Thread: Greece Falls Into 'Death Spiral': Rising Debt, No Growth

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  1. #1 Greece Falls Into 'Death Spiral': Rising Debt, No Growth 
    PORCUS MAXIMUS Rockntractor's Avatar
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    Published: Monday, 3 Oct 2011 | 6:11 PM ET

    By: Reuters

    Drowning in red ink, Greece has nowhere to turn to revive the economic growth that might put its debt on a sustainable trajectory, reassure angry foreign creditors and offer hope to its recession-weary citizens.




    Instead, the country finds itself in a vicious circle—a death spiral, some would say—in which it is borrowing ever more to keep up on its existing debts, crushing growth in the process and thereby worsening its all-important ratio of debt-to-gross domestic product.

    Springing the debt trap would not be a miracle cure either: a manageable level of borrowing is a necessary but not a sufficient condition for Greece to start restoring competitiveness and resume growth after three years of economic contraction.

    "If there was a deus ex machina tomorrow and you halved Greece's debt-to-GDP ratio overnight, there'd obviously be a huge benefit in terms of cash flow," said George Magnus, senior economic adviser to UBS in London.

    "So you can alleviate the financial stress on Greece quite quickly and effectively, but I don't think that in and of itself means the economy is going to grow," he said.

    New figures dramatize Athens's bind. As recently as July, the International Monetary Fund was forecasting that Greece would eke out 0.6 percent growth next year. Just 10 weeks later, it reckons the economy will in fact shrink 2.5 percent in 2012 after a 5.5 percent slump this year.
    Read More>http://www.cnbc.com/id/44758520
    Who is next?
    How is obama working out for you?
    http://i686.photobucket.com/albums/vv230/upyourstruly/5d569df9-186a-477b-a665-3ea8a8b9b655_zpse9003e54.jpg
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  2. #2  
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    Quote Originally Posted by Rockntractor View Post
    .......Who is next?........
    Indeed. I am going to lose sleep over that question.
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  3. #3  
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    What? Socialism has another example of complete failure??? Say it isn't so. O Blah Blah and his moronic band of useful idiots want us to go down the socialist path in the face of past present and recent, and pending future Socialist failures.:mad:
    Education without values, as useful as it is, seems rather to make man a more clever devil.
    C. S. Lewis
    Do not ever say that the desire to "do good" by force is a good motive. Neither power-lust nor stupidity are good motives. (Are you listening Barry)?:mad:
    Ayn Rand
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  4. #4  
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    I know it sounds ridiculous, but I have run into liberals who don't think there is anything at all wrong with the economy of Greece.
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  5. #5  
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    Quote Originally Posted by Tipsycatlover View Post
    I know it sounds ridiculous, but I have run into liberals who don't think there is anything at all wrong with the economy of Greece.
    I heard that Greece's debt ratio is lower than ours!' :(
    Education without values, as useful as it is, seems rather to make man a more clever devil.
    C. S. Lewis
    Do not ever say that the desire to "do good" by force is a good motive. Neither power-lust nor stupidity are good motives. (Are you listening Barry)?:mad:
    Ayn Rand
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  6. #6  
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    Quote Originally Posted by AmPat View Post
    I heard that Greece's debt ratio is lower than ours!' :(
    Not yet.
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  7. #7  
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    Quote Originally Posted by AmPat View Post
    I heard that Greece's debt ratio is lower than ours!' :(
    Greece is actually 5th in the world in terms of GDP to Debt, at around 130%
    http://en.wikipedia.org/wiki/List_of...by_public_debt

    The U.S. is 37th at 92% if you use IMF figures.

    Check out who is #1 at 225%............And also notice that nearly all European nations are higher on the list than the U.S.
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  8. #8  
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    Quote Originally Posted by Tipsycatlover View Post
    I know it sounds ridiculous, but I have run into liberals who don't think there is anything at all wrong with the economy of Greece.
    Why do they think everyone is panicked about the country?
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  9. #9  
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    Socialism doesn't work? Get the F out of here! <removes lib hat>
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