Forgive my indelicate language, but what the Hell are world leaders and Wall Street investors thinking? The Eurozone is on the verge of colossal financial collapse, and the Euro itself is in its death throes. In order to save the whole doomed package, Europe turns to Washington, which is already more than 15 trillion dollars in debt, for a bailout, and Washington consents. In response to this dance of folly, Wall Street goes up nearly 500 points in a day. Tell me, please, how can one bankrupt business bail out 15 other bankrupt businesses, and why do otherwise sane people cheer the vain and ridiculous attempt?
The Euro is gone. It cannot sustain the multinational overspending that Europe has indulged in for decades. The time to pay up has come, and the only money they've got for payment is money from a nation that has none, a nation more than 15 trillion dollars in the hole, a nation that borrows money from China in order to pay its own staggering shortfall, a nation that actually buys its own debt and simply ramps up the government printing press to warp-speed in order to conjure more fake money by which to do it all.
The issue that confronts us is this: Crushing debt caused by unsustainable multi-government overspending, the absence of a gold standard, looming hyper-inflation, and the folly of tying radically different economies together under one centrally manipulated currency, especially when nations like Greece shamelessly lie about their financial condition and cook their books in order to sneak into the Eurozone in the first place – all coupled with the buffoonocracy in Brussels, which neglected its due diligence and simply didn't notice the Greek chicanery.
The system almost collapsed under the burden of saving Greece, which is not yet saved. When it has to save Italy, Portugal, Spain, and Ireland too, the curtain will fall. Then everyone will wish they were Switzerland, which declined a spot in the Euro’s mad march to self-immolation, and which now has perhaps the strongest currency in the world. I’m not saying Switzerland won’t feel the rain and hear the thunder of the financial dungstorm that surrounds it on all sides; and I’m not saying it won’t feel the earthquake, both the tremors and the aftershocks. It will. But better to sustain those things in Switzerland than anywhere else on the continent.
The Euro and its zone were a doomed idea from inception. It never could be made to work. It cannot be made to work now, especially by economically-challenged community organizers from Harvard, who haven’t heard that Keynes was wrong, and who have not yet figured out that the more you invest trying to make an impossible idea work, the more you lose.
The best advice is to sustain the hit now, which will be painful but endurable, rather than tossing more (fake) money down that rat hole, which is just a one-way street to disaster.
The deeper you dig, the higher out you must climb.
Lay down your shovel, Mr. Obama.
Lay it down now.
You’ve rambled on wearily about shovel–ready jobs.
This is not one of them.