Posts Tagged ‘Greece’
Liquidity is meant for the Internal market. Competitiveness is for External market?
Posted April 16, 2014
on:Liquidity is meant for the Internal market. Competitiveness is for External market?
Should the level of “Life-Style” be the same among the competitive and the challenged productive states within a Union?
This is not a fair condition to impose on States that managed to sacrifice and work hard for better life conditions.
States in financial crisis must have ready lists of 4 categories of enterprises:
1. The public institutions that are critical in the smooth transmission of liquidity to the various economic sectors
2. The mixed State/Private entities that have locations in many regions of the State and employ many citizens
3. The nationwide private companies
4. The medium and small productive companies that serve their local provinces
It is well know that medium and small productive companies constitute 70% of State production that cater for the internal market needs.
Any shortage in liquidity in these small private companies and employment hit the roof and the citizens experience shortages in most commodities.
Giving priority to the local economies in the distribution (infusion) of liquidity is the first step in preventing mass unemployment.
There are public economic sectors that cater to the general public needs, such as energy, water and transportation… and the stabilization of these functional sectors in matter of maintenance is another urgent priority.
Before the internal market is reinvigorated and underway, it is of no use planning for the export sections to external markets in order to get the influx of “hard currencies”
Stability and security are the basis for a shift toward State development.
Having the autonomy to print money in period of liquidity shortage is the key for stabilizing the internal market.
The disadvantage resides in the society structure that favor the oligarchy and wealth disparity that eliminate the benefit of printing more money.
The crisis in Greece, Ireland, Portugal, Spain and Italy have demonstrated that it is a priority that a State has to reform its public service institutions to discard redundant and politically influenced service appointments.
Without a drastic realization that the political structure should be reformed, and for actually feel the pain associated with uneven equal rights to jobs and opportunities in the institutions, all the remaining reforms will be within the “patching” process.
The crisis in Greece was deep rooted because it lacked the two preconditions: Lousy political structure and not having the right to print money.
Ireland, Portugal, Spain and Italy had political structures that could remedy to the “unfairly” political conditions and to reform the system within the single Euro currency.
The EU has learned the lesson:
1. First, the State that asks to join the union zone must demonstrate that it is serious to undertake political reforms and the structure be designed to react in timely manners to situations of political reforms.
Many States have been included based on historical and ideological “myths” that didn’t match their current unstable realities.
The EU dominant responsibility is to gradually transform the States who applied to join the union into politically viable structure.
The States in waiting must acknowledge that it takes time to achieve stable and valid political structure.
How a poor and unstable State can become competitive in the external market? This is an impossible condition to withhold liquidity infusion that is meant to support local companies.
The “productively challenged States” in the Euro zone should not expect the same level of life-style as the most competitive among them.
And equal rights in life-style is not an equitable and sustainable demand on State basis.
China displacing Europe in Greece
Posted October 4, 2010
on:China has officially visited Greece last week and signed 11 economic agreements. China has secured the management of the main Greek port of Piraeus for 35 years in return of investing $700 million for building a new extension and modernizing the port. The Greek vice premier declared: “China invests in real money and is not like Wall Street using faked paper money. China invests in palpable business matters and do commerce in real objects and trading goods. China will aid Greece in a tangible economic development of its infrastructure.”
Chinese tourists are already invading the Greek islands.
The executive manager of the Chinese giant maritime company Cusco declared: “We have built the nest so that the eagle investors in China will find a place to come to. This is how we contribute to the interest of both countries.”
Jealous Japan decided to increase its investment in Greece with $34 billion in order to compete with the Yellow Dragon. Europe is understandably very worried. Jonathan Wood said in London: “Europe is apprehensive of trade imbalance with China. Europe might be in the same position as the US in trade imbalance with China.”
China has already taken over Sudan investing in oil, gas, agricultural lands, forest, water, and mineral resources while the US was busy playing war games in Iraq and Afghanistan. The US had 50 years to befriend Sudan but considered this outstretched super-undeveloped country as a reserve land to fall back to when needed. The US may try to resume destabilizing Sudan in the short-term, but the game is over: The US can benefit to negotiate with China to becoming a major subsidiary in Sudan’s wealth.
The central bank of China is siting on a monstrous pile of liquid money and has to turn it over quickly: “The price is not a problem” with this much devalued Yuan.
Persia/Iran civilizations: Achemenide Dynasty (Part 2, February 26, 2009)
There are no Persian historical accounts of antiquity Achemenide Persia Empire. Most of the stories are excerpts of biased Greek accounts, mainly of the Greek historian Herodotus, and some chapters in the Old Testament. Archeology would like to say that tribes in Afghanistan and Central Asia moved to south east Iran around 1000 BC of what is called Fars. The Babylon and Assyrian Empires mentioned the Kingdom of Elam with Capital Suse (Khuzestan by Iraq) that bordered Fars. Cyrus established his Kingdom “Anshan” in 557 BC that spoke the Elam language and in cuneiform writing.
Cyrus conquers the Kingdom of Medes (North of the Zagros mountain chains) in 550 and the Kingdom of Croesus in Turkey in 546. Babylon and the Near East Kingdoms are vanquished in 539 and pursue his military advances toward Bactrian (current Afghanistan and part of Central Asia). Cyrus allowed the Jews in “captivity” in Babylon to return to Judea; the poorer Jews returned and Cyrus funded the reconstruction of their temple. It was during that period that the Jewish Old Testament was initiated in writing and then completed many centuries later after Christ. Cyrus’ son Cambyse conquers Egypt and Darius I expands toward the Indus River regions. The north of Greece in Thrace and beyond the Danube River is part of the Achemenide Empire.
The administration of this huge Empire was very structured and divided into Satraps (about 20 of them) of local elites and Kings. The governor of Satrap (protector of the power) was administered by the central powers in Suse, Ctesiphone, Ecbatane, and later Persepolis in matter of Imperial Army, finance and taxes. The Imperial decrees were translated into the Aramaic language, the most widely local language outside Persia. The Persian Emperor moved from one capital to another to satisfy the yearly calendar of rituals of the Ahura Mazda religion. The Satraps were to meet the Emperor visiting their lands and the population offered what they produced such as milk, cheese, dates, and fruits of the season for sumptuous banquets that lasted 7 days and nights; about 15,000 were invited to share in the banquets. Every year, during the anniversary of the coronation of the monarch a special banquet is thrown and the monarch offered gifts and perfumed his head. The custom would not permit any demand or request to be denied. This custom was adopted by the Satraps and it became a tradition in all courts; Herode could not deny Salome her request for the head of Jean the Baptist.
When Alexander occupied Damascus after the battle of Issos they inventoried the residence of the Imperial Persian Artaxerxes III; there were 46 braiders of crowns, 14 manufacturers of perfumes, 329 female musicians or royal concubines (pallakai). The monarchs were to create, design, and plant royal gardens called “paradeis”
The route of the Imperial caravan was well defined from start to finish and horses were ready at every station. The Imperial army needed 30 days to cross from Suse to Persepolis and it was a true migration of thousands of people. When the monarch dies all the fires in Ahura Mazda temples were put out. The new monarch was enthroned in the town of Pasargades and in the shrine of Goddess Anahista, 60 kilometers off Persepolis. Meticulous and detailed ceremonials of all sorts are obligated on the monarch.
Alexander of Macedonia subjugated Persia in 331 but he did not change anything in the political structure of this well organized and administrated Empire; he even adopted the luxury and ceremonials of the Persian monarchs which angered the Macedonians soldiers greatly. Seleucus, one of Alexander officers, finally inherited the Persian Kingdom after many decades of infightings but short of Greece and Egypt. Pretty soon, the Satraps recovered their autonomies.