I read this news story and don’t know what to think. Here is the money quote.
“Nobody should take for granted another 50 years of peace and prosperity in Europe. They are not for granted. That’s why I say: If the euro fails, Europe fails ,” Merkel said, followed by a long applause from all political groups.”
I’ve always thought that the Euro would fail, but here is the leader of Germany stating it clearly that if it fails, there will be riots and, possibly, war. Of course, she uses that rhetoric to get Germany to bail out Greece with even more money, but still raises the specter of what will happen with the Euro inevitably fails. It is a matter of when, not if.
Look out people, here it comes!
I was reading an analysis of the “deal” struck and it’s really smoke&mirrors.
The banks will take a 50% cut on SOME bonds but not all.
The EU bank pledges several BILLION more to bail out Greece (which raising to total bail out so far to over 1 TRILLION!).
Some interest rates are lowered even more but not all.
Greece promises yet more austarity cuts but so far has failed to make it’s previously promised austerity cut goals.
Meanwhile Athens is a city in chaos, Greece a country with zero growth, and even the best projections of this plan only bring the Greek debt-to-GDP ratio down to 120% by 2020!
That of course presumes no Black Swan events too.