All countries on path to bankruptcy
The key driver for state bankruptcy and currency collapse is the amount a country owes or is liable to foreigners
The only reason that people who work for a living support a government is that they expect their government who collect a percentage of their incomes through payroll deductions expect their government to provide them with basic social services. These benefits are not the largess of government or a tax on the rich, they are services that working people have paid for. If our government has lost our money by investing it in private corporations then we expect our government to recover the losses through cuts and increased taxes on those who benefited; not the workers. The Greek people are simply demanding that their government be just and fair. Who wants to return to feudalism?
People will say it is basically about borrowed money. Borrowed from whom? Banks. Why do banks have all this money? Do you think it comes from service charges? From interest rates on car loans? What about taxes? How much do you think banks pay in taxes?
We have a government who is taxing the people to death for a sum that is not enough to do all the things they are supposed to do, and borrowing from people who have all the money, but don’t get taxed.
This is a sinister variant of feudalism. The rewards of labour go in one direction: only Up. The Russian revolution, the French Revolution, the Chinese revolution, the American revolution were all results of the people saying “That’s it. No more.” The scenarios they faced are now being propagated on a global scale. It may take a few years; it may take a few decades, but the system in place right now is not sustainable, because it depends on the co-operation of a population who are being victimized by the system. And eventually, victims fight back.
When it comes to public debt, many attempt to distort the picture by bringing up different factors but in reality there are only 2 groups responsible: The bankers who lend and those who borrow (different levels of government)s. The third group, which consist the overwhelming majority of people on this planet are the victims who asked to repay the legalized financial fraud.
Global Sovereign Debt Crisis, Country Bankruptcy Relative Risk of Default
Mar 30, 2010 – 12:47 AM | Market Oracle
All countries are on the path towards bankruptcy, to measure where a country stands along this path it is critical to look beyond official statistics that focus primarily on public sector net debt and the annual budget deficit in terms of % of GDP.
The key item missing from most commentary on this subject matter is debt and liabilities that are denominated in foreign currencies as that can mask a stealth trend towards potentially imminent bankruptcy that can suddenly blow up in the face of a countries citizens who had been previously mislead by official statistics into thinking that the debt situation was under control, much as Icelanders experienced during 2008 where one day they enjoyed one of the highest standards of living amongst westerners to next day wake up to be bankrupt and poorer in terms of purchasing power than many third world countries. The key driver for state bankruptcy and currency collapse is the amount a country owes or is liable to foreigners, as debt denominated in foreign currencies cannot be inflated away as governments can do with domestic debt so it is one of the primary driving forces for a country going bankrupt as it is unable to meet the increasing interest payments due in foreign currency as its own currency falls. Read the rest from Market Oracle