Topic: Greece, Germany and the Fate of the Euro

[jpatrickham]

By Dr. Mark W. Hendrickson
September 12, 2011
 

“Greece again is teetering on the brink of default. Last Friday, Greek debt was so unpopular that interest rates on one-year notes spiked to 98 percent. No country grows so vigorously that its government can afford double its creditors’ money in one year, and certainly not a bankrupt government like Greece’s.”
 
In “Greece, Germany and the Fate of the Euro” (749 words), faculty member, economist, and fellow for economic and social policy with The Center for Vision & Values at Grove City College—Dr. Mark W. Hendrickson—explains, “Greece’s finances have deteriorated beyond the point of no return…. If German banks do not provide many billions of additional credit and assistance to Greece, the resulting Greek default would impose colossal losses to German (as well as French, Italian, et al.) banks. The financial dominoes could start to fall; defaults and bankruptcies would spread, plunging Europe into depression.” What’s more, Dr. Hendrickson concludes, is that this “European drama is of immense importance here at home. American banks have huge exposure to European banks. Financial convulsions in Europe will inevitably reverberate here. Hang on to your hats.”

  
http://www.visionandvalues.org/2011/09/greece-germany-and-the-fate-of-the-euro/

[Libertas]

Chickens & roosts!

[jpatrickham]

Chickens & roosts!

House Of Cards! The Arab Spring will soon show up in Europe. Not sure who will feel the effects first Europe or Israel? One thing is certain it is coming and sooner than later. The Demonstration in London on the anniversary of 9/11 was appalling. This time we need to stay out of it, have enough problems of our own. To many grave markers of our sacrificial lambs in Europe now. Israel is another matter, we must protect them. Europe, will soon be a blood bath, and we can see just how wonderful Islam is. Maybe the Liberals here, will join there comrades in arms? Only problem who's side will they be on? Liberal Europe, or Islam? 

[Libertas]

Chickens & roosts!

House Of Cards! The Arab Spring will soon show up in Europe. Not sure who will feel the effects first Europe or Israel? One thing is certain it is coming and sooner than later. The Demonstration in London on the anniversary of 9/11 was appalling. This time we need to stay out of it, have enough problems of our own. To many grave markers of our sacrificial lambs in Europe now. Israel is another matter, we must protect them. Europe, will soon be a blood bath, and we can see just how wonderful Islam is. Maybe the Liberals here, will join there comrades in arms? Only problem who's side will they be on? Liberal Europe, or Islam? 

Heh!

What a dilemma!

Sucks to be them either way!

[jpatrickham]

Chickens & roosts!

House Of Cards! The Arab Spring will soon show up in Europe. Not sure who will feel the effects first Europe or Israel? One thing is certain it is coming and sooner than later. The Demonstration in London on the anniversary of 9/11 was appalling. This time we need to stay out of it, have enough problems of our own. To many grave markers of our sacrificial lambs in Europe now. Israel is another matter, we must protect them. Europe, will soon be a blood bath, and we can see just how wonderful Islam is. Maybe the Liberals here, will join there comrades in arms? Only problem who's side will they be on? Liberal Europe, or Islam?  

Heh!

What a dilemma!

Sucks to be them either way!

You ain't just whistling Dixie



The Crisis of Europe and European Nationalism

By George Friedman

September 13, 2011

When I visited Europe in 2008 and before, the idea that Europe was not going to emerge as one united political entity was regarded as heresy by many leaders. The European enterprise was seen as a work in progress moving inevitably toward unification — a group of nations committed to a common fate. What was a core vision in 2008 is now gone. What was inconceivable — the primacy of the traditional nation-state — is now commonly discussed, and steps to devolve Europe in part or in whole (such as ejecting Greece from the eurozone) are being contemplated. This is not a trivial event.

Before 1492, Europe was a backwater of small nationalities struggling over a relatively small piece of cold, rainy land. But one technological change made Europe the center of the international system: deep-water navigation."

Read more »

http://www.stratfor.com/weekly/20110912-crisis-europe-and-european-nationalism?utm_source=freelist-f&utm_medium=email&utm_campaign=20110913&utm_term=gweekly&utm_content=readmore&elq=62d381ced53448a98d8854b423a3d5ab

[Damn_Lucky]

Sorry guys game over I hope everybody has ammo and food ready.

[Predator Don]

Everyones waiting on Germany to bail out Greece. I don't think they will.

[Damn_Lucky]

I don't think they should, Just like I don't we should have the whole E f'n U the first ' ' secret ' '  time

 

[jpatrickham]

Everyone's waiting on Germany to bail out Greece. I don't think they will.

No, China is buying Italy, they ought to throw Greece in for a song!

[John Florida]

But it's too small to fail.

[Pandora]

http://theeconomiccollapseblog.com/archives/20-quotes-from-european-leaders-that-prove-that-they-know-that-the-financial-system-in-europe-is-doomed

#10 Former German Chancellor Gerhard Schroeder: "The current crisis makes it relentlessly clear that we cannot have a common currency zone without a common fiscal, economic and social policy".

Translation:  It's not that what we did was arrogantly, egregiously wrong, it's just that we didn't do enough of it.

#14 Stephane Deo, Paul Donovan, and Larry Hatheway of Swiss banking giant UBS: "Member states would be economically better off if they had never joined. European monetary union was generally mis-sold to the population of the Europe."

[LadyVirginia]

]#14 Stephane Deo, Paul Donovan, and Larry Hatheway of Swiss banking giant UBS: "Member states would be economically better off if they had never joined. European monetary union was generally mis-sold to the population of the Europe."

That's what we're calling it now, huh?


I remember reading the articles warning it was the wrong road to travel.

 

[Libertas]

It was largely driven by Germany & France, the smaller states had to be deluding themselves to think they were on the same economic or political plane as those two...and since Europe lacks the shared political, economic and ideological traditions like America has the European super-state was bound to have issues at some point.  If many of their states had been less socialist maybe it would have some endurance, but socialism has always been present to one degree or another in each of those nations.  If not for the union the smaller/more socialist states would have simply hit the economic wall earlier.  Good luck straightening this mess out!

[Pandora]

It was shoved down the throats of the smaller states that didn't want it.  Ireland in particular, iirc; its Parliament just kept forcing the vote on them until it came out a "yes".  I don't recall that the Irish ever did vote to join, nevertheless .....

[Predator Don]

Everyone's waiting on Germany to bail out Greece. I don't think they will.

No, China is buying Italy, they ought to throw Greece in for a song!

That's the negotiations....... We'll give you a good deal on Italy, but you gotta take Greece too..... It's like a pro sports team trying to dump salary.

[Glock32]

]#14 Stephane Deo, Paul Donovan, and Larry Hatheway of Swiss banking giant UBS: "Member states would be economically better off if they had never joined. European monetary union was generally mis-sold to the population of the Europe."

That's what we're calling it now, huh?


I remember reading the articles warning it was the wrong road to travel.

 

The Orwellian language now used by the MSM goes far beyond mere obfuscation and euphemism doesn't it? Rush pointed out an example on Thursday that may just take the cake. The News & Observer in Raleigh, NC ran an article to follow up on The One's speech there earlier in the week. Chairman Zero asserted that the nation's crumbling infrastructure warrants his new half-trillion stimulus proposal, in particular citing 4 bridges nearby as structurally deficient. He tried to sell his bill of goods by imploring "Why should we wait for the next bridge to collapse?".

So, in their follow up the News & Disturber determined that the area bridges in question weren't quite the death traps POSOTUS indicated. They said the President had, perhaps, "over suggested" their state of disrepair.

Over suggested.

[Pandora]

]#14 Stephane Deo, Paul Donovan, and Larry Hatheway of Swiss banking giant UBS: "Member states would be economically better off if they had never joined. European monetary union was generally mis-sold to the population of the Europe."

That's what we're calling it now, huh?


I remember reading the articles warning it was the wrong road to travel.

 

The Orwellian language now used by the MSM goes far beyond mere obfuscation and euphemism doesn't it? Rush pointed out an example on Thursday that may just take the cake. The News & Observer in Raleigh, NC ran an article to follow up on The One's speech there earlier in the week. Chairman Zero asserted that the nation's crumbling infrastructure warrants his new half-trillion stimulus proposal, in particular citing 4 bridges nearby as structurally deficient. He tried to sell his bill of goods by imploring "Why should we wait for the next bridge to collapse?".

So, in their follow up the News & Disturber determined that the area bridges in question weren't quite the death traps POSOTUS indicated. They said the President had, perhaps, "over suggested" their state of disrepair.

Over suggested.

He was referring, of course, to the bridge in MN that broke apart while being repaired a while ago, but in reality, what the engineers mean when they use the term "structurally deficient" is over traffic-capacity, not that there is actually a structural defect.  One would *think* ::snort:: the "news" would enlighten the public.

[trapeze]

This is our future with President Toonces driving the car (you know, that car that he said the Republicans had put in a ditch?) over the cliff where it explodes on impact...

There is a lot for Greeks to swallow. Beyond the public-sector wage cuts, in recent months the government has also imposed a “solidarity tax” ranging from 1 to 4 percent of income on all workers and an additional tax on self-employed workers, who make up the bulk of the economy. It has also raised its value-added tax on many goods and services, including food, to 23 percent from 13 percent.

The economy is flagging, and it is not uncommon for even private-sector workers to see pay cuts of 30 percent or more, sometimes in exchange for a reduction in working hours.

The so-called troika of foreign lenders — the European Central Bank, the European Commission and the International Monetary Fund — is increasingly playing hardball with the Greek government, insisting it meet its deficit-reduction goals before it decides whether to release the next installment of $11 billion that Greece needs to meet expenses starting in mid-October.

Many Greeks fear a vicious circle: a death spiral of more austerity measures, further economic contraction and correspondingly lower tax revenues, making it that much harder to make a dent in the debt, pushing the country toward default in spite of the austerity. Unions have called general strikes for Oct. 5 and Oct. 19, and tensions are building.

LINK 

Yep, vote for Dinkus 'cause we wants us some 'o dat Greek stuff! Economic death spirals for everybody!

[Pandora]

Jayzus!  Even to apparent death, their MO is to do what is already failing, ONLY HARDER!

[trapeze]

It's too late for Greece.

They are going to corkscrew into the ground at 500 mph and there isn't a thing that can stop it.

Completely and totally inevitable.