Greek Banks: We Will Let You Give Us Your Money Now!

Why would anyone trust the Greek banks with their money when they are still limited in what they can withdraw? This seems like an amazing con game to me. Can you imagine going for days when you were only permitted to take a little bit from your bank, and ATMs were often out of cash, before reading this headline? “Greece: Banks Can Reopen … for Deposits.” Then comes the tagline: “Deposits Are Welcome, Finance Chief Says.” Greek banks will reopen Monday after a three-week closure, Read more […]

After Greece, Will Italy be Next?

The capital of Italy is said to be on the verge of collapse. Spain or Portugal may go first, but this story in the Telegraph about the situation in Rome makes me wonder if Italy is going to be next to follow Greece despite the competition for that “honor”: “Rome is on the verge of collapse and needs urgent repair, leaders warn.” The Eternal City is facing crisis, with its administration engulfed in corruption scandals and debt, its roads scarred by pot-holes, the main airport partially Read more […]

Venezuela Hyperinflation: This Is Where Socialism Goes, and So Do We

Both Greece and Venezuela show us slightly different versions of the future we are being led into, but no one tries to stop it. I think the most frustrating thing about what is going on in the world right now is that we are all simply accepting that there is no other path we can travel. We are just standing in a single line to a very unpleasant crisis, with no thought of breaking out of it. Our only comfort is that other nations are ahead of us in line. That doesn’t help unless we use the Read more […]

What Does a Collapsing Country Look Like? Buying Spree

Since Americans are headed toward the same fate, a collapsing country like Greece can provide a hint of what’s to come. The Greeks want to buy stuff. They are scrambling to do so. The reason is rather simple: they trust the right of possession more than they trust the banks. As the New York Times headline put it, “Greeks Spend in Droves, Afraid of Losing Savings to a Bailout.” Business has been so brisk in the giant Kotsovolos appliance and electronics store in this upper-middle-class Read more […]

Before the Greek Debt Crisis Did Audiences Love the Movie “300”?

Does the Greek debt crisis show us how “bread and circuses” is still as accurate a description of how empires pacify the masses as ever? You remember the movie, “300,” right? It was an R-rated action movie celebrating a historic victory of 300 Spartans over the Persians. It was pretty gruesomely violent, so I’m not recommending it. A thought occurred to me yesterday as I read this NPR story: I’ll bet “300” was a popular movie in Greece. Even if not always as completely subsidized, Read more […]

China Collapse Worse than Greece?

Australia media is reporting on a China collapse that might be “monstrous.” An Australian news outlet is reporting, “Chinese chaos worse than Greece.” WHILE the world worries about Greece, there’s an even bigger problem closer to home: China. A stock market crash there has seen $3.2 trillion wiped from the value of Chinese shares in just three weeks, triggering an emergency response from the government and warnings of “monstrous” public disorder. And the effects for Australia Read more […]

The IMF Has Arranged Financial Doom for the EU

The financial doom will be when every insolvent nation demands the same bailouts that Greece is getting, even though they are too big to bail. “Tyler Durden” at Zero Hedge asks, “Did The IMF Just Open Pandora’s Box?” By now it should be clear to all that the only reason why Germany has been so steadfast in its negotiating stance with Greece is because it knows very well that if it concedes to a public debt reduction (as opposed to haircut on debt held mostly by private entities such as Read more […]

Greece: Being a “Developed Nation” Doesn’t Matter

I wouldn’t have noticed this story in USA Today about Greece, except that Drudge linked to it with the following headline: “First developed nation to default on international obligations…” I did not find that line in the story. But I did find the following paragraph: After the deadline passed (at 6 pm ET), Greece joined Zimbabwe, Sudan and Somalia in being in arrears to the IMF. Fitch Ratings has downgraded Greece’s government debt further into junk territory. There is no exceptionalism, Read more […]

Greek Debt Implosion Starting to Ripple Outward

The Greek debt crisis is affecting global markets; things are just getting started. It seems like the event that Bob Allen has often warned us about is finally beginning. The New York Times reported yesterday, “Greece’s Debt Crisis Sends Stocks Falling Around the Globe.” Global markets shuddered on Monday after Greece closed its banks amid fears that the country was headed toward default. Stocks slumped on Wall Street, after markets in Europe were buffeted by worries that the Greek debt Read more […]

Greece Leaving Should Surprise No One

With the possibility of Greece leaving the West finally being acknowledged, we ought to also acknowledge that it was predictable. Here is a headline from the Financial Times: “Washington fears losing Greece to Moscow.” Throughout the prolonged showdown between Greece and its creditors, the Obama administration has largely sat on the sidelines, issuing the occasional warning about the potential economic impact of a default. But with Greece now on the verge of bankruptcy, the US is also beginning Read more […]

An Open Letter to the Greek Prime Minister

The Greek Prime Minister thinks Russia might be able to save them from the EU and their debt. From the Guardian: “Greek prime minister reaches out to Vladimir Putin for help in financial crisis.” Alexis Tsipras, the Greek prime minister, has made a broad overture to Russia as he seeks a way out of his country’s debt and currency impasse, telling Vladimir Putin that Greece wants new partners to help it out of the crisis. In a speech delivered in front of Putin in Russia, Tsipras said Read more […]

Are We about to Enter Interesting Times?

I was thinking we could make it to 2017-2020 before experiencing Interesting Times. But now I wonder… The endgame for Greece in the Euro has arrived. Russia and perhaps even China are rumored to be ready to swoop in, providing support in return for Russian military bases. The Federal Reserve is insolvent—leveraged more than double what Lehman Brothers was a few years ago when its collapse nearly acted as a Black Hole to the entire world economic system. An American amphibious assault Read more […]