RSSGreece On The Verge
J.J. Jackson | February 19, 2010
Greece is a great case study in what happens when you embrace liberalism – spending all sorts of money you don’t have on every want and desire of those with political clout and to buy votes. Greece is drowning in red ink and unfortunately for that country’s people, they have nothing to offer the rest of the world to help stave off collapse. See, we in the United States are still able to find people, although they are farther and fewer between these days, willing to buy our debt. But Greece, well, they are quite frankly screwed.
And they are getting the hammer dropped on them by the European Union:
The council of EU finance ministers said Athens must comply with austerity demands by March 16 or lose control over its own tax and spend policies altogether. It if fails to do so, the EU will itself impose cuts under the draconian Article 126.9 of the Lisbon Treaty in what would amount to economic suzerainty.
While the symbolic move to suspend Greece of its voting rights at one meeting makes no practical difference, it marks a constitutional watershed and represents a crushing loss of sovereignty.
“We certainly won’t let them off the hook,” said Austria’s finance minister, Josef Proll, echoing views shared by colleagues in Northern Europe. Some German officials have called for Greece to be denied a vote in all EU matter until it emerges from “receivership”.The EU has still refused to reveal details of how it might help Greece raise €30bn (£26bn) from global debt markets by the end of June. Investors are unsure whether this is part of Kabuki play of “constructive ambiguity” to pressure Greece and keep markets guessing, or reflects the deep reluctance by Germany to be drawn deeper in an EU fiscal union. Greek bonds sold off as ten-year yields jumped to 6.42pc, but the euro rallied to $1.3765 against the dollar as broader issues resurfaced in currency markets.
They have been able to hang on by their fingernails for a while but now the piper has come to collect his pay. Greece should serve as a reminder about what happens to nations that fail to be fiscally responsible and keep thinking someone else will be there down the road to bail them out after they throw the party and find out there is no money in the bank to pay the bills. When those that you have relied on as your fall back option decide they have had enough they come to collect.
Are you listening America? You had better be because this is the fate of our great nation too; “receivership” to those that we are indebted to if things do not change soon.
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