Were you all sitting on the edge of your seats on Father’s Day waiting to see if the Greeks would vote to stay in the Euro Zone or not? Probably not. But there were many who were sitting on the edge of their seats until the news broke that the party favoring the European bailouts, New Democracy, finished first with 29.5%; while the socialists PASOK party, also pro-bailouts, took 12.3%- The radical-left party, Syriza, which was against the bailouts, finished second with 27.1%. Confused? A socialist party in favor of staying in the EU and a radical-left party in favor of leaving the EU is fodder for confusion. The bottom line is that the New Democracy and PASOK will form a coalition and for the time being Greece will stay in the EU.
So, indeed there are many who are breathing a sigh of relief today. But for how long? We are talking about Greece after all.
“Unless they make a radical change, we will be back with another Greek cliffhanger in three or four months’ time,” said Darren Williams, a European economist at AllianceBernstein in London. (Source)
Yuppy! Three or four months! Then what? Why does anybody care about tiny Greece and their tiny debt? The Greek debt is nothing to the world’s largest economy. So what is the big deal? The problem is: if Greece can leave the EU without paying its debts, what is to stop Portugal or Ireland or Spain or Italy from doing the same thing? That would be a ver y big deal indeed.
So, we are back to the “then what” question. The European Union was a dumb idea to start with. It was doomed to fail. The idea that a bunch of countries with different languages and different cultures could pretend to be one nation with one currency but multiple fiscal policies was asinine.For the European Union to work, the citizens of the 17 nations would need to vote to give up their sovereignty and become an EU with one government and one fiscal policy. That ain’t going to happen. But not to worry. The banking elite and the political elite have a plan. They want to form a banking union for all the EU. In other words, the EU would have a single banking system (under the thumb of the Bundesbank, i.e., Germany). Then they could issue Euro Bonds in the same way that the US issues bonds. To do this requires the heads -of-state of the 17 nations to give their approval. Then the citizens of Finland and Italy and all the other countries will wake up to find that they are no longer sovereign nations; that the fiscal policies of their countries are now being dictated by a committee of bankers in Brussels.
So, will the nations of Europe remain sovereign or will the bankers win? Don’t the bankers always win?
Well, that’s what I’m thinking. What are your thoughts?