Posted Feb 1, 2015 by Martin Armstrong
The outstanding national debt of Greece according to EuroStat was almost 320 billion euros at the end of 2013. The question is how can this crisis be resolved? Merkel is tearing Europe apart and her ideas of austerity are in conflict with the very concept that governments borrow perpetually expanding their debt and never repay. Where is this austerity? You are all printing money that just pays interest strip-mining the economy for bondholders. Someone with common sense needs to step up here or Europe is going to be gone. How can you insist Greece pays back when nobody else does? This is insane and will only lead to oppression, conflict, and war.
Everyone runs around and thinks debt to GDP is the way to measure a country. The problem with this brain-dead statistic, it can be way off the mark for it fails to indicate the trend at hand. If the economy is growing faster than government can spend, then the ratio will decline. However, if the economy declines, then the ratio will rise EVEN if no new debt was added. You will see that the rise in the Debt to GDP began to rise sharply in 2010. That was due in part to the economic decline – not random spending by the government. All nations will experience this trend as they raise taxes, hunt money, and kill their economies. GDP will decline as debts rise. This fails to reflect the true trend in motion for it is simply relative to two indicators constantly in flux.
What Merkel is insisting in Greece pays its debts while the European economy is declining. This will only send Greece deeper into a depression and if the new government does NOT default or suspend its debt, they will be thrown out on their ass.
There is ZERO chance of a solution being reached here. It looks like we will move up our intention to provide a SOLUTION SEMINAR. We will make arrangements for this will be a live video stream worldwide. Those in the Princeton area who want to attend we will let you know when and where. Hopefully before the end of March,