Is It Now Or Never For Greece and the European Union?

posted by Ida B. Wells IV @ 20:16 PM
June 15, 2012

No one is sure just how the Greek vote this weekend will turn out, but everyone in Greece, and in the rest of the European Union (EU), is on edge about the outcome.  The election on May 6th left no party with enough of a majority to form a government.  And political sides wouldn’t compromise and form coalitions.

In anticipation that the result of the vote will be that its nation exit the euro, and perhaps the EU, since May 6, the Greek people have drawn at least a billion euros a day from Greek banks and transfered their funds to other EU countries.

Robert Marquand of Reuters News summarizes:  “Nearly 80 percent of the Greek population say in polls they want to stay in the eurozone, but they do not want a crippling austerity-based financing of their debt that would sentence them to penury for the foreseeable future.”

Those bank runs signal collapse of the entire Greek banking system, as ETF Daily estimates that if the nation votes to abandon the euro, every bank account in the Greek system would lose 50% of its value.
Several Greek officials have plainly stated that the country will be absolutely broke within the next two weeks:  i.e. there will be no retirement checks, no government worker checks, hospitals, insurance, etc.  The country––which already has an unemployment rate of 22 percent––would be at an standstill.

“The Greeks are being asked to do the impossible,” in austerity reforms, says Mr. Simon Tilford of the Center for European Reform in London. “Capping public spending in a severe recession…. the terms are mathematically impossible.”

The Associated Press article states: “The debt-ridden country’s two-year financial crisis has left much of the nation in tatters, tearing at its social fabric. Hospitals have run out of supplies, suicides have been on the increase and unemployment has skyrocketed to above 22 percent as tens of thousands of businesses shut down.”

Additionally, ETF Daily avows “A Greek exit from the euro would not only result in a run on Spanish and Italian bonds, but it would also likely result in a run on Spanish and Italian banks.”  Eventually, “The whole house of cards will come down.” As Angelo Drusiani from Banca Albertini says, Italy could face:  “massive devaluation, three to five years of hyperinflation, and unbearable unemployment.”

The last polls indicate that Sunday’s vote will not resolve the issue, as opposing sides––to leave or stay in the EU––are tied.  But unless Germany wants to see her prized EU fall apart, she had best compromise first!  Christian word puzzles have the answer:  “Whatsoever ye do, do all to the glory of God (1 Corinthians 10: 31).”  That means end people’s suffering now and compromise!

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