The truth we are told, shall make us free. Except when it shows how much our politicians have indebted us. The share of national debt owed by U.S. taxpayers passessed $150,000 some time back but we assume someone else will repay it, right? As the Greeks assumed while they were living off other folks’ money a while ago. But for them, things have changed.
The crisis du jour: E.U. lenders expect Greece to repay what it has borrowed from them, on time. Greeks, calling this “looting,” demand that the E.U. ‘loan’ still more to Greece, to be used to ‘repay’ said loans.. Last minute talks having failed, whats’ next?
Two choices obtain: The E.U. hangs tough and Greece collapses as its insolvent banks fail. With this, Greece may or may not remain in the E.U.The Greek government will likely fall and most of the Greeks will be beggared overnight. The E.U. has to wonder how many others are lined up to follow Greece, threatening the E.U.’s existence.
Or: The E.U. financial mighty cave, providing Greece the money to pay its debts on time, thus staving off the Gotterdammerung. At the cost of sticking northern Europeans with perpetual support of southern Europeans on top of supporting themselves. (No long term solution!)
Come next Monday, we will know. Reports tell of an accelerating withdrawal of cash from Greek banks, as depositors try to grab what they can before the crunch wipes it out. Recently in Cyprus, the government simply took a chunk of each account for itself; Greeks likely know that
Meantime, the failed last ditch talks have been replaced by new ‘summit’ talks to deal with the crisis. The Greeks seem presently ahead on points. E.U. folk might be well advised to start stuffing their mattresses …
We know not how or exactly when this will go down. The E.U has done all it can to deprecate the possible Greek withdrawal. It is right to do so. The real issue is, too many others are no better off than the Greeks, except for endemic denial. The show has been in town too long; it will not go on much after Greece. While reality sucks, it has yet to abdicate. Monday is almost here.