Monday, August 12, 2013

Update on Greece

Now, after five years of European Union policies, how do things look in Greece.  The headline today on Yahoo looks encouraging: "Greece Beats January-July Budget Target."  In fact, Greece did not do any such thing.  More bailout funds from the EU, though, made it look that way. 

Here is what the EU has done for Greece:  GDP today is 20 percent lower than it was in 2008, when the EU bailouts began.  Unemployment is at a record pace, pushing toward 30 percent.  These numbers are not very different from where the US was in 1933 at the lowest point of the Great Depression.

Meanwhile, civil order is breaking down in Greece.  Crime is rife and the only things growing are the nation's indebtedness and the black market.   Political discourse is moving to the extremes as the center breaks down.

Finally the debt to GDP ratio is rapidly climbing to 200 percent.  The EU has made a small problem into a large problem and has obligated the entire European continent to back a bailout that has absolutely no hope of success.  Politicians hard at work again!

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