Hugh Hendry Argues for Greek Bankruptcy

September 24, 2011


It’s a 30 minute interview with a host and two other guests. Hugh Hendry accounts for a a minute portion of the talk. Here are the highlights.

  • We’re not in a recession. We’re in a depression.
  • The problem is greater than the politicians ability to respond
  • Since there are no policy prescriptions that can provide a solution, frustrated politicians are looking to blame speculators.
  • Greek politicians need to be thrown out.
  • Bankruptcy is a solution.
  • Creditors made mistakes and should take haircuts.
  • Anything else is oppression and forces all the pain on debtors in the form of lost jobs.


Fast Forward to : 6:40 minute mark

HS : The Greek bankruptcy is a foregone conclusion, but not as long as Europe continues to extend them more credit. Politicians will soon turn their attention from speculators to each other as the fiat currency cartel begins to break up, politicians turn on each other, and the ongoing trade war escalates.  There are solutions to the debt problem. Politicians can cut transfer payments, reduce the internal waste and fraud, and slash their bloated payroll that has a large number of paper pushing jobs that hinders, not helps the economy. This prescription has helped governments avoid debt crises in the past, on the condition that tax hikes do not account for more than 15% of the fiscal consolidation. Unfortunately, the Obama plans calls for 75% tax hikes, while Warren Buffet has spoken favorably about 70% income taxes of years past.

37 year Study Shows Spending Cuts, Not Tax Increases, Best for Debt, Growth, Bond, Stock Markets

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