Will the European Union Survive?
Troubles in Greece may tear apart the EU
Standard and Poor’s downgraded Italian Debt today. Greece is spiraling downward to default. If Greece were to default on its debt, it could take down the Euro as a currency. Greece haws already sold off many government owned properties and islands trying to keep up with the payments, but it is a losing battle. (The government is already struggling with a depression in the country along with high government payouts due to high unemployment and social programs.
There are estimates that it will take an additional $2 Trillion Euros to bail them out. (http://www.gurufocus.com/news/147147/a-greek-exit-would-cost-eu-2-trillion-euros)
It looks as if the EU (primarily Germany with U.S. help) will have to bail them out since a Greek default could drag down other European banks down with them.
The problems in Greece and the other PIGS countries as well (Portugal, Italy, Greece, & Spain) could intensify calls for “Global Governence” which woudl also mean “Global Government”
As with many things, follow the money” to see where the world is heading.
Blessings,
Steve
3:38 pm
What exactly would happen if Greece took down the Euro? Since this was written in October 2011, I believe that the EU has voted not to kick Greece out of the European Union. So from reading the other article, it seems that the EU will not need $2 Trillion to kick Greece out of the Eu what happens next? How much will the EU need to keep Greece active since it isn’t salvageable?
I guess I have more questions than comments haha. But being a French citizen and part of the EU makes me interested in this topic.
4:21 am
William,
What do your friends and associates think is the best way to handle Greece? Are there other economies that are in the same situation in the EU? Here in the U.S. those who are considered “conservative” economically believe that the immense welfare state in Greece is causing it to implode.
John
5:38 pm
Today I listened to an analyst say that Greece is like having an infected toe, and if it is not ‘treated’ the infection will spread to the whole of the ‘body’ – the rest of the EU, and destroy its ‘vital organs. He said that already the infection has spread to peripheral organs, such as Italy and Spain, and if not amputated, the infection will spread further. He used an interesing euphimism ‘Greece will have to take a ‘sabbatical’ from the Euro in order to save the rest of the EU. Better than saying ‘Let’s chuck her out of here!’ I guess! Same thing, just by another name. Being a citizen of the UK, I am relieved we never went into the Euro, but I am aware that if the EU goes down, we will not be immune and we will suffer in some way too. Good riddance to the EU, I say, but I am aware that the ramifications of this happening are enormous! We never should have got involved with this monstrosity – there is NO SUCH THING as Europe, culturally and ethnically speaking. We are so diverse and individual as cultures, who in their right minds invented this monstor? I am British, not European, just as the French are French and the Germans are Germans. Very diverse and different and I celebrate the differences, but abhor the drive to merge us all into an amorphous splodge!