Germany and France, but primarily Germany have been keeping the EU afloat, most notably Greece. Spain’s closing in on disaster as we speak. Germany wants Greece to cut spending, but we know how they handle those suggestions. Now the IMF has joined Germany in asking the private sector to provide aid. Ironic, isn’t it? The anti-capitalists in Greece will get bailed out by the capitalists? Until the Europeans face the inherent problem, the bailouts will keep coming until there is no money left. Read here: IMF & Germany want the private sector to bail out the EU
Ireland has joined Portugal and Greece as its bonds reached investor grade junk status, which means they are not worth a two-headed coin in investment – nada, nil, zilch, nothing…their response is to blame the rating agency. “…A spokesman for the Finance Ministry told Irish broadcaster RTE that the downgrading was disappointing, incoherent and out of step with other bond rating agencies.
Ireland had a top triple-A rating two years ago, but a wave of bank bailouts after the country’s real estate bubble burst sent the government’s debt soaring. Greece and Portugal have also had their rating cut to junk status. Moody’s decision to cut Portugal’s rating by four levels on July 5 provoked anger throughout the eurozone. “We need to examine the possibilities of smashing the rating agency oligopoly,” said German Finance Minister Wolfgang Schäuble on Monday…”
And Italy might be next. “…the International Monetary Fund on Tuesday urged Italy to be decisive in cutting its deficit, as investors dumped Italian bonds and the country’s leaders rushed to pass an austerity plan.
Amid worries that Italy could follow Greece, Portugal and Ireland to require a bailout, the IMF however praised Italy’s reform package that has already cut its deficit to 4.5 percent of gross domestic product, down from 5.3 percent two years ago.
“While the economy has strengths, the public debt is high and growth is expected to remain constrained because of long-standing structural bottlenecks,” the IMF said…” Read here: Ireland reaches junk status
It doesn’t matter that Ireland’s bonds are junk status because the IMF is bailing them out, some of the money they use is OURS. Ireland should be okay until 2013. What a way to live. Read here: Ireland bailed out again
The Greek Socialists want a bailout desperately and, as I said, they want it from capitalists. Their big contribution will be to hire private tax collectors to go after scofflaws, but I’m not seeing the cuts to spending that they need to make. From the German newspaper:…Greek Prime Minister George Papandreou said the euro zone and International Monetary Fund must quickly approve a second bailout for his country to avoid its economic reform plans collapsing, a German newspaper reported…Read here: Greece wants money
“The current mood doesn’t help us to get through this crisis,” Papandreou told the Financial Times Deutschland, in a brief preview of an interview to be published in the paper’s Thursday’s edition.
Now the dollar is tumbling and Bernanke is talking QE3 (more endless printing of fake money, inflating our savings and destroying the income of the elderly). Moody’s wants to lower our ratings if we don’t reach a deal on the debt ceiling. Read here: Dollar in a nose dive
But fear not, in our wisdom, we are still giving lots of money to bail out Greece though they refuse to cut their entitlements (sound familiar). We just gave another 780 million of BORROWED money to them. The fact that we are broke doesn’t stop us from spending. It would stop you and I, but not BB (Big Brother) who is spending our money in ways we would not approve of. Read here: 780million of our borrowed dollars to a socialist nation that won’t cut entitlements
I’m not the only one concerned. People are coming out to buy gold as if it were a new California Gold Rush. Read here: It\'s a new California Gold Rush, only it\'s worldwide