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Greek Austerity Is Causing Political Turmoil

From a cheering (for the protesters) Associated Press:

Greek politics in turmoil over austerity measures

By Derek Gatopoulos, Associated Press
June 2011

ATHENS, Greece – Greece faced an escalating political crisis Thursday, with critics in the governing Socialist party in open revolt over harsh austerity measures despite assurances from the European Union that Athens would a receive rescue loan money needed to avoid a summer default.

Apparently, these ‘youths’ are protesting by throwing rocks and yogurt at the police. If you know the price of Greek yogurt, you can appreciate what a statement that is on their rejection of any austerity.

The party feud was the latest crisis to heighten worldwide concern that danger of a Greek financial collapse could trigger panic elsewhere in the 17-nation eurozone — a fear that saw borrowing costs in vulnerable EU countries surge and stock markets come under pressure

This is going to become the new theme in our news media.

Greek Prime Minister George Papandreou was forced to delay a planned Cabinet reshuffle and convene an emergency party meeting Thursday after two Socialist deputies resigned and others openly questioned his leadership.

"The political system is rotting … The country is not being governed the way it should be," said Socialist deputy Nikos Salagianis. "A reshuffle will not resolve the country’s problems." …

We have the same problem in our country.

Papandreou is trying to push through a five-year austerity program worth euro28 billion ($39.5 billion) that has been demanded by international creditors. The new spending cuts and taxes have spurred violent street protests as well as the party rebellion…

Something else our news media like to present as a warning to our own political leaders.

Markets remain wary of problems in Greece, where borrowing costs touched new records, pushing yields on 10-year Greek bonds to 18.4 percent. Rates on Spanish titles also climbed sharply to 5.6 percent

Why don’t they just raise their debt limit and print more money?

Stocks Europe-wide were down sharply for the second day running and the euro hit a three-week low below $1.41, meaning it has fallen around four cents in just a couple of days…

The European Central Bank warns that forcing losses on private creditors could pummel banks in Greece and throughout Europe, triggering a financial chain reaction of unknown — yet possibly catastrophic — proportions.

Investors could become convinced, for example, that other bailout recipients like Ireland and Portugal will be next to default, and fear of contagion could make the situation worse.

Huh. We thought that these ‘fat cat’ investors were the very people who needed to be punished. Weren’t they punished in the GM and Chrysler bailouts?

A European Central Bank official warned that the EU’s crisis bailout fund would have to double to euro1.5 trillion ($2.1 trillion) if Greece fails to pays its debts, potentially spreading financial turmoil.

Nout Wellink told the Dutch paper Het Financieele Dagblad that "if you fall through the ice you better have a very large safety net."

Make no mistake. The news media is going to present the crisis in Greece in such a way as to bludgeon our Congress into increasing the debt limit.

And never mind that the real lesson should be that we need to begin our own austerity program before it is too late.

This article was posted by Steve on Thursday, June 16th, 2011. Comments are currently closed.

5 Responses to “Greek Austerity Is Causing Political Turmoil”

  1. Liberals Demise says:

    Greece led the way for civilization.
    Why can it not lead the way to Global demise?
    Talk about a Greek Tragedy……….

  2. Warren says:

    Once again we see that SOCIALISM never works. How many times must we see this?

  3. Right of the People says:

    See how the masses act when they’re told the gravy train is coming to a halt? Ugly isn’t it when the pampered welfare bunnies realize they might have to get a job or something.

    Take heed America, this is our future if we don’t stop the madness now and get the butt pirate in the Oval Office out of there before he can turn us into the North American Greece.

  4. eaglewingz08 says:

    Yes, we are supposed to believe from the AP that these commie “protesters” are selfless and looking to better Greek society. Unfortunately for these commies, they always run out of other peoples’ money to steal and then their house of cards come crashing down.

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