As of three weeks ago, the Federal Reserve openly and brazenly violated its own professed purpose of “maintaining the stability of the financial system of the United States” and declared that it will lend US dollars for the bail-out of a sovereign foreign nation that has proven unable to exercise even the lowest level of financial discipline and thus has ruined not only its own financial system but also the financial system of a whole continent. This is not the first time the Federal Reserve has done this; but in previous occurrences, such decisions were rather concealed from the public, and only investigations by journalists and investors brought them to light.
But now, the Federal Reserve openly declared that it is becoming the reserve bank of the world. With American money. America be damned. It goes in the hole together with the rest of the world, now that its financial system is officially put up by the Federal Reserve as a collateral against the debts of nations that have proven unable to repay them.
It is the economy that our forefathers and we created that will be paying to bail-out Greece, is what the Federal Reserve is saying.
Well, since we are paying, let’s see what we are paying for. About a month ago, a Greek blogger gave us some insight into the nature of the bonuses the Greek public sector is paying its employees:
Bonus for single workers.
Bonus for washing hands.
Bonus for turning on your car.
Bonus for using the restaurant.
Bonus for using the fax machine.
Bonus for finishing cases (in the Ministry of Justice).
Bonus for receiving/delivering a bus (in a public bus company).
Bonus for delivering an envelope.
Bonus for Antenna.
Bonus for being on time.
Bonus for looking at ship’s propeller (coast guard).
Bonus for food.
The list is not exhaustive, by any means. There are probably hundreds of those bonuses that the employees in the Greek public sector are getting, as their bribe to perpetuate the existing political establishment. This in addition to the generous retirement packages at the age of 50, and in addition to paid vacations of 2 to 3 months every year (bonus for not working?).
Greece is a relatively poor nation with very low economic productivity. It can’t pay for such generosity. But for decades it was the European banks and governments that supplied the Greek public sector employees with the means to get money for nothing. After all, it is only one nation. Europe can afford it. In other words, Communism developed under a unique form in Europe: “From every German according to his abilities, to every Greek according to his desires.”
It turns out, it can’t. Now Europe itself is bankrupt.
Here enters Bernanke and says, “Oh, no problem, it’s just Europe, we can bail it out. America can afford it.”
The solution is for America and Europe to tell Greece: “Get off your butt and get to work. Fire all those government employees and leave them to starve for a while. It will only help them learn some healthy work habits.”
Someone must tell our Federal Government the same. We have too many “Greeks” in it too.