Reuters reports today that “Investors (and markets) welcome Greek rescue package.” Quoting an “expert” echoing the world’s sentiment about this SECOND Greek bailout,” The deal is positive. A debt/growth deal is the only solution for an insolvent country and that is what the EU has done.”
Seriously, world leaders, experts, and markets? When are you going to give into rationality, realise Greece is set to default – along with Italy (“Too big to fail” is a lazy economic and political philosophy that has proven itself not to work), Spain, Portugal, and Ireland in the near future – and move forward with the understanding that the entire European Union’s political and economic structure needs restructuring?
Look, here is how this going to play out. As much as the world markets don’t want to believe that both the United States and the E.U. are facing “worst-case-scenarios” right now, they are (we’ll leave the U.S. debacle for another post). In fact, it’s this “kick-the-can-down-the-road-and-hope-everything-works-out-for-the-best” philosophy that’s brought the E.U. to this near-breaking point.
In focusing on the E.U. and the “Greece Conundrum,” let’s think about the best possible outcome. What are the world’s leaders, experts, and investors thinking will happen “for the best” – what’s driving their optimistic – borderline delusional – opinions and actions on this matter?
The answer: Nothing. No rational economic or political reality explains what’s happening on the world stage. Instead, the world’s major economic and political players and putting their fingers in their ears and yelling, “la, la, la, I can’t hear you!,” while Greece not-so-quietly continues wasting the E.U.’s (the majority of which is Germany’s) bailout money – funding that could instead be going toward rebuilding the European Union as it should have been – and will be in the future: a strong core featuring Germany and France, and few “outlying,” yet extremely economically-viable, smaller (yet contributing) nations (Belgium, anyone?).
In short, world leaders, experts, and markets, here are the facts: Greece WILL default (no matter how many coyly-phrased ways you try to convince us otherwise). Several E.U.-zone nations will quickly follow. Every cent waste on this debacle trying to prove otherwise could instead be going elsewhere, toward not-so-hopeless-causes. In fact, civil unrest could very likely follow from your actions. If we’re lucky, we’ll avoid significant rioting in Germany’s streets because, let’s be honest, this generation of citizens is financially and politically exhausted from propping up its deadbeat European brethren, all as an apology for wars that, in their opinions, happened oh-so-long-ago. Sure, they’re ready to partner with a few other countries in creating a strong Euro-Core, but they’re understandably tired of footing the bill for other more lazy, failed countries.
So please stop wasting our political and economic time on this issue. Take the harder action, admit “defeat,” and save the rest of the world a lot of time, money, and financial heartbreak.
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