Playing the Euro game.

So it is now, almost, a certainty that Greece will drop the euro and revert back to drachma. The first of many countries that will dump the currency over the next months and years, the millions that have been ploughed into the country in order to prop up the euro will be written off, adding more cost to the tax payers of Europe.

Greece needs years not months to sort itself out. Doctors unpaid, schools without books, taxes uncollected – Greece is in chaos, the speed with which it descended is shocking.

Those in power struggle to justify their positions and the government, a recent comment from Greece’s foreign minister complaining that the country’s economic crisis is being made worse by the “negative stereotyping” of his country. He has a point there is a negative image, but so, too, unfortunately, do the country’s critics.

While the world’s governments worry about whether Greece will default on its debts, a form of internal default is already underway as the government runs out of cash.

Other European countries are now taking the threat of the same happening in their country extremely seriously. The stock they invested in the bail out plan has come back to bite them on their derrière.

A Greek exit from the single currency threatens to sink Britain into a second recession which could be equal in ferocity to the record postwar slump of 2008-09.

The head of the UK’s OBR said the deepening crisis in the Eurozone could force him to tear up his forecasts, made only two months ago, that Britain would post modest growth of 0.8% this year. “The concern is that you end up with an outcome in the Eurozone that creates the same sort of structural difficulties in the financial system and in the economy that we saw in the past recession, and that has consequences both for hitting economic activity in the economy, but also its underlying potential,” said Chote.

With economic output in the UK still 4% below its peak level when the recession began in early 2008, the prime minister and the governor of the Bank of England, Sir Mervyn King, have expressed concern in recent days about the vulnerability of Britain to the Eurozone.

Mr Chote commented that he was particularly concerned about the possibility that a second deep recession would leave permanent scars. “That means not just that the economy weakens and then strengthens again – it goes into a hole and comes out – but that you go down and you never quite get back up to where you started.”

Greece’s caretaker prime minister, Panagiotis Pikramenos, said the German chancellor, Angela Merkel, had suggested in a phone call to the Greek president, Karolos Papoulias, on Friday that Greece hold a referendum on its continued membership of the single currency alongside next month’s elections, in an apparent attempt to encourage voters to back mainstream parties who support the current austerity program.

The German government said that no suggestion of the kind had been made. But the Greek government was insistent, and said that Pikramenos had rejected the suggestion because he does not have the power to call a referendum.

Analysts at Deutsche Bank predicted that the weak state of Ireland’s banks could result in the former Celtic tiger requiring a second bailout, and in Spain there were reports that the government would call in Goldman Sachs to help sort out its banks after 16 suffered credit downgrades on Thursday.

I think it is a safe bet that all those living in the Eurozone should be taking action and making plans to protect themselves from the complete collapse looming around corner. There have already been several runs on the banks and the fiat currency that is the euro will continue to plummet in value.

Let us hope that Europeans do not suffer excessively in this time of change, may they group together support each other and make those responsible for this crash answer for their crimes.

Bankers continue to pick European pockets.

Greece: Cradle of Civilization No More

Merkel Backs Two-Speed Europe With Core Euro In Poke At Cameron

Soros: Euro-Zone Has Three Months to Save Euro

European Bailout a Big Fart of Monetization (GW Radio 6-7-12)

Is Contemporary Reality too complicated to be represented Photographically?


Merkel returns from vacation to resume battle to save the euro

15 thoughts on “Playing the Euro game.

  1. Good article Cheese thank you. The very pathetic response by all politicians to this man made crisis speaks volumes. They are all in the pockets of central banks. These abominations, along with their financial “experts” have, or will have by the end of this ensured one thing. WW 3 is in the offing, not a regional conflict but a worldwide conflagration.
    Meanwhile, spineless “leaders” wring their hands, populations are starving or worse and neo cons licking their lips.

    I read and hear a lot about arresting bankers, the so called elites. The system is so weighed in their favour as to make this impossible. Only a rejection of that system would bring about a solution.

    The last great hope in in the US and all free thinking people worldwide. I say to myself daily that if little Iceland can reject the banks hold, then why not others?

    We do indeed live in interesting times.

    • Thank you. we can always count on you for a great comment.World war 3 sadly looks possible but maybe this great war will break the mould it will not be country against country but it could possibly be the masses fighting the politicians, bankers and their minions.
      When its all over and the people are victorious (and we will be, if we stand together ) they might call it a world revolution and not war.

      • I do indeed hope so. The Internet Reformation is challenging the status quo like nothing else in history. Even Luther and the printing press could not match this for speed of dissemination.

        Much depends on how the armies of the west respond to any call, after all they are folk with families. I treasure the memory of Yeltsin sitting atop a tank outside the Duma, of eastern European soldiers siding with the population. Once started these events pan out quickly and I feel the masters of the universe are panicking at events.

        Maybe, just maybe we will see momentous events. As you rightly say, solidarity is the key. The first western democracy to take this route will lead to a new domino effect.

      • An interesting slant on what some Germans are saying Cheese ( no reply option on that link )
        Firstly, the Greeks themselves had military government for many years in the sixties / seventies. The Greek military, particularly the air force is well equipped. Military spending is high, equipment modern. Now, ask ourselves the consequence for Germany of any military action on European soil. The Greeks would resist, would it be an “EU” military intervention? Would other countries tolerate German aggression?
        My guess would be the Germans themselves dare not act in this way. Any such action would be branded as an EU action. Would this gain UN Security council blessing? Doubtful as the Russians have tolerated Serb oppression by the EU for a continued blind Nato eye in Chechnya.
        However, it highlights how quickly things spiral out of control. I forget the US general who said, “you were dumb enough to let us fight WW1 and WW2 in Europe, we might as well fight WW3 there as well”.

        The world seems to need a vast dose of Haloperidol.

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