Ok, so here’s the news from Market Watch:
Greece may need a new aid package worth more than 100 billion euros to stay afloat, far higher than what was expected, according to a report Saturday.
In a preview of a story to run Monday, the German magazine Der Spiegel said on its web site that the package — the equivalent of $145.2 billion — could be necessary if the economically ravaged nation continued to rely on foreign aid through 2013 and 2014. That comes on top of the 110 billion euros, or $160 billion, in bailout funds agreed to last year…
There are about 11 million Greeks. To say they need $145 billion dollars means that each Greek – man, woman and child – is to be on the hook for $13,182. Add that to the $160 billion from last year and you get a per-capita debt equal to $27,727 just for the bailouts. How in heck are the Greeks ever supposed to pay that back? Especially since in a year or two Greece will slip in to net population decline? It is just impossible! But here go the banksters and bureaucrats, pretending that this will do the trick. So great is their fear that Greece will leave the Euro…which would probably trigger a string of defaults and the loss of power and wealth for the pinheads who are cooking up this bailout. And here’s the bad news – Greece is easy compared to Portugal and Spain, and both those nations also teeter on the edge of default.
There is no other way out for Greece than to default – the bond holders are going to have to accept a loss, and they should jump on it right now because the longer this goes on, the less they’ll get (ie, as Greece piles on more debt the share for each debt holder in a default will go down). If I were a Greek, I’d be rioting on the streets, too…well, maybe not rioting, but certainly working out plans for a revolution. To be sure the Greeks, themselves, created the mess…too little work, too much government goodies…but if I were Greek I’d never agree to impoverish myself to bail out bankers.
It is time we all learned the lesson – debt is poison. It does no one any good. Now, perhaps, we understand why the Bible condemns usury and calls for a revocation of debts from time to time…and while religious writers over the past thousands of years have always found something wrong with debt. This is not to say that loaning should be banned, but its not something that should be engaged in with a light heart…certainly not for consumer spending or for government except in the most grave, life-threatening emergencies. Let it all default and then just learn the lesson and move on.
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