A good question.

By now you may have heard the press going on about how the European country of Greece is broke. Greece has approached their European Union counterparts for a bailout and the global community has agreed to drop an estimated $146 billion US.

Greece is bankrupt based on several things:

1. The government spent more money on social programs than it could afford.
2. Greece has had a hard time finding outside investors and trade agreements in a slumping economy.
3. Taxes were too low to sustain spending.

Some in the blogosphere are suggesting Greece knowingly broke the rules. In an article from February 2010, James Turk claimed:

Greece broke the rules. The Greek government borrowed too much.  It spent too much. Because it broke the rules, it is not worthy to be included in the eurozone. So Greece should be expelled. Doing so would re-affirm the reliability of the euro and indeed, make credible the promise of every European government before joining the eurozone that it would follow the rules.

Two months later and the country is seeking aid. EU leaders who are being compassionate are being interrogated by their citizens.

Rippling Effects

German chancellor Angela Merkel lost a recent regional election after her party’s $28.2 billion US contribution left Germans stunned.

German opposition leader Frank-Walter Steinmeier of the Social Democrats seized this opportunity -

“No German government has managed to throw away so much respect and confidence as you have in such a short time…Where was the leadership? Where was the crisis management Mrs Merkel? We saw nothing.”

Unbalanced Budget

We are all used to hearing about private companies going bust, but the idea of a country going broke so rapidly is quite unusual.

Despite the aid pledges, many around the globe are urging Greece to rebuild domestically – basically save yourselves cause we don’t wanna get stuck with the tab mentality.

So Really, Why is Greece Broke?

After further research, it was learned that Greece, much like many other countries, had an excellent economy during the first half of the 2000′s.

Primarily, Greece’s shopping and tourism industries boomed.  As the recession hit the rest of the western world, Greece continued to maintain 100% GDP and invested heavily in structural development and social programs not anticipating the economic turmoil would reach its way.

This was not to be – other countries went broke and stopped travelling to Greece.

In terms of their ability to sustain themselves domestically, oil energy consumption was 400 times more than production in 2006. Since the world has reached peak oil, I don’t imagine it to increase.

The next few weeks will show us how the first, real, economic test will be answered by the EU – and whether Greece is an example of what’s ahead internationally.

Please add your comments below as to what factors you think have led to the financial situation in Greece.

- Riaz Sidi

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Here is my contribution to open source innovation, 5 iPhone applications of the future. The way I see it, if I can fathom it, then surely it can be feasibly invented. So go out there techies, prove me right.

Here are 5 iPhone Apps that we may see within our lifetimes:

1. Bluetooth Dog Leash: Just strap on the leash and this app will ensure your dog never goes beyond the selected distance. The wireless device resembles a traditional leash, just tug on your iPhone and watch Fluffy brace himself.
2. Stage Fright: This app relieves performance anxiety.  Simply hold your iPhone up to an audience and view them naked in all their glory.
3. Heated Coaster: Keep hot beverages bubbling with an app that heats up and allows your iPhone to act as a coaster. (Warning: Keep out of reach from children)
4. Mobile Printers: Just scan your iPhone over printers placed throughout the city to simply print off a file stored on your iPhone. No cash? No worries, the tab is charged to your iPhone.
5. Global iPhonebook: Create a listing in a centralized global iPhonebook. This app allows you to receive requests to release your number when found in the database. It also allows you to maintain your privacy by customizing who is able to reach you.

It is nice to dream while we wait for these conceptualizations to be realized. What is your dream app of the future?

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BBC is reporting the development of a new technology in London designed to compile private communication contact between citizens “including e-mails, telephone and internet use including visits to social network sites, but not their content”.

The aim for Government Communications Headquarters (GCHQ), according to the report, is not to create a centralized location for all information as had previously been presented but to trace “acts when it is necessary” and “not spy at will”. The main focus in this article presents the bold step taken by GCHQ to deny it will track ALL usage of communications.

“Similarly, GCHQ has no ambitions, expectations or plans for a database or databases to store centrally all communications data in Britain,” said Jacqui Smith of GCHQ in the BBC article. “The new technology that GCHQ is developing is designed to work under the existing legal framework.”

The careful use of words allows for GCHQ to create such a technology and provide a statement which clearly contradicts privacy while limiting how they comment on other factors of this innovation. No legislation has been presented to the British House of Commons to evaluate its integrity and usefulness.

GCHQ is exerting power in a very nice way. Nevertheless, it may be valid that the government is creating this technology in order to prevent those with negative ambitions to be deterred.

The question becomes not whether this technology fits within existing legal framework but rather whether the existing legal framework functions well in protecting society from governmental power.

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Once again public attention has been taken off of real news by the media’s excessive coverage of “Swine Flu”.

This new strain of influenza is only being heavily publicized as Western nations have had confirmed cases. Influenza related death is more normal than the public is led to believe and quite higher than this most recent outbreak.

According to the World Health Organization (WHO),“annual epidemics result in about three to five million cases of severe illness, and about 250,000 to 500,000 deaths.” These numbers are starkly different from the 935 confirmed cases and 23 confirmed deaths from the most recent H1N1 outbreak.

Certainly there is credibility in the media reporting this story, but the focus is so finely fixed when many people will not be affected by this disease. This latest flu strain is more newsworthy as it is unknown to health professionals and time is an indicator of whether a widespread outbreak occurs.

WHO has declared that a “pandemic is imminent” but has not given any further information to people as to where most widespread outbreaks will occur and what the appropriate protocol is for individuals to follow. Is this another attempt to create fear and tame the public?

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1. In Simple Terms, What is a Recession?

“Oh no, the economic crisis is upon us!” But who really knows what that even means? Why should we care? How will it really affect anyone?

A depression occurs when the Gross Domestic Product (GDP) of a nation falls by over 10%. But what is GDP? Gross Domestic Product, in simplest terms, is all the money that is brought in by a country through the creation of goods, sale of goods, import/export of goods, any tax money MINUS all the losses seen from import/export, expenses in the country: infrastructure, health care, education, war, development aid, etc.

To simply put it, if your house was a little country and the combined income of your family was $100,000, this amount, minus all of the expenses for the year – mortgage, school fees, taxes, food, shelter, car payments, etc. – would leave your family with a certain amount. For this example, we will say that it is $50,000 leftover. This amount is the GDP of your household.

What is a recession or depression then? Now that we understand GDP, let us take a closer look at recession and depression.

GDP is always moving up and down each month, this is why it is difficult to calculate gains or losses on a month-to-month basis. Usually, economists calculate it on an annual basis. Seasonal differences make it hard to compare July, where more are out enjoying the day and spending, versus January, where it may be cold and there is a hangover from holiday spending.

By comparing Jan. 2009 with Jan. 2010 then, we can limit the change in circumstances when calculating GDP.

If the economy begins to sharply fall as has been the recent case, it is more likely to compare GDP’s by quarterly intervals (4 times a year). Some define a recession as when the GDP, regardless of by how much, has fallen over two consecutive quarters.

A depression, most experts agree, is a decline in GDP by 10% from the same period annually. (ie: a 10% GDP loss between April 2009 and April 2010) For our previous example, this means that your family now has only $45,000 ($50,000 – 10% (or $5000) left to spend this year.

Once the economy begins to falter, other parts of society are affected. With less money, your family loses confidence in the market and is more likely to hold onto that money when usually you would have spent it. This further hurts the economy when it happens on a mass scale.

Unemployment rates go much higher as funds are spread thin, prices for food rise as production, import and availability become less secure. In the current economic crisis, house prices in the US have sharply dropped as citizens are unable to make payments. Since the burden is being shared across the country, it is difficult for anyone to buy that house and its value diminishes.

While most of us live day-to-day without really seeing the direct effects of the econonomic crisis, there are many people who have lost jobs, houses and lifestyles. Some critics suggest that the economy is dictated by the powers that be and crisis’ are purposefully calculated to exert power over the public. For example, if mints decide to print more money, than each dollar is worth less.

Stimulus packages, introduced around the world, have been attempts to revive the failing economy by bringing confidence back into the market.  Ultimately, there are so many conflicting views on what is a recession or depression, and how to revive the economy, that it leaves the public out of understanding. It may never affect you, it may affect you directly.

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Larry Summers, Chief Economic Advisor of the Obama Administration has been caught fast asleep during a meeting with the press.

The press meeting was held to discuss talks earlier in the day Obama had with credit card companies. What is the public to think?

On one hand, merit can be given in that Obama is allowing for this kind of transparency in his administration. It is hard to believe that Bush would even allow a meeting of such economic impact to be captured on  camera.

Some may suggest that Obama’s leadership skills are compromised by his apathetic response to the snoozer. This situation may actually highlight Obama’s approach to governance.

Obama has been telling the people that overcoming the global economic crisis shall come as result of patience and hardwork, yet his own advisor is slacking for all to see.

Confidence in government will come through setting an example and not simply harbouring positive ideologies about what should or should not happen. At the same time, Obama may be working his administration so hard that they have no time left in the day to get suffice rest.

Either way, this snapshot is worthy of a chuckle.

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The Tata Nano was introduced last summer as the newest innovation in the automobile industry. As traditional car companies are bottoming-out, Tata is working hard on the promotion of their new 1-Lakh (100,000 Rs) car of the future.

Its compact size allows for more drivers on extremely congested Indian streets. The aim of Ratan Tata is to create the world’s first “people’s car”.

The big question surrounding the Nano is whether environmental effects of having so many more drivers on the streets will create more pollution. This depends on the type of fuel being used.

Some suggest diesel versions will be introduced in Sept. 2009, whereas others are anticipating a full electric, or at least, hybrid versions of the car.

A European version of the car is also set to be introduced in late 2009 where the retail price will be at US$6000.

How do North American car markets intend to survive with newer and more efficient models of automobiles making their way onto the mainstream market?

There are two paths: follow suit and create a more efficient, less expensive and environmentally friendly car, or the alternative, to remain with the status quo and watch as other international markets seriously develop as influential players in the new global era of economics.

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I truly wonder why Western hypo-crats boycotted the UN Anti-Racism Conference?

Obama, what happened to, “if we disagree, I will listen.”? Ahmadinejad was articulate and used similar rhetoric to Obama expressing shared mutual respect and dignity for a global community.

Ahmadinejad addressed the UN audience with an account of the last 500 years of history. He spoke about the ignorance of past generations who turned to colonization, slavery and other mechanisms to gain power; this itself, he said, is racism.

Diplomats from the US and 30 other countries staged a walk-out from the conference in what they called an answer to the “racism against Israel”.

However, calling someone racist is not itself racist, it is criticizing with the aim of hearing a rebuttal not the sound of footsteps leaving the room.

From the images on television, 30 seemed to represent the amount of people who walked out but certainly more than one person was in attendance per country, as was seen by the remaining delegates. Representatives from Asia and Africa remained in their chairs and it was only really Western countries who walked out.

For years economic sanctions have hindered the ability of these remaining countries to catchup to Western counterparts and Ahmadinejad suggested this is fundamentally racist. He also called for an end to the veto powers held by the 6 Security Council members. This excess of power, he suggested, was the main barrier to equality within the international community.

The IMF and WTO have for decades handed out money to developing nations with extremely ridiculous conditions. Ahmadinejad suggested, what people have for years, the global economic system needs to be reformed and possibly completely overhauled. He also stated that “capitalism has come to a dead-end.”

The Western world can no longer dominate the world stage and they need to recognize this. This walk-out was classless, narrow, and the complete opposite to what democracy, liberty and the right to free speech is represented as by Western politicians.

We can talk about how Ahmadinejad is oppressive to his own people, however, unless we lead by example, leaders in other countries will never feel the necessity to follow suit.

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