Thursday, December 15, 2011

“we won't pay”

The people of Portugal aren't too happy with the Franco-German-lead EU and the ECB (Not to mention the IMF). Talk of 'nuclear default' sums up Left's anger at EU dictates - Telegraph

The folks in Portugal are pissed off that their parliament has just turned over the keys to kingdom to the Germans. They have adopted the latest austerity program dictated from Brussels. Or Berlin, one of the two. And the socialist response? Let's not pay anything.

The Greeks just said they wouldn't pay half their debts. The Portuguese want to see that bet and raise.

Personally I don't think any of this is a good idea, but if they put it a vote and the people say no, then they will have to live with the consequences. And those won't be pretty.

But people have a right to be stupid. They stupidly stood by while their countries ran up unsustainable amounts of debt. (Stop me if this sounds familiar) And now they are pissed that someone actually expects them to pay that debt back. So fine, they can not pay. But their countries have been living on debt since forever, and while they could print money - if they had their own money - you can only do that if people are willing to accept is as money. If not, you end up with hyperinflation, or complete currency collapse.

They are pissed that public-sector workers are going to be hit with an 8% pay cut. (16% if they are "highly paid.") So how will the feel if they keep that 8%, but the money they are paid with is worth nothing? Or very little?

But then countries decide to default on their debt all the time. Who said, "Those who are ignorant of history are condemned to repeat it?"

Eventually, people who were signed up for burdens by their parents or grandparents, decide they aren't going to pay the bill. It will happen in Europe. It may happen here given enough time and abrasion.

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