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NOTHING I observe on this crazy, spinning ball is more ironic than Greece’s political, economic, and social collapse.  Universally saluted as the cradle of global civilization, ingenuity, and democracy; it has fallen prey to the very hubris made famous in Greek Tragedies like Oedipus and Antigone

The 2,500 year-old Parthenon – still standing while Greece crumbles
Whether Greece specifically ushers in destruction of the European Union – and with it, the entire Western banking system; remains to be determined.  However, history books will undoubtedly attribute the Greek debt crisis as a key underlying factor…

Greek government-debt crisis – Wikipedia

This “GREEK TRAGEDY” started in the early 2000s in familiar fashion; when its weak-minded “leaders” made a DEAL WITH THE DEVIL to allow Greece to live above its means for a few short years…

How Goldman Sachs helped mask Greece’s debt

However, once Global Meltdown I hit in late 2008, the “hidden debt” was EXPOSED; catalyzing an historic financial collapse – that became widely understood when Greece’s debt was downgraded to “junk” status in April 2010…

Greece’s Debt Cut to Junk, First for Euro Member – April 27, 2010

…prompting the first EMERGENCY bailout a week later; when the ECB printed €110 billion and handed it to the continent’s most profligate government…

110 Billion Euro Package: EU Agrees to Prop Up Greece – May 3, 2010

Of course, Greece’s financial situation was already past the “point of no return”; and thus, less than two years later, Greek 10-year yields EXPLODED to nearly 50%…

greek-ten-year-yields

…prompting a second EMERGENCY ECB bailout – of €130 billion.  Of course, “austerity” measures were incorporated this time; mandating MASSIVE budget cuts aimed at reducing Greece’s debt/GDP from 160% to 120% by…wait for it…2020…

Default Averted: Euro Zone Agrees on 130-Billion-Euro Bailout for Greece – February 21, 2012

…which so far, hasn’t quite worked out; as debt/GDP recently passed 175%…

…amidst an economic cataclysm

Greek GDP Shrank 6% in Fourth Quarter amid Jobless Crisis

…yielding a poverty explosion

Greek unemployment rate hits record 27 percent as recession rolls on, poverty spreads

…particularly – and ominously – among the nation’s youth…

Greek Youth Unemployment Tops 60%

…which is probably why Neo-Nazis are rapidly gaining popularity; and the MAJORITY of Greek citizens would likely vote for “Grexit” (i.e, Greek secession from the EuroZone) if a referendum were held today…

Greek Neo-Nazi Party Surges to Third in Polls, as Anti-Bailout Syriza back on Top – September 9, 2012

Still, “Goldman Mario” Draghi is committed to do “whatever it takes” to save the Euro (i.e., print unlimited amounts of Euros); and thus, when a third bailout was required “before the paint dried” on the second, he essentially IGNORED Greek flouting of said austerity demand.  Thus, following additional, HOPELESSLY FUTILE discussions…

Discussions were continuing on the methods to be used to lower the country’s staggering €430 billion debt, including a possible debt buyback and a lowering of interest rates on loans to Greece.

-November 27, 2012

…the ECB granted another €37 billion bailout in December 2012; which will likely buy but months before the next, MUCH BIGGER crisis emerges…

Greece bailout funds approved – December 13, 2012

…which clearly the financial markets are anticipating; as Greek 10-year yields have risen back to 12%…

Greece 10-Year Bond Yield

…while the Athens Stock Exchange is rolling over from last-year’s Central bank liquidity-driven “dead-cat bounce”…

april-9-2003

…particularly the “WORLD’S MOST IMPORTANT STOCK” – the National Bank of Greece; hopelessly insolvent, and facing a near-term funding crisis…

nbg-april-8-2013

NOTHING saddens me more than the transformation of something that was once great into a chaotic shell of its former self; and living in the United States, that point is particularly poignant to my personal experience.

I have ZERO doubt that – one way or the other – Greece will eventually exit the EuroZone; potentially, providing the “flash point” catalyzing the END of the Western banking system; and with it, FINANCIAL ARMAGEDDON.  My only hope is those neo-Nazis don’t fully take over Greece; but unfortunately, I don’t anticipate such a hopeful outcome.

PROTECT YOURSELF, and do it NOW!

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