The Eurozone is well and truly
fucked. Check this shit out, from Daily Beast:
German Bond Sale Called ‘Disastrous’
Economists worried Wednesday that a “disastrous” German bond sale could mean that country would be the next to tumble in the euro-zone debt crisis. The implications of a threat to the German economy—the euro zone’s largest—have many wondering if the euro zone in its current form could survive the mushrooming debt crisis. “It is a complete and utter disaster,” said economist Marc Ostwald. The German treasury could only sell about two thirds of the $8.1 billion in 10-year bonds, and the new bond promised to pay out a 2 percent interest rate—the lowest ever on an issue of 10-year German bonds. Wall Street closed down before the Thanksgiving holiday on not only the news out of Germany, but also that Belgium is leaning heavily on France to pay off its debts and worries over Chinese factories.
GERMANY? Oh, man. That's not Greece or Portugal. Thats the world's fourth largest economy and by far the biggest one in Europe. They are the ones underwriting everyone else's mountainous bailouts.What happens if the Eurozone is rent asunder by their inability to not fuck things up? Don't worry, I googled it. First check this out, it's a graph of budget surplus/shortfall over the last decade...
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| Nice one, Ireland |
Now look at this graph from 2010, which basically shows that they just borrowed the difference form surplus to shortfall from the public sector...
Not a pretty picture. I'm still convinced that the U.S. will handle it's debt load one way or another, if for no other reason than that our GDP is three times the size of the entire
Eurozone's put together and we can still
afford it. But it's a cautionary tale, nonetheless, and it will probabaly spell the end of the Europen Union. And what happens if the Union dissolves? From the looks of it, not much. Most countries will be better off, it seems. I guess we'll wait and see.
