The Greece Bailout Failure Covers an Even Deeper Problem - The Global Debt Bomb!
The financial meltdown that is occurring in Greece, Portugal and Ireland will undoubtedly spread to countries all over the world. According to the world’s central bank, the Bank of International Settlements, or BIS, by the end of 2012, the debt level of the United States will likely be an amount equal to our countries entire gross production. That means the sum total amount of wealth produced in the USA will equal the Federal debt. That essentially the end of the line.
Why did the Greece bailout fail? Well, who is helped most by bailouts? Investors. Mostly foreign investors who lent crazy money to countries like Greece all the while expecting that the EU would bail them out. This has happened time and time again, with the result being that the private sector debt was given over to the public debt without the public's permission or knowledge. In Greece, which has a regressive, shrinking economy based on tourism, farming and construction, there isn't any way for that country to grow itself out of debt, ever. Another problem for Greece is that other countries in the EU, like Austria, who are probably thinking they're smart, are now beginning to refuse to pay for Greece's investor-created financial meltdown. When countries refuse to honor a financial commitment, the cracks are beginning to show, although British Chancellor George Osborne apparently has no problems asking his countrymen for billions of pounds to financially support the Land of Plato. I didn't know the Brits had that kind of money laying around. The Germans, who are now certainly regretting their donation, threw over 22 billion euros last year at the Greeks, who are now hinting they may want out of the EU and default on their loans. How's that for gratitude?Continued on the next page