Greece Dropped?
Another European Observation – and an important one.
Greece has spent itself out of money. It entered the Euro zone by fiddling its budget to allow entry In 2001. Subsequently, they have spent like a drunken sailor, or more accurate, a drunken Greek sailor.
They now have so much debt that they do not meet the 3% European Zone requirement. The Greeks are 4 times the requirement – not bad for a small nation.
The Greek total debt will be 120% of their GDP this year, and that should just set the immoveable scene of Greece’s financial failure.
What will happen? After a few years of Euro help to Greece, the Greeks will be “dropped” out of the Euro. This is a disgrace to Greece and to their politicians who would rather spend (and be re-elected) and not be prudent in their spending. Greece will become a 3rd world county as no investment will come to Greece when it can’t pay back its debts.
When Greece leaves the Euro, the Euro will fall in value. In fact, the Euro will begin to fall in value when it becomes clear that the European Central Bank is propping up the Greeks, and there is no hope of ever paying off their debt.
Sounds like the USD will be rising (relative to some other currencies) in the next few months/years. Hard to believe but we are better off economically (again, relatively) than some other nations. Good to see you posting again.
Oh, global warming scare mongering. Definitively lame and the data will come out to prove it over time. It is more difficult to suppress the truth in the internet age.
Hi David,
Great to back. The Dollar is weak, and the Euro could become weak. It becomes a matter of which one is the weakest – hard to predict right now.
Tom