March 28, 2024

News Cymru

Two sides to every headline

The value of the Euro is controlled by the ECB through interest rates.

To use a metaphor to explain how the Greek economic situation manifests in Greece in terms of vehicles and more specifically vehicle manufacturers.

Imagine Toyota were the only vehicles used in Greece. All trains, trucks, cars, bikes, vans and aeroplanes were made by Toyota. (Toyota is used to illustrate the point. Toyota is not a monopoly in Greece or anything close.)

What is happening in Greece at the moment?

Toyota is restricting the amount of parts and vehicle available to Greece.

The is making life more difficult because transport options are reduced.

The problem, according to the mainstream media is that Greek had too many transport options before and that has to be reduced because Greeks cannot afford to maintain that many vehicles.

How are the number of vehicles and parts being reduced?

Toyota has cut its supply of parts and vehicles into Greece. The Toyota dealers in Greece (the banks) are refusing to sell the same number of vehicles as before and the Toyota dealers are also restricting the number of Toyota parts available.

What does Toyota gain from selling less vehicles and parts?

The Greek government has borrowed more Toyota vehicles that it can afford to pay for. Toyota realises this.

Toyota, by making less vehicles available, is causing the Greek economy to be less efficient. People can no longer go where they want, when they want, people now have to wait for buses instead of using their own car. There are less buses and trains operating so people have to wait longer for departures and because buses are full, people are forced not to travel at all. The same goes for goods and services.

This inefficiency is reducing the effectiveness of Greek labour in relation to countries where there is no shortage of vehicles.

As Toyota is based in another country, everything in Greece is becoming cheaper, so while Toyota cannot take actual money in payment for its vehicles, by restricting the supply of vehicles to Greece, Toyota will be able to recoup it’s money in the form of assets which it can now afford. Land for example.

But how does Toyota gain, if the assets are worth less?

Toyota will only gain if the value of the assets return to normal levels, therefore for Toyota to make back its money Toyota has to force the value of assets well below the “normal” market value. Normal being the price level when there is free flow of vehicles and parts into Greece.

Why does Toyota want a monopoly?

Looking past the obvious sales benefits of a monopoly. A monopoly allows Toyota to manipulate the Greek economy by restricting and/or over supplying its vehicles.

How does Toyota maintain it’s monopoly over Greece?

Toyota has been granted a monopoly by the Greek government (The ECB has been granted a monopoly by governments). To maintain this monopoly Toyota deliberately manipulates the Greek government and officials into imposing rules and regulations onto the Greek economy which makes Greece simply unable to afford vehicles other than Toyota.

How does Toyota manipulate politicians?

Toyota promises to make vehicles and parts abundant for politicians that do its bidding and restrict the supply of parts and vehicles for ruling governments that do not.

How can Toyota force Greeks to do things they do not want to do? Devalue their assets for example?

By threatening to completely withhold the supply of parts and vehicles if it’s wishes are not respected.

So what is the solution for Greece?

It is very simple, find more than one vehicle supplier (more than one controller of the currency).

Why does Greece not have an alternative vehicle supplier already?

Greeks are told that no other vehicle manufacturer wants to supply them because they are such bad customers.

Politicians also tell Greeks no other company wants to supply them because they are such bad customers.

Why do politicians want only Toyota to be supplying Greece with parts and vehicles?

Because Toyota has the power to boost their power.

If there were many car manufacturer operating in Greece no single manufacturer would have the power to control the success of the poltical parties.

If Toyota were in competition with other manufacturers, Toyota could no longer control the economy (and therefore control the popularity of political parties) by restricting and or expanding the supply of vehicles and parts. For example restricting the supply of vehicles would simply result in other manufacturers filling the vacuum.

In short competition will ensure that Greece can no longer be manipulated.

What are the other benefits of competing car manufacturers?

Car manufacturers would be proactively lobbying government to reduce taxes and regulation. The lower the taxes are, the more money people will have to buy their vehicles. The more productive businesses are (through reduced regualtion), the more money they will make making, meaning more people will be able to afford more cars more often.

With a monopoly, Toyota has no interest in making taxes less or regulation less. To maintain its monopoly it has to scratch the backs of politicians. Politicians by their very nature want more power, Toyota can only grant power when they are in a monopolistic position.

So it is a balancing act for Toyota between making money and by maintaing a monopoly position. It makes money through monopoly but to maintain monopoly it has to scratch the backs of politicians. The trick for Toyota is to scratch the backs of polticians at the lowest possible cost.

This entails constantly keeping polticians on tyhe back foot and reinforcing an armosphere of uncertainty. When polticians realise they can control the country without Toyota’s help then Toyota becomes excess to requirements.

Toyota has to limit the power of polkiticnas while atre the same time giving them what they want while at the same time keeping the costs down so they can make as much money as possible.

In summary. The ECB and the domestic central banks are the Toyota of this piece.

The value of people’s labour and property is controlled by a monopolistic organisation. The central bank.

This monopoly leads to manipulation of governments directly and indirectly, and creates a situation where increasing taxes and regulations are inevitable to feed the politician’s thirst for power.

There needs to be competition in the issuance of currency to prevent manipulation and to reduce the chances of people being corrupted by the supreme power that a monoply gives them.

Politicians in the USA are moving towards competing currencies, HR 1098 is a bill which propose competition.

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