Beware of Greeks bearing loans…

So, Greece is in a bit of a fix. The farming industry is not as competitive as its neighbours and is little more than subsistence agriculture, with the inevitable rounds of feast and famine. Olive growing is greatly encouraged, but olive trees do not bear fruit during the first six years, which poses its own problems. Black Athenian Pottery is a good selling line, but Stoke on Trent found out how difficult it is to put too many eggs in one basket.

Debt is spiralling out of control and debtors, or their families, are enslaved as loans are secured on the personal collateral of the family. This all sounds alarmingly familiar and the solution to the problem was proposed by Solon who was born on the Island of Salamis in 638 B.C. The canny nobleman suggested that all debts should be cancelled, and he mentioned his bright idea to a few of his noble chums and they promptly took out vast loans and bought land – so insider trading is nothing new either! Solon’s economic proposals were enacted and failed; they included the annulments of contracts, prevented the use of debtors as collateral and the release of Athenian slaves.

The Greeks are used to all these problems with debt, living beyond their means, and not paying taxes. I dare say that writing off the debt is the new solution, however it is concealed and packaged. I enclose the tax tables for 2015-16.