The Drachma

[David]

The last few things that have been written are all relevant and true. Just a couple of things to add. If you think it was only German Banks that profited read a book called " The Greatest Trade Ever". It's scares the living day lights out of you, to see how these people can make nothing tangible yet can make billions of Pounds/Dollars/Euros at others expense. They create money making schemes just to milk more out of it. In answer to Snoopy2, If they weren't listening to the man on the street they wouldn't have done a 'U' turn on the pasty tax and on the static caravan tax. In response to D and E; 2 will work, IF but only IF the private sector can create enough jobs. We know what happens when the public sector workforce becomes too big. Finally Kon the world did not come to the end when Argentina defaulted it's debt, it wasn't as big and it wasn't tied to something like the euro. And finally, finally if you get a chance read Adriana's posting from ekathimerini. The bottom line being out of the 1st 142 billion bailout all but 44 million has gone to pay back loans etc!

[snoopy2]

Ah well David - we all know what happens when the fat man waters the workers' beer and dares to put up the price of his pasty and his caraven costs. Pity the mass voice didn't rise more often!

[MacDuff]

I agree that if the original Euro group had stuck to their rules several of the other countries would not have gained entry to the Euro zone. The position however is as it now is and the question remains for those who would pursue Keynsian economics, who is going to supply even more money to those wallowing in debt? The Canadian private sector is in general doing fairly well - reasons include reduction of corporate taxation which has encouraged investment and growth, coupled with a healthy banking sector - Canada did not have to bail out a single bank thanks to regulations and our banks are recording profits.

[D and E]

Well MacDuff I am sure you agree there is plenty of money out there - as you say Canada is doing well, as are other emerging economies, especially those with improving access to scarce natural resources. Perhaps what is needed is a more philanthrepatic approach rather than the greed ridden approach of the outright capitalist philosophies so beloved of the financial institutions. Profit is not the only motive in this life and I am pleased to see a growing awareness of this throughout the world., especially in the younger generations. We can but hope.

[D and E]

It seems the views in this string that tend towards a demand led recovery are supported by no less than George Soros - for those that can, check out today's article on the BBC online site.

[MacDuff]

Sorry, I have been in abstentia. First, I must say D and E that Canada as a member of the G8 is scarcely an emerging economy. Capitalism is not necessarily associated with greed. Despite the challenges of a multitude of private owners driving the economy, it is preferable to that of being controlled and driven by the state a system which like fascism degenerates into dictatorship. Spending half my life in Cuba and the other half in Canada, provides me with the opportunity to view and experience both systems. My original question of May 10 may well be answered very shortly. Blame will doubtless be allocated by each of the responsible contributors to the mess, to the others - that's politics. But if Greece leaves the Euro the effects upon Greeks will be dire - falling property prices, falling employment and much misery. For the rest of the world it spells long term economic malaise. The decision being taken by the Greek people at the ballot box will affect all of us.

[D and E]

Membership of the Euro is doing very little for Greece with Germany and the free marketeers bully boy tactics. If it was a true union then the desire to help Greece would be paramount rather than the stupidity of charging high interest rates as part of the bail out. Greece needs a long term low cost solution not the profiteering loanshark policies that are being forced upon them.
I see Canada is having its own problems with students rioting over excessive tuition fees. It seems that nowhere escapes the failing global economy caused by the tangled web that financiers weave.
By the way I am a proponent of mixed economies where the excesses of the private sector can be countered by the public sector.
I have never been fortunate enough to visit Cuba but one day perhaps.

[MacDuff]

Those who are lending the money have to assess risk. Before we criticize them, we have to ask ourselves whether we ourselves would be prepared to lend our own money to Greece following their profligate policies of the past - and if the answer is "yes", what interest rate we would charge? Yes D and E it is correct that students and others in Quebec have been marching and rioting about their Provincial Liberal Government announcing that it intends to gradually increase their academic fees over a period of five years - at the end of which they would still be lower than those in any other province. There appears to be much support by the public for that Liberal government. At the last Federal election Quebec votors ceased their support for the separatist Bloc Quebequois and switched to supporting the NDP (Socialist)Party. In consequence the NDP became the official Federal opposition party with over 50% of their MPs being from Quebec and replacing the Liberals. As Quebec is a net recipient of Federal funding under the equalization policy, they would be poorer out of Canada than within it. We in Alberta provide much of those equalization payments. Our student fees are considerably higher than those of Quebec and our students are not rioting! We in Alberta do not object to helping to support Quebec even although their departure from Canada would result in a much higher percentage of Conservative voters in the remaining Canada. I suppose it is similar to the UK position where the absence of Scottish MPs would almost ensure a permanent Conservative majority at Westminster - I think I am correct in saying that Scotland elects only one Conservative (Wigton). The excesses of the Federal public sector here are such that they are to be trimmed by over 19.000. To other matters - at last! Cuba - all subscribers to this site are welcome to contact me directly if they are contemplating a visit - prior to deciding exactly where they wish to go or booking a trip to one of the resorts. But remember I usually spend mid July to mid October and late December until mid-late April in Cuba when thanks to the regime, I like Cubans, become incommunicado. But it is a fascinating country and I would love to sit and discuss PPE with any of you - there being first-hand conditions to debate. Having last visited the UK in 2008, I am looking forward to travelling there in August - it will also be interesting to observe my wife's reactions as she has never previously left Cuba.

[D and E]

I do hope the weather improves for you and your good lady by August. June looks likely to be the wettest on record with flooding all over the country over the last coupe of weeks. This is becoming an annual problem and I fear is to do with climate change. Take care.