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Tuesday, September 27, 2011

Thoughts on US, Germany and Greece

Among my favorite news sources for information on the True state of both the US and global economy are British newspapers because when they cover the recession-depression, they aren't beholden to any particular US political party or ideological mantra like "America is never wrong".

So while no nation's journalism is perfect and that includes Britain (see: Rupert Murdoch & 'News of the World'), one does find better coverage of the economic situation in the US and globally through British papers.  Here's a small example:

Germany slams 'stupid' US plans to boost EU rescue fund (UK Telegraph) -- "German finance minister Wolfgang Schauble said it would be a folly to boost the EU's bail-out machinery (EFSF) beyond its €440bn lending limit by deploying leverage to up to €2 trillion, perhaps by raising funds from the European Central Bank.  "I don't understand how anyone in the European Commission can have such a stupid idea. The result would be to endanger the AAA sovereign debt ratings of other member states. It makes no sense," he said.  Mr Schauble told Washington to mind its own businesss after President Barack Obama rebuked EU leaders for failing to recapitalise banks and allowing the debt crisis to escalate to the point where it is "scaring the world".  "It's always much easier to give advice to others than to decide for yourself.""

Wouldn't expect to see that friction covered in a US paper or cable news network unless it was meant as pro-US propaganda.  Usually the US is painted as the hero who must always be forced to come to the rescue of Europe... Continuing..

"Markets across the world ignored the mixed signals about the true scope of EU rescue measures, convinced that EU leaders have a "grand plan" up their sleeves and will unveil the details... Greece has a trump card in rescue talks with the IMF-EU "Troika". If it opts for a "hard default", it could set off a chain reaction"

See, no one ever talks about that-- that Greece really has the power if their political leaders weren't so horribly corrupt.  Greece should be using a threat of immediate default to Force the Europeans banks and the IMF to give them the entirety of the funds promised to them in July, instead of receiving it piecemeal, and to renegotiate interest rate and other terms more fair and just to the nation.  But as stated, Greece's leaders are in IMF and ECB's financial 'pockets' so this won't happen.

The article ends with more truth-telling...

"Analysts say the Troika will have to approve the next €8bn tranche of aid for Athens in October whether or not Greece has complied fully with the terms. It cannot risk a showdown before Europe's banks have beefed up their capital base, or before the EFSF is fully equipped to defend the rest of the system."

So many needless games.. silly drama.. global fears, and it really is that simple.  The money must go to Greece no matter what the nation does because otherwise, everyone suffers.   Such a shame for Greece though-  their leaders are so deeply evil that they push harsher austerity irregardless.