Best of the Week
Most Popular
1.UK House Prices BrExit Crash NOT Likely Despite London Property Market Weakness - Nadeem_Walayat
2.BrExit Morning - New Dawn for Britain, Independence Day! - Nadeem_Walayat
3.LEAVE Wins EU Referendum - Sterling and FTSE Hit Hard, Pollsters, Bookies and Markets All WRONG! - Nadeem_Walayat
4.BrExit Implications for UK Stock Market, Sterling GBP, House Prices and UK Politics... - Nadeem_Walayat
5.Trading BrExit - Stocks, Bonds, Sterling, Opinion Polls, Bookmaker Odds and My Forecast - Nadeem_Walayat
6.FTSE and Sterling Brexit Trading, Deconstruction of the EU Referendum Result - Nadeem_Walayat
7.UK Interest Rate Cut to 0.25% Imminent and More QE Money Printing - Nadeem_Walayat
8.Trading BrExit - British Pound Plunges, FTSE Stock Futures Slump on LEAVE Shock Referendum Win - Nadeem_Walayat
9.The Stock Market is Reading it Wrong! - Chris_Vermeulen
10.Breakouts Galore in Gold and Silver - Jordan_Roy_Byrne
Free Silver
Last 7 days
Elliott Wave Crash Course - 3 Ways the Elliott Wave Principle Enhances Your Trading - 28th July 16
Japan's "Helicopter Money" Play: Road to Hyperinflation or Cure Debt Deflation? - 27th July 16
Monetary Zika - The Insidious Nature of Credit Expansion - 27th July 16
Gold and Pork Bellies - 27th July 16
Silver Is Insurance Against The Worst Part Of This Depression - 27th July 16
Don’t Buy The SPX Hope Stock Market Rally! - 27th July 16
Bitcoin $650 Still in Play - 26th July 16
Deutche Bank Stock Price Crash - The EU Has Problems Far Beyond the Brexit - 26th July 16
The Forex Markets Are Getting Exciting! - 26th July 16
Underpriced Silver Is the “Rip Van Winkle” Metal - 25th July 16
Declines in Multiple Market Indexes - 25th July 16
Retailers Are Doomed as Most Americans Are Too Poor to Shop - 25th July 16
Here’s One Currency That Could Go to Zero - 25th July 16
Stock Market Top is Expanding - 25th July 16
Silver Manipulation – Because They Needed the Eggs - 25th July 16
Silver Market COT Stuns: What's Going On Here? - 24th July 16
Gold Demand Remains Stable During Sector Weakness - 24th July 16
Sernova, Diabetes and Haemophilia - 24th July 16
Russia: Tensions, Turmoil, and Western Hubris - 24th July 16
Soybean Commodity Price to Soar Again - 23rd July 16
SPX Stock Market Uptrend Continues - 23rd July 16
Gold And Silver – Debt Addiction Will Carry Precious Metals Higher, Guaranteed - 23rd July 16
Pokemon Go - How to Play, First Use, Balls, Stops, Catching Pokemon's... Great Excercise! - 23rd July 16
7 Signs That the Gold Market Remains Resilient - 23rd July 16
Basic Income in The Time of Crisis - 23rd July 16
Silver Bull Faces Correction - 22nd July 16
The Serious Warning No One’s Talking About - 22nd July 16
Stock Market Insight from Greed, Volatility, and Put/Call Ratio - 22nd July 16
What Will Happen To the Stock Market When Interest Rates Rise? - 22nd July 16
How to Escape the World’s Biggest Ponzi Scheme - 22nd July 16
Addicted to Debt - We Can’t Borrow from the Future Anymore - 21st July 16
Not Everything Is Bullish for Gold - 21st July 16
Don’t Get Sucked Back Into the Stock Market - The Big Picture Hasn’t Changed - 21st July 16
Silver – Caught Inside - 21st July 16
Forex: "The Markets Are Getting Exciting!" - 20th July 16
China Economic Troubles - Is Kyle Bass Finally Getting His Revenge? - 20th July 16
Why Lithium Will See Another Price Spike This Fall - 20th July 16

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

The Power of the Wave Principle

Spain Would Be Dead Without ECB Loans, Black Market Transactions in Spain; Bartering in Greece

Politics / Eurozone Debt Crisis Apr 15, 2012 - 06:33 AM GMT

By: Mike_Shedlock

Politics

Best Financial Markets Analysis ArticleAs Greece wonders whether its debt crisis will eventually spell its exit from the euro, one town, Volos, has formed an alternative local currency as noted by the BBC in Greece Bartering System Popular in Volos.

A few months ago, an alternative currency was introduced in the Greek port city of Volos. It was a grass-roots initiative that has since grown into a network of more than 800 members, in a community struggling to afford items in euros during a deepening financial crisis.


From jewellery to food, electrical parts to clothes, everything here is on sale through a local alternative currency called TEM.

It works as an exchange system. If you have goods or services to offer, you gain credit, with one euro equivalent to one TEM.

You can then use your "savings" to buy whatever else is being offered through the network, leading to some rather original exchanges of goods.

It's all reminiscent of an ancient bartering system returning to today's Greece.

"I can get language classes or computer lessons in return", says Stavros Ntentos from his stall where he sells children's underwear.

"It's a very good idea because we need to make people realise we can all buy and sell something; we don't only need euros."

"We can buy bread or meat in exchange for our products, or the girls can go to the hairdresser," says Peri Mantzafleri, who runs the co-operative.

"I grew up in a village - this was how it used to work in the old days, before money became involved. So this could be a chance to start again."

"Spain Would Be Dead Without ECB Loans"

Articles that appear in this blog translated from Spanish frequently appear in one of the major English news outlets a day or two later.

And so it is again.

As a followup to my post Black Market in Spain: Cash Transactions Exceeding 2,500 Euros Now Banned The New York Times reports Spain Targets Tax Fraud To Counter a Recession.

The Spanish government approved a number of measures on Friday to crack down on tax fraud as part of its efforts to reassure investors that Madrid can replenish the public coffers by bringing to the surface some of the country's hidden wealth.

Jaime García-Legaz, the Spanish secretary of state for the economy, told the Spanish television channel laSexta on Friday that Spain "would be dead" without the loans provided by the European Central Bank.

To counter a deepening recession -- the second in three years -- the government of Prime Minister Mariano Rajoy is hoping to bring out some of the revenue buried in an underground economy that was estimated by the previous government to represent about 20 percent of gross domestic product.

The efforts to combat fraud come on top of a squeeze of 27 billion euros, or $35 billion, in the central government's budget this year, as well as regulatory changes in labor markets and other areas.

As part of the measures approved at a cabinet meeting Friday, corporate cash transactions will be limited to 2,500 euros ($3,300), with fines as high as 25 percent of the transaction's value levied upon any transfers above the limit. Individuals and companies will also face sanctions beginning next year for failing to declare all assets held overseas.

Use of 500 euro notes, worth about $657, is thought to have expanded considerably during Spain's construction boom as a way of paying for large -- and sometimes undeclared -- property transactions or building materials. Spaniards came to call the 500 euro notes "bin Ladens": everywhere and yet never seen.

Cayo Lara Moya, leader of the United Left party in Spain, argued during a parliamentary session this week that the government should push for the complete removal from the euro zone of 500 euro notes, one of the largest denominations used in Western economies.

Banning "bin Ladens"Cannot Possibly Work

The idea that banning 500 euro notes "bin Ladens" would accomplish anything is ludicrous. Moreover, as bad a the fraud is now, it is 100% guaranteed to get worse.

Unemployment is on the rise, and Spain is about to hike the VAT. With every tax hike comes more resistance to pay taxes. Spain is imploding and these measures will just make things worse. Please see Massive Jump in Bank of Spain Borrowing from ECB: Bank of Spain Balance Sheet Shows Spain Deep in Trouble, LTRO is Essentially Useless for more details.

Get Money Out of Banks Now!

My advice to everyone in Spain: Take your money out of the banks while you still can. Capital controls are just around the corner.

By Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com Click Here To Scroll Thru My Recent Post List

Mike Shedlock / Mish is a registered investment advisor representative for SitkaPacific Capital Management . Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction.

Visit Sitka Pacific's Account Management Page to learn more about wealth management and capital preservation strategies of Sitka Pacific.

I do weekly podcasts every Thursday on HoweStreet and a brief 7 minute segment on Saturday on CKNW AM 980 in Vancouver.

When not writing about stocks or the economy I spends a great deal of time on photography and in the garden. I have over 80 magazine and book cover credits. Some of my Wisconsin and gardening images can be seen at MichaelShedlock.com .

© 2012 Mike Shedlock, All Rights Reserved.


© 2005-2016 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Comments

peter
15 Apr 12, 15:15
greeks bartering for TEMS

While I admire the greeks efforts to find a better way to transact business, bartering for TEMS or digital units seems to smack of the same old same old. Why not barter for something tangible, like gold or silver? It seems be me the TEM's is nothing more than another FIAT currency open to the same kind of fraud as any other fiat...time will tell but where there is a possibility of fraud happening someone eventually capitalizes on it. All it takes is an entry in the TEMS database to inflate the currency or token or whatever they want to call it.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Catching a Falling Financial Knife