Greek Troubles Beginning to Spiral

by Ryan on May 15, 2012

in Economy,Europe,International Relations,Social Unrest

Greek troubles are reaching a tipping point.  The new government couldn’t form a governing coalition willing to deal with their financial woes as the leftists are unwilling to be forced into unpopular austerity measures.  So, a new election must be held with the populist left riding an anti-austerity wave.  Not good.

But events are moving faster than a calendar can anticipate — the euro is down to $1.27 as the money fleeing Greece only accelerates.  The Greek stock market hasn’t been this low since 1990.  In the midst of all this, there’s speculation that Spain and Italy may also have to reassess their relationship with the euro zone — another 26 Italian banks were downgraded today.  American markets, which were generally down again today, are starting the process of decoupling as much as they can before that final ripple comes:  the eventual reappearance of the drachma.

Greece can’t print euros, but they could print drachmas.  Printing money to devalue a currency so as to pay off debts more quickly is a recipe for the kind of disaster we haven’t seen in Europe since the 1930s.

{ 2 comments… read them below or add one }

rightonoz May 17, 2012 at 1:03 am

Hi Ryan,

A few thoughts, that apply very much to the way Greece and certain other European countries + our govt and Obama seem to be reducign us all tothe lowest common denominator and spending more than we earn.

1. You cannot legislate the poor into prosperity by legislating the wealthy out of prosperity.

2. What one person receives without working for, another person must work for without receiving.

3. The government cannot give to anybody anything that the government does not first take from somebody else.

4. You cannot multiply wealth by dividing it!

5. When half of the people get the idea that they do not have to work because the other half is going to take care of them, and when the other half gets the idea that it does no good to work because somebody else is going to get what they work for, that is the beginning of the end of any nation.

Strange how those at the recieve end of this steal from the rich (or just hard working) never get it, even when their country is totally broke.


Ryan May 17, 2012 at 4:18 pm



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