Wednesday, September 5, 2012

Join the Eurozone, Become Isolated from the World!

Greece fraudulently joined the eurozone by deliberately understating their budget deficit.  A house with such fraudulent foundations cannot stand and the whole edifice is now threatening to topple over.  Greek financial collapse is also leading to its de facto isolation from the world.  Meanwhile, Spain's chutzpah in demanding lenient loan terms reminds one of the humorous saying that when a person owes the bank $1,000, that person has a problem.  But when a person owes the bank a million dollars, it's the bank that has a problem.  The eurozone is that bank.  Having taken in Spain, they are now threatened by its collapse.  But they can't save Spain anyway just as they can't save Greece which is on perpetual bailouts from Europe.  Greece managed to gain the grudging forgiveness of 75% of its debt but still can't meet its debt obligations.  Spain has a much greater debt problem.  What makes the eurozone think they can save Madrid?  Spain is certainly displaying "proto-Greece" signs as capital and the more productive element of their population are already fleeing that doomed country.

No comments: