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Japan urges Europe to help banks after Greek election

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Germany should get out, and leave all those poor countries to fend for themselves

1 ( +4 / -3 )

Europe is a major market for Japanese products and Tokyo is a significant buyer of eurozone bonds, with officials saying Japan’s fragile economic recovery was heavily tied to the continent.

It is necessary that Euro officialdom move rapidly to stabilize the scenario there, including the banking union, etc., even if it means they have to abrogate the current treaty and form a new one.

A unified Europe can be a major presence in the world on a par with China and the USA, otherwise, Europe simply refers simply to the geography and history of its several nations. And some of those nations are less powerful than some global corporations, which are continually maneuvering to undermine sovereignty per se.

@marcelito noda got the tax bill pushed through in a hurry!

0 ( +2 / -2 )

Rescuing the banking sector...? it was the bloody banks in 2008 that caused the disaster in the first place

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Japan urges Europe to help banks after Greek election

Oh let me guess. They mean lend the banks more money? Yep, that will sure help.

I am convinced the global economy is controlled by the major central banks, who seem hell bent on ensuring that the whole system owes them money. When in trouble.... Yes that's right "Lend them More"...

2 ( +3 / -1 )

@JapanGal - agree with you. Germany leaving the Euro is the only way it can survive. The euro needs to devalue against a Mark and yes, the Yen otherwise Southern European countries will be on continuous life support. Do it now or pay your way to it later...

-2 ( +0 / -2 )

@Japangal. I understand your sentiment, however Germany benefits from a Euro as the Euro is artificially lower in value than a German Mark currency would be. Therefore a Euro makes Germany more competitive than if it went alone as it benefits from an artificially lower Euro. If Germany went alone its new currency would quickly rise in value making its exports much less competitive than they are now.

1 ( +1 / -0 )

The global economy is a farce.

One bankrupt economy lending money to another bankrupt economy that will never pay back the loan(s).

But don't tell anyone that the loans are no more than IOUs using 'money' that doesn't exist.

Otherwise.....

Note to self: there is only about 1 developed country that actually has real money: Norway.

2 ( +2 / -0 )

All of us are being paid using money, the 'value' of which only exists in bank computer hard drives.

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Japan should not put another yen into the European financial fiasco. It's just a waste of money anyhow. If the Europeans want to keep their Euro drain in operation, let them pay for this mess. Therefore, Japan is right. If the Europeans want their European Union, let them use their own money in an effort to save all those sinking economies within their boundries ...

-3 ( +0 / -3 )

The can was kicked a couple steps down the road, but it won't last.

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I think that everybody should help Greece because ultimately our life in some way or another also depends on it. How about if Japan would urge its citizens to spend their vacation in Greece; now that would really help Greece. 68,000 businesses went out of business last year, among them were my 2 best friends. Greece is a beautiful country with probably the most beautiful islands in the world. On the islands, life is peaceful. During these elections, on my small 2nd hometown, there were a few tourists walking by yesterday in the sweltering 35C. The cafes had big screens showing the election results, nobody watched. A few steps further down, another cafe was showing a soccer match - it was crowded and people were enthusiastic. Maybe they all want to ignore the situation or just be 'Greek' and laugh anyway because it is their life philosphy. So, people let's all give a hand to a friend in despair!

2 ( +4 / -2 )

Idiot politicians! I can understand that the Euro politiclans are caught in the trap of not wanting to lose face after having staked their political carreers on the Euro project. But why Japan? Why do they have listen the bank lobby, who always wants to be bailied out, and not to the mainstream economists who are pointing to the systemic flaws in the Euro currency??

-2 ( +0 / -2 )

Foxie:

" How about if Japan would urge its citizens to spend their vacation in Greece "

That would be eminently sensible the moment Greece leaves the Euro and goes back to its Drachma. But supporting a Euro Greece with sky-high prices that is in serfdom to the lender banks? Why support that??

0 ( +1 / -1 )

Japan has not put yen, they have put dollar which is difficult to exchange into yen due to such a strong yen and useless for Japan to support people in Japan. It is OK for Japan to invest more dollar in IMF.

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Foxie

On the islands, life is peaceful.

Yeah coz they all having siestas and not working too hard, nor paying taxes like the rest of the world.

-6 ( +0 / -6 )

Japan urges Europe to help banks after Greek election

While on the surface, it may sound like a totally selfless statement, but in reality Japan has a lot to lose, if all these banks in Europe start falling, not even mentioning exports, which would fall off a cliff.

2 ( +2 / -0 )

Yeah coz they all having siestas and not working too hard, nor paying taxes like the rest of the world.

Ah, yeah, the "Zorbas stereotype". I am sure many elders in the Greek islands work twice as hard as the majority of Japanese people. And believe me, this is not over exaggeration. I have seen 95 year old people feeding the animals, taking care of the fields, etc - under the hot sun of 35C. Yes, people in Mikonos , Santorini or Rhodes that live through tourism might be more "relaxed", but this is not the case in the majority of the islands. If you think otherwise, I invite you to my country house in the Cyclades for a period of 6 months and let you work under my uncle's supervision in his fields like I did when I was 15.

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Antonios do they pay their taxes though?

-3 ( +0 / -3 )

Japan shud SHUT THE HELL UP & do like the rest of the world has been harping on Japan for years on end...............................drum roll pls.............................Japan, you need to start spending money DOMESTICALLY, get the $$$ churning in Japan, you need to get LESS dependant on exports!

Mean while manufacturing continues to bail outta here...................hello hello!

-1 ( +1 / -2 )

@ ExportExpert: You must be living in a different world. Some of my friends in the Greek Islands have 2 jobs, starting at 8am until 5pm and then from 5pm to 11pm. Sure, some rich people don't pay taxes but the average Greek does. Go to my local supermarket now and you will see that you can't even find 100% orange juice anymore Why? Most people can't afford to buy it anymore and the supermarket can't sell it. As Antonio says, I have seen many old people working too.

2 ( +3 / -1 )

Germany should get out, and leave all those poor countries to fend for themselves

In which case, Germans should look forward to a skyrocketing currency. It is not necessarily a bad thing - Japan has survived a doubling of the value of the yen. Without the broader EU to weight the Euro, though, Germany will find itself tied to a rapidly appreciating currency, no question about it.

2 ( +2 / -0 )

Antonios do they pay their taxes though?

It depends. I know people who did, and I know people who did not. If they don't pay their taxes, one has to ask why? Are they just trying to protect their personal interests or is there a deeper reason behind it? And, most importantly, is tax evasion punished in a proper and fair way? By the way, tax evasion in Greece is sometimes blown out of proportion in foreign media. It has been estimated that shadow economy in Greece is around 10 - 15%. My estimation is that it is around 20 - 25%. It is indeed, very huge but not that much different than other states. As you might see from the links below, even Germany has a shadow economy of 16% (!!!), while Italy has 27%. 1) http://www.investorplace.com/investorpolitics/10-worst-countries-for-tax-evasion/ 2) http://images.businessweek.com/ss/10/07/0729_worlds_biggest_shadow_economy/2.htm

Anyway, in my view, the source of the problem is primarily structural and secondarily, cultural. Yes, many reforms need to be implemented by the Greeks that the previous governments failed to do so. And yes, Greek people must learn to live with what they produce and not by European funds and loans. It is hard, it will take some time, but the Greeks have to get used to it. However, we must not bypass the fact that many Greek people have suffered a lot so far and they can not take it anymore. Instead, the policy makers should focus on growth policies, restructuring of the economy and the public sector, and finally, implementing the necessary reforms to make the country more competitive. Believe me, any more cuts or taxes right now will destroy the entire country.

Of course, it is also important for the people outside Greece to realize that the situation is not always black and white. To say that this mess was created by the lazy Greeks who don't pay their taxes is definitely oversimplified. It is everyones' fault and all are to blame. And by that, I mean the Greek people, the Greek politicians, the European leaders that envisaged a monetary union without fiscal and political unity, and finally, the financial institutions - many people tend to forget that it is Goldman Sachs that assisted Greece in presenting fake financial data, as they also forget that Greece was under financial supervision by the EU few years earlier, and the European officers declared that everything was fine with the Greek economy(!!!). Once we realize these basic assumptions, we have to make some compromises and do whatever we can in order to tackle the crisis and get out of that mess. Undoubtedly, the responsibility for that primarily belongs to the Greek people and the new Greek government.

2 ( +3 / -1 )

Germany should get out, and leave all those poor countries to fend for themselves

Poor countries? Just in the Euro zone, Austria, Finland, the Netherlands, Ireland and France are richer than Japan. Spain and Italy are only about 10% poorer than Japan.

That being said, I agree that Germany should leave, or be kicked out, whichever is more expedient. Germany is using the so-called "poor countries" to lower the value of the currency and support their workers' competitiveness. Without the other European countries, the German currency would significantly appreciate, which would hurt their economy in the long run, just as the strong yen is hurting Japan and leading to a decline in the manufacturing sector. That's part of the reason why Germany keeps trying to keep the Euro together, to keep its currency lower than it should... the other part is that it is largely German bankers and investors who caused the speculative bubbles in the countries in crisis, and if these countries default, they stand to lose a lot of money.

0 ( +1 / -1 )

@ExportExpert

Greeks pay more taxes (as a share of GDP) than: Canada Japan The USA Australia Ireland Switzerland South Korea

Are there problems with tax evasion? Surely. But make no mistake, the Greeks do pay taxes, more so than many other countries, though not enough in recent years.

Oh, and before you go about blaming laziness, Greek workers work the most hours each year in the European Union. According to the OECD, they worked on average 2 128 hours in 2007, only topped by South Korea and Chile, and much more than Japan (1785 hours) or the US (1 798) and much, MUCH more than Germany (1 430). All the data is from 2007 to exclude the effects of the crisis, though the numbers haven't changed much since then.

This urge to accuse Greeks of countless "sins" seems to be about absolving the current economic system for the crisis it brought about and comforting people's fears about the economic situation. If Greeks haven't been lazy and evaded their taxes, then that means that what happened to them wasn't the result of moral failings and could happen to other countries, through no fault of their own.

2 ( +3 / -1 )

Entering the eurozone, the Greeks immediately understood that the name of the game was an 'exchange theory' -- join in as a supporter to the zone in exchange for being shifted by leading E.U. rich members to the fast lane that is supposed to be sponsored by the latter -- fair deal ?

Well, the Greeks ended up becoming greedy pigeons at the grand square of a city -- waiting to be fed by tourists instead of making effort to earn a living.. On this chapter, one cannot blame only the Greeks but also those who touted these supporters -- ' come and join in..no skill, no experience needed.. You can automatically make US$200k like us...' . Hence, once these pigeons adapted themselves to the sort of life style of US$150k.. Stop ! You spent too much ! You are lazy & we would kick you out if you donot behave better..

0 ( +1 / -1 )

the keiretsu probably has major capital in Greece and they want to get their money and GTFO!

-2 ( +0 / -2 )

pot, see kettle

-2 ( +0 / -2 )

Japan has a lot to lose, and nothing to gain in this fight. Any collapse of European currencies means Japan will get killed in exports. Japan is pretty much between a rock and a hard place. The best thing for Japan is for governments to keep printing money to keep their respective economies from going bankrupt. At the same time, Japan should look long and hard at it's reasons for not opening up trade with other Asian countries.

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Countries could go with the addition of a local currency. If you live work and shop all locally then your value and the value of things around are relative to each other, not a bank in another country. This would benefit local products over imports that would be subject to wilder prices.

Can't leave international currency, but having an additional local currency would do a lot to ensure basic standards are met.

-1 ( +0 / -1 )

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