Best of the Week
Most Popular
1.U.S. Housing Bull Market Over? House Prices Trend Forecast Current State - Nadeem_Walayat
2.The Coming U.S. Economic Collapse Will Trigger a Revolution - Harry_Dent
3. Stock Market Crash a Historical Pattern? - Wim_Grommen
4.Global Panic - U.S. Federal Government Stockpiling Ammo – Here’s What We’re Going to Do - Shah Gilani
5.AI, Robotics, and the Future of Jobs - Aaron Smith
6.This is Your Economic Recovery With and Without Drugs - James_Quinn
7.Gold and Silver Price Getting Set To Explode Higher - Austin_Galt
8.The Something for Nothing Society - Lifecycle of Bureaucracy - Ty_Andros
9.Another Interesting Stock Market Juncture - Tony_Caldaro
10.Inflation vs the Deflationary Straw Man - Gary_Tanashian
Last 5 days
The Ultimate Demise Of The Euro Union - 1st Sep 14
Palladium Price Breaks Multi-Year High Over $900 - 1st Sep 14
When Complexity Becomes Chaos - 1st Sep 14
Designer War By Default - 1st Sep 14
Islamic State or Russia? Ten Key Questions Towards Pragmatism - 1st Sep 14
Mixed Emotions for the Gold Market - 1st Sep 14
These Clowns Are Dragging Us Into War with Russia - 1st Sep 14
Marx And The Capitalist Cancer Of Overproduction - 1st Sep 14
Scottish Banks Salivating at the Prospects for an Independent Scotland of 6 Million Debt Slaves - 1st Sep 14
Small Man Europe Is Now In “Effective State Of War” With Russia - 31st Aug 14
The Unintended Blowback Of False Flags - 31st Aug 14
Tesco Supermarket Death Spiral Latest Profits Warning and Dividend Slashed - 31st Aug 14
Dow, Gold and Silver - A Last Stand, A Fake Out And A Surge - 31st Aug 14
If U.S. Consumers are so Confident Why aren't They Spending? - 31st Aug 14
Scotland Independence House Prices Crash, Deflationary Debt Death Spiral - 31st Aug 14
Obama’s “Catastrophic Defeat” in Ukraine - 30th Aug 14
Stock Market Inflection Point Approaching - 30th Aug 14
Gold And Silver - Elite's NWO Losing Traction. Expect More War - 30th Aug 14
Corporations Join Droves of Americans Renouncing US Citizenship - 30th Aug 14
Peter Schiff U.S. Housing Market, House Prices Bubble Warning - 30th Aug 14
Russia, Ukraine War - It’s Time to Play the “Gazprom Card” - 29th Aug 14
The One Tech Stock Investment You Should Never Sell - 29th Aug 14
Bitcoin Price $500 as Current Downside Barrier - 29th Aug 14
Don't Get Ruined by These 10 Popular Stock Market Investment Myths - 29th Aug 14
Low Cost Transcontinental Gold - 29th Aug 14
Gold Bullish Central Banks Should Give Money Directly To The People - Helicopter Janet? - 29th Aug 14
US House Prices Bull Market Over? Trend Forecast Video - 29th Aug 14
The Fed Meeting at Jackson Hole Exposed Yellen’s Greatest Weakness - 29th Aug 14
AAPL Apple Stock About To Get sMACked - 29th Aug 14
A History of Unlimited Money: Learn From It or Repeat Its Mistakes - 29th Aug 14
How You Can Play to Win When Market Makers Are Calling the Shots - 28th Aug 14
EU Gas Supply Is In Real And Imminent Danger - 28th Aug 14
Central Banks at the Root of Evil - 28th Aug 14
European Bond Market: Bubble of all Bubbles! - 28th Aug 14
Employers Aren’t Just Whining: The “Skills Gap” Is Real - 28th Aug 14
The ISIS Menace - Just What We Need, Another War - 27th Aug 14
The Risky Business of Methane-Rich “Fire Ice” - 27th Aug 14
CFR Recommends Policy Shift that is Very Bullish for Gold - 27th Aug 14
Ukraine Standoff Signals Global Power Shift - 27th Aug 14
Stock Market Panic Decline Begins - 27th Aug 14
The Monopoly of the Government Education Cartel - 27th Aug 14
How to Invest in Silver Today for Double-Digit Gains - 27th Aug 14
The Big Solar Energy Breakthrough We've Been Waiting For - 27th Aug 14
U.S. Empire’s Bumpy Ride - 27th Aug 14
Gold Market and the Interest Rate Trap - 27th Aug 14
Stock Market Staring Into the Great Abyss - 27th Aug 14
A Look at the Coming 30-year Inflation Cycle - 27th Aug 14
Forex Trading - Will USD/CHF Rally Above 0.9200? - 27th Aug 14
Europe’s Depressing Economy Dog Days of Summer - 27th Aug 14
How The Coming Silver Price Bubble Will Develop - 26th Aug 14
A Nation of Shopkeepers - Supply-Side (Voodoo) Economics? - 26th Aug 14
Stock Market Bear Tracks Abound In Wall Street - 26th Aug 14
65,000 U.S. Marines Hold up a Mirror to the Economy - 26th Aug 14
Bitcoin Market Provides Clues for Investors - 26th Aug 14
The Key to Trading Success - 26th Aug 14
Will The US Succeed in Breaking Russia to Maintain Dollar Hegemony?... - 26th Aug 14
Even Mainstream Academia Worried about Massive Bubbles in Markets - 26th Aug 14
Iraq and Syria Follow Lebanon's Precedent - 26th Aug 14
Colonization by Bankruptcy: The High-stakes Chess Match for Argentina - 26th Aug 14
Dow Stock Index On The Cusp - 26th Aug 14
Prohibition Laws and Agency Regulations - 26th Aug 14

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

The Biggest lie in Stock Market History Revealed

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.


© 2005-2014 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

Free Report - Financial Markets 2014