Greece: Total Collapse In Pics – GDP Plunges To Year 2000 Levels – That Things Are Hopeless And Getting Worse Is An Understatement – Another Bailout Imminent

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Greek GDP Plunges To Year 2000 Levels (ZeroHedge, June 8, 2013):

That things in Greece are hopeless and getting worse is an understatement. With unemployment levels off the charts, the pension and retirement systems effectively gone and every able-bodied individual (what little remains of them) moving to the shadow economy which now accounts for 24% of GDP, there are few incentives for people to remain on payrolls, pay taxes and otherwise grow the economy via conventional channels. As a result, instead of an improvement in the economy despite all Greek foreign debt now having been forgiven courtesy of its recent conversion to perpetual Zero Coupons, not even during the depths of the recent economic collapse in late 2011 and early 2012 has the economic collapse been as bad. Kathimerini reports that figures released by ELSTAT on Friday showed GDP at 37.7 billion euros in the period from January to March 2013 – the lowest quarterly GDP since 2000.

Remember how everyone said Q1 2012 is the bottom and there was only upside from there? They lied.

ELSTAT recorded an 8.3 percent drop in consumption in the first quarter from the same period in 2012, with private consumption falling 8.7 percent and state consumption sliding 7 percent. Total consumption declined from 38.5 billion euros in January-March 2012 to 35.3 billion euros in the same period this year.

Investment contracted by 11.4 percent year-on-year, amounting to 5.1 billion euros in Q1 this year against 5.7 billion euros last year. Notably, in the last quarter of 2012 investment came to 5.9 billion euros.

Imports decreased 7.8 percent in the first quarter of the year, dropping to 11.2 billion euros from 12.1 billion in the same quarter in 2012. Exports declined by 2.6 percent on an annual basis: They shrank from 8.6 billion euros in Q1 of last year to 8.4 billion this year.

Naturally, this means that Greece will be in non-compliance with the Troika terms once again, and yet another bailout of Greece is imminent.

For this year, the memorandum signed by Athens and its international creditors provides for an economic contraction of 4.2 percent, while the Finance Ministry expects it to be 4.5 percent and a recent report by the International Monetary Fund puts the figure at 4.9 percent.

But while until now the peace in the tormented nation has been preserved courtesy of that perpetual Bismarckian fallback dangling carrot, the welfare state and the threat of yanked pensions, soon there will be no such “opportunity cost” to revolution left.

Separately, the average monthly pension in Greece has dropped below 700 euros per month as a result of the various cuts imposed over the last few years.

Using data from the recently introduced Helios system for the monitoring and payment of pensions, it appears that the state pays over 4.4 million pensions, most through the Social Security Foundation (IKA), and the average pension amounts to 694.56 euros per month.

In total the state will pay 2.3 billion euros for main and auxiliary pensions this month.

Labor Minister Yiannis Vroutsis said on Friday that the new system “is for the first time shedding some light on the dark and gray areas of the social security system, securing absolute transparency.” This became possible after identifying the pensioners of all 93 social security funds and pension sections and confirming analytical data, and after the completion of a census of all pensioners.

Schauble warned two weeks ago that when the pension system is tapped dry, what follows next, is revolution. He was right.

Finally, for those who missed it, here is the photo study documenting the Greek slide into the “fourth world.


40-year-old Yiorgos, who became homeless in 2010 after his grocery shop went out of business, sleeps outdoors in central Athens February 3, 2013.


42-year-old Alexandros, from Serres in northern Greece, sits in the abandoned car he lives in, at the port of Piareus near Athens April 10, 2013. Alexandros owned a plant shop in Athens until 2010, when it was forced to close, he became homeless soon after.


Homeless people sleep outdoors in central Athens April 14, 2013.


A homeless scrap collector sleeps outside in central Athens May 26, 2013.


Stephanos became homeless in late 2012 when the clothes shop, where he had worked for over a decade, closed down and he had no income to pay for his flat. He now lives next to a church in central Athens and eats in soup kitchens. Stephanos smokes a cigarette as he sits on a rug in central Athens May 16, 2013.


36-year-old unemployed clerk Michael sits in the sun near a bridge in central Athens May 24, 2013. Michael worked as a hotel clerk for over fifteen years but when the hotel closed he was unable to find work and in late 2011 became homeless, two months later he was diagnosed with lymph node and thyroid cancer. He now lives outside a church.


51-year-old Romanian truck driver Adrian, who lost his job in 2010 when the lorry company he was working for closed down, sits with his head in his hands in central Athens January 18, 2013. Adrian survives by collecting scrap and lives in an abandoned warehouse in Athens central vegetable market.


50-year-old Giorgos sits with his belongings under a bridge, where he lives with a group of other homeless people, in central Athens May 25, 2013. Giorgos was forced to close down the billiard hall he owned in 2006, and spent time in prison for not paying his social security debts.


35-year-old Vassilis, who has been treated for severe physiological issues, sits in the afternoon sun under the bridge where he has lived for the last year and half in central Athens May 25, 2013.


58-year-old Matheos stands next to the makeshift shelter where he has lived since late 2011, on a hill in central Athens January 23, 2013.


56-year-old Boris Potev, a Bulgarian immigrant, lies on a mattress amid garbage in an Athens suburb April 9, 2013.


Michael, a 36-year-old unemployed man, poses by an abandoned open-air cinema in central Athens February 8, 2013. Michael worked as a hotel clerk for over fifteen years but when the hotel closed he was unable to find work and in late 2011 became homeless. Two months later he was diagnosed with lymph node and thyroid cancer. He now lives outside a church.


Marialena, a former drug addict who is on a methadone rehabilitation program, pushes away her boyfriend Dimitrios who is trying to clean up her self-inflicted wounds, under a bridge in central Athens May 15, 2013.


42-year-old Marialena, a homeless AIDS sufferer and former drug addict who is on a methadone rehabilitation program, drinks coffee after waking up next to her boyfriend Dimitrios in central Athens May 26, 2013. Dimitrios, 51, was a dancer in a famous Greek folk dancing troupe until he lost his job three years ago and became homeless.

3 thoughts on “Greece: Total Collapse In Pics – GDP Plunges To Year 2000 Levels – That Things Are Hopeless And Getting Worse Is An Understatement – Another Bailout Imminent

  1. This is why suicide is becoming the answer for so many. Who wants to live in hell? The greedy guts want it all, I hope they choke a slow painful death on it. They are so greedy, they don’t know we all go back to zero when the game is up…..nobody gets out alive. We come into this world with nothing, and leave the same way. How much is enough for these goons?

    This is an outrage, the greedy guts are destroying this wonderful, ancient country, and others will soon follow. Thanks to globalization, it will be like a row of dominos, knock one down, the others follow. Spain, Cypress, Italy, and all nations will follow.

    This will take mankind back to roving gangs of clans and robbers. It will be unsafe to go anywhere. We are going back to a time when clan will fight clan for survival. This absurd electronic virtual reality we live in currently will vanish, and a new Dark Age will descend.

    This has happened again and again throughout history, and why man cannot learn from his mistakes is beyond me. This is why civilizations vanish without a trace, usually without any translatable account of their last days. We seem to go so far, then fall apart.

    In the 1930s in the USA, we had roving gangs of robbers who would break into businesses and homes and rob the people at gunpoint. The police service (like now) was overextended, and unable to deal with it all. The robbers felt all had been taken from them, and suffered no guilt for their crimes, they felt they had no other alternatives if they were to feed themselves and their families. Many of them had been working men who could find no way to feed their families. Some became so violent, the police feared them.

    Has anyone noticed how much this type of crime has grown here over the past 4-5 years? In Contra Costa County, CA, violent break ins have gone up 38% in the last 12 months. This is when people are home, or at work, and violent gangs break in and steal everything, often beating them up before leaving. This isn’t just stealing, this is rage at a system that takes everything and leaves nothing. We are not used to poverty, and won’t take it quietly. That is why the greedy guts have militarized our police departments in every town and village in America.

    80 years ago, we had some decent leaders who mindfully set about finding solutions. From it came the WPA, Social Security, strong financial regulations, and many projects and plans to help America rebuild and grow from it. Until Clinton got into power, the financial regulations protected us from the greedy guts. We had recourse, and laws to protect the middle class from them.

    Now, the latest assault on the dying middle class, the sequester is kicking in, cutting food stamps and essential services for the weakest and sickest among us. Medicare is being cut, so cancer patients cannot get their treatments……people are literally dying because of the corruption in our leadership. This is happening NOW.

    Police services are being outsourced……all our wealth has been stolen by the same greedy guts who have destroyed Greece. ( It all started on Wall Street)

    Real suicide rates average 90 a day in the US right now, but are going up. People don’t want to be homeless and hungry. The fact this is being allowed in the 21st century tells me we are going back to times similar to the Middle Ages. This time, however, far more people know better, and they will not sit by quietly. We have been rich for a long time, and until recently, this was a country where one could always find a decent job of some sort. Today, there are no jobs. 175,000 new jobs last month. We need 200,000 to keep with new folks moving into the job market. 96.5% of all the new jobs are low wage, part time(so corporations don’t have to pay benefits, medical or retirement) and go nowhere. The hope is gone.

    The more they repress, the more they grab, the worst it will be for all of us. Unrestrained greed is at the core of all destruction. Add the ongoing radioactive meltdown in Fukushima, probably melting the glaciers, causing sea levels to rise at unheard of levels. Add the poison in the air, water and soil that is destroying our food chain. Look at our air quality from it.
    Remember the dead sea off the Gulf of Mexico thanks to BP Oil? More info is coming out about that now along with other leaks………we have a perfect storm coming.

    Thanks for your courage. I think you do a great job, and I know you work a full time job elsewhere as well. I really respect you, and the work you do. Your truth in a sea of mendacity is refreshing and reassuring.

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