?

Log in

Previous Entry | Next Entry

Upsides to Collapsing EU

Here's the situation in the EU.

Greece is bankrupt. They need a bailout. If they get bailed out, it will destroy the EU due to the cost of bailing out them and the other half dozen failed nations who did the same thing but hid the problem a little longer. If they don't bail out Greece, they have to kick them out of the EU. Either way, Greece is facing high unemployment and high inflation, like Weimar Republic level collapse, and that gave us Hitler last time around. The Greek students have been rioting since they are getting completely screwed in this deal. They get the unemployment and the hyperinflation and the debts while their parents, who caused them, retire. Is this how parents show their contempt love, today? I'm starting to wonder. An Iraqi expat in Athens said "straight out of Iraq. It reminds me of all the shit we saw in Kirkuk." The protesters are angry. How far are we from actual civil war there? Who knows.

The serious problem here is the EU is either losing Greece (and probably the other nations that screwed up) or its going to try and bail them out and bankrupt the strong countries like Germany and STILL fall apart. Either way, the EU is over. See what happens when you can't manage to control your spending? Greece needs a Spartan in charge of their govt. Better at controlling their impulses. Sadly, with a socialist govt, you can't do anything but pander. I wonder if the USA will notice this?

The world is already reacting to the end of the European Union, the largely unstated but understood reality. The dollar has strengthened to $1.28/Euro. Remember when it was $1.60ish? A few years ago, 2008. Oil responded to the stronger dollar by dropping in price $6/barrel in the last two days. How does the end of the EU make things better?

Well, it diverts attention from the USA who hasn't solved its derivatives problem so much as monetized its debt by printing more and more paper currency and inventing money with a computer (that's literal, btw) to sell around the world since everyone is nervous about the end of the EU and the Euro. I continue to wait for the Other Shoe(tm) to drop but it seems to have a great deal of hang time. And there's a little fact that's underappreciated. If you run a con long enough people will turn their denial into fact, into religion. Nobody wants to admit the emperor has no clothes because they're all wearing the same outfit. "I'm Not Stupid" is a key factor in human psychology. When taken to the national level we get Deficit Spending and Monetized Debt and Stagflation and HyperInflation. Isn't that fun?

So the upside to the EU collapse is it makes the USA look that much more stable and composed and with our food production and green technology advances, it gives us the edge in the world market. Weak nations will keep buying USA's debt and we won't see our collapse for that much longer, if at all. We may end up continuing our pattern of high unemployment and inflation at 12% (real world terms) while Iran falls apart and its its ruling parties, Greece turns to Civil War, and Portugal discovers the Third World, First Hand(tm), along with Spain. But hey. Better them than us, right?