What will become of those poor Greeks? Yet again, there was another bailout proposed for the beleaguered country of Greece on the weekend. In return, certain austerity measures were demanded by their creditors. It is too little too late, but what will happen, and hence all the riots, is that the minimum wage will be reduced and the civil service will be cut back dramatically.
All this pain, and for what. Only two things can possibly happen with debt. It can be paid, or it can be defaulted on. A bankrupt entity will eventually go bankrupt and Greece was bankrupt many years ago. When will they own up to it? If they do, then other countries such as Italy, Ireland, Spain, and Portugal will have to follow suit and this is the definition for 'a house of falling cards'. The European Economic Community will fall, as will its unifier, the Euro. With all of Europe on the brink of disaster, can the US be far behind? Its debt to GDP ratio is similar. How long will they be able to print money to avoid the inevitable?
The cost of the riots will only add to the Greek deficit so why does not everyone just go home, relax, and take their punishment like a man. After all, they are just paying for a few generations of lax productivity and over indulgence. Who, in the end, did they think would pay for them and their profligate ways. It is too late for austerity. That should have started many years ago when the first deficit budget was introduced in their parliament.
And that goes for all of us.
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