Yes, the West is doomed

November 27, 2012
By

Our politicians are as cynical and corrupt as the Roman emperors.

Here in America, Barack Obama spent $8.5 billion of your tax dollars to keep Medicare Advantage around until after the election.

Not to be outdone, German Chancellor Angela Merkel is spending $44 billion of the German people’s money to keep Greece in the Euro until German elections late next year:

The latest deal, secured late on Monday, will see Greece’s debt level lowered to a more sustainable level and lead to the release of the next tranche of aid of $44 billion needed to keep the country solvent.

Alastair Newton, senior political analyst at Nomura, told CNBC.com that the German elections were a significant aspect of the decision to get the deal through.

“The German elections are a huge influence here and it would obviously be very bad for Merkel if anything were to cause a crash in Europe before the elections. Merkel is committed to keeping the euro together but not at any cost. The Greeks now have to deliver on what is being asked of them,” Newton said.

Saunders added that once the German elections are over at the end of next year there could be a significant change in attitudes towards Athens and scoffed at the notion that this would be the deal that changes the fortunes for the beleaguered country.

“At that point, as I suspect when the deal is unravelling , what will the creditors do then? The economy is disintegrating we’re in the fifth year of recession heading into the sixth and beyond that the seventh and the eight. The longer this goes on it’s not going to get any better,” Saunders warned.

Saunders said that a “Grexit” could occur in two ways: one where the Greeks themselves decide that economic impact of austerity is no longer sustainable or the creditors setting terms which Greece can’t meet.

3 Responses to Yes, the West is doomed

  1. Setnaffa on November 27, 2012 at 6:33 am

    Bread and circuses did not save Rome–they insured its fall.

    The same happens over and over.

    “…
    And that after this is accomplished, and the brave new world begins
    When all men are paid for existing and no man must pay for his sins,
    As surely as Water will wet us, as surely as Fire will burn,
    The Gods of the Copybook Headings with terror and slaughter return!”

  2. allie on November 28, 2012 at 7:42 am

    What would be worse than spending our tax dollars here in this country to keep Obama in office would be spending our tax dollars on keeping Mexico’s president in office. I can’t imagine the German taxpayers are one bit happy about this and I suspect many of them are highly insulted to be treated like Greece’s piggy bank.

  3. Louis Wheeler on November 28, 2012 at 8:08 pm

    The only question is how bad it will get: a swift collapse and return or the end to civilization? Or some scenario in between.

    We can assume that a Paul Volcker type rate increase is out. (If interest rates on the national debt went to 21%, then taxes collected wouldn’t cover the payments on the bonds.) So is a prolonged FDR type “Great Depression, because the currency markets will crash and burn. I would prefer a hyper-inflation of every paper currency in the world. A deflation seems out, because that is a Keynesian bug-a-boo. They will do anything to prevent that.

    Trade will still carry on in barter. It requires substantial faith in people to believe that most of them will cope in their new penury. This would mean that only the liberal enclaves such as Washington D.C., New York City, San Francisco and Chicago will burn up in race riots. Everyone else will be scrabbling to put food on the table without government help.

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