A Greek “Oh, S##t” Moment

The Greek Prime Minister had the same sort of “Oh, S##t” moment that I have described for the liberal presidents on their first morning CIA briefings. There goes all the talk, talk, talk game plan.
The Greek Prime Minister had to accept the very reforms that he had walked away from a week ago, and the very reforms that the Greek population voted down by 61%. The PM, a leftist politician buoyed by another Marxist Economics Minister (now resigned), could mouth the words of Socialist protest, but they could see the math. 

Even Socialists could see the numbers and they knew that it was only the European Central Bank (read Germany) rationing out the Euros in the back rooms of banks that kept the front side of the banks providing very limited Euros to lines that form ( every day), starting at midnight. 

So the PM appointed a new Economic Minister, another Marxist but with a softer voice, swallowed hard and submitted virtually the same reforms he had rejected. He then went before the Legislature and got support for those reforms with the support of more conservative legislators. His own left wing supporters stayed home, voted no or sat on their hands during the vote.

So the PM will probably get the money he wants, after a bit more haggling and the Europeans will get the reforms they want, and everyone knows that the reforms will be fudged and that there is zero chance the Greeks will EVER pay off the $300 billion in loans they owe.

It is like the U.S. debt. We can service the periodic loan payments but we can’t pay off the loan. The difference is that we CAN service the loan because we have the best economy on earth, while Greece has pensioned off all of the “workers.”

Greece ran out of Germany’s money. 

Maggie Thatcher was proven absolutely right!

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