In discussing the Greek strikes taking place as we speak, I noted that the economic crisis was both predictable and avoidable.
What happened is simple. Greece, like the rest of Europe and the United States, borrowed, printed, and spent their way into an unsustainable inverted pyramid of debt.
Because of this, tens of thousands are now rioting in the streets of Athens, with the future of Europe at stake (and probably the United States too).
Greek protests offer a cautionary tale for America
In Greece the protestors want the government to keep spending beyond its means. In America the protestors want the government to stop spending beyond its means.
Of course, those who protest government excess in the U.S. are universally maligned by their leaders and the press, not to mention public sector unions.
But anybody who thinks that curbing government spending in America now is too difficult only has to look at Greece to see how bad things can get.
And while the Federal government has the luxury of kicking the can down the road for a few more budget cycles, time has clearly run out in places like Sacramento, Calif., Albany, NY and Trenton, NJ.
Expecting politicians in those states to show any more character or resolve than those in Athens is naïve at best.
But it's encouraging to think that the markets still have a little faith in the American people.
"We the People," better put our foot down on government spending right now! Because as of now, we're only running out of time and deeper in debt.
In other words ... We're on pace to turn the United States into Greece!
Let Greece Go Bankrupt!
Intelligent people tried to warn everyone, but our Washington "betters" (and their equivalents around the globe) refused to listen. The result is seen in economic disaster and violence in Greece.
Commodities legend Jim Rogers told Bloomberg that Greece's problems are hardly a new development, and that bankruptcy would be best for Greece and benefit the euro. But no one listened.
“They should let Greece go bankrupt,” said Rogers. “It would be good for the euro. It would be good for Greece. It would be good for everybody. If Greece went bankrupt then everybody would say, boy, the euro is serious, is going to be a sound currency and the euro would go straight up. Is not gonna happen that way, but that’s what should happen.”
Mark Faber thinks Greece as a corporation is bust and as such, its loans should not be extended or be given more loans.
Banks holding those loans should write off the Greek loans to 30–50% of the face value.
Oh, c'mon now ... Greece's problems aren't really going to infect the United States financial system. Are they?
Are US Taxpayers Bailing Out Greece?
Is it possible that our Federal Reserve has had some hand in bailing out Greece? The fact is, we don’t know, and current laws exempt agreements between the Fed and foreign central banks from disclosure or audit.
Greece is only the latest in a series of countries that have faced this type of crisis in recent memory. Not too long ago the same types of fears were mounting about Dubai, and before that, Iceland. Several other countries (Spain, Portugal, Ireland, Latvia) are approaching crisis levels with public debt as well. Many have strong ties to Goldman Sachs and the case could easily be made that default could have serious implications for big US banking cartels. Considering the ties between the Fed and these big banks, it is not outlandish to wonder if the US taxpayer is secretly bailing out the entire world, country by country, even as our real unemployment tops 20 percent. Unless laws are changed to allow a complete and meaningful audit of the Federal Reserve, including its agreements with foreign central banks, we might never know if this is occurring or not.
This global financial crisis is a predictable result of secretive central banking and unsound fiat currency. Governments are entirely committed to this system of fiat money and fractional reserve banking for obvious reasons: it enables them to do what they love most, namely, spend hoards of money with near impunity. Without the limitations of sound money, governments will spend without limit. They will spend money to hire their cronies, pay off special interests, give out favors, create dependence and generally distract from the terrible job they do at their chief mandate, which is to protect the liberties of the people. Fiat money is a blank check to government, which is very dangerous, and we are witnessing the death throes of the system as the bills come due and the underlying capital is squandered away.
Because of our globe-straddling empire and lingering reserve currency status, perhaps no one has a more vested interest in keeping this system cobbled together than our own government and the Federal Reserve.
Both Democrats and Republicans alike, put their faith in the unaudited Federal Reserve with it's unelected board members, while continuing to tell us to trust that government is "the answer."
Neither the Congress or the people are privy to what the Federal Reserve does though. Yet we're supposed to listen to politicians running on nothing more than ego and blind faith?
The result of all this bi-partisan political pandering and assurances is, of course, to send us down the road to Greece (and serfdom).
Tea Parties, let's turn the heat up! Or this Greek tragedy will become our future.
