Gorilla's Blog

Well the bondholders sure aren’t happy!

But there’s little they can do, other than finish the Eurozone off for good!

A trillion dollars in bad debts is a lot of money, but not enough to tank the enterprise.

It’s apparent the ECB will try to to keep European banks from crash landing.

But until there’s a clear declaration that the ECB will be the lender of last resort, coupled with a German decision to start printing money and promoting domestic consumption on a big scale, the contagion and the threat to the world economy will continue to be real.

Gorilla says: “Small beer down Merkel’s back, but the deluge is coming!”

But what the heck, says the IMF, Greece, let’s have another go!!!

The problem that no one wants to mention is that a default will likely cause a banking crisis throughout the Eurozone. But a default is realisitically the only option open if Greece wants to avoid self-destruction.

This is because so-called leaders like Chancellor Merkel, M. Trichet and President Sarkozy have essentially lied to their publics about what’s going on: Northern European banks and the ECB are on the hook for what looks like a couple of trillion dollars in bad loans to Greece and other peripheral Eurozone countries.

With another round of extend and pretend, coupled with savage budget austerity that guarantees no economic recovery at all for another decade or more, these liars think they can keep the Eurozone going.

Gorilla says: “Good luck with that!”