Tuesday, July 21, 2015

Tax and Spend

With this punitive Greek deal, Europe's rulers are destroying the euro, supposedly to save it.
"Now no one in their right mind could think that lending another $96 billion to an utterly bankrupt country makes any sense whatsoever. After all, the Greek economy has shrunk by 30% since 2008 and is wreathing under what is objectively a $400 billion public debt already in place today."
This is about survival for the rulers.
"So even before the latest dose of Troika economic punishment further debilitates its economy, Greece at this very moment has a de facto public debt of $400 billion sitting atop $200 billion of GDP." 
Punishment is the key observation.
"No, the problem is the rampaging printing press of the ECB. The latter has fundamentally falsified the price of debt, and thereby unleashed throughout Europe a deadly brew of phony economic growth in the early years and then egregious fiscal profligacy when the growth bubble cratered after the 2008 crisis."
No surprise.

Planned Parenthood received over half a billion tax dollars annually.

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