Greek 2013 budget sees sixth year of recession - source

[dipsydoodle]

Source: Reuters

(Reuters) - Greece will frontload budget cuts to achieve a primary surplus in 2013 for the first time in many years but its economy will shrink for a sixth consecutive year by up to 4 percent, a government official told Reuters.

The government will unveil a draft budget draft later on Monday, aiming to satisfy international lenders but expected to prolong the economic pain of the Greek people.

It will include more cuts in public sector pay, pensions and welfare benefits as part of an 11.5 billion euro (9.1 billion pounds) austerity package of savings that will be spread out over the next two years.

Greece's economic output has declined by a quarter since 2008 in a vicious spiral of austerity and recession, with the most heavily indebted euro zone nation repeatedly falling behind in meeting targets set under its EU/IMF bailouts and at risk of being forced out of the single currency area.

Read more: http://uk.reuters.com/article/2012/10/01/uk-greece-budget-idUKBRE89008U20121001

[Victor_c3]

1. Why is the Greek economy shrinking so much?

Don't the repubicans tell us that austerity is the key to growth?

[tama]

2. "Primary" deficit and surplus

The biggest media lie as usual is what they don't tell. What is the debt servicing cost? What is the total deficit?

Figures have come to the surface that nearly 20% of the Greek national budget goes to debt service. As could be expected, the Greek budget would have a surplus if it were not for the debt payments

http://www.nowpublic.com/health/20-greek-budget-goes-debt-service-killing-host

The whole thing is a hoax. Nothing but bank bailouts recycled through Greek budget. Money from EU taxpayers to banks in US, UK, Germany etc., to IMF.

[oldsarge54]

3. But but but but

Isn't the whole recession Obama's fault? How can this be so? Greece's recession has to be Obama's fault. Ask any Republican.

[tama]

4. Greece is controlled by IMF

And IMF is controlled by US. So US, including Obama administration, is certainly not free from responsibility of policies that IMF is forcing in Greece and elsewhere.

A second criticism is that the United States’ transition to neoliberalism and global capitalism also led to a change in the identity and functions of international institutions like the IMF. Because of the high involvement and voting power of the United States, the global economic ideology could effectively be transformed to match the US's. This is consistent with the IMF’s function change during the 1970s after the Nixon Shock ended the Bretton Woods system.

http://en.wikipedia.org/wiki/International_Monetary_Fund

[tama]

5. Debtocracy

Greek documentary with English subtitles:

http://www.debtocracy.gr/indexen.html