Handicapping Greece, Financial Date Rape

(Tacoma, WA)  Also known as handicrapping geese.

You may have figured out that I’m fairly skeptical of the “World’s gonna end ‘cuz of Greece” talk.,

There was another attempt at getting last-minute talks going, but they went approximately nowhere.

The Greek people are getting screwed, with cash withdrawals from ATM’s limited to 50-Euro now as cash runs out.

But that’s what happens if you let a megalomaniacal foreign government (The Ure-a-peein’ Onion) control the currency of your country.

Once the meglo’s are bounced, as this seems to be one outcome to the polling to take place Sunday, Greece could issue its own currency and from there either “go Iceland” and have a nice life.  Or, they could go down the more government than sense road, in which case the Nuevo Drachmas (or whatever they call it) can quickly becoming like the currency of Zimbabwe.

Pick your poison.

European Insanity Revealed

There is a logical inconsistency of Biblical proportions to all this which about 100% of US financial reporters seem incapable of grasping.

Let’s me ‘splain you, Lucy.

Factoid 1:  Greece is a financial sinkhole.

The country has been doling out dough fasters than the Great Society under LBJ.  Free lunch for all, seconds and thirds if you want it.

Factoid 2:  The EU lends money to the sinkhole.

Factoid 3:  The sink hole is getting deeper and needs even MORE money.

Factoid 4:  When it looks like the sink hole might actually go away and no longer be a drain on the EU, the European markets decline.

Now, I only scored a 4.0 GPA in my MBA program from a no-name school (which could be because I attended) BUT it sure seems to me that if “rational market”theory were true (and it’s often not, by the way) then European markets should have put on one hell of a what?

“Greeks are leaving and taking their sink hole with them” rally.

But look at the major European indices.

The German market closed last week at 11,492.43.  When I looked earlier this morning it was at 11,099.    Is that a 3.4% decline? 

Now I ask you, why would that drive a market down?  Mercedes sales gonna fall if the EU doesn’t lend money to Athens?  Help me here!

By the same token, France was at 4,819 when I looked.  A week ago it was 5,059.17.   Uh…is that a 4.7% drop in a week?

Would the loss of a Greek sinkhole really screw France out of that much Champagne and Citroen sales to Greece?

This is why we sit bank in an immersion chamber full of decaf and try to view “world-ending problems” from the highest level.

I also generalize countries as a thought tool.

When I think Germany I remember my old 1986 930 whale tail and Heidi Klum.  I don’t see Angela Merkel.   I think BMWs.  Excellence pops to mind.

Ditto France.  I see a massively cool cultural heritage from Bridgette Bardot to Chateau Lafite Rothschild.  I See the Citroen 2CV – one of the most basic cars in the world.  The original earth-car…with less than half the horsepower of the original VW Bug.  Style is the word here.

And when I look at Greece?

There’s not a word for it.

I see an Onassis who married the Widow Kennedy.

I see a country which blew the Gyro marketing opportunity.

And yes, I am not a huge fan of Retsina.  Think  of it as tasting like a nice California blush wine with a side of pine tar.

Somewhere, deep down in the darkest caves of the unconscious America, imagery like this holds sway.  We are all mostly unconscious, right?

The sink hole may go away and yet people are upset?   Makes no sense.

Poverty – the fertile ground from which inventiveness springs – is what we’re talking about here.

Ever notice how all the major inventions in world history seem to come in the temperate zones of the Earth, not in the Tropics?  Four seasons drive humans to greatness.  Plan a little or die is a good thing.

Oh, sure, Pyramids and fine and all, but functionally useless.  That’s tropical thinking.  Egpoic, pure and simple.

I’ll take me one of them moveable type Gutenberg things, any time.  Was Edison in the tropics?  No.  Tesla?  No.

See many root cellars in the Bahamas?  Nope.

Remember, the high culture of the Aztecs was up at the four-seasons elevations.  Been there, done that, and Cusco is cold.

Point being?

Humans thrive in adversity.  Give us a problem and we’re bound to fix it.  It’s why we love robotics and app development.  Single sideband, SR-71s and ‘vettes and M-16s.  Beechcraft and Skunk Works.

Greece is facing a marvelous problem-solving opportunity.  A gold-backed Drachma would be a fine thing.

But instead, they want to stay in bed with a currency that’s coyote-ugly…the Euro.

So no, I don’t get it.

Somebody is conning someone and my money is on the odds that this is another ”Too big to fail con” run by our old friends the bondies.

If truth in labeling really mattered, we would file this all under Leachcraft Holdings and not worry so much.

The Swaps and Derivative types don’t want an “event” because there wouldn’t be enough money on Earth to save us from the damage, is the chant.

Fact is, we could stiff them all and teach ‘em a lesson once and for all that the world won’t be held hostage.

We won’t,. of course.  And big money will buy the best talking-head sock puppets they can to scare us all into higher taxes and whatever it takes to run the herd again.

But think about tomorrow: Independence Day.

Independence nowadays is a highly personal thing.  You either think for yourself, or you go with the herd to the financial slaughter house.

But don’t look for that to be “In your face” anywhere, especially the Mainstream Media.

That doesn’t sell papers, does it?

No sir.  No ratings share for skeptical.  No face time for rational.  No interviews with detached.

Whip us, scare us good, then skin our wallets alive.

First thing you know, we get a crooked trade deal and a bail-in of Greece happens.  Amidst much hand-wringing and despair.

Oh, this is so bad, so dangerous, whatever shall we do?

And you, my friend, will then experienced date-rape economics.

That’s why I refer to tomorrow as the 4th of July and not Independence Day which I sincerely can’t write with a clear conscience.

We’re simply NOT.

With the way political correctness and weak-willed thinking about core values of the Melting Pot are running, drop by next year when we will  likely  be writing of  the “4 de julio.”

 

Write when you break-even,

George   george@ure.net

Comments

Handicapping Greece, Financial Date Rape — 11 Comments

  1. “The sink hole may go away and yet people are upset?”

    They would be upset about the loss of control. TPTB loss of money is no problem – they control the money supply and can print more.

  2. George,

    You said Four seasons drive humans to greatness and we do not have that here in the Silicon Valley…This year we had one season….most years we have two…the rainy season and the perfect weather season….therefore, I am right….Temperate map or not…

  3. You think the markets are down because of China, which really is the market that most closely represent the U.S. Markets in the 20’s

  4. Add Factoid 1.1: Greek zillionaires don’t pay their taxes. (Reread Michael Lewis’ article about Greece in Vanity Fair a few years back.)

  5. You said….”Ever notice how all the major inventions in world history seem to come in the temperate zones of the Earth, not in the Tropics? Four seasons drive humans to greatness. Plan a little or die is a good thing.Oh, sure, Pyramids and fine and all, but functionally useless. That’s tropical thinking. Egpoic, pure and simple. I’ll take me one of them moveable type Gutenberg things, any time. Was Edison in the tropics? No. Tesla? No.”

    WRONG!

    You like to leave out the great state of California…No seasons here…The most perfect weather in the world…I wouldn’t be reading your blog if it wasn’t for the innovation in the Silicon Valley that made it possible. The following example are culled from a variety of sources…I could write a thousand page book on the innovations here…Here are just the tech versions…Bio-tech, robotics, bio-metrics, nano technology and on and on are another thousand pages of innovation after innovation.

    I am surprised, given your Ham Radio addiction…that some of the earliest tech inventions started here….Ham radio.
    The Bay Area was an early center of ham radio with about 10% of the operators in the United States. William Eitel, Jack McCullough, and Charles Litton, who together pioneered vacuum tube manufacturing in the Bay Area, were hobbyists with training in technology gained locally who participated in development of shortwave radio by the ham radio hobby. Litton, founder of Litton Industries, pioneered manufacturing techniques which resulted in award of wartime contracts to manufacture transmitting tubes for radar to Eitel-McCullough, a San Bruno firm, which manufactured power-grid tubes for radio amateurs and aircraft radio equipment.

    Many things from the television (Electronic television was first successfully demonstrated in San Francisco on Sept. 7, 1927. The system was designed by Philo Taylor Farnsworth, a 21-year-old inventor who had lived in a house without electricity until he was 14.),

    William Shockley, Shockley Semiconductor Laboratory…Shockley settled in Mountain View California in 1956 after departing from Bell Labs, founding the Shockley Semiconductor Laboratory. Co. Inventor of the transistor — for which he won the 1956 Nobel Prize in Physics

    Robert Noyce, Fairchild Semiconductor and Intel… “The Mayor of Silicon Valley.” While leading Fairchild, he invented the integrated chip made of silicon, the next major contribution to the semiconductor industry. Soon after, he joined Gordon Moore and formed Intel, where Ted Hoff invented the microprocessor.

    Gordon Moore, Intel… He served as Executive Vice President of Intel until 1975, and a few years later, he became Chairman of the Board and Chief Executive Officer. By developing memory chips, the company leaped to the forefront of the industry, eventually mass producing microprocessor chips for PCs. Moore famously authored Moore’s Law, which states that the number of components placed on a silicon chip doubles every two years.

    Dave Hewlett and William Hewlett, Hewlett-Packard…Hewlett met Packard while they were pursuing their undergraduate degrees at Stanford. The relationship they forged resulted in the creation of Hewlett-Packard, a name that was determined by coin flip. The company hit the ground running, as Hewlett developed the resistance-capacitance audio oscillator. Interestingly, during his leadership, he contributed to the development of perhaps the Valley’s greatest mind, Steve Jobs. When Jobs was in eighth grade, Hewlett received a call from him asking for assistance with a project. Impressed, Hewlett offered him a summer job, which he accepted. That’s where Jobs joined forces with Steve Wozniak.

    Larry Ellison, Oracle…As a young man, Ellison bounced around from job to job, eventually settling at Amdahl Corporation, where he contributed to the creation of the first IBM-compatible mainframe system. Soon after, he along with three of his colleagues departed to found Software Development Labs. Recognizing the potential of SQL, he won a contract to develop a relational database management system. On the side, they developed a system for commercial use, naming it RDBMS Oracle. Once IBM adopted it, Oracle began its ascension, going public in 1986. Ellison has overseen the peaks and valleys experienced by the company, and has been rewarded handsomely, as he’s recognized as the third-richest man in America.

    Software
    Although semiconductors are still a major component of the area’s economy, Silicon Valley has been most famous in recent years for innovations in software and Internet services. Silicon Valley has significantly influenced computer operating systems, software, and user interfaces.

    Using money from NASA, the US Air Force, and ARPA, Doug Engelbart invented the mouse and hypertext-based collaboration tools in the mid-1960s and 1970s while at Stanford Research Institute (now SRI International), first publicly demonstrated in 1968 in what is now known as The Mother of All Demos. Engelbart’s Augmentation Research Center at SRI was also involved in launching the ARPANET (precursor to the Internet) and starting the Network Information Center (now InterNIC). Xerox hired some of Engelbart’s best researchers beginning in the early 1970s. In turn, in the 1970s and 1980s, Xerox’s Palo Alto Research Center (PARC) played a pivotal role in object-oriented programming, graphical user interfaces (GUIs), Ethernet, PostScript, and laser printers.

    While Xerox marketed equipment using its technologies, for the most part its technologies flourished elsewhere. The diaspora of Xerox inventions led directly to 3Com and Adobe Systems, and indirectly to Cisco, Apple Computer, and Microsoft. Apple’s Macintosh GUI was largely a result of Steve Jobs’ visit to PARC and the subsequent hiring of key personnel. Cisco’s impetus stemmed from the need to route a variety of protocols over Stanford’s campus Ethernet.

    1995, the internet
    In 1995 the internet was opened to commercial use and the initial wave of internet startups, Amazon.com, eBay, and the predecessor to Craigs list began operations

    Of course there are literally thousands more…Elon Musk is our latest innovator…
    Here are the many, many companies that rule the tech world and live in a ONE season environment.

    Thousands of high technology companies are headquartered in Silicon Valley. Among those, the following are in the Fortune 1000:
    Adobe Systems
    Advanced Micro Devices (AMD)
    Apple Inc.
    Cisco Systems
    eBay
    Intel
    Intuit
    Nvidia
    Oracle
    Sun Microsystems
    Yahoo!
    Adobe Systems
    Advanced Micro Devices (AMD)
    Agilent Technologies
    Apple Inc.
    Applied Materials
    Brocade Communications Systems
    Cisco Systems
    eBay
    Electronic Arts
    Facebook
    Google
    Hewlett-Packard
    Intel
    Intuit
    Juniper Networks
    KLA Tencor
    Lockheed Martin
    LSI Logic
    Marvell Semiconductors
    Maxim Integrated Products
    National Semiconductor
    NetApp
    Netflix
    Nvidia
    Oracle Corporation
    Salesforce.com
    SanDisk
    Sanmina-SCI
    Symantec
    Western Digital Corporation
    Xilinx
    Yahoo!

    • Can we thank California for Jade Helm 15, too? Boy, facebook, google, ebay, amazon, apple, twitter, etc are just stock piling our private info/purchases – tptb have all they need to control us – gotta love it. Anyway who are the ‘people’ behind these corpo-rat-races and who are their financial sponsors? If you follow the money(greed and intention) you come to a different conclusion than lookie here at us. I’d bet my last dollar that the main brains behind the innovations in Cali are Nordic European folks (those damn white guys) and the guys in front getting the attention are just the salesmen with many more just like him standing with him (tightly.) Who can we thank for the empty shopping malls and the art of shopping for entertainment?Who had a major Silk Road trade route? Who can we thank for the intentional total-crap on TV (thanks California) and the faux-infotainment called news? Hint: set apart from the rest, chosen. As they shred the last bit of family we have, they tighten their grip on their people. Whites are taught to be trusting of outsiders – ‘we are all the same.’ Blacks are taught ‘white people are the devil’ and jews are taught ‘they hate us because we’re jewish.’ Brilliant plan!

      At least when all the white people are gone – their ingenuity lives on to be enjoyed by the chosen. Cheers!

  6. George so sad yet true. What happened to the country I served for 29 years in the Air Force? Toward the end of my flying days I started to perceive that I was not defending the Constitution, but defending the Petro Fiat dollar. Now, after being forced out of the work force 4 years ago, I just try to be more Independent. (Grow a garden, ferment cabbage, cucumbers, peaches, can pickles, tomatoes, install hybrid 6720 PV system)

  7. Good morning George,

    Every day is INDEPENDENCE DAY for me. I celebrate it on July 4th. Living an independent life won’t make you friends, which is probably why I’m regrettably unmarried. Once experienced, living any other way is simply intolerable.

    I can be a great friend, but never your pet. I still follow rules, but I do it after careful thought. There might even be some that I break under the legal concept of “necessity”. Rules need to have legitimate purpose, or at least not actively impede happiness. Some rules need to go away.

    Independence is an idea, like Guy Fawkes. It can’t be crushed simply by denial. Without Independence, there’s really little point in living.

    Even in prison, most people can be independent in their minds, especially in solitary. TPTB are trying to prevent that, and it’s a spiritual war for your soul.

    Giving up is never an option.

  8. What a rat-fink ;^)you are. Heidi Klum as a momentary distraction from the horrors awaiting Greece, going back to a pleasent time in Greek history. And what do I get? Dirty Pool. Who do you think you are — Angela Merkel?