|
It's thought the Greeks might vote in a Government that will call Germany's bluff and go for a straight gift of money. That's the only way to look at it as they have zero chance of ever paying back the escalating debt. Yet the EU still hangs onto the flawed model of the Euro.
It appears Greek hospitals are running out of drugs and basic things like gauze, holiday makers are worried about going there as they fear a collapse. Not sure if this is scare mongering but it seems Greece can't afford itself, is living way above it's means and some Greeks want Germany and a few others to support them.
The big question is WHY? What does or will ever offer to warrant support? Olives, beaches, ????. The only reason they were in the Euro was political, the only reason they stay in the Euro is political. Yes when they get out they will default on the loans or devalue the Drachma to a level that repaying it will be worthless and then who will be next?
It's no longer a question of if, it's only when. Slinging them out of the Euro and maybe the EU, so the Spanish, Portuguese, Italians and even the UK Labour party can see what happens when mounting debts aren't repaid. Yes the UK Labour Party is saying the UK should start borrowing more in the hope they can stay immune from the coming EU recession.
Can the US afford to borrow more?
Can the US afford to cut taxes?
My view says no. Because they're both going to mean more debt and that means postponing the inevitable.
|