Posted on 11/22/2009 3:42:42 PM PST by blam
Greece Tests The Limit Of Sovereign Debt As It Grinds Towards Slump
Greece is disturbingly close to a debt compound spiral. It is the first developed country on either side of the Atlantic to push unfunded welfare largesse to the limits of market tolerance.
By Ambrose Evans-Pritchard
Published: 5:58PM GMT 22 Nov 2009
Euro membership blocks every plausible way out of the crisis, other than EU beggary. This is what happens when a facile political elite signs up to a currency union for reasons of prestige or to snatch windfall gains without understanding the terms of its Faustian contract.
When the European Central Bank's Jean-Claude Trichet said last week that certain sinners on the edges of the eurozone were "very close to losing their credibility", everybody knew he meant Greece.
The interest spread between 10-year Greek bonds and German bunds has jumped to 178 basis points. Greek debt has decoupled from Italian debt. Athens can no longer hide behind others in EMU's soft South.
[snip]
(Excerpt) Read more at telegraph.co.uk ...
THIS IS MADNESS!
Spain, then greece. Who will be third? Portugal or italy? The euro zone is going to unravel from the bottom up.
Now that the socialists are back in the helm, what’s the old expression:’you ain’t seen nothing yet”.
If anybody has access to the WSJ there is a bunch of good in depth article about this.
The question is, will things get so bad that the Greeks have no choice but to leave the Euro?
All the talk about American fiscal woes tends to obscure the fact that many countries are much worse off.
Given its demographics, there is no way out for Greece.
Their banks and economy are also more heavily weighted towards international shipping, which is a losing game right now.
Folks really don’t get it here..
The Greeks have strongly resisted the Islamic Influences dominating the rest of the EU..
Therfore the money people are slamming the Greeks with help from the Muslim Petro States.
Not so Soft War agains the West.
W
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