Posted on 06/18/2012 5:35:32 PM PDT by Lowell1775
snip....
Old News and Current Events: I have written before that the fundamentals of the Euro and European Union didn’t bode well. They still don’t. Each step of these “rescues”, Iceland in 2008, Ireland in 2009, Portugal in 2011, Italy and Greece in 2011 and 2012….and now Spain ….are all just shocking the dying patient back to life for a few more moments of pain and chaos. The inevitable and permanent straight-line on the EKG is coming. It will be a collapse of the Euro and a financial crisis of a size not seen since WWII or the Great Depression.
The governments of the developed world were trembling this Father’s Day weekend until the results of the Greek election made them relax again. A pro-workout/pro-debt “conservative party” gained 30% of the electorate and a pro-workout/pro-debt socialist party gained 12.5%. WoooHooo!
Between them and a few other little flier parties, if they don’t behave like Greeks, can hopefully form a government and maybe keep Greece in the EU. However, the neo-nazi (nationalistic socialists) Syriza party won 27%…..up by 1/3 over their showing just 6 weeks ago in the last failed election. This gain shows the level of domestic discontent.
The big money boys in the rest of the world are resting easy this Father’s Day because the Greek results probably means there won’t be a greater flight of capital, a collapse of the stock markets and a disastrous run on the banks……uh, this week.
Greece still needs a round three economic fix. This means more money and more debt relief. Her economy is collapsing faster than the debt can be forgiven and deals can get traction;
Elsewhere, the European Central Bank has injected $125 billion into Spanish Banks this week. It was needed so the Spanish banks can continue to lend to the Spanish Government. The very same types of loans which put them under to begin with! Italy is wobbling again as her risk rates rise past 8%, and Portugal is saying….”Hey! Why do we have to pay our bills if no one else is?” Portugal is paying 16%.
Many of the “don’t worry be happy” crowd say….but the Irish people also voted just 2 weeks ago to ratify their own debt work out and stay in the EU. Yes. The BIG difference about Ireland is…..other than being a hardworking and trustworthy people….their country exports 25% more than it imports…..it, virtually alone among the debtor countries has a chance to actually pay down its loans without the national equivalent of selling a kidney to rich Germans and its people into slavery.
Real Story: More Derivatives. More Spending: No matter what you hear from anybody, the bottom line is this. Like the US, the government of nearly every country in the Europe continues to spend more than it takes in and now say they need to even spend more. They have just entered a second recession before fully recovering from the first and need to stimulate spending. Sound familiar?
snip............more at http://www.opensourcesurvival.com/?p=2174
Despite what you think of his analysis....you got to love his choice in music. He works The Guess Who into his analysis.
Also, refresh the page to Home www.opensourcesurvival.com and the first article/video up is on a silenced Browning Buckmark.
Nothing compared to our US bond collapse in the near future, as our worthless treasuries (insufficient production, insufficient revenues), overstuffed by Europeans and others, cave in.
They climbed a mountain that was far to high.
And when they found out they couldn’t fly,
It was too late.
They found a mountain that was far to high.
And when they found out they couldn’t fly,
It was too late.
Iceland isn't part of the Euro or the EU (she applied to join the EU in 2009, but that's not ratified yet). If the author couldn't do that much of a follow-up, what more can you expect?
More importantly, Iceland was not "rescued".
Google is a wonderful thing. The stats below are from Wikipedia. It isn’t the Library of Congress, but does match what I read in the WSJ over the years.
While it uses the krona, Iceland was the first European economy to face a financial crisis in what would become the Crisis of 2008. 75% of its trade is with the EU. It became a member of the European Economic Area in 1994. It is a member of NATO.
Iceland had to obtain emergency funding from the International Monetary Fund and a range of European countries in November 2008.
That is a rescue.
You should have kept reading. He doesn’t say Iceland is a part of the EU. I think he says it was the first rescue....or at least that is how I read it.
I liked the humor on the Germans being German. I married one and it is too true. Like Napoleon? or DeGaulle or some other dead Frenchman said, “The Germans are either at your feet or at your throat.”
He doesn’t say it was part of the EU, however the way in which he put the bit about it being almost rescued by the EU
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