The scary, yet overlooked truth about the Euro crisis.

October 3, 2011

“As they paraded out of their summit chamber late Thursday to hail their new €xxx billion ($xxx billion) debt deal for Greece, Europe’s leaders all wore bullish I-told-you-so expressions, aimed squarely at the doubters who questioned whether there was any political will left to save the beleaguered euro from oblivion.”

If you’ve been following the Eurozone crisis you would be forgiven for thinking the above excerpt was describing Angela Merkel’s supposedly triumphant meeting last week.  Unfortunately not, the excerpt was actually written in July in the previous Time magazine article about the Greek Debt crisis.  A full two months ago! Note too how that article was tiltled “Is Greek Bailout 2.0 the Real Deal?” Presumably that means last week’s bailout was “Greek Bailout 3.0”?

Will we be seeing a third article about “Greek Bailout 4.0” with identical wording in 2 months time? Give me a good reason why not?

In reality a third bailout is unlikely. If you watched the debacle where the US Republicans held Obama over a barrell with the recent American bail-out (because that’s what it was), sabotaging the US credit rating in the process, it is very sobering to remember that although Germany has agreed to the Greek bail-out in principal, 17 other Eurozone governments have to put it to their governments too! If the US couldn’t get it right with with 2 major political parties how the heck are 34 political parties with nationalistically different agendas ever going to?

However, the big takeaway from the latest Time magazine article is completely obscured by the media frenzy over the Eurozone. Tucked away towards the bottom of the article is the following excerpt, the most important one, and the one we are all ignoring:

“The euro zone is on the brink of a confidence crisis, even though its aggregate fiscal position is much better than that of the U.S.”

Buy gold coins peeps – bury them in the bottom your garden…

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