We Are All Greeks" - SocGen Presents The New World Order

We Are All Greeks" - SocGen Presents The New World Order

www.zerohedge.com

"We are all Greeks" - so begins one of the best reports on the unsustainability of the status quo, and on what "the new world order" will look like, created by SocGen's Veronique Riches-Flores. Her overarching observation: "No one can claim immunity from a Greek-style spiral" because "Our economies are mature, with weak potential GDP, especially post the financial crisis" and due to that old standby which everyone chooses so conveniently to forget, yet which is the biggest threat to the world's "welfare-state" stability, in existence since 1860 and which has been responsible for no

(visit the link for the full news article)

That, in a nutshell, is it, no matter how many protracted essays one reads predicting the future (or war in Europe): the truth is there is increasingly less cash flow, coupled with increasingly more demands for cash.

Perhaps a different sort of new world order than that which many on here believe in - this one is not one of illicit conspiracies by the "elite" to rule us all - it is much more powerful than that - and it is completely ruthless and heartless - it cannot be appealed to or assasinated or protested against.

It is one which we all participate in - we insist on our protectionisms, we insist on well paid jobs, and govt and private spending.....but basically (as I read this) we just aren't producing enough to justiify it all - and we keep electing politicians who promise us all this abecause we keep believing inthe fairy tale!!

With no other way out, at least fiscally (the monetary discussion is a whole different topic, and one which will be a source of ever increasing tension both in the US and Europe, where as the most recent bailout demonstrated on one hand the ECB is demanding the creation of a fiscal union and the issuance of Eurobonds to remove "money printing" pressure from it, while the fiscal authorities will hear none of it and instead demand that the ECB print ever more in order to avoid blame when it all goes horribly wrong), the next step is a substantial cut in public investment. The social response will not be enjoyable.

(italics are mine)

Indeed!




www.zerohedge.com
(visit the link for the full news article)

reply to post by Aloysius the Gaul


The last bail out last week is not implemented yet, the EU is betting on China to help with the debt, this week is going to be a very interesting one, because China is telling today that they will not joing the EU bailout.

This could mean that China's economy is not as strong as many believer or that their whole banking system is nothing but a shadow and a ponzi scheme.

The total bailout now stands at 1.4 trillions for 1 trillion last week, so is a lot of speculation going on, becasue without depending on China the EU that is already facing financial stress will have to come out with the money some other way. (like printing money) no good for the markets that were pushed last Friday on speculation.

What the whole deal didn't tell is from where the money will come without China.

For more information go to the Market data thread.

There's soem really interesting duscussion and comments attached to the OP article - makes for good reading....dare I say a bit more educational than we often get on here??!!