In my King World News interview published on July 12, I stated that the Troika and the US will do whatever they can to keep Greece in the EU. To let Greece leave would be the final nail in the European Union coffin. That would start the dominoes of Italy, Spain, Portugal and France falling as well as the European banks. And it would prove that this artificial political and monetary union is a total travesty which was doomed to fail even before it was created.
The proposal now being put to the Greek government and parliament is a lot worse than the one which was voted down by the Greek people last Sunday. The package on offer involves another €85 billion of loans in addition to the existing €320bn. On top of that there will be short term bridge financing of €12bn plus potentially another €35bn for job creation. So the insolvent Troika is raising another €135bn to lend to a bankrupt nation that cannot even afford to pay the interest on the debt. This is really the bankrupt leading the bankrupt to perdition.
As I discuss in the KWN podcast, Greece’s only solution is to default on the debt and to start afresh with a new Drachma. No other solution will ever allow Greece to recover again. But the dilemma is of that the Greek people want their cake and eat it. They want to have a standard of living provided by EU debt rather than by a return on their own labours. And they want all the social benefits that no European country can afford. And they want to retire earlier than any other country in Europe. They don’t realise that staying in the EU and Eurozone will just lead to further unsustainable debts and a bigger collapse around the corner.
Greece is seen as the only big problem in the world. At least this is what the Elite wants the world to believe. But Greece is of course only a microcosm of the world as a whole. Virtually every nation in the West has the same problem including Japan plus China and the Emerging world. Everybody focuses on little Greece with a debt of €320bn that has only increased by 33% since the Great Financial Crisis started in 2007. Take the US with a debt of $18 trillion and a debt that has gone up by 100% since 2007. Thus, the US federal debt has increased by $9 trillion in the last 8 years as against an increase of only €80bn for Greece. Also, the US has not had a real budget surplus since 1960. So the Elite is using little Greece as a diversion from the real problem in the world which is of course a virtually bankrupt US economy.
During this crisis the downward manipulation in gold has continued. In the meantime Bitcoin has reflected the current crisis by going up by 50% since early June. Bitcoin is ‘just’ an alternative electronic currency whilst physical gold is real money and the only real form of wealth preservation. We are not far from the failure of this gold manipulation and an explosion of the gold price. This time next year gold is likely to truly reflect the massive crisis that the world is now entering.