Sunday, May 23, 2010

Greece is a Giant Ponzi Scheme -- and We Just Bought In

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Steven R. Earle is the former chief executive of AirSea Lines International Canada Ltd., who tried to start up a seaplane service for the Greek Islands.  His experience in the Greek guaranteed-employment culture led him to write an article, excerpts of which are below:

...I can conclude there is no bailout solution for Greece because the Greeks and their unsustainable beliefs and practices are not fixable under a bailout situation. As a start, their entire political and economic system is designed to bleed foreign investor corporations, banks and other nations of cash. In effect, debt, financial aid, development funding and the acquiescence of others to their faulty system is part of their business plan. The politicians do not see the debt as being debt. They see it as income. The Greek state accepts money it cannot, will not and never had any intention to pay back. It is a hybrid of a Ponzi scheme, a beggar and an addicted relative.

Think about it. On the surface, they accept money on promises to act in a certain way, pay it back with return, and act a good steward of the funds. However, any funds they do pay back have been paid back with other debt. Now they have no one else to feed the pipeline and it all collapses. This is a Ponzi scheme. As evidenced by GDP per capita, there is no productivity created with the funds which would be necessary to pay back the money, and as such, like many heavily in-debt people, they kite debt to stay afloat until they cannot, and they go bankrupt or to jail.

Giving money to Greece is like giving money to Bernie Madoff even after his fraud was exposed. Why is 0bama doing it?

Read the whole article here: http://network.nationalpost.com/NP/blogs/fullcomment/archive/2010/04/28/greece-is-one-giant-ponzi-scheme.aspx#ixzz0omqCUgCW
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