Greece lied for ten years about their accounts falsifying their books essentially defrauding banks that lent them money, and their Eurozone partners.

Then the ‘souvlaki hit the fan’ and short-term interest rates to Greece jumped almost overnight to a prohibitive 23%, everyone else in the Eurozone pays 3%. Lenders wanted big returns to lend money to big liars. Greek creditworthiness is lower than that of both Lebanon and Guatemala.

The Greeks are very sweet and their country is very pretty but the Greek crisis is a spiritual crisis, one of importance as they paid themselves fancy benefits and pensions and they embarked on billions in military spending and infrastructure projects that they couldn’t pay for. Now they want the people in the Eurozone that they defrauded to give them 110 billion to escape total breakdown.

Portugal is in trouble and so is Spain where unemployment is 20% and the UK has an even higher debt ratio than Greece. People in the UK on welfare with kids can get between £5000-£8000 a month tax free in housing benefits and cash allowances, it’s handouts gone mad.

Average wages in the UK is £531.00 a week then tax is taken from that, most workers take home between £1300-£1500 a month after tax, so the system is ludicrous. It feeds the addiction of entitlement and it encourages welfare tourists to the UK people that come from other poorer countries in the EU to sign up for the cushy life on the British glucose drip. The insanity has to crack in the end as Government has to borrow money to make these mega-handouts, it now owes almost one thousand billions pounds.*

http://www.debtbombshell.com/

Greek wages will gradually be cut 30%, it will hurt the workers terribly because Greek prices are already very high, but even such a cut will only be a small blip on their total debt screen. Greece can’t really escape total collapse. They aren’t going to do ‘horsebox’ willingly, but it may be forced upon them. When people’s importance is assailed they go a bit nuts. I feel very sorry for the Greek people but the wages of importance lead to collapse and extreme poverty.

Contagion in financial markets is fancy word for the ‘knock on’ effect, as more and more global lenders get scared as they wake up to what dodgy loans they have placed on their books; real estate, corporations, Governments, no one is going to pay in the end, interest rates will rocket. There is not enough money in the world to bail everyone out. It’s the Grand Lies coming home to roost.

Greece is the tip of a massive global mountain of denial, swelled egos, and feigned importance; smoke and mirrors accounting, government fraud and criminality that will come down like a house of cards over the next year or two.

And as far as the UK goes…
The UK can’t default on its Government debts as it is not in the Euro, so the UK Gov’ can print as many pounds out of thin air as it needs to. Of course, the value of the pound will tank, but they only have to look honest, they don’t actually have to be honest.

Here’s the funny snippet from the BBC correspondent in Greece.

Malcolm Brabant BBC News, Athens