The beginning of the end

As far as I’m concern the Euro is about to get its deathblow if EU were to reach an agreement on a multi-billion euro bail-out for Greece.

Once you start down this path with bailing out miserable and badly kept countries there’s no end to it. The EU cannot bail out Greece and then not do the same for Italy, Spain, Portugal, Ireland or any other member. In effect such ‘aid’ to one country will automatically, sooner or later, lead to the same ‘help’ sent to another country, and then another…

And then we have the fact that such an idea is actually against the Monetary Unions own rules. A deal would have to be constructed to get around rules governing the euro currency which prohibit a bail-out for a country. What does this say about the Euro-zone when the rules are firstly not kept by countries and then all the rest circumvent the rules to help the country that didn’t follow the rules?

Initially it is said that any bail-out will come with no contribution from Britain, Sweden and other non-euro countries, but you don’t need to be a genius to figure out that this will sooner or later change. If they bend and go around a couple of rules, what’s not to say they will do the same with others?

European Union rules state that no nation in the euro bloc should have an annual budget deficit which is higher than 3% of its gross domestic product. Hardly a single country is following this rule; they are all spending like crazies. Already 3% is too much, a real commitment would be to never have deficits unless in times of war.

So why do it? Why protect any country so deeply troubled with no regards for the rules?

The reason is simple, it’s about fear.

Not really fear for the crisis to spread, rather it’s about protecting their precious Central Bank and the scams perpetrated by having a fiat currency. But even more so fear that the civil unrest will spread. People are angry and our elitist four-winged soul-killers need to nip this before the situation worsens.

I don’t see how they will manage this though. Greece has pledged to reduce its deficit from 12.7% to 8.7% during 2010 which they are about halfway to manage. Read that again, halfway to manage a small reduction and they are already nearing in on armed rebellion. They need to do more, much more. Greece long-term deficit-cutting plan aims to cut the budget shortfall drastically, to less than 3% by 2012. The smallish, petite, tiny little cuts they’ve done so far aren’t even close to what is necessary.

So if a small portion of the cuts leads to this much in-house problems with pesky inhabitants, what will happen when they actually do start to save and cut on the level required?

So of course the other elitists are nervous and will come to the rescue and WHEN they do, that will be the beginning of the end of for the Euro.

My only question is if whether or not the European central bank will conjure up the bail-out money out of thin air and so increase inflation. This is the most likely solution. It is hard to see German and French taxpayers be happy over paying higher taxes or increase their deficit to bail out Greece. But if they do print the money, it will require breaking yet another rule.

They should just give up their elitist dreams and stop spreading their socialist ideas and realize that capitalism is the only way out, but that will never happen.

We have fun times ahead people, better stock up with popcorn and vodka, this is going to be hilarious.