Sunday, July 5, 2015

Socialists Facing Reality

Socialists Facing Reality

The Greeks have voted to tell Europe to drop dead.  Now there will be no more bailout of their economy, they cannot service their own debt, their banks will run out of euros soon, and it's going to get very messy there, very fast.  Best bet is they start issuing drachmas again, which only other Greeks will accept for anything, so they can still have some kind
of businesses going in Greece, but they won't be able to pay for any of the oil, gas, foodstuffs, and other supplies that their people need to keep living in the 21st century.  They may offer a high exchange rate for euros and dollars, to keep tourists coming in bringing foreign exchange, but how they will continue to function in international trade is going to be a hell of a question.  And it's too late to plant a lot of crops to get them food for the coming winter, they have no oil wells, no huge investment in solar or wind power, so every place you look, there's a major problem waiting to hit.  The biggest employer is the government, the next biggest group of people are the retirees and the unemployed, who are both collecting from the government.  That leaves a very small number of people doing productive work.

I have no wish to see anyone suffer, but it looks like the decades of being fiscally irresponsible have caught up with Greece, and I have not the faintest idea how they can dig their way out of this hole.  I don't think their leaders do either.  The next few months will be very interesting.  Will the Russians or the Chinese offer them billions in a bailout?  Doesn't seem likely.  I don't think Mr. Obama will offer US dollars to help either, and if he does, that will bring on some really loud screaming here. --Del

Greece saved western civilization in the past at Marathon and Salamis. Will they now be the first domino in ending it? ~Bob

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