Well….we have the election in Greece and guess what? We have more of the same. By more of the same I mean, the party that won. (The New Democracy Party) When I say they won, they received the most votes and are a pro bailout party. They ended up with the most votes in percentages term which is not saying much. Next in Line was the Syriza Party which garnered the second most votes, followed by the Pasok party which has been in in Power for many years. Europe was deathly afraid the Syriza party was going to win the Election. One thing you need to know about the elections in Greece, If you can not get more than 60 some percent of the vote, they then need to form a coalition based government, hence, the New Democracy Party and the Pasok party joined forces and formed a government.
The thing both the New Democracy Party and Pasok party have in common is, they are both, Pro Bailout Party’s. In other words, they are for more of the same thing that got them where they are today in the first place. They are under the same misguided idea that the way to solve an Extreme Debt Problem is with adding more Debt. As the old saying goes, you can’t fix stupid, and let me be clear, this is not just Greece’s problem, this is the same for Spain, Italy, Portugal and soon France and so forth.
At the bottom of all of this lies the banks. As I mentioned previous times before, the Greek Election was a side show in the scheme of things. This is all about keeping Banks Solvent. If Greece where to tell the banks to pound sand and go back to the Drachma, there would be a host of European banks, as well as some US banks which would be in more trouble than they are right now. What we have is, a country hopeless addicted to credit. (Same thing here and in the rest of the world) Its like the Alcoholic who finally admits he may have a problem and will look in to getting some help after his next drink. If you think that is going to happen you’re in dreamland, its not.
So now the parties have united and have sent a list of demands to the EU. They want to re-negotiate some of the terms which the last government agreed to. The answer from the Germans has been swift and to the point, Nein!! so while all of this is going on the latest tally says that Greece has enough cash on hand until Mid July give or take a couple of weeks…So What happens then? the EU will find a way to give them more money, after all, once again, Greece is the side show, we gotta keep the Banks afloat. Long Term, there is no way out of taking the medicine which is long over due. It will be the same for all the entities which are thinking they can stave off the day of reckoning, by piling on more debt. Well…I say good luck with that one…In the mean time, you better be taking prudent preparation.