Wednesday, July 18, 2012

Steve's barking as it's all Greek to me

Not to long ago I was watching on CNBC a program that reportedly was about the Greek financial crises.
I can't recall what most of the program was about, but what caught my ear was the female reporter asking these coffee shop owners or what ever these small business owners were owners of about government interference, and their answers were how they couldn't do anything because of government bureaucratic red tape. Now I may not be the smartest man in the world but I know that was the wrong question to ask.
The question that should have been asked was how are your customers going to pay for the services that you are giving.
 Now it doesn't take a smart person to figure what the real problem of the Greek financial crises was that not enough taxes were collected to pay their workers and retirees ( I know that this is foreign to a lot of people) There just wasn't enough work for the Greek citizens to support themselves in the private sector and the employment fairy was and is not in sight.

 The United States is going to have food inflation the end of this year and at least good part of next. It has nothing to do with markets, it has everything to do with a drought.. I'm sure that some nimrod on the telly will puff up his or her chest, proclaiming, see I told you printing money leads to inflation.


Classic economics too much money chasing too few goods (food).
I could be wrong Russia and Argentina may make up for the short fall.

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