– What The “Porsche Indicator” Tells Us About The Greek “Recovery” (ZeroHedge, Sep 17, 2014):
As the “Big Mac Index” is to global purchase price parity levels of inflation, so when it comes to the state of the “recovery” if not for everyone, then certainly for the 0.1%, there is no better metric than the “Porsche Indicator.” Recall: “Porsche Reports Record Sales in 2013; 21 Percent Increase Over 2012” which certainly didn’t come on the back of yet another year of declines in real incomes for the middle class (spoiler alert: it came on the back of some $10 trillion in liquidty injections by the world’s central banks).
Yet one place where the “Porsche” recovery forgot to make landfall, is none other than the biggest casualty of Europe’s artificial monetary, political and wealth-transferring union: insolvent Greece.
The chart below, from the Greek department of transportation, hardly needs an explanation or commentary, suffice to say that far better than any revised, annualized, seasonally-adjusted non-GAAP GDP it captures the true state of the Greek “recovery”…
Since when does this indicate an economy? This is a market for greedy guts, they run over $50K in the US……and the top ones are well over $100K.
How is this a market indicator?
Greece has a top down economy like too many 3rd world countries the EU is now saddled with because they were in such a hurry to develop themselves into a large economy with global power………they should have searched for Enron accounting……..Moody’s exported it to the world after the crash of 2007-08.
The EU has 28 countries. If they want to survive, they need to evaluate and dump the nations that lied to them and now hold them down with debt. I sure would…..but, I would have wondered how these countries could have so much wealth and little debt…….
When Napoleon came up with the idea of a continental currency in 1801, he was thinking of nations that traded in gold and silver……not worthless paper. As the man who conquered so many countries, he was in a position to evaluate each nation. He was very intelligent, and would have looked carefully.
Today’s EU bought into the US model of greed, now they are suffering for it. The Porsche economic model…..give me a frigging break.
It is time for all the western nations to realize what they face. BRICS is but the beginning. Putin, the closest to a Napoleon I have seen in my lifetime, has built a coalition of solvent nations, all who can trade with each other and prosper. Russia has the economic power to dump the west, China has the blueprints and MFG capacities to build anything the coalition needs from vehicles, planes, computers, watches……..you name it, China has all of it. They even have the blueprints for GE’s power plants. That was the price for a quarter century of free labor………all corporate secrets are now in the hands of the Chinese government.
China also has the rare earth minerals to build computers and space technology equipment…..they stopped selling it to the west in 2010.
2010 was the beginning of the end for the west. If the EU doesn’t realize the portend of BRICS, and the minds behind it, they will sink like the US. The US has fools in power, how about the EU?
Maybe member states of the EU were pressed to join the EU? The EU supporters lied about the euro as one coin for all; there wasn’t a EU-debt so that in fact we have as many euro’s as there are members of the monetary union of the EU. That was well known at least by them who wanted to understand what tey were doing, but Bruxelles was speculating to the future that time would resolve the situation. Rather arrogant and we have to pay the price for it.
It’s just another bit of proof that austerity forced on the masses results in migration of the wealthy.
Only an idiot would flash a Porsche around in Greece. They’ve run away.
Henk, you could be right. Perhaps members were pressed to join. There was a big move on to turn the European nations into a financial power…….it is a pity they were not more mindful. This is where Putin wins the gold, he has been slowly, carefully, and mindfully building the BRICS coalition…..the latest member being Switzerland. Member nations are all solvent, except China, but China has all the blueprints and technology to build anything the west can, so that knowledge and ability will bring them up. Why can’t we have a couple of more like him over here?
To Squodgy: You are spot on. Only a fool would flash a fine vehicle around Greece right now, they have all run away. What a dumb idea, the Porsche indicator.