With the G-8 Summit and the NATO meeting in the rearview mirror its time to refocus on the world's most troubling problem; Greece. Holding all the cards, the Greeks can force the European Union to renegotiate the austerity deal their previous government signed off on. If you think about it, how can anybody stop them.
Buoyed by the French and economic malcontents, the EU/ Euro Zone appears to be under more pressure than the individual nation's opting for another solution. If Greece decides to take a hike, and default on its debts, borrowing costs in other faltering economies will blow up sky high.
Spain will feel the tightening first when the cost of borrowing could double on them over night. Italy won't be far behind if Portugal don't beat them to the financial crash site first. The initial signs will be evident when people show up pounding on the bank doors demanding withdrawals.
Of course you'll have to go in person because the online banking sites will refer you to an information page. There you'll find a blandly written corporate response to the financial crisis.
They will assure you that you're a valued customer and will work diligently to resolve your circumstance within the legal frame work established to deal with such circumstances. You'll be asked to be patience as "we" are all floating adrift in uncharted territory.
Nearly every Greek citizen, depositor, international investor, bond holder or anybody else that didn't see it coming or got caught thinking positive too long will ask; WTF?We are witnessing wholesale chaos building up to one giant global financial crashing crescendo.
When the French and Greeks went to the polls, they voted Hell No! to austerity. Consequences be damned, they decided to call the EU's bluff. Now that the Irish will be heading to the voting booth on May 31 with a referendum asking the public to approve the EU treaty to control nation's deficits and long term debt, Ireland could be next nation give the European Union's austerity plans a knee in the nutz!.
So far, Ireland is the only EU member putting the agreement to a national vote. If this catches on and it will, the EU is sunk and it will sink faster than expected. Those in the know are betting the Irish will indeed vote like the French and Greeks, rejecting the treaty. New crews, new deals!
Having the French, the Greeks and the Irish all pushing the EU for growth simultaneously, with America giving "growth" the thumbs up, could force the continent to shift in reverse or face total calamity. If history is any guide, we're betting on calamity!
Comments
Post a Comment