Thursday, June 23, 2011

The West looks bust

Everyone knows Greece is bust, but no one is allowed to admit it. Why ?
Because if Greece is bust so are key French and German banks, Spain, Portugal, Ireland and probably Italy.

And if they are bust, due to loans and the banking sector then so are we.

Someone has to pay, hopefully without dying in the process.

It seems to me that the West is bust ( yes US I include you ) and those of us with pension funds etc perhaps are going to lose them.

Can denial fix this ?

Sent from my HTC

1 comment:

TheFatBigot said...

I'm not so sure.

Greece is bust because the wealth it produces cannot generate enough tax for its government to service annual interest on its borrowing let alone repay the capital.

Germany, France and the UK each produce substantially more wealth than Greece and, year-by-year, can rebuild from any loss of capital caused by Greek default.

The US is in a special position, its current account is dire but the sheer size of its economy allows it to weather storms more easily than us.