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.