Zero Hedge gets to the point:
According to Greek Thema, in Thessaloniki, the second-largest city in Greece, so far in 2012, an unprecedented 1,250 companies have shut down. This means no jobs, no tax revenues, no money in circulation. A complete and total economic collapse.
So let us explain: while Greece and Europe may engage in endless check kiting Ponzi schemes: such as the most recent one, whereby Greece promises to pay Germany by issuing bills, bought by its banks, which in turn are repoed to the ECB via the ELA, with the cash used by the country to pay Germany and the ECB, even as Germany's contingent liabilities get more massive by funding the ECB's capital, the reality is that unless someone does some work, and creates real wealth, real money, instead of merely shuffling electronic cash from Point A to Point B, while the only thing increasing are German contingent liabilities, aka systemic debt, absolutely nothing will change.
And if nothing continues to not change, even perpetuating stasis will be unsustainable. Greece is the world model: They will be the first country to collapse, and ultimately, they won't be alone. Can they come up with a workable internal solution to their accelerating implosion, or will anarchy rule their future?
According to Greek Thema, in Thessaloniki, the second-largest city in Greece, so far in 2012, an unprecedented 1,250 companies have shut down. This means no jobs, no tax revenues, no money in circulation. A complete and total economic collapse.
So let us explain: while Greece and Europe may engage in endless check kiting Ponzi schemes: such as the most recent one, whereby Greece promises to pay Germany by issuing bills, bought by its banks, which in turn are repoed to the ECB via the ELA, with the cash used by the country to pay Germany and the ECB, even as Germany's contingent liabilities get more massive by funding the ECB's capital, the reality is that unless someone does some work, and creates real wealth, real money, instead of merely shuffling electronic cash from Point A to Point B, while the only thing increasing are German contingent liabilities, aka systemic debt, absolutely nothing will change.
And if nothing continues to not change, even perpetuating stasis will be unsustainable. Greece is the world model: They will be the first country to collapse, and ultimately, they won't be alone. Can they come up with a workable internal solution to their accelerating implosion, or will anarchy rule their future?
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