We wonder a few things, sure enough. The Eurofolk and the Greek government have agreed that the Greeks will repay what they owe. To help, the Eurofolk will advance more money, Greece being short of cash. No debt will be written off. Great! (Give me the money I owe you, so that I can pay it back …)
But some of the new money is to come from the IMF, which says some of the debt must be written off. The deal is a sop to the bankers but flies in the face of political reality. And the Greek people oppose it mightily.So, it’s a farce.
The Greeks won’t repay their loans; they lack the money and no politician will survive trying to force them into the decades of what they see as servitude needed to do the job. Greeks seem to feel somehow, entitled to the Germans’ money.
Unrepaid lenders must bear the losses of their bad debts. Their financial strength is compromised just as is that of their defaulted debtors. Their own credit is diminished; their resulting reductions affect the next in line and so on it goes … world wide in this case. What we are discussing here with Greece is merely when it will explode.
The Eurofolk know this. They are putting on a show hoping to delay the final curtain so far as it can be delayed. Hopefully until some other politicians are in charge to take the heat. We have no magic, crustal ball to foretell this future but we expect that it won’t be very long now. We’ve been saying this, of course.
To sum it up, Greece is the official patient on the slab today, but the rest are mostly no healthier themselves. It’s just that the media and politicians are trying to avoid anyone noticing. Let Greek be the whipping boy. A distraction.
More like a lighted fuse than a distraction, to us.
The other deal receiving attention now, is the nuclear weapons deal with Iran, just reaching a triumphant or disastrous conclusion, depending. It still seems to us that Tehran has never ceased its thrust toward nuclear weapons and has no reason to do so now. It merely wants the anti-Iran sanctions lifted. We suppose that the deal is cover for that, no more. Iran has always cheated on this sort of negotiation and will we suppose, continue. It has no reason to stop.
President Obama cannot stop the nuclear program but by military means for which he clearly has neither stomach nor political nor financial means. He is putting as good a face upon it as he can. And it is one further step in the abandonment of America’s previous support of Israel, which Iran continues to vow it will destroy. (And America too, of course.) The vaunted deal is in fact, the status quo continued, seems to us.
But we’re a long way from either Athens or Tehran, what do we know of such things?