Is it about Greece or are we watching an epic scam collapsing?

The short answer most of us know is the bankers are trying to take over and Greece is being fleeced on purpose but this is what  Dan Denning who writes for the a prominent Daily Reckoning site and gold bug from Australia has to say about it and it is well worth reading as he is capable of analysing the situation and explaining it in no uncertain terms:

–Long into the European night, the talks to save Greece continue. In today’s Daily Reckoning, we’ll do something we can barely stand to do: we’re going to write one more time about Greece. If you can stand to read it, you may come to the same conclusion we reached.

–That conclusion is simple: what’s going on Europe has nothing to do with solving a debt crisis and everything to do with preserving a corrupt system based on limitless debt and growing government power. The sooner you understand that the sooner you’ll be able to prepare for what happens next. There are two options for what happens next, and we’ll get to those shortly.

–First, though, doesn’t it strike you as strange that all of Europe can be brought to its knees by tiny little Greece? Greek GDP is just 2.4% of Europe’s GDP. In economic terms, Greece doesn’t matter. Its lack of growth or economic competitiveness shouldn’t be factors that can destroy Europe’s 13-year single currency experiment.

–Yet Greece obviously does matter, or else markets wouldn’t be anxiously waiting for tonight’s announcement of a second bailout totalling €130 billion. The correct question, then, is why does Greece still matter? If you rule out the obvious things that don’t matter, that leaves everything else. Or as Sherlock Holmes was fond of saying, “when you have eliminated the impossible, whatever remains, however improbable, must be the truth.”

–First, let’s see why the possible explanations for Greece’s importance to the world are actually impossible. Take the issue of debt reduction. As we wrote last week, the deal before Europe would reduce Greek debt to 120% of GDP by 2020. The IMF says that level is sustainable.

–Back in a universe where common sense prevails, you can see that the plan is a joke, at least in terms of debt reduction. A plan to reduce Greek’s debt to 120% of GDP…EIGHT YEARS FROM NOW…is not a serious plan about debt. Therefore the plan cannot be about debt reduction.

–Will the plan make Greece more competitive in the long run? Well, probably not. In order to get more money by March 20th, the Greek Parliament had to agree to certain structural reforms. Some of those reforms might even be a good idea. But cutting the minimum wage isn’t going to be popular. And with Greek GDP shrinking by 7% in the fourth quarter, years of austerity won’t make Greece more competitive. The lifestyle of the Greeks will be destroyed and the debt will remain. Therefore the plan cannot be about making Greece more competitive.

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