Kicking the Can Down the Road

Let it burn. No really, let it burn. You'll save the Germans a lot of money.

Did you hear the wonderful news that sent stock markets around the world higher?  The Greek ruling party in parlaiment narrowly passed a confidence vote – so their prime minister, (Papindreau or something like that) can stay in power and have his party cram more austerity down the throats of their lazy constituents.  Obviously people who aren’t used to paying taxes, working, or doing anything to stimulate their economy aren’t going to be happy about the goodies being taken away.  I make a grandiose generalization but I think you catch my drift.

Here is the crux of the problem…they are basically taking money from German taxpayers, pissing it away down the rat-hole known as Greece, and this controversy and subsequent raise in the stock market is all about getting a traunch of money promised last year.  Its not about new money.  Its about stuff they’ve already agreed to.  Greece’s economy is so bad, that everyone is worried the citizenry is going to pull the place apart as the government bean-counters force more cuts (which drive their economy in the ditch even further – but rightly and fairly so).  Thus, the controversy isn’t even addressing the fact that the bailouts didn’t hold things up as long as they planned or that they haven’t actually voted for the austerity measures that they still need to get the money, OR that the Greeks are going to need a nother $140 billion dollars to forestall things another year.

The Greeks are broke.  Any money thrown their way is only keeping counterparty banks in Germany and France whole.  Its not helping the Greeks…its just keeping the all-powerful European banks in the money so that they don’t have to take a haircut…and to let Spain get its fiscal house in order before Greece finally does have some kind of default.  You see, Greece isn’t too big to fail, but Spain is.

That my friends, is the real truth about the Greece economic situation.  Its all a shell game and its not a matter of if, but when the Greks will deafult.  Default isn’t really even that big a deal – obviously they can’t hold up their end of the E


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