Monday, May 17, 2010

PCG Accuse the EU (Germany) of Engineering Greek Crisis

Right now Greece is undergoing a terrible economic crisis. It is painful and sad to watch such a proud and renowned nation undergoing this great trial.

There are several reasons why this has happened. Let us review these reasons and then see what PCG has about this.

1: Greece does not control its own currency.

A major reason for the severity of this crisis is that Greece uses the Euro as its currency. Greece does not have its own currency. Because of this it can't do things that other countries with their own currencies, like the USA, can do. Greece can't just print more money, because the ECB does that.

2: Artificially low interest rates.

When Greece adopted the Euro they lost control of its interest rate, instead that's controlled by the European Central Bank, and the ECB had to set interest rates for the entire Eurozone, all the EU countries which use the Euro as their currency. Thus the interest rates of the Euro was set more towards the needs of more economically dominant countries, like Germany, and therefore quite low. So one consequence of Greece joining the Euro was that their interest rates went down dramatically, not because their country changed but simply because the ECB now set interest rates for the entire Eurozone. Greece essentially inherited Germany's low interest rates by joining the Eurozone. This inspired a spending spree by those who could afford to do so.

3: Rampart tax evasion.

Among Eurozone members Greece has the worst tax evasion. Many rich people simply refuse to pay their taxes so the state does not have the financial resources they need. Some speculate that this is a peculiar habit inherited from centuries of Turkish occupation.

4: Generous pensions given while the above are happening.

Generous pensions in and of itself are not a problem. But they became a problem in conjunction with the above factors.

5: Greece has alledgedly been hiding debt.

Furthermore Greece has, apparently, been hiding debts to make their financial position appear better to the EU than it actually is. This deal involved Goldman Sachs.

6: The Global Financial Crisis

When that dreadful crash happened all of this fell apart. And all this takes us to...

7: Greek debts are due and they can't be paid.

The Greek state had some bonds which would mature later this month. There was simply no way for them to pay their bonds on time. They could not just print more Euros because that is controlled by the ECB. Unless there was a bailout Greece would have no choice but to not pay their debt.

(This particular situation could never happen in the USA because the US state is the source of their own currency, unlike Greece.)

To pay their debts Greece accepts a bailout from the EU and the IMF. As part of this agreement Greece agrees to cut spending in order to reduce greatly their deficit.

8: The outraged people protest in force due to budget cuts.

These spending cuts are going to be hard upon the Greek people. Many lower class people cannot help but feel that the state is trying to get the middle and lower classes to pay without compelling the all too often tax evading rich to do their bit. Hence they have taken to the streets in force.

Alas, three persons have died during these protests.

9: The problem may not be over.

But despite all of this the problem may not go away. There are fears that other Eurozone countries may also go under like Greece. Fears over this has already seemed to have caused the Dow Jones to take a remarkable 1000 point plunge last Thursday, about two-thirds has been recovered though.

What does PCG do with all these events?

Accuse Germany of trying to further entrench their power.

The main thing they can think of saying is to spread a ridiculous conspiracy theory that Germany is deliberately plunging Greece into this crisis in order to entrench German dominance. They seem to think that Germany has been setting this up for years, even before the Euro was published, just to bring the other nations of Europe to their knees.

(I hate to break this to you, PCG, but Germany's been the leading economic power in Europe for decades. They don't need to cripple Greece to do this. They're already there. It is not something unexpected that needs to be breathlessly announced every single day to your eterally wearied flock.)

To borrow a line from Mike over at Ronald Weinland False Prophet blog, just because you PCG ministers are forever trying to dominate other people does not mean everyone else is.


  1. I don't recall having said something like that, perhaps you could point it out.

    I also disagree with your point that it doesn't matter how much money a government prints up. Otherwise, why not just print up money and give everyone an income so they don't have to work? What would result is no one working to produce the goods people would expect to buy, so inflation would result followed by the collapse of society.

    Perhaps your politics played a role in your departure of Armstrongism. Being forced to attend Armstrong's church while growing up showed me that they believe that while it's wrong to vote, God is secretly a Republican.

  2. Don't you see the obvious conspiracy at work here?

    European countries fall like dominoes. The Euro collapses. Masses revolt in the streets.

    Just like when Adolf Hitler came to power!

    Those big bad Nazis will finally come out of hiding after 65 years to support their new evil leader, supported by a desperate beady-eyed former Nazi named Pope Benedict -- the last pope ever, as prophet Gerald Flurry has noted.

    Why, even a little child can see this!

    Oh, can enough Republicans be elected in November to reverse health care reform -- and save the U.S. from conquest ordained by God, for turning the government socialist?????

  3. Mike,

    Just to be clear for any readers out there, for me, politics is a wholly separate affair from Armstrongism. It was the false prophecies that made me renounce them.

    But I will admit I have changed a bit in my politics. But that is a separate and distinct matter from Armstrongism. They do not meet.

    You are right that the COGs are very much right wing even though they don't vote.

    When I read PCG's commentary they are often practically indistinguishable from other right wing writings. Aside from PCG's emphasis on prophecies they are practically the same.

    As for the comment I think you made a similar line like that somewhere in your posts detailing Weinland's coup in 2000.


    Love the comment.

  4. Mike,

    In regards to the printing money thing, the reason I emphasize that is to emphasize that the USA cannot be in Greece's particular position.

    Any equivalence between their financial positions is false, as far as I can see.

  5. I think the true wealth of a nation is measured in things like its natural resources, the education of its citizens, and their motivation to work. But all that can be mortgaged to others. While the US is not exactly in Greece's situation, we have control of our own currency, we could end up in that situation. It no longer is "we owe it to ourselves". Increasingly we owe it to others. Kind of like setting up a 401K plan and then borrowing against it to go on expensive vacations.

    While I'm hardly a raving right winger like Rush Limbaugh (I think he's a jerk), there are also limits to what I'll accept from the liberal end of the spectrum. I think there's too much moral hazard in the way the financial crisis has been handled. There should have been more suffering by those who set up the situation.

    Regarding the domination thing -- all too many of Armstrongism's "Misters" are willing to do it.

  6. There has been too much moral hazard in the infamous bailout. Nationalizing the companies that needed to be bailed out I think would have been better. They got themselves into this disastrous situation, and so they can be sold to the bailer outer.

    Or better yet bailout everyone except the banks. Pump $17 trillion into everyone else so we could have lived without those big banks for a little while.

    Why did things have to go the way did?

    Those responsible must be held to account for what they did to us and our loved ones and everyone else. Like those unfortunate people in Hong Kong who went bankrupt once Lehman Brothers fell.

    You are right that the USA no longer owns it to themselves. Last I heard something like half of the federal debt is owed to the Federal Government itself.

    It's just that for a long while I had been fearful concerning the US Federal debt. Then I found this guy who said well the US Government makes the money so it can't become bankrupt the way a private family/corporation would. And Greece and Argentina does not apply to the USA. He even, elsewhere, went on to say that having a federal deficit is good. That means more money for us.

    And the COGs do occasionally mention the national debt as though we should be very scared about it.

    Having found an alternative point of view I decided to put it out there in the hope that some readers will have their hearts put at (some) ease on this important matter.

    As for dominating ministers, I am so sorry that you and so many others have had to deal with this very sad problem.

    Wish you all the best,

  7. As I have pointed out in my HubPage on Armstrongism, there is apparently a need for the PCG to mold the world according to their version of truth. Since members are taught that the outside world is dangerous, many stay clear of television and consequently much of their news only comes from one source: the PCG's Trumpet...

    This type of isolationist thinking is also exposed in my HubPage "Are You in a Cult?" which can be found right here:

    Keep up the good work on this blog.