It appears that Greece is about to go bankrupts, again. They have received a bailout already but aren’t doing the deep cuts in services needed to stay solvent. Also Greece isn’t following the European Union’s plan to get out of debt which means they’re not eligible for the second scheduled infusion of (digital) cash.
So why isn’t Greece making the cuts? Here is why:
It seem as if we have been here before: the euro zone fretting that a crisis with Greece will balloon out of all proportion while the government in Athens says it will not impose one euro more in cuts on its austerity-battered public.
Cue a euro zone finance ministers meeting in Brussels.
There are differences this time from two years ago when a battery of “last chance” meetings over a new bailout brought Greece to the brink of bankruptcy and default – and threatened the euro zone with its first dropout.
Source: How Do You Say Deja Vu In Greek? – One America News Network / Reuters
The people don’t want to give up their social programs. Greek politicians don’t want to lose their cushy government jobs and benefits by upsetting their constituents. So the EU now has to make a hard decision:
- Admit they Greece is a failure and cut them off until they grow up and start making the hard decisions.
- Expunge Greece from the EU altogether and admit in part that the EU does not work as the socialist paradise it’s built itself into.
- Pay Greece another payment (and digitally print money in the process) to cover up the fact that the EU and Greece is a failure.
The first two options are the best overall but come at huge costs to the EU structure. Cutting Greece off from cash will be like watch an addict go through withdrawal. But when they come out the other end they’ll be better for it. That will force the EU to restructure itself and become stronger in the end.
Removing Greece from the EU will be the same as isolating a group of people with swine flu who refuse to take vaccines and other medications. There will be deaths but they ones that survive will be stronger and wiser.
The EU would again have to restructure itself. The EU would have to pull back on its total control and services offers. Countries would have to become more autonomous. The EU would become less of a controlling entity and more of a trade negotiation union.
Covering up Greece’s non-compliance just kicks the problem down the road and inflates a bubble that is going burst over all of Europe and eastern Asia. I’m sure some countries like China and Russia are drooling at the thought of assimilating some countries into their fold.
Greece isn’t going to make the make the needed cuts as long as it’s sugar daddy, the European Union, keeps paying the Greek’s bills. Someone has to make to make the hard choices before the rest of the world pays the price.