“For want of a nail . . . the kingdom was lost.”[2] Will Greece’s debt crisis lead to a Greek debt default and the collapse of the euro and an ensuing collapse of the 27-member European Union (or EU), and trigger the next round of crashes that will be described by economic historians decades from now as “the Great Depression II”?[3] The assassination of Archduke Franz Ferdinand of Austria and his wife in Sarajevo, Serbia brought the tensions between Austria-Hungary and Serbia to a head. In turn, it is said this triggered a chain of international events that embroiled Russia and the major European powers; and World War I broke out in Europe.[4] Will Greece’s debt crisis set a series of events in motion that sends the world into a downward economic spiral of unfathomable proportions?
For years, I have wrestled with the question of whether the Europe would collapse economically, politically, socially and militarily. Sounds absurd, you say? The countries are too interwoven and mutually dependent now for that to happen, and at the very least they will muddle along, making the worst of the best situations, and achieving the lowest common denominator? The United States of Europe, they are not and never will be, but they have achieved a degree of cohesiveness that I never thought was likely years ago.
I believed jealousies and rivalries and, yes, the hatreds of the past would linger barely beneath the surface, coming unglued at the most inopportune times when it really mattered the most. When the chips were down, I felt the EU would splinter and fall apart; and that its participants and the world would write it off as a noble experiment that failed, much like the League of Nations. After all, its successor—the United Nations—is considered to be a colossal joke by Americans, many of whom would love to see it shipped to Europe, and its building on the East River in Manhattan bulldozed and turned into a park, or made into co-ops or condominiums.
The bitter hatreds of the past seem to have subsided in Europe though, and it has become a cultural melting pot, more and more. Airbus was the first tangible sign of economic integration that I never thought would be possible. To see the Germans and French working together, and genuinely enjoying each other and producing competitive aircraft on a global scale, was something to behold. The economic interdependence and booming economies covered up a myriad of sins, mistakes and weaknesses. It all looked very rosy until the economic tide in Europe and worldwide began to turn. Then, potholes showed up where there had been rose gardens; and recriminations began to occur that had been buried beneath the surface.
Today Greece is teetering, and anger is intensifying over proposed cuts that are to be made as part of the EU deal to save the country’s economy. It is the age-old battle between the haves and have-nots, and between those who will bear the burden of the cuts and the wealthy who will escape them. However, anti-American sentiments are growing because the International Monetary Fund (or IMF) is viewed as a tool of the U.S., which is carrying out American policies. Like the U.N., the IMF has taken on more powers and responsibilities than were ever envisioned; and it needs to be curbed, and its U.S. support diminished.[5]
Perhaps a recent editorial by the Wall Street Journal best captured the “contagion” that began with Greece:
It hasn’t been a week since the terms of Athens’s . . . bailout were set, and already the reviews of this latest Greek drama are saying it’s a flop. Yesterday the euro sank to its lowest level in a year. Stock markets across Europe fell nearly 3%, and the carnage spread to Wall Street and beyond. Greek interest-rate spreads climbed higher again, and market players have turned their attention to the euro zone’s other weak sisters as everyone tries to figure out who is most likely to follow Greece down the road to national insolvency.
The bailout, in other words, hasn’t stopped the much-feared contagion. If anything, it has spread it.[6]
The Archduke revisited—and hardly encouraging to a world that is in the process of revisiting the Great Depression. And reason enough for panics, with many more to come.[7]
In another editorial, the Journal added:
The real gamble is being made by politicians who are calculating that, by taking the risk of sovereign default off the table for now, they are giving the global economic recovery time to build and making it easier to address Europe’s fiscal woes.
. . .
In the euro’s first serious test, the political class blinked. The resulting moral hazard will haunt the single currency for years and reduce the incentive for governments to keep their fiscal houses in order.[8]
Even more troubling is the prospect that the 16-nation (out of the 27-EU member states) shared euro currency may be headed for disintegration. “The euro is doomed,” said one market analyst.
As German Chancellor Angela Merkel observed, Europe is in a “very, very serious situation”; and the U.K.’s new Prime Minister David Cameron and his coalition partner, Nick Clegg, may have major problems keeping the left wing of the Liberal Democrats and the right wing of the Conservatives (or Tories) in line, and a new election may be called before year-end.[9] Also, it is predicted that “China’s economy will slow and possibly ‘crash’ within a year as the nation’s property bubble is set to burst”—which may have troubling implications for whether China will continue to buy and hold our government debt.[10] In turn, this is a major economic and national security risk.
The economic tsunami that former Federal Reserve Chairman Alan Greenspan unleashed has produced consequences far beyond those that were ever envisioned—and far beyond American shores—which will last through the end of this decade, and possibly a generation. Giulio Tremonti, Italy’s Minister of Economy and Finance, has said: “Greenspan was considered a master. Now we must ask ourselves whether he is not, after [Osama] bin Laden, the man who hurt America the most.” These words speak volumes; however, they fall short of describing the global dimensions and consequences of Greenspan’s actions and inactions.[11]
The central banks of the world are essentially out of options, and the worst is yet to come. Hold on tight. It will not be pretty—and global citizenry anger may be truly mind-boggling![12]
© 2010, Timothy D. Naegele
[1] Timothy D. Naegele was counsel to the U.S. Senate Banking Committee, and chief of staff to Presidential Medal of Freedom and Congressional Gold Medal recipient and former U.S. Senator Edward W. Brooke (R-Mass), the first black senator since Reconstruction after the U.S. Civil War. He practices law in Washington, D.C. and Los Angeles with his firm, Timothy D. Naegele & Associates (www.naegele.com). He has an undergraduate degree in economics from UCLA, as well as two law degrees from the School of Law (Boalt Hall), University of California, Berkeley, and from Georgetown University. He is a member of the District of Columbia and California bars. He served as a Captain in the U.S. Army, assigned to the Defense Intelligence Agency at the Pentagon, where he received the Joint Service Commendation Medal. Mr. Naegele is an Independent politically; and he is listed in Who’s Who in America, Who’s Who in American Law, and Who’s Who in Finance and Business. He has written extensively over the years. See, e.g., www.naegele.com/whats_new.html#articles
[2] The proverb, “For Want of a Nail,” states:
For want of a nail the shoe was lost.
For want of a shoe the horse was lost.
For want of a horse the rider was lost.
For want of a rider the battle was lost.
For want of a battle the kingdom was lost.
And all for the want of a horseshoe nail.
See http://en.wikipedia.org/wiki/For_Want_of_a_Nail_(proverb)
[3] See, e.g., http://apnews.myway.com/article/20100408/D9EURADO0.html and http://www.bloomberg.com/apps/news?sid=aL3SiaURK8dQ&pid=20601087
[4] See, e.g., http://en.wikipedia.org/wiki/Assassination_of_Archduke_Franz_Ferdinand_of_Austria
[5] As the London Times points out:
Even greater social unrest is expected as resentment simmers among poorer families at being told to tighten their belts when wealthy Greeks can protect their fortunes by moving their money abroad, some of it into property bargains in London.
See http://www.timesonline.co.uk/tol/news/world/europe/article7113941.ece The Times article adds:
Mikis Theodorakis, the 84-year-old musician who composed the score for the film Zorba the Greek, calls for revolt against what he sees as an American plot to turn Greece into a “protectorate”.
[6] See http://www.naegele.com/documents/TheGreekBailoutFlop_000.pdf
[7] On May 6, 2010, the Dow Jones Industrial Average “ended down 347.80, or 3.2 percent, at 10,520.32, after being down as much as 998.50 earlier, the Dow’s biggest intraday drop on record.”
See http://www.cnbc.com/id/36988229
The CNBC article added:
“We’ve seen a crisis start in a country—Greece—become regional, impact the whole of the Euro zone and is on the verge of truly going global,” said El-Erian, CEO of the world’s biggest bond fund.
. . .
There is simply a growing recognition that Greece has got to default, said Rochdale banking analyst Dick Bove. “The riots in the streets showed the decision to repay the debt was not going to be made by the people in Germany, France and Switzerland, it’s going to be made by people in Greece and they’re not going to repay it,” he said. “Anyone seeing the riots is going to recognize that this government is going to be thrown out and anything replacing this government is going to be far more leftist leaning and they’re going to repudiate.”
See id. A Wall Street Journal article added:
The velocity of the plunge in stocks was breath-taking. Investors fled everything from stocks and risky bonds to commodities and poured money into safe assets such as U.S. Treasurys and gold.
. . .
“You worry about the a domino effect, from Greece to Portugal to Ireland and Spain,” said Richard Schottenfeld, general partner of Schottenfeld Associates, a New York hedge fund. “Pretty soon those kinds of losses are bigger than housing.”
Investors said they were worried about potential contagion from Greece’s ongoing problems, and whether eventual losses could even exceed those of the U.S. housing collapse.
[8] The Journal’s editorial added:
The real euro crisis, in short, is one of overspending and policies that sabotage economic growth. Sunday’s shock and awe campaign has merely postponed that reckoning—and at a fearsome price.
See http://www.naegele.com/documents/TheRealEuroCrisis.pdf
[9] See http://www.bloomberg.com/apps/news?pid=20601087&sid=aqquuYOAN_sE (“European policy makers last week unveiled a loan package worth almost $1 trillion and a program of bond purchases in an effort to contain a sovereign-debt crisis that has threatened to shatter confidence in the euro. . . . By resorting to what some economists have called the ‘nuclear option,’ the [European Central Bank, or] ECB may open itself to the charge it’s undermining its independence by helping governments plug budget holes”)
[10] See http://www.upi.com/Top_News/Analysis/2010/05/07/Commentary-Fiscal-WMD/UPI-69801273233877/
[11] See http://www.philstockworld.com/2009/10/11/greenspan’s-legacy-more-suffering-to-come/ and http://www.americanbanker.com/issues/173_212/-365185-1.html and http://www.realclearpolitics.com/news/tms/politics/2009/Apr/08/euphoria_or_the_obama_depression_.html
[12] See also http://www.naegele.com/documents/MatthewKaminski-EuropesOtherCrisis.pdf (“Germans no longer feel obliged to pay for the sins of their forefathers by bankrolling Europe. . . . ‘The EU is falling to pieces'”) and http://finance.yahoo.com/news/Spain-debt-downgraded-by-apf-1816859080.html?x=0&.v=27 (Spain) and http://www.ft.com/cms/s/0/6f696c52-456a-11df-9e46-00144feab49a.html (“Soros warns Europe of disintegration”) and http://online.wsj.com/article/SB10001424052748703525704575061172926967984.html?mod=WSJ_hp_mostpop_read (“Europe is entering unprepared into a serious economic crisis—and the nascent global recovery could easily collapse due to the unsustainable and Ponzi-like buildup of government debt in weaker countries. . . . The issues for troubled euro zone countries are straightforward: Portugal, Ireland, Italy, Greece and Spain (known to the financial markets, and not in a polite way, as the PIIGS) had varying degrees of foreign- and bank credit-financed rapid expansions over the past decade. In fall 2008, these bubbles collapsed. . . . Since these struggling countries share the euro, run by the European Central Bank in Frankfurt, . . . they are left with the need to massively curtail demand, lower wages and reduce the public sector workforce. The last time we saw this kind of precipitate fiscal austerity—when nations were tied to the gold standard—it contributed directly to the onset of the Great Depression in the 1930s. . . . Ireland’s banks are today probably insolvent. Who can afford to repay their mortgages when wages are falling and unemployment rising? Irish house prices continue to speed downward. This is not an example of a ‘careful’ solution—it is a nation in a financial death spiral”) and http://www.dailymail.co.uk/news/worldnews/article-1250433/Greece-debt-bailout-EU-leaders-split-euro-crisis.html and http://www.nytimes.com/2010/02/14/business/global/14debt.html?hp=&pagewanted=all
NaegeleBlog 
This was a good read. For somebody, like me, who trades currency, it’s been a difficult few months. I believe the dollar is fundamentally weak but Greece has managed to blow the Euro completely up. They’re talking parity or the end of the Euro now.
The problem for the USA is the people are still pretty much asleep at the wheel. Our political elite are polarized and paralyzed and unable to deal with the economic problems at hand.
I happen to believe that when this house of cards comes crashing down, there’s going to be blood in the streets and maybe even a political revolution if hyperinflation wipes out the middle class……as some like Peter Schiff suggests could happen.
It’s interesting times to say the least.
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Thanks, Ian, for your excellent comments.
With respect to your statement that “[o]ur political elite are polarized and paralyzed and unable to deal with the economic problems at hand,” you are so so correct. Most have zero training in economics, and the issues go straight over their heads. Also, they are political “beasts” who only truly care about getting reelected and wielding power while they have it.
Your third paragraph is also very interesting. As you know, there is one school of thought about the coming hyperinflation; another group that believes in “stagflation”; and there are others who believe that at most hyperinflation will be short-lived, and that deflation will rule the day. I tend to agree with the latter scenario; however, it is anyone’s guess, and the economic history of this period will be written 20-40 years from now.
Regardless of one’s point of view, there will be chaos; and as stated in the last paragraph of my article, “global citizenry anger may be truly mind-boggling!”
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I strongly doubt the elites will allow deflation. Deflation would have the effect of reducing their power relative to the rest of society (since the gap between the rich’s purchasing power and the PP of the common citizen will decrease), so I expect the printing presses to be put on hyperspeed to avoid this scenario regardless of economic consequences.
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“The Euro Turns Radioactive”
This is the headline of a Wall Street Journal article, which says that “[s]ome of the world’s largest money managers and central banks have become increasingly skeptical of the euro, presenting a threat to the common currency’s prospects.”
See http://online.wsj.com/article/SB10001424052748704691304575254683361456058.html?mod=WSJ_Currencies_RIGHTRecentColumns (or http://www.naegele.com/documents/CentralBanksFundManagersTurnCautiousonEuro.pdf)
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Enjoyed this column. Agree with Ian on these odd investment times. I don’t trade currencies, but have been trying to build a reliable portfolio to act as a self-created annuity as I don’t trust anyone with our assets: don’t have enough to have truly excellent management and have enough to worry about retaining and growing it’s purchasing power.
Whatever complicity Greenspan has, to me the big picture involves more players and pieces in the puzzle. All were required to crumble the House of Cards. After all, our ability to stay airborne on fumes has been quite remarkable.
It seems to me that trans-nationalist types thought the citizenry would be compliant. Europeans we are not. Quelle surprise.
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Thank you again for your comments, Sharon.
First, Greenspan set things in motion—akin to the assassination of Archduke Ferdinand that I mentioned in my article above, which is said to have triggered World War I. Also, Giulio Tremonti’s quote is accurate.
See, e.g., http://www.americanbanker.com/issues/173_212/-365185-1.html
Second, your use of the word “fumes” is an apt description.
Third, as I have stated above, global citizenry anger may be truly mind-boggling—in America and elsewhere in the world—and it is only just beginning!
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Apocalyptic Warning By Merkel
German Chancellor Angela Merkel has stated:
See http://www.timesonline.co.uk/tol/news/world/europe/article7131340.ece
And so it may!
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Again, Cash Is King!
See http://www.cnbc.com/id/37259541; see also https://naegeleblog.wordpress.com/2009/12/16/the-great-depression-ii/#comment-447
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Congress Does Not Know What It Is Doing
The highly-respected Rasmussen Reports has concluded:
See http://www.rasmussenreports.com/public_content/politics/general_politics/may_2010/72_are_not_confident_congress_knows_what_it_s_doing_when_it_comes_to_the_economy
It is a fact that most politicians have zero training in economics, and do not understand it, and have no appreciation for economic history. They are simply interested in getting elected and reelected, and wielding power while they have it.
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The Great Lie Of Europe
Writing in UK’s Telegraph, Christopher Booker says:
See http://www.telegraph.co.uk/comment/columnists/christopherbooker/7754100/The-euro-crisis-is-a-judgment-on-the-great-lie-of-Europe.html
Sobering, very sobering, but not surprising—and consistent with what I have been writing.
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Here It Comes—Or Rather, This Is What It Looks Like To Be In The Beginning Throes Of The Great Depression II
A Washington Post article states:
See http://www.washingtonpost.com/wp-dyn/content/article/2010/05/23/AR2010052304170.html
Not “recession,” but the continuation of the Great Depression II.
The Post article adds:
. . .
Also, it is clear that the economist Nouriel “Dr. Doom” Roubini has gone “Hollywood” on us, and is full of himself. However, like Harry Houdini, whoever doubted that? 🙂
See, e.g., http://www.telegraph.co.uk/finance/economics/7756684/Nouriel-Roubini-said-said-the-bubble-would-burst-and-it-did.-So-what-next.html
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What Would Reagan Do?
The Wall Street Journal has a fine article by David Malpass entitled, “The Panic, Round Two: What Would Reagan Do?” that is worth reading.
See http://www.naegele.com/documents/DavidMalpass-ThePanicRoundTwo-WhatWouldReaganDo.pdf
Yes, the panics are upon us—and there will be many of them globally—as America and the world sink deeper into what economic historians will describe 20-40 years from now as the “Great Depression II,” or by some similar label.
See, e.g., https://naegeleblog.wordpress.com/2009/12/16/the-great-depression-ii
David Malpass is right in asking what would Reagan do, because the former president—certainly at the top of his game—might have figured out a way of getting us out of this mess, or of somehow making it less onerous than it will be. After all, he was a creature of the “Great Depression I,” and he learned its lessons well.
Unemployment peaked at 10.8 percent in December 1982, two years after his election—which was higher than any time since the first Great Depression—then dropped during the rest of Reagan’s presidency. But facts and figures do not tell the whole story of the Reagan presidency by any means: his personality and leadership qualities, and his ability to instill hope and optimism.
See, e.g., http://www.usnews.com/money/business-economy/articles/2009/08/27/is-unemployment-the-worst-since-the-great-depression.html
One must remember too that Paul Volcker was Chairman of the Fed, and he contributed mightily to keeping the economy on an even keel, and preventing runaway inflation. He was followed by Alan Greenspan, who never saw the Housing Crisis coming, and he testified to that before a House committee. Or, as Giulio Tremonti, Italy’s Minister of Economy and Finance, put it: “Greenspan was considered a master. Now we must ask ourselves whether he is not, after [Osama] bin Laden, the man who hurt America the most.” That speaks volumes, in terms of the human suffering domestically and globally, which Greenspan launched.
See http://www.americanbanker.com/issues/173_212/-365185-1.html; see also http://www.philstockworld.com/2009/10/11/greenspan’s-legacy-more-suffering-to-come/
Implicit in Malpass’ fine article is the fact that Congress does not know what it is doing. Most politicians have zero training in economics, and do not understand it, and have no appreciation for economic history. They are simply interested in getting elected and reelected, and wielding power while they have it.
Malpass adds correctly:
However, Ronald Reagan’s leadership was broader and more important than that. He instilled confidence and optimism when there had been little or none, across the board (e.g., national security, economics).
See also https://naegeleblog.wordpress.com/2010/03/20/ronald-reagan-and-john-f-kennedy-a-question-of-character/
Sadly, Reagan’s leadership and vision are lacking now, as wrong-headed politicians lead us father down the path toward financial ruin, dashing the hopes and dreams of Americans and their counterparts worldwide. However, the days of reckoning are upon us. America and other nations are in uncharted waters; and their politicians may face backlashes from disillusioned and angry constituents that are unprecedented in modern times. We are beginning to see that now.
Also, Barack Obama has zero experience with respect to economic and a plethora of other issues. Americans should read (or reread) his “Dreams from My Father,” and realize that he is one of the most “uneducated” presidents in American history, in terms of real-world issues. This is not said by way of condemnation, but as a fact.
See, e.g., https://naegeleblog.wordpress.com/2009/12/05/is-barack-obama-a-racist/
At best he is an academic. Perhaps more importantly, he and his advisers are “a bunch of academics” and ideologues, who have pre-set ideas about how the world should function, which do not square with reality. In many ways, they are the most ill-equipped individuals to confront and understand the “Great Depression II,” much get us through it.
I cannot think of another group that is so ill-equipped to deal with critical issues facing America and the world (e.g., two wars, the risk of any EMP or other devastating attack, North Korea, China, Russia, Iran, the Great Depression II). Fortunately, no calamities hit the Clinton years. We are not and will not be so lucky this time around.
Lastly, Ronald Reagan was blessed—yes, blessed by God. He had innate wisdom and a reservoir of faith, confidence, optimism and good will, and collective life experiences that allowed him to do just the right thing at the right time. Clearly, the fall of the “Evil Empire” was a shining achievement, but there were many many others too.
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The Obama administration is the worst I’ve witnessed and I do not believe they will be able to say or do anything at this point that instills confidence in the public. Without confidence, we will continue to circle the drain in the hopes that a fiscally conservative, less ethically challenged, and more Constitutionally sound Congress is elected.
At which point, the Congress may decide to cut up the administrations credit card. However, I don’t see Obama agreeing to this plan and wonder if we end up with the equivalent of a hung Parliament.
For the next President it would be helpful to have one who actually appears to like the country and the Constitution; while at the same time rooting out significant corruption and waste. Can only think of one person and it is not Mitt Romney.
Regarding your kind reply about Mr. Greenspan, he did not set things in motion as his policies were not the source of the problem, in my humble opinion. The problem goes back a long way, but really got out of hand when Clinton called for more CRA loans.
During the same administration, Summers, Rubin, and Greenspan urged removing Glass-Stegal and shot down Brooksley Born’s efforts to regulate derivatives. Thus, the weapons of mass financial destruction were set in place by permitting gross leveraging via derivatives with inordinate amounts of crap loans which were packaged into something vaguely pleasant smelling and sold to pension, sovereign wealth, and foreign banking funds. Greenspan just accelerated the rate of rotation and kept the plates aloft longer by lowering rates which fueled home prices exponentially, which increased tax bases, which inflated the prices of almost everything if one used pre-Clinton CPI measurements.
I surmise this was an effort to get the nation over projected critically short public pension and entitlement shortfalls and to push for a more Europeanized society, which does not sit well with rank and file productive people. While there has not been as much press in this nation, I feel it safe to say private sector ratepayers have zero interest in funding government employee pensions at 80% of their last three years pay average, whilst they scrape by on diminished 401k balances and Social Security payments that will not likely keep up with the real rate of inflation. [Gone to the grocery store lately?]
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Thank you, Sharon, for your comments.
I agree with your statement:
Next, you wrote:
Congress can refuse to fund ObamaCare and other programs and emasculate them, or repeal them entirely if it chooses. Obviously, Obama can veto measures to repeal them, in which case his veto would have to be overridden and/or the repeal measures would have to be attached to legislation that he is not prepared to veto.
If the next president who can do the job is not Mitt Romney, in your estimation, who is it? 🙂
Next, you wrote:
A myriad of factors coalesce to produce any depression throughout history. However, if Greenspan had seen the Housing Crisis coming—and he testified before a House committee that he did not—and if he acted with restraint as his predecessor Paul Volcker had done, events might not have spun out of control. Volcker was savvy enough to realize that massive weaknesses would be exposed if financial “equilibrium” was not maintained, and he acted accordingly. Greenspan went the other direction; and effectively an “economic tsunami” was released that is still rolling worldwide today.
Yes, more CRA loans were a mistake, as well as the removal of Glass-Steagall restrictions, and deregulation that Greenspan championed, as well as the failure to regulate derivatives. Yes, gross leveraging via derivatives was a mistake; however, the loans might not have been “under water” if proper underwriting standards had been used, and if the housing bubble had not arisen and grown to enormous proportions—which is Greenspan’s fault.
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Very nice blog and articles. I think that there is this incredible engine that is constantly mentioned in popular press: America the consumer and China the producer. Of course, the intense freedom of thought and intellectual depth and breadth is what attracted the best and brightest to America and made it what it is. Going forward, out country has slacked because of enormous wealth. Human nature (you see) makes people less hungry and wanting. Now a large mass of peoples in the world are hungry and wanting. It is a time of great equilibrium. However, I believe that it will be hard for others to do this overnight. The political system in this country and the freedoms will be hard to replicate. So we may have some time (or not) as you point out. But it is still hard for me to see America the inspiration turn into America the ordinary. I hope that we will all see the light and rise and prevail to keep this country as the beacon of hope for all.
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Thank you for your comments, Sunil.
I agree with you:
Barring an EMP Attack or some other unforeseen catastrophic event, I believe America will continue to be the beacon of light and hope and freedom for the world. We are not perfect, but we are the best “experiment” in the course of history so far, and I do not see that changing.
See https://naegeleblog.wordpress.com/2010/02/26/america-a-rich-tapestry-of-life/; see also https://naegeleblog.wordpress.com/2010/01/19/emp-attack-only-30-million-americans-survive/
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Dick Morris Predicts Collapse Of The Euro And Unraveling Of The EU
In his latest article, Morris states:
See http://www.dickmorris.com/blog/2010/05/31/the-european-union-will-come-apart/#more-1037
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EU Chief Warns Of Nightmare Vision For Europe
As the Daily Mail reports:
See http://www.dailymail.co.uk/news/worldnews/article-1286480/EU-chief-warns-democracy-disappear-Greece-Spain-Portugal.html (emphasis added)
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Greece Puts Its Islands Up For Sale To Save Economy
In a desperate attempt to repay its debts, and because it cannot find the monies to develop the infrastructure on the islands, Greece is preparing to sell—or offering long-term leases on—some of its 6,000 islands. Potential investors are Russians and Chinese, according to the UK’s Guardian.
See http://www.guardian.co.uk/world/2010/jun/24/greece-islands-sale-save-economy
In actuality, such austerity moves by Greece may be too little too late, especially as the “Great Depression II” continues to take hold globally during the balance of this decade—at the very least. Also, the amount of money raised might be a pittance when compared to Greece’s staggering debt.
The article adds:
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While The EU Might Survive What’s Coming, Many European Governments May Not
There is an interesting article on this subject in Forbes, which is worth reading.
See http://www.forbes.com/2010/08/11/global-economy-finance-europe-opinions-columnists-michael-moran.html?partner=daily_newsletter
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What Remains Of An Undergraduate Degree In Economics
As indicated above and elsewhere in my writings, I believe:
Having read this, a Wall Street Journal contributor brought words by economist Joan Robinson to my attention, which are wise and worthwhile repeating:
See, e.g., http://en.wikiquote.org/wiki/Joan_Robinson; see also http://en.wikipedia.org/wiki/Joan_Robinson
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Europe Coming Apart Before Our Eyes? [UPDATED]
My article above predicted gloom and doom for Europe in 2010. It did not happen, or has not happened yet. However, Jon Henley and Mark Rice-Oxley have written for the UK’s Guardian:
See https://www.theguardian.com/world/2019/jan/25/europe-coming-apart-before-our-eyes-say-30-top-intellectuals (“Europe ‘coming apart before our eyes’, say 30 top intellectuals”) (emphasis added)
Liberalism seems to be coming apart at the seams. It is a failed ideology, along with its brethren Socialism. They are rearing their ugly heads in the United States because of (1) the Left’s hatred of Donald Trump, (2) the Left/”Deep State” entrenchment in our government (certainly at the federal level, and in our courts) and media, and (3) the downright incompetence of the Neanderthals in the Republican Party such as the despicable Paul Ryan.
This has been happening bit by bit, over time. And Europeans are sick and tired of the dictatorial powers of faceless bureaucrats in Brussels.
See, e.g., https://naegeleblog.wordpress.com/2017/10/20/the-real-russian-conspiracy-barack-obama-the-clintons-and-the-sale-of-americas-uranium-to-russias-killer-putin/#comment-15432 (“What Lies Behind The Malaise Of The West?“) and https://naegeleblog.wordpress.com/2015/11/30/a-34-trillion-swindle-the-shame-of-global-warming/#comment-15413 (“US Is Net Oil Exporter For First Time in 75 Years“) and https://naegeleblog.wordpress.com/2015/11/29/the-death-of-putin-and-russia-the-final-chapter-of-the-cold-war/#comment-14494 (“The Circle Of Enemies Around Russia“) and https://naegeleblog.wordpress.com/2015/07/01/global-chaos-and-helter-skelter/#comment-13611 (“Will The EU Live As A European Superstate, Or Die?“)
Needless to say, Russia’s killer Putin stands ready to reap the benefits, at least until his demise.
See, e.g., https://naegeleblog.wordpress.com/2015/11/29/the-death-of-putin-and-russia-the-final-chapter-of-the-cold-war/ (“The Death Of Putin And Russia: The Final Chapter Of The Cold War“) (see also the comments beneath the article); but see https://naegeleblog.wordpress.com/2010/01/19/emp-attack-only-30-million-americans-survive/#comment-15839 (“Will The United States And Israel Cease To Exist?“)
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The EU Is Insufferable
Stephen MacLean wrote a fascinating article about the fiasco that is Brexit, in the New York Sun:
See https://www.nysun.com/foreign/brexit-boris-becomes-charlie-brown/90879/ (“Brexit: Boris Becomes Charlie Brown“); see also http://www.dickmorris.com/the-other-deep-state-part-two-lunch-alert/ (Dick Morris: “The OTHER Deep State . . . Part Two“) and https://naegeleblog.wordpress.com/2010/05/16/will-the-eus-collapse-push-the-world-deeper-into-the-great-depression-ii/#comment-15870 (“Europe Coming Apart Before Our Eyes?“)
Nigel Farage may be the best leader for the UK going forward, not Boris Johnson who seems willing to sell out Brexit to get a deal.
Europeans are sick and tired of the dictatorial powers of faceless bureaucrats in Brussels; and this is doubly true of the Brits, and rightly so.
The Germans lost World War II militarily, but they won that war economically by their control of the EU and the euro. In subsequent years, the torch has been passed to faceless bureaucrats in Brussels, who rule with an iron fist—as political pundit Dick Morris discusses at the link above.
George Orwell wrote of this phenomenon in his prescient “Animal Farm,” where all of the animals were equal until the Pigs reigned supreme and subjugated the other animals. Today’s Pigs preside in Brussels—and with America’s vicious far-Left traitors in Washington, D.C. and its “Deep State” and their cohorts in the media.
See https://en.wikipedia.org/wiki/Animal_Farm (“Animal Farm“) and https://naegeleblog.wordpress.com/2019/10/09/this-is-war-abraham-lincoln-and-ronald-reagan-understood-this-and-donald-trump-does-too/ (“This Is War—Abraham Lincoln and Ronald Reagan Understood This, And Donald Trump Does Too“)
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