Germany has admitted that they will not force their country to pay for Greece’s fiscal incompetence. Lack of fiscal responsibility that is unchecked will always have consequences when real leadership emerges to address the situation. Whether Germany is just making a prudent decision or trying to avert a popular uprising from their own people, the result is the same: Greece will pay the price for Socialism and bad political decisions.
Will the United States learn from this lesson? The administration already has learned this lesson and is counting on an economic collapse to reshape our government. Although patriots will fight to maintain the Constitution and freedom, our success is not guaranteed as the government itself is responsible for the march to Socialism.
In order to win, we must follow the example set by George Washington and make an appeal to Heaven. There is no other way to get back our natural rights without God. How else will be able to win against the 46% who pay no taxes, the government, the labor unions and the media?
David DeGerolamo
German push for Greek default risks EMU-wide ‘snowball’
Germany is pushing behind the scenes for a “hard” default in Greece with losses of up to 60pc for banks and pension funds, risking a chain-reaction across southern Europe unless credible defences are established first.
The exact level will depend on findings by the EU-IMF “Troika” in Athens.
“A lot has happened since July. Greece has fallen back on its commitments, so we have to assume that the 21pc cut is no longer enough,” said one source.
Finance minister Wolfgang Schäuble told the Frankfurter Allgemeine that the original haircuts were “probably” too low, saying banks must have “sufficient capital” to cover greater losses if need be. Estimates near 60pc have been circulating in Berlin.
The shift in German policy has ominous echoes of last year when Chancellor Angela Merkel first called for bondholder haircuts, setting off investor flight from Ireland and a fresh spasm in the EU debt crisis.
