Scanlyze

The Online Journal of Insight, Satire, Desire, Wit and Observation

I don’t see the problem with a Greek default

I don’t see the problem with a Greek default, return to the drachma, devaluation, and reconstruction. The default means some big hedge fund folks will lose billions. Cry me a river. C’est la guerre.

Russia defaulted in 1998, and it is getting near default conditions now due to western sanctions.

Argentina defaulted in 2002, but now has brought 93 percent of the defaulted bonds out of default in the 2010 debt restructuring.

Cyprus defaulted on sovereign bonds in 2013.

A small country like Greece defaulting shouldn’t be a problem for the world community. It will be painful enough for Greece without deliberately trying to undermine the left-wing and technocratic and intellectually competent government or to punish the people as a whole for their democratic vote.

As a younger nation, the USA suffered repeated economic collapses and national bank failures. The Panic of 1819. The Panic of 1837 and the collapse of the Second Bank of the United States. The Panic of 1873. The Panic of 1907. The collapse of the Bank of the United States (a private bank) in 1931 which started the Great Depression. Please some lessons learned people. This isn’t something which never happened before and means the Greeks have to be ostracized. The market will punish them for a default. Unless and until they redeem the defaulted bonds, Greece will pay a premium on any future debt it issues.

If the capitalist leaders actually understood and believed in liberal capitalism they would let things take their course and let those who made bad investments eat the losses. And if they were wise social democrats the would make a safety net to bring Greece back to full employment and a favorable balance of trade and payments. What we are seeing from the EU and the international bodies is more akin to mercantilism.

Trying to force a Greek collapse to punish them for defaulting on some bonds is quite stupid and petty. And did the walruses of the right really see off Yanis Varoufakis because he was way cooler then them, actually understood economics, and said snarky meanspirited things about them? Boo hoo.

Copyright © 2015 Henry Edward Hardy

7 July, 2015 Posted by | capitalism, default, Greece, panic, scanlyze, Varoufakis | , , , , , , , | Leave a comment

Blunder-headed US Republicans can’t find a way out of the mess they created

I continue to watch with astonishment at the juvenile, dunderheaded tricks the Republicans are playing.

First they force a shutdown of the federal government and the unimaginable scenario of unwarranted and unnecessary bankruptcy of the United States and subsequent collapse of the world economy to try to force the Democratic majority in the Senate to retroactively defund the Affordable Healthcare Act. Then they decide that defunding healthcare isn’t achievable. And declare they will continue the shutdown and forcing a default anyway!

That is demented, irrational, and verging on treasonous.

The 14th Amendment says that “The validity of the public debt of the United States, authorized by law, including debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned”

That is a Constitutional Amendment. It trumps what is in the main text of the Constitution and it certainly overcomes that of statutory requirements of the debt ceiling. The Constitution doesn’t require or impose a debt ceiling, the first one was passed as part of the 2nd Liberty Bond Act of 1917. The debt ceiling has no Constitutional basis, it is statutory law only.

Obama should announce that in accordance with the Constitution there will be no default and to the unruly house, impeach me and be damned!

Copyright © 2013 Henry Edward Hardy

14 October, 2013 Posted by | bankruptcy, default, economy, government, politics, Republicans, scanlyze, shutdown, stupidity, United States | , , , , , , , , , | Leave a comment