First off, it’s pretty clear from the real global news that Euroland is in a world of hurt. In the past few days Greek debt has fallen to junk status and 2 year bonds are yielding 18%. Of course, in the event of default or partial default (AKA “restructuring”) the bond holders will lose between 30 and 50% of their principal.
What’s clear from the above articles is that nobody really knows how much it will cost to bail out Greece but what is clear from the past 2 months is that the number is getting bigger every week. In other words, the Greek government has been lying about how bad the problem is and the real size is only becoming clear as more information slips out over time. That is no accident, it is a strategy by the Greeks to avoid sticker shock in Euroland.
What’s also clear is that Greece is not alone. Portugal and Spain are right behind it and Spain’s problem is estimated to be 4 times as large as Greece’s. Now if you are the German people and you are looking at all of these requests for handouts and you know that you are the only one in the region with a bit of spare cash (Germany is the production/exporting powerhouse of Euroland) then you have to be getting a)nervous and b) angry about all of this.
In truth the problem is bigger than what Euroland can solve. And if Euroland goes down, we all have an economic crash because they are one of the patsies that have been buying US debt along with China, India and the bigger players in South America like Brazil. It’s all one big, connected global Ponzi of credit and Wimpy Promises©.
So while nobody can predict the future with much accuracy, anyone with a brain can figure out that the risk has never been higher for some sort of major global economic collapse and that brings us to what our elected leaders are doing about it. As you can see from the EWI link below, they are preparing to create a police state that will be capable of beating down any form of dissent:
Our good friend Warmonger McCain is leading the charge to create a police state that will have massive power over US citizens. In this newly proposed law, you don’t have to commit a crime. All you have to do is to be suspected of potentially committing a crime and all your constitutional rights fly out the window. Sort of like the division of precrime that the movie “Minority Report” warned us about except that instead of psychics picking the targets it will be anyone who doesn’t conform. The title of the bill is "Enemy Belligerent Interrogation, Detention, and Prosecution Act of 2010". Could it be named anything more draconian? I guess they could add the word “persecution” in there but they probably think you would have to be a fool not to infer that anyway so why be redundant. In any case, if this passes I guess all you have to do is become belligerent (whatever that means to some police state enforcer you happen to come across in the field) and you are a serious criminal with no rights.
And none of this is being reported in the media. It will all just slip into law as a sleepy population watches 200 years of freedom swirl the bowl. All I can say is that everyone should be writing and calling his congressman about this. I know I am.
