and many small businesses are forced to shut down. It is anticipated that over 100.000 small businesses will shut down in 2010 (!).
In the absence of large-scale industry, the backbone of Greek businesses has traditionally been small-scale businesses, usually family owned. It seems theres something like a greater plan of extinction where all autonomous businessmen will have to become beggars of jobs, instead of job-givers. In a sense, the whole market is shaping its parameters in such a way that, given enough time on the same course, people will all gradually turn employees of big multinational companies - which will own all and everything. It may sound like an exaggeration but at this point most products on grocery shops for example, are currently produced by ex-Greek companies that have been bought by foreign capital. Greek shipping lines are partly owned by foreign capital. Telecommunications, transport etc, foreign capital too. Even banks are being encouraged to do mergers with foreign banks so as to shift their ownership.
The long term implication is that by sending all profit from commercial transactions abroad, the country will be engaged in an ever increasing downward spiral of povertization.
In the meanwhile the media heavily under-report the rate of economic suicides that has taken the form of a "plague". A 32 year old man committed suicide the other day for not having 120 euros to pay his mortgage (!). What is happening is really tragic, in this regard.
Recession at 3 5 in Q2 the greater situation right now
Initially, when the government published its budget in year-end 2009, it had forecasts for around the same GDP. Then it revised it to -2% and then to -4% with the IMF+EU memorandum. It may go higher than that still.
Ordinary people are struggling with their daily expenses, taxes, reduced business etc. A lot of cars are left parked while people dont have money for gasoline. Big taxes have hit a rate of diminished returns and government income projection is failing due to over-taxation and recession. People simply cant give what they dont have.
Expenses are higher, taxes are higher, consumption is lowered and many small businesses are forced to shut down. It is anticipated that over 100.000 small businesses will shut down in 2010 (!).
In the absence of large-scale industry, the backbone of Greek businesses has traditionally been small-scale businesses, usually family owned. It seems theres something like a greater plan of extinction where all autonomous businessmen will have to become beggars of jobs, instead of job-givers. In a sense, the whole market is shaping its parameters in such a way that, given enough time on the same course, people will all gradually turn employees of big multinational companies - which will own all and everything. It may sound like an exaggeration but at this point most products on grocery shops for example, are currently produced by ex-Greek companies that have been bought by foreign capital. Greek shipping lines are partly owned by foreign capital. Telecommunications, transport etc, foreign capital too. Even banks are being encouraged to do mergers with foreign banks so as to shift their ownership.
The long term implication is that by sending all profit from commercial transactions abroad, the country will be engaged in an ever increasing downward spiral of povertization.
In the meanwhile the media heavily under-report the rate of economic suicides that has taken the form of a "plague". A 32 year old man committed suicide the other day for not having 120 euros to pay his mortgage (!). What is happening is really tragic, in this regard.