By John Galt
May 17, 2011
The first story that caught my eye this morning was the revolutionary idea created by the European Union to solve the Greek solvency crisis:
Start renaming the solutions.
For example, when anyone else takes out a business loan and then at a later time due to a shift in economic conditions request to change the terms of repayment, it is properly labeled a “restructuring” which is the alternative to a default or late repayment and allows the debtor a chance to repay it at a later time. In the world of sovereign debt however, that word is verboten as it creates the appearance that the nation is unable to repay the debt and causes banksters to panic at the thought.
Fast forward to this morning and this story from Bloomberg:
EU Sees Possible Greek Debt ‘Reprofiling’
The innovation in this solution is akin to the terms being flung about by other economists today:
“Creative Destruction”
“Safe Subprime”
“Off Balance sheet liability”
and my favorite:
“Transitory Inflation”
The reality is that by restructuring the Greek debt they inevitable is not being prevented, just postponed. Eventually the people of Greece will realize that they are nothing more than indentured servants and once that seeps into the political realm, their withdrawal from the Union is all but guaranteed. That day may not occur this year or next, but eventually sovereign peoples realize that their freedoms are subject to the whims of foreign banksters and their bureaucratic cronies.
When that day happens in America again, the world’s axis shall shift dramatically.
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