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PIIGS: Redux


 

Here we go again. This time, however, Germany has cold feet. They know they are the only true economic force in the EU. France and the UK are sort of treading water (after a fashion), but certainly are not drivers. So Germany doesn’t want to be the only country bailing out Greece – especially without some sort of restructuring to make sure this is “the last time”.

Other talking heads will be quick to point out that other countries have pledged to support a bailout, but let’s take a look at this:

The other PIIGS are on the verge of total collapse:

Portugal – Just received a bailout and the Chinese have just recently bought billions of € of their debt. They have made absolutely no changes to improve their economy.

Ireland – Just received another bailout in return for the loss of their sovereignty. Their finance minister that penned the deal died of “pancreatic cancer”. Maybe he did, but then again, it sure was convenient timing.

Italy – The biggest conversation for Italy right now is “who is the most corrupt politician in Italy?” They dug their hole a long time ago and are quite happy staying right there. At least they’ve mostly stopped digging.

Greece – Can’t help itself. Their politicians are behaving just like African warlords without the murder. They just take billions straight from the public coffers to their own pockets. Very little of the money from the last bailout is accounted for.

Spain – Unemployment is still in the 20s. Their banks are running to South America to get the heck out of Madrid. The only way they stay afloat is to pay current liabilities with promises to collect on other liabilities. To do so, they need to collect from… Greece – and Ireland. Portugal too. Oops.

 

So who’s going to help the Germans bail out Greece? The USA, surely. But the USA will just be printing useless money and that will actually hurt things after the initial payment. Norway isn’t likely to lend to a lost cause. Switzerland just got its arm twisted by the USA to release the names of American tax dodgers… so they probably aren’t too keen on helping the USA to bail out the Greeks. The English and French couldn’t help bail them out last time and are in even worse shape now. No, it’s all Germany, all the way.

So, I can understand why Germany is upset. The smart thing for the Germans to do would be to get out of the EU, but that won’t happen. Their political parties are also political parties in other countries. Don’t think for a moment the SPD members in France and Italy are going to let their elected officials in Germany withdraw from the EU, thus collapsing their homes! Not unless the populace rises up and kicks the party system entirely.

Greece needs to just be kicked to the curb and Germany needs to leave this gang of losers (EU).

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Categories: Europe, Politics
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