Europe’s Leaders Keep Fiddling While the “Euro House” Burns Down

posted by Ida B. Wells IV @ 16:08 PM
May 29, 2012

   Bankers, politicians and pundits around the world expect Greece to exit the eurozone, as some try to prepare their finances for the great fall.  Central Bankers will hold “secret” meetings in London this week preparing to stem the coming world-wide tide of financial collapse that will follow after the Greek people vote again on June 17th insisting that austerity ends or they will to exit the eurozone.

The New York Times screams out editorials:  “They blew it, again. With Greece in meltdown, raising fears of cascading bank insolvencies and deepening recession, Europe’s leaders failed again this week to agree on the ambitious initiatives needed to quell the crisis.”

One Times editorial reminds readers of how a horrible decision plunged the United States into a recession from which it still struggles to recover:  “Let’s remember that in 2008, American officials also believed that they and the markets were prepared for the collapse of Lehman Brothers, though the global credit crunch that ensued quickly disabused them of that notion.

“The financial system is no less interconnected now, and the weakened European and American economies are more vulnerable to shocks.”

Realizing that Greece’s exit signals the fall of the euro, and thus world financial chaos, the U.S. President and other leaders in the G-8 Summit at Camp David earlier this month pressured Chancellor Angela Merkel to soften her austerity stance.  It appeared to work for a while, but late last week she returned to her hardened “Greece must pay its debts” language.

And Christine Lagarde, Director of the International Monetary Fund, sang the same ‘no sympathy for Greece’ tune, saying the problem is that Greeks don’t pay their taxes, and otherwise don’t keep their word.

Meanwhile, Spain, the fourth largest economy in the eurozone, now warns member nations that it needs more money to survive.  Dan Atkinson And Simon Watkins report on “In the past two days, Spain’s fourth biggest lender, Bankia, said it needed a 19 billion euros . . . bailout.”  That Spain has already drastically cut its financial aid to Latin American and Caribbean countries also indicates that what happens in Europe greatly affects the rest of the world.

Just today, Andrew Cave in “Lloyd’s of London Preparing For Euro Collapse,” writes:  “The chief executive of the multi-billion pound Lloyd’s of London has publicly admitted that the world’s leading insurance market is prepared for a collapse in the single currency and has reduced its exposure ‘as much as possible’ to the crisis-ridden continent.”  ‘Crisis-ridden’ is strong wording indeed.

The rider on the black horse in the Book of Revelation, chapter six, carrying a pair of balances first announced the coming poverty and famine that will usher in World War III.  But, of course, the leaders of Germany and Europe don’t seem to comprehend the very dangerous game they are playing.  Or maybe they do!

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