Gorilla's Blog

Greece, which really should be defaulting on its debts and heading out of the Euro, is now falling apart as it attempts yet more idiotic austerity.

The haircuts need to be on the order of 80-100%, and the ECB needs to step forward as a lender of last resort.

What the Greeks don’t seem to realize is that they have far more leverage to get a sensible solution than do the German, French, Dutch, and Austrian banks that financed the country into bankruptcy.

Gorilla says: “Arise Greeks, and screw your bankers, the only way is up!”

Destroying our country’s economy faster will make things better, until it doesn’t.

The tempting opportunity to commit national suicide is always there…

Austerity wins again, the only losers are all the citizens of all the countries whose banks led the lemmings over the cliff!

And the reality is that this utter folly won’t save Greece or the banks, contagion will continue until national leaders stop lying about their banking systems, stop fearing nonexistent inflation, and stop trying to conjure up confidence fairies when there simply isn’t sufficient demand for anything more than a very weak recovery.

What the world needs is vastly more stimulus, particularly in the US and Europe, accompanied by global balance adjustments through currency appreciation in more vibrant emerging markets like China, India, and Brazil.

What we’re getting is a lost decade of high unemployment and mediocre growth, an entirely preventable disaster if we had leaders who weren’t wholly owned by the financial services industry.

Gorilla says: “Capitulation to the forces of stupidity is not what used to be called democracy!”