Greece, the Achilles Heel of the Euro-Zone, and the United States.
The International headlines have focused on the modern Greek financial tragedy for months, after years of stop gap measures and band-aids to delay, obscure, and hide, the degrading financial health of Greece, the birthplace of democracy. The financial collapse of Greece seems destined to trigger a domino effect that may consequently topple both the Euro and the US Dollar.
Before I go further, please ponder the following: Margaret Thatcher, in a TV interview for Thames TV This Week on Feb. 5, 1976, Prime Minister Thatcher said, “…and Socialist governments traditionally do make a financial mess. They [socialists] always run out of other people’s money. It’s quite a characteristic of them.”
With that quote lingering in your mind, would you have ever thought that President Obama would commit the American Taxpayer to a direct bailout of Greece? Considering all the financial troubles the US faces at home, I didn’t either, but, he apparently did, as reported by CNBC, posted by Dan Mitchell, on Andrew Breitbart’s BigGovernment.com. Read that post here: http://biggovernment.com/dmitchell/2011/06/08/obama-wants-american-taxpayers-to-bail-out-greek-politicians-and-dig-the-debt-hole-even-deeper/
Greece is about to either be shackled by the Euro-Zone and the IMF in a restructure, or they will go the way of Iceland and default. The former suffocates Greece, its people and its culture while kicking the can a short ways down the road, the latter results in a crash as the Greek economy and culture collapses, taking the Euro-Zone, and possibly, the US Monetary System, with it.
The Greek financial structure as been continuously jury-rigged and duck taped, over the years, through a series of cross collateralizations and derivatives, that results in a financial Rubik’s Cube that cannot be conveniently dismantled. With all that history, President Obama proposes to use the American Taxpayer to bail out Greece?
If the US Congress and the US Electorate sleep through this, we deserve what we get, and it will not be pretty.
Postscript: Another take on the same issue: http://blog.independent.org/2011/06/08/us-should-stay-out-of-greek-bailout/
PPS BBC reports Euro-Zone Woes are US Woes: http://www.bbc.co.uk/news/business-13663002
PPPS Germany Disagrees with ECB over Greece: http://www.telegraph.co.uk/finance/financialcrisis/8569471/Germany-and-ECB-disagree-over-Greece.html
Update: June 13, 2011, as “push” becomes “shove,” the World is reacting.
PPPPS Pimco’s Bill Gross weighs in: US in worse shape than Greece: http://www.cnbc.com//id/43378973
PPPPPS New York Times: Greece another Lehman?: http://www.nytimes.com/2011/06/13/business/global/13euro.html?ref=greece
PPPPPPS S&P Pushes Greece 3 more notches (3 above Default) into Junk: http://www.foxbusiness.com/markets/2011/06/13/sp-slashes-greek-debt-rating-on-rising-restructuring-risk/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+foxbusiness%2Flatest+%28Internal+-+Latest+News+-+Text%29&utm_content=Google+Feedfetcher