Every public project is an investment, as a company. Lets see eg the case of a road. The road was costing 40 million drachmas. But the surplus money of the State for the year is (say) 5 million drachmas. Moreover, there is a reserve of around 30 million drachmas. (I have reason for Dr ...). The state, therefore, can not the money that is available to build the road. It considers, however, it can even borrow the entire amount in 8 years will pay off ... Also, the toll will turn a profit ... But if, eventually, for some reason, the extra 5 million drachmas annually, need to diocheftefthoun elsewhere, and also for another reason, the road is not completed on time and not pay a profit, the state owes to enter! Aptis Some solutions will be in such a case, the depreciation of the currency ... How do it? Simply print more currency than in the stock of foreign exchange + gold at the central bank! (* In each country, the total amount of all printed currencies should be equal to the sum of currency plus the amount of gold available in the country! So the fact that $ 1 cost 340 drachmas in 2000, meant, that for every 340 GRD Greece had $ 1, or currencies and gold which could buy a dollar, based on a given exchange rate ... This results in the exchange rates ..!) Printing therefore, more currencies, the state acquires more money Eg if the total is 1,000,000,000 drachmas drachmas, and the country owes 40,000,000 GRD can easily print an additional amount in order to pay back. How? 41,666,667 drachmas. Thus, the total amount printed GRD will now 1.000.000.000! Of course, the additional production of coins, the value of the drachma, will fall. In this example, will fall by 4.1%. This will increase the debt by 4.1%, meaning that the country now will pay 4% more. And 40 million 40 million * 4% = 41,666,667 ... Just the extra amount that is ... So, it covers the deficit. (An advantage that they too are firms, the value of their shares .. the share of state is the currency).
But if now the debts are so much as to the currency is not work .. Then .. oops! Bankrupt! How is bankruptcy? Say again, that all the DR is (closer to the conditions now 2000), about 100 billion (100 trillion). This corresponds to the U.S. dollar at $ 294,117,647.06. If Greece is found to owe an amount worth $ 200,000,000, then the penny will fall (down 68%), but it will fail. If, however, found to owe 300,000,000 dollars?? Can not print that amount, because then the penny would be defeated, so the cost of debt in drachmas will apeiristei and generally there is no way to pay! In this case, the State declares bankruptcy! (Very roughly, because if you do the math you'll see that it is much more difficult things .. for example, come in and the money that keeps the world, banks, moving out, as foreign exchange, etc, etc, etc! ) So obviously, Iceland owe more than you can give!
What happens now in this case? Given that a company goes bankrupt, closed, while a state can not close ... The state goes bankrupt, enters a period of management .. (Think something like Article 44). For some time, without exception, ALL the GDP of the state, go to the lenders .. As is, companies or other states, lenders have occupied the country ... And a correction, Greece is not bankrupt! Escaped bankruptcy in the partition of the drachma .. (Chrostage just disappeared from 25% total DR). Thus, reduced the value of the drachma in half, doubled the debt, gave all the difference, and stayed with half penny ...
Of course, the story I tell, there were leaders who really saved the place from the brink ... eg the Kartalis.Parapempo from step Saturday, May 30, 2009
... History teaches us however that the country found itself in similar situations before and succeeded thanks to the inspired direction of policies do not respect the political cost to build towards the development and proodo.Charaktiristiki is the case of Volos political and the nobleman GiorgouKartali who as finance minister in 1950 and Coordinating Minister for the 1951-1952 Plastiras the government successfully implemented the first stabilization program that made the Greek economy from the chaos which had plunged the destruction of the German occupation and civil war that followed. In just two years, inflation fell from 14.5% to 0.6%, the deficit of current account deficit of 287 million dollars in 53 and a budget deficit of 1.313 million drachmas 161 (without accounting tricks and hidden deficits).
Performance fans certainly achieved a crackdown after the Kartalis froze wages, laid off redundant employees who had been appointed only a certificate with the "nationalistic", but by taxing the rich at the time, with credit grip on bosses who pillaged the Marshall Plan, borrowed cheaply from state banks, which hid their production to sell it at higher prices. These measures certainly saved the country but did not save the government Plastiras, who lost the elections as we know from Papagos ... The question is: Is there now a Kartalis to face a tough stabilization program is primarily a Plastiras to support these modes of Minister for the Economy? If no, we as a country and nation to invent them, or else leads to stop payments.
One reason for the failure of the Argentine economy was the external debt, one of the legacies of the junta that ruled from 1976 to 1983. The second was that the Peronist President Carlos Menem during the ten-year presidential term (1989-1999) privatized the country's economy, selling off against dockets lentil state property. The first of the Ten Commandments in government was: nothing would remain in the Menem decade kratos.I corrupting the political system and justice, which the President of Argentina I used to cover up dozens of scandals. These days, held in Buenos Aires investigations and preliminary trials of a parastatal-tromoktatiki case, the warship factory explosion in 1995, which claimed the lives of 7 people. There are indications that the explosion was organized by people of the president himself was involved in organizing the business to destroy evidence of illegal arms sales to Croatia and the Isimerino.Se economic and social level, the Menem decade proved disastrous. A strong middle class in the country nearly disintegrated in favor of the rich who get richer while the poor are multiplying. 60% of the population was living below the poverty line and 20% in abject misery. Since the closing of businesses, unemployment reached 20%. In turn, the job cuts resulted in the reduction of labor diekkdikiseon and trade union rights in a country with a long tradition of progressive labor movement and labor legislation.
Weakened by ongoing scandals that Menem left in 1999 to give the position to President Fernando de la Roy, who belonged to rival Peroniston Rizspastiko Party. De la Roy had descended in the elections with a social democratic platform that provides more state intervention, but by taking over the presidency failed in every promise of continuing at the base Menem.I political crisis reached its peak in 2001 along with expansion of external debt which the country could not repay. In December of that year the banks froze deposits causing a violent reaction and a rebellion that forced the resignation of President De la Roy, who previously had tried to hold on to power by declaring martial nomo.To international "economic miracle" in accordance with the World Bank had gone bankrupt. Following the resignation of De la Roy will swear 3-4 consecutive presidents in less than a month.The Eduardo Ntoualnte, fifth series, manages to form a transitional government that organized the 2003 presidential election. Winner is Nestor Kirchner, the wife of current President of Argentina Cristina Fernandez-Kirsner.I collapse swept away and the entire political system. The Radical and the forks, the two parties virtually ruled the country during the last century breaks of military dictatorships, were in a crisis from which they have come out nor simera.To Communist and Socialist Party have little epirroi.O Nestor Kirchner comes from the old social democratic wing of Peroniston but the beginning of his term in 2003 syndiastike a series of cuts in the past, the most important change tactics against recessive World Bank and Washington. He questioned some of the foreign debt, began negotiations for the remaining and most ignored the requirements of the International Monetary Fund focusing on public investment and attention to major social problems created by the neoliberal policies of his predecessors tou.Charis a series of favorable international economic circumstances (such as the rising prices of agricultural products), but in alliance with Venezuela's Hugo Chavez who rushed to help Argentina whenever he was in trouble, the economy regained ahead with annual growth rates reaching 8%. Fri extremely popular that the Kirchner did not stand in the presidential elections of 2007, giving the position of the candidate's wife, known lawyer and member of the Senate. In October of that year is just perfect!! Cristina Fernandez was elected president of the country, the votes of the party ¨ Front of Victory "which was created by his wife tis.I first woman president in the history of Argentina following the policy of her husband, both in foreign policy as and internal, focusing on public investment and getting back to state companies were privatized during the decade of 90. One of the biggest moves was the renationalization of insurance funds (see adjacent column) that had been privatized, either directly or through bonds played on the world stock market casino. Mrs. Fernando described the privatization funds, which was launched in Latin America, the dictatorship of Pinochet in Chile, as "looting." The new president has also promised to restore the independence of the judiciary and the separation of powers (the husband of the the emergency is often ruled by decree) and create a social and economic system "on opposite sides of the model distribution of resources and wealth which prevailed during the 90's under the domination of neodileleftherismou. What is certain is that although they do not have now overturned the results of the disastrous policy of the 90's, life for Argentina has improved.