“You can run on for a long time…Sooner or later God’ll cut you down…” – Johnny Cash
Greece got “subprimed” into the EU. It didn’t have the credit rating to be part of the euro experiment but Goldman Sachs found a way to make Greek numbers palatable to Brussels (Brussels wanted Greece anyway) in 2000. Now reality has come and Europe’s southern economic headland is disintegrating.
As the author of the attached article correctly notes the most recent Greek crisis represents a transition in the economic narrative. (It’s not just Greece though. What’s happening in China and in South America is also a big part of it.) Of course the Austrian economists have known that this day would come sooner or later. Yes, one can print. Yes, one can paper over an economy for a while. But sooner or later the cracks in the paper mache appear.
Greece is a big crack.
(From Money Week)
I ask you here to also consider the Orwellian language that is being bandied about, and the accompanying misinformation. When you hear of Greece needing another bailout, that money is not going to the Greek people. It would be more accurate to say ‘Greece’s creditors need another bailout’, because that is where most of the money is going.
Why, I ask, should Greek’s creditors be given special favour? They went into the trade with their eyes wide open. It is symptomatic of the cronyism that is so loathed by both the left (nationalise everything) and the right (let them go bankrupt).
It’s as though the Greek people are being expected to pay through unemployment, poverty, lack of opportunity and debt servitude for the machinations of the European Union and previous governments, as well as for the bailouts of their crony-creditors.