The news:
Greece will default on its bonds “at some point” as the euro region fails to deal with its first major economic crisis, said Paul Donovan, deputy head of global economics at UBS Investment Bank.
“I think it’s in an impossible situation,” said Donovan, who is based in London, in an interview with Bloomberg Radio today. “Europe has failed to clear its first serious hurdle. If Europe can’t solve a small problem like this, how on earth is it going to solve the larger problem, which is the euro doesn’t work. It’s a bad idea.”
And:
Portugal’s credit grade was cut by Fitch Ratings for the first time, underscoring growing concern that Europe’s weakest economies will struggle to meet their debt commitments as finances deteriorate.
The rating was lowered one step to AA- with a “negative” outlook, Fitch said in a statement today, adding that further economic or fiscal underperformance this year or in 2011 may lead to another downgrade. The euro extended its decline, dropping against all but one of the 16 most-traded currencies. Portuguese stocks and bonds fell.
Its because you can’t borrow, print and spend your way in to economic prosperity. You also can’t afford bloated, socialistic welfare programs. The Euro-zone is starting to unravel – it can’t sustain itself and only a radical de-socialization of the continent will fix the problem…but the European populations have grown addicted to welfare and probably lack the spirit to try living as free men and women, again.
This is what the Democrats want to bring here – and with ObamaCare and the massive deficits, they want to fast-track us.
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