Approaching Financial Abyss
Heading for eventual financial collapse.
An ocean of liquidity and institutionalized fraud alone keep dysfunctional economies from imploding.
Conditions look increasingly grim. Political solutions resolve nothing. On July 20, Der Spiegel headlined "Merkel Is Driving Europe into the Abyss." It quoted the Financial daily Handelsblatt saying:
"German Chancellor Angela Merkel has managed once again to get a parliamentary majority. But who cares? No one."
"Regardless of whether the vote passes with or without the opposition, more questions than answers remain. Since the financial crisis began two years ago, euro-zone leaders have passed one aid package after the next, increasing Germany's liability. Little has come of it. The situation in the debt-ridden countries has not improved."
"It's no wonder that Germans are asking why they should have to bail out banks with their hard-earned money when these institutions have only wasted and squandered everything."
The Frankfurter Allgemeine Zeitung complained about one bailout after another. Today Spain and soon Italy it said. How long will German taxpayers put up with "pay(ing) for the faulty speculation of banks?"
Suddeutsche Zeitung called social peace in Spain "fragile." People are outraged for good reason. "There isn't a single institution of public life that hasn't been hit by a major crisis of confidence." Hope is now a rare commodity.
Die Tageszeitung said Eurozone leaders have no one to blame but themselves.
Die Welt said political majorities contradict popular sentiment. Euro-skeptics aren't visible in parliaments. Saving the currency "appear(s) to be an elite project." Germany's next election may "be the last time that a clear majority (supports) European solidarity."
Well before crisis conditions erupted in fall 2007, virtually all significant policy measures failed. Instead of scrapping bad schemes, they're perpetuated.
Greece represents the epicenter of failure. Prime Minister Anotonis Damaris says his country is in Depression. It matches the worst of the 1930s.
It can't possibly meet its fiscal targets. It's collapsing in plain sight. Its national railway company just suspended all international trains.
Rumors now spread about Eurozone leaders agreeing to let Athens go it alone outside the union. Inevitability dictates policy. Once unthinkable Grexit becomes acceptable policy.