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Dennis Gartman:Greece taking the wrong direction

Yesterday’s Gartman letter brought you this:

Moving to Europe, Greece is in trouble and the speech made yesterday by the rather overtly leftward leaning Prime Minister, Mr. Papandreou, was disconcerting to say the very least. At every turn, when the Prime Minister might have drifted toward the economic centre, he drifted farther and farther to the Left instead. Where Ireland seems intent upon dealing properly with its budgetary problems by cutting spending materially and raising taxes marginally, Greece instead is cutting spending hardly at all and is raising taxes almost solely upon the nation’s wealthy to confiscatory levels. This really is utter economic nonsense.

Speaking to the Parliament, Mr.Papandreou … whose family has literally “run” Greece as a fiefdom any number of times in the past…said that there shall be resistance to what he has called “tough and painful measures” to restore Greece’ position within the EU but he insisted the country’s international credibility depended on it. He said, unleashing a tirade of leftward leaning ideas,

There is pressure from our European partners, which is an opportunity for us to tackle problems that have been festering for decades…We are a government of reform, not a government that manages the status quo…We need to take tough and painful decisions, which will face opposition, but we will bring meritocracy and restore credibility.

The problem is that most of his program resolves around raising taxes on Greek wealth and Greek entrepreneurs. His program will play well to the public; it will play havoc with the Greek economy however {Ed. Note: Prime Minister Papandreou is the President of the Socialist International, and has been since ’06. His father was Prime Minister as was his grandfather, and they too were ranking members of the Socialist International for many years.

Sounds like a fair bit like what the experts don’t want to happen to USA.


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