Economic Tremors - by Stephen Lendman
The Eurozone is slowly collapsing.
Sovereign default threatens Greece. Progressive Radio News Hour contributor Bob Chapman warns when it goes, all troubled Eurozone countries will follow.
Is it imminent? Likely not. More likely is winter or next spring. But given its troubled state, it's just a matter of time.
Most disturbing, says Chapman, is that central banks, "governments and financial communities have no idea how to end the ongoing" crisis. "All they can come up with is to throw more money at" it.
Nothing tried so far worked. Hoping later resolution will solve things made conditions worse. Demonstrations in Greece and across the continent express public rage. Strikes compound street protests. Anger portends much greater amounts because policy measures exacerbates conditions instead of alleviating them.
Chapman expects eventual Eurozone dissolution. He estimates troubled economies need up to $6 trillion infused. About one-fourth of that at best may be forthcoming, he believes.
"The bottom line is anything above $1.5 trillion can't be done. Thus collapse for six (troubled) countries has to come." It's just a matter of when.
The longer resolution is delayed, the worse conditions get. Kicking the can down the road solves nothing. It's why today's crisis looks worse than 2008. "The big hitters in this game (Germany, France) cannot forgive debt of the insolvent and they cannot bail them out.