By Bill Tatro, Special for USDR
Most recently, the Chief Economist for CitiGroup stated that if Greece were to exit the European Union there would be “a financial collapse and a deeper recession than the country is already experiencing-probably a depression”.
The European Parliament President warned ominously that Greece risks National bankruptcy.
The irony of all of this is that Greece is already in a depression and is totally bankrupt.
Those who wish to continue the status quo, including much of the progressive mainstream media, would have you believe otherwise.
Just another tightening of the austerity program, a few more billion of added debt and a total repudiation of the last election is all that is needed to keep the can going down the road.
Unfortunately, the only thing that can kicking can do is forestall the inevitable losses to be taken by those who believe that profits can be made on the backs of Greek citizens, forever. Employment, business and construction all continue to collapse as desperation, hunger and suicide continue to escalate.
When the bottom has been reached, the Keynesians will continue to urge more of the same and ask for people’s patience. They, however, don’t have to wonder or worry about their next meal, a roof over their head, or the cry and anguish of their children.
The Troika’s concern is that a Greek exit (Grexit) from the European Union will be the template for Spain, Italy, and even France. Their problems are no less than Greece’s and their solution is starting to take shape in the form of a dissolved European Union (EU).
Should that happen, and it is looking more and more that way, then DEFAULT will be the much discussed word – not exit.
Since bankruptcy and depression already exist, inevitable losses by the Keynesians will be monumental and will find their way to the shores of the United States and to the Too Big Too Fails.
If the leaders of Syriza are true to their words, always questionable with politicians, “the crossing of the Rubicon” is at hand and history is about to be made.
For the average American it is just another week filled with such important issues as Bruce Jenner’s sex change, Kim Kardashian’s latest emotional moment and the Patriot’s Inflategate.
For the average Greeks it is a week that means they could see an opportunity for a better life. Depression and bankruptcy are the bottom and from here the only way is up, without the European Union.
Of course, there is always six more months, more negotiations and Putin waiting in the wings.
However, what never changes
I’ll gladly pay you Tuesday for a hamburger today.